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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

BWP Trust (ASX: BWP)

According to a note out of UBS, its analysts have retained their sell rating and $3.86 price target on this Bunnings-focused commercial property company’s shares. This follows the release of BWP’s full year results earlier this week. While the company’s result was largely in line with expectations, UBS has concerns over its growth in the coming years. The broker suspects that it could experience a larger than normal amount of lease non-renewals over the next five years. The BWP share price is fetching $3.97 this afternoon.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this banking giant’s shares to $81.87. Goldman is expecting Australia’s largest bank to deliver a strong full year result next week and suspects that a $2.00 per share special dividend could be declared. However, this isn’t enough for a change of rating. It continues to believe its shares are overvalued and better value can be found elsewhere in the sector. The CBA share price is trading at $103.12.

Reece Ltd (ASX: REH)

Analysts at Morgan Stanley have commenced coverage on this plumbing parts company’s shares with an underweight rating and $16.40 price target. Although the broker is a fan of Reece and believes it is a high quality company, it isn’t a fan of its valuation. It believes the current share price is unsustainable and the risk is firmly to the downside. Morgan Stanley estimates that its shares are trading at over 50x full year earnings. The Reece share price is fetching $23.98 today.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• How did the CBA (ASX:CBA) share price perform in July?
• ASX 200 rises, BWP Trust falls, Genworth soars
• BWP (ASX:BWP) share price tumbles after FY 2021 results
• FY 2021 results preview: Is the CBA (ASX:CBA) share price good value?
• Here are 3 dipping ASX shares now ready to rally

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is hitting some turbulence today. This comes after the airline’s competition questioned its decision to stand down 2,500 crew.

The deputy chair of Regional Express Holdings Ltd (ASX: REX) has reportedly said Qantas made the decision prematurely.

Despite the reports, the Qantas share price was enjoying early gains today, up 0.11% to $4.51. However, at the time of writing, the shares have retreated and are swapping hands for $4.48, a fall of 0.44% on their previous close.

Let’s take a closer look at today’s news of Qantas.

Qantas accused of moving too soon

The Qantas share price is jittery today after the company’s decision to stand down frontline Qantas and Jetstar crew was questioned.

Today, The Age reported Rex’s deputy chair John Sharp was surprised to see Qantas stand down the staff before the federal government released details of its airline support package.

The Retaining Domestic Airline Capability scheme is a support package given to airlines by the federal government. It will see airlines handed $750 per week for at least half of its frontline staff if they can prove they’ve seen a 30% downturn in revenue.

The scheme was announced on Monday. However, Qantas was reportedly unaware of the scheme’s details when it stood down the 2,500 staff members on Tuesday morning.

The Qantas share price suffered as a result of the stand downs. It fell 1.5% over the course of Tuesday.

The Age quoted Sharp as saying:

None of us had yet got the full details of how the package would work and I would have thought it would be more appropriate to wait until we got those details before making any significant decisions.

According to Sharp, Rex hasn’t stood down any staff during the recent lockdowns.

Qantas share price snapshot

It’s been a bad week for the Qantas share price and it has added to the airline’s poor recent performance.

Qantas shares are currently trading for 8% less than they were at the start of 2021. However, they’ve gained 38% since this time last year.

The airline has a market capitalisation of around $8.4 billion, with approximately 1.8 billion shares outstanding.

The post Qantas (ASX:QAN) share price wobbles as rival questions staff layoffs appeared first on The Motley Fool Australia.

More reading

• The Qantas (ASX:QAN) share price is down 4% this last week. Here’s why
• The Flight Centre (ASX:FLT) share price has been struggling. Here’s why
• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Qantas (ASX:QAN) share price slips as airline stands down 2,500 crew
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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S&P/ASX 200 Index (ASX: XJO) investors aren’t letting yesterday’s losses in US markets get them down.

Nor do Aussie investors appear overly concerned about the spectre of extended and expanded lockdowns in New South Wales to combat the spread of COVID-19 cases. With new cases also emerging in Queensland and Victoria.

The ASX 200 has shaken off earlier losses and is up 0.2% at time of writing.

ASX 200 retail shares, meanwhile, are putting in a mixed performance.

Looking at 3 of the biggest retailing landlords in Australia, the Unibail-Rodamco-Westfield (ASX: URW) share price is up 3%, the Vicinity Centres (ASX: VCX) share price is flat, and Scentre Group (ASX: SCG) is up 1.2%.

ASX 200 retail shares came roaring back from pandemic fire sale

ASX 200 retail shares – especially those reliant on brick and mortar stores – were some of the hardest hit in the early days of the pandemic-fuelled fire sale in February and March 2020.

Subsequently, they also enjoyed some of the biggest lifts as investors began to look beyond the immediate impact of store closures on sales volumes and rents.

Scentre Group is up 74% from its March 2020 lows. Vicinity Centres has gained 65% since that time. And Unibail’s share price is up 69%.

Despite those impressive gains, all 3 ASX 200 shares are still trading well below their pre-pandemic levels.

And with the government’s latest Intergenerational Report flagging significant cuts to earlier population growth forecasts, the big retailers may find their own growth outlooks scaled back.

COVID-19’s long term growth headwinds

According to the government budget papers, Australia’s population growth in 2020-2021 will be 0.1%. Growth is forecast increase to 0.2% the following year and likely to 0.8% in 2022-2023. By comparison the population grew at a blistering rate of 1.2% in 2019-2020.

That means Australia is likely to be home to 1 million fewer people by 2023 than forecasters had been predicting pre-pandemic.

The drastic slowdown, driven by a virtual halt to immigration Down Under, could throw up some significant headwinds for the growth outlooks of ASX 200 retailers.

That’s according to Tony Dimasi, head of GapMaps Advisory, an independent advisor to the Aussie shopping centre industry.

“The retail sector has been very strong for two decades and the single most important thing that’s driven that is population growth,” Dimasi said, speaking to The Australian Financial Review.

By Dimasi’s figures, population growth has fuelled demand for an additional 750,000 square metres of retail space every year since 2006.

With fewer new arrivals now expected in the coming years, Dimasi sees the potential for a significant reduction in the growth outlook for retailers:

“If [the intergenerational report forecasts] are correct and we do end up seeing roughly 1.8 million fewer people by 2040 and close to 3 million fewer by 2060 than we would have otherwise, that certainly has significant implications [for retail floor space demand].

Dimasi says that Australia roughly has 2 square metres of retail space for every resident. So, “2 million fewer people means about 4 million square metres less in retail floor space needed.”

“There will be generally less floor space built than we’ve seen in the last two decades,” he added. “Because we have low inflation and we’ll have more moderate sales growth as a result of lower population growth for the next two to three years, I fully expect there will be very modest rental growth over the next two to five years.”

Long-term forecasts often amended

While the growth in demand for new floor space from ASX 200 retail landlords is tied in with population growth, Dimasi points out that these forecasts are subject to change.

“The reality is that immigration levels have varied enormously and continue to do so – we should not necessarily be taking these kinds of projections at face value.”

He believes “initiatives will be taken to change the situation” to support higher population growth levels.

But with the pandemic seemingly easier to control in Australia’s lower population states, the public may not be overly keen to reopen the immigration floodgates any time soon.

The post How COVID-19 could hamper ASX 200 retail shares for years to come appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price wobbles as rival questions staff layoffs
• Why ASX Energy shares are the worst performers today
• Why Objective, Pinnacle, Resolute, & Xero shares are pushing higher
• 3 numbers that should shock Robinhood shareholders
• Tesla (NASDAQ:TSLA) teases ahead of highly anticipated AI Day

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX energy shares are copping a beating as the sector is the worst performer on the S&P/ASX 200 Index (Index:^AXJO).

The sector slumped 1.3% even as the ASX 200 benchmark climbed 0.2% to a new record high at the time of writing.

Renewed jitters of an oversupply of oil are weighing on the ASX energy sector. A surprise increase in US crude inventories, the spread of the delta-mutation and a weaker than expected US jobs report are behind the negative sentiment.

Fall in oil price weighs on ASX energy shares

The oil price fell in response even as political tensions in the Middle Ease are rising, reported Reuters.

The Brent crude price lost 2.7% to US$70.21 a barrel while the WTI price benchmark shed 3.2% to US$68.02 a barrel.

Little wonder that the Santos Ltd (ASX: STO) share price tumbled 1.7% to $6.35 as its merger partner Oil Search Ltd (ASX: OSH) fell 1.3% to $3.93 during lunch time trade.

The Woodside Petroleum Limited (ASX: WPL) share price was another big drag as it gave up 1.4% to $21.74.

What is causing the oil price to fall

The US Energy Information Administration (EIA) reported that stockpiles of crude unexpectedly rose by 3.6 million barrels last week, according to Reuters.

Meanwhile, demand outlook for oil took a hit as several countries combat outbreaks of the COVID-19 delta variant.

“Coronavirus cases worldwide surpassed 200 million on Wednesday,” reported Reuters.

“The more-infectious Delta variant threatens areas with low vaccination rates and strains healthcare systems.”

Demand outlook hits ASX energy shares

China and the US are prime examples. These countries are big consumers of oil and outbreaks of COVID have dampened demand for oil in the past.

Australians don’t have to be told about the impact of lockdowns on consumption. Victoria could be following New South Wales and Queensland into another snap lockdown.

Further, the ADP data showed that US private employment increased by only 330,000 jobs in July. Economists were expecting 653,000 jobs.

No one listening to good news

The bad news was enough to distract investors from any positive developments, at least for today. Reports that Iran-backed forces have sized an oil tanker near the United Arab Emirates would usually trigger a spike in the oil price.

Investors are also ignoring the second part of the EIA report that showed a drop in gasoline inventories.

The post Why ASX Energy shares are the worst performers today appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Energy shares drop, Resolute jumps, Xero higher
• Why is the Santos (ASX:STO) share price slipping today?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, BWP Trust falls, Genworth soars
• Woodside (ASX:WPL) share price edges higher despite Scarborough cost increase

Motley Fool contributor Brendon Lau owns shares of Santos Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.2% to 7,519 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Objective Corporation Limited (ASX: OCL)

The Objective share price is up 5.5% to $18.55 following the release of its FY 2021 results. For the 12 months ended 30 June, the information technology software and services provider reported a 31% increase in annualised recurring revenue (ARR) to $74 million. This led to a full year net profit after tax of $16 million, which is up 45% year on year.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price has jumped 6.5% to $14.50. This follows the release of the investment company’s full year results after the market close on Wednesday. According to the release, Pinnacle more than doubled its net profit after tax to $67 million in FY 2021. This led to the company doubling its dividend to 17 cents per share.

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price has risen 4.5% to 58 cents. Investors have been buying the gold miner’s shares after it announced the sale of its Bibiani Gold Mine in Ghana. According to the release, Resolute has agreed to sell the mine to Asante Gold Corporation for $90 million in cash. The good news is the agreement has received Ministerial Consent. Earlier this year the Minister had blocked the sale of the asset to China’s Chifeng Jilong for ~$105 million.

Xero Limited (ASX: XRO)

The Xero share price is up 2% to $148.85. This appears to have been driven by a positive broker note out of Goldman Sachs. In response to the launch of the Xero App Store in the ANZ and UK markets, the broker has retained its buy rating and $165.00 price target on the company’s shares. Goldman commented: “Although the quantum of app attachment rates is uncertain, we estimated that a 15% app store fee could open up an incremental NZ$1.4bn of TAM, with these earnings likely to be 100% margin.”

The post Why Objective, Pinnacle, Resolute, & Xero shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Objective (ASX:OCL) share price jumps 6% to record high on strong FY 2021 result
• Pinnacle (ASX:PNI) share price lifts 6% on FY21 results
• ASX 200 midday update: Energy shares drop, Resolute jumps, Xero higher
• Xero (ASX:XRO) share price rises on app store news and broker note
• Why the Resolute Mining (ASX:RSG) share price is racing 6% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Objective Corporation Limited and Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Charlie Munger has called Robinhood (NASDAQ: HOOD) a “gambling parlor masquerading as a respectable business.” Its founders have argued that they are democratizing finance for the next generation of investors. Whichever side of the debate you fall on, most agree the trading app is shaking up the retail investing landscape. 

Amid the barbs and headlines, its initial public offering (IPO) has revealed many numbers that inform the debate. Here are three that would cause me to think twice before buying shares.

1. More than 50% of customers are first-time investors

This number might be the best argument in favor of Robinhood as a democratizer. If half of its customers are investing for the first time, then the company should be applauded for improving access to the investment world. In fact, there are a few other numbers to bolster that case. The average account size is about $3,500. Compare that to the average account size for E*Trade ($100,000) and Charles Schwab (NYSE: SCHW) ($240,000), and it looks like people who might not have traditionally invested in the stock market are getting involved. 

Dig a little deeper, and there are some flaws in the argument. The median account — the one with the same number of accounts larger and smaller — is only $240. And they appear to be much more active than at other brokerages. In the first quarter of 2021, Robinhood users made 60% more trades on average than those at Schwab. That disparity is magnified if you normalize for account size. There’s a reason for that: The company gets paid handsomely for all of that activity. In its first quarter, 81% of revenue came from selling those orders — called payment for order flow (PFOF). 

While almost all online brokerages do it, Robinhood makes almost 100 times more per dollar in the average customer account than Schwab, according to a report by Alphacution Research Conservatory. None of the likely reasons are good for inexperienced investors. First, users are more prone to trading risky instruments like options contracts and cryptocurrency.

The same report shows almost 90 times the number of options contracts traded for each dollar in the customer account compared to Schwab. The company’s own filings show its dependence on cryptocurrency (more on that in a bit) while Schwab, E*Trade, and TD Ameritrade don’t even offer it. Those orders are worth more to market makers than simple stock trades.

Second, inexperienced investors might be easier to take advantage of during market volatility. Lastly, those accounts could generate so much money because they trade more. Robinhood uses gamification (elements of game playing) to increase user engagement and prompt more transactions. It’s the same way a slot machine is designed to keep patrons pulling the handle. And like the one-armed bandit, people who do it a lot tend to lose in the end.

A recent study by academics at several California universities and the University of Washington showed stocks that are extremely active on Robinhood experience a price spike and then a sharp reversal — a classic sign of speculation. A different study by academics at the Sao Paulo School of Economics and the University of Sao Paulo examined 1,600 Brazilian day traders. It found that only 1% of them made more than minimum wage. The app’s most important role might end up being to teach a new generation of investors what not to do.

2. Seventeen percent of revenue is generated from cryptocurrency

In its IPO filing, Robinhood stated that 17% of its Q1 revenue this year was derived from cryptocurrency trading. That’s up from just 4% last year. Notably, more than one-third of that was related to Dogecoin (CRYPTO: DOGE). Doing the math, that means 6% of the company’s entire revenue was the result of an asset that traded for one-fifth of $0.01 less than a year ago. In total, crypto assets traded on Robinhood grew 24-fold year over year to $11.6 billion.

It’s amazing growth but hardly sustainable. Over that 12-month period, the price of Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin climbed 490%, 1,820%, and 10,800%, respectively. Cryptocurrency remained volatile in the second quarter, so the company’s next earnings report might convince Wall Street that the company can keep it up. But crypto volumes reportedly fell 43% in June. Without continued asset appreciation and trading activity, it’s hard to see this large chunk of the company’s revenue persisting.

3. The company recently paid $70 million in fines 

The penalty was a settlement with the Financial Industry Regulatory Authority (FINRA) for providing false and misleading information to its customers, as well as allowing them to partake in especially risky trading behaviors. Other charges included failing to tell customers how it made money and not obtaining best-price execution for their orders. The fines haven’t dented its ambitions.

Co-founder Vlad Tenev has said the company is considering offering retirement accounts and sees evidence that the majority of its customers practice a buy-and-hold investing strategy. It’s hard to make that case with the data that has been made public. It is a natural next step for Robinhood, but it might entice people to bring more of their money into the proverbial casino. It’s one thing to actively trade with $240; retirement accounts are a different story. After the previous fines and current review of PFOF by the Securities and Exchange Commission (SEC), I wouldn’t expect to see a Robinhood IRA anytime soon.

There are two sides to every story

Despite the red flags, the company has done some good. It is largely responsible for the industry adopting $0 trades, and it’s hard to argue that it hasn’t opened investing up to more people, especially people who might never have invested before. For that, it deserves praise. It even sold about 25% of its IPO shares to its own customers. But like so many other numbers, they can be interpreted in different ways. 

The company went public at the low end of its projected price range and was reportedly having trouble getting institutional investors to buy shares. The two founders each sold nearly $50 million worth. Although together they continue to own about 16% of the company, inexperienced investors might get the short end of the stick buying shares that much of Wall Street passed on. Deciding to invest in a company is a personal decision, and there are a lot of different reasons to choose one over another. These numbers are three reasons that keep me from making a bet on Robinhood.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 numbers that should shock Robinhood shareholders appeared first on The Motley Fool Australia.

More reading

• Lions become lambs as Robinhood (NASDAQ:HOOD) falters on debut

Jason Hawthorne has no position in any of the stocks mentioned. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Charles Schwab. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Tesla Inc (NASDAQ: TSLA) has been teasing its AI day event for a week now, but the excitement is mounting.

At the time of writing, the Tesla share price is sitting at US$710.92 – marking a 9.4% lift since the announcement of the inaugural event.

What do we know about Tesla AI Day?

After being revealed via a tweet from Elon on 29 July, plenty of rumours and speculation have circulated. According to invitations, the event is being held in Palo Alto California on August 19.

Invitees will get a keynote from Elon himself, witness hardware and software demos, and experience test rides in the Model S Plaid. The newly created artificial intelligence day will be dedicated to “convincing the best AI talent to join Tesla” in the words of Elon Musk.

Furthermore, the invitation included an image of a computer hardware stack. The image has been doing the round on Twitter with plenty of speculation over what it means. This has been further hyped by leading UCLA AI researcher Dennis Hong teasing his involvement with Tesla.

#Tesla #AI day
August 19, 2021 
Palo Alto, CA
5 p.m. PDT pic.twitter.com/4zsP9cVxh5

— Dennis Hong (@DennisHongRobot) August 3, 2021

https://platform.twitter.com/widgets.js

Potentially the most interesting statement in the invitation reads:

Attendees will be among the first to see our latest developments in supercomputing and neural network training. They’ll also get an inside-look at what’s next for AI at Tesla beyond our vehicle fleet.

Additionally, the event holds importance in understanding how far along Tesla is on its mission to create a fully autonomous vehicle fleet. However, the statement of “beyond our vehicle fleet” has onlookers wondering what else Tesla is working on.

From EVs to Robots?

Tesla commentators, including Dave Lee from Dave Lee on Investing, have speculated whether Tesla is pushing into making robots (humanoids). Though, in a YouTube video, Dave somewhat dismisses the potential of this in the near term — noting how far away technology is from that currently.

We’re on the cusp of something big, really big – namely the emergence of AI-powered robots that will be able to do most of what humans do but better.

This is both exciting and concerning.@elonmusk @tesla

— Dave Lee (@heydave7) May 1, 2021

https://platform.twitter.com/widgets.js

Instead, Dave suggested that AI Day might mark the announcement of Tesla branching out to other AI applications. For now, mark 19 August 2021 in your calendar, when Elon will drop the latest news.

The post Tesla (NASDAQ:TSLA) teases ahead of highly anticipated AI Day appeared first on The Motley Fool Australia.

More reading

• Tesla keeps winning even as Chinese EV foes watch sales soar
• Why Tesla stock popped Monday
• Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging
• Why the Tesla share price jumped 5% on Thursday
• Here are the US shares ASX investors were buying last week

Motley Fool contributor Mitchell Lawler owns shares in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price has jumped into the green, setting a new all-time high of $124.91 in early trading today.

Domino’s Pizza shares are now exchanging hands for $124.20, an approximate 2.13% gain at the time of writing.

Let’s try and capture some of the tailwinds behind the Domino’s Pizza share price.

Growth strategy on show

Domino’s Pizza shares have delivered outsized returns over the past month, climbing 8.4% into the green over that time.

Investors have been pushing the Domino’s Pizza share price higher lately after Domino’s announced the acquisition of PizzaVest Company Limited (also known as Domino’s Taiwan) earlier this year.

Domino’s Taiwan is the second-largest pizza chain in Taiwan and operates 157 corporate and franchised stores across the region.

The Domino’s share price has climbed 7.7% higher since the release on 11 June.

The latest acquisition builds on additional momentum Domino’s has built throughout 2021 to fuel its global growth engine.

Domino’s is aiming to “double store numbers globally to 5,550 locations by 2031”, according to a report from the Australian Financial Review.

In addition, analyst sentiment supports Domino’s growth narrative. A leading broker is expecting the company to report strong earnings for FY21.

Investment bank Goldman Sachs Group Inc (NYSE: GS) estimates network sales growth of 13.9% coupled with revenue growth of 14.5% to $2.2 billion.

Goldman sees most of that growth underscored by Australian and New Zealand same-store sales.

There is no market-sensitive information on the company today. Therefore, it stands to reason that investors are buying a slice of Domino’s growth story, pushing its share price higher.

Domino’s Pizza share price snapshot

The Domino’s Pizza share price has posted a year-to-date gain of 40%. This extends the 12-month return to a total of 64%.

These results have beaten the S&P/ASX 200 Index (ASX: XJO), which has climbed about 25% over the past year.

At the time of writing, Domino’s has a market capitalisation of $10.77 billion.

The post Why Domino’s Pizza (ASX:DMP) shares hit a record high today appeared first on The Motley Fool Australia.

More reading

• Own Domino’s (ASX:DMP) shares? What to expect from its FY21 results
• 3 stellar ASX growth shares rated as buys
• Top brokers name 3 ASX shares to sell today
• Why Altium, Beach, Domino’s, & Piedmont Lithium are tumbling lower
• The Domino’s (ASX:DMP) share price is near an all-time high. Here’s why

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coles Group Ltd (ASX: COL) share price has been having a great week on the ASX despite no news having been released by the company.

The Coles share price has gained 2.9% since the start of the week. Coles shares are currently trading for $18.05 apiece.

While it’s unclear what’s been driving Coles’ stock higher, it might be due to additional COVID-19 lockdowns having been put in place across Australia.

Let’s take a closer look at the Coles share price’s upwards momentum.

Does Coles profit from lockdowns?

The Coles share price has been gaining this week while lockdowns have hit southeast Queensland and Sydney’s ongoing lockdown has no end in sight.

Additionally, South Australia and Victoria have had lockdowns implemented and eased over the past 30 days.

Historically, Coles – and other food retailers – have profited off lockdowns.

As the latest retail data from the Australian Bureau of Statistics (ABS) confirms, Australians spend more on food when they’re locked down.

Food retailing was the only industry to see its turnover rise in June, increasing by 1.5%. The ABS said states entering lockdowns drove the increase.

Additionally, in Coles’ results for the first half of the 2021 financial year, the supermarket giant reported its cash flow increased because of Victoria’s extended lockdown.

However, the market didn’t react positively to Coles’ half year report. The Coles share price fell 10% over the two sessions following its release.

Over the first half, Coles received a 52% boost to its e-commerce business, driven mostly by home delivery orders from locked-down Victorians.

The Victorian lockdown also caused a reduction in road traffic, making Coles’ home delivery system more efficient.

Coles’ liquor segment also saw its e-commerce trade increase by 90% over the first half of the 2021 financial year. Liquor sales tapered off during the second quarter of the financial year as lockdowns and restrictions around the country eased.

Whether the current lockdowns have re-established these trends is yet to be seen.

It’s unlikely lockdown-driven increases will be a part of Coles’ annual results, due to drop on 18 August. That’s because Sydney’s lockdown didn’t begin until late June.

However, Coles’ results for the current quarter might make for an interesting read.

Coles share price snapshot

The Coles share price is having a good run lately.

It’s gained 7.8% over the last 30 days. However, it is currently 2.3% lower than it was at the start of 2021. It has also fallen 4% since this time last year.  

The post The Coles (ASX:COL) share price has gained 3% this week. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pantera Minerals Ltd (ASX: PFE) share price made its ASX debut at 11:30 am on Thursday, opening at 26 cents.

By 11:36 am, the company’s shares had already doubled, briefly hitting 56 cents.

At the time of writing, shares in the iron ore explorer have retreated back to 45 cents.

Let’s take a closer look Pantera Minerals and its red hot initial public offering.

About the Pantera Minerals IPO

Pantera Minerals successfully raised $7 million at an issue price of 20 cents per share.

The company owns a number of prospectus iron ore, manganese and polymetallic projects in Western Australia.

This includes the Yampi iron ore, Yampi copper and Yampi extension project, Weelarrana manganese project and Frederick polymetallic project.

Pantera Minerals’ has stated that its primary objective “is to focus on mineral exploration of resource opportunities that have the potential to deliver growth to the company for the benefit of its shareholders”.

“The results of the exploration and development programs will determine the economic viability and possible timing for the commencement of mining operations at the Projects.”

Near term catalysts for the Pantera Minerals share price

Pantera Minerals has a busy schedule ahead, with a proposed work programme budget of at least $4.3 million over the next two years to drive its exploration and development activities.

According to the prospectus work program, the company aims to invest $2 million in the first year for sampling, geophysics and drilling activities across its Yampi, Frederick and Weelaranna projects.

This means that investors can look forward to a steady stream of announcements such as sampling results, the commencement of drilling activities and drilling results.

The post Pantera Minerals (ASX:PFE) share price soaring 127% following IPO appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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