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If you’re looking to boost your portfolio with some quality shares, then you might want to look at the ones listed below.

Here’s why these quality ASX 50 shares have been tipped as ones to buy right now:

NEXTDC Ltd (ASX: NXT)

The first ASX 50 share to look at is NEXTDC. It is Australia’s leading data centre operator with a collection of nine world-class centres located across the country. This doesn’t include the M3 and S3 centres under development and the S4 centre which has just been announced.

Nor does it include its potential expansion into the Asian market after opening offices up in Singapore and Tokyo. Given the size of these markets, this could provide NEXTDC with very long growth runways in the future.

For now, though, NEXTDC continues to generate strong revenue and operating earnings growth in Australia. For example, during the first half of FY 2021, the company posted a 27% increase in data centre services revenue to a record $121.6 million and a 29% increase in EBITDA to $65.7 million. This was underpinned by a 33% lift in contracted utilisation to 71MW, a 16% lift in customers, and a 16% rise in interconnections.

More of the same is expected in the second half and in FY 2022 according to analysts at Goldman Sachs. It is for this reason that the broker has a conviction buy rating and $14.80 price target on its shares.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 50 share to look at is Ramsay Health Care. It provides quality healthcare services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.

Although trading conditions have been tough over the last 18 months and recent lockdowns are likely to weigh on its immediate term performance, the company has been tipped to bounce back strongly. Particularly given the pent-up demand for healthcare services.

It is for this reason that analysts at Macquarie remain positive on the company. Last week they retained their outperform rating and cut their price target on its shares slightly to $73.35. It has trimmed its near term forecasts due to lockdowns but remains positive on its medium term growth.

The post 2 highly rated ASX 50 shares that could be buys appeared first on The Motley Fool Australia.

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• Is the NEXTDC (ASX:NXT) share price in the buy zone before its FY 2021 results?
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• NEXTDC (ASX:NXT) share price pushes higher on Sydney expansion news
• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor James Mickleboro owns shares of NEXTDC 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 recommended Ramsay Health Care 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 S&P/ASX 200 Index (ASX: XJO) rose today by 0.4% to 7,503 points.

Here are some of the highlights from the ASX:

BWP Trust (ASX: BWP)

The BWP share price fell around 2% today after releasing its FY21 result.

BWP revealed that net profit before revaluation gains for the year was $114 million, down 3% from FY20. The property business explained this reflected the one-off impact of deposit payments forfeited by prospective purchasers of BWP-owned properties that resulted in a higher net profit for FY20.

The real estate investment trust (REIT) explained that despite COVID-19 impacts and restrictions, Bunnings was able to operate on an unrestricted basis from the properties leased from BWP for the majority of the year. The trust received 99.6% of rent due for the year.

Net revaluation gains on the property investment portfolio amounted to $149.2 million for the year. The net tangible assets (NTA) per unit increased by 7.5% over the year to $3.29. It achieved like for like rental growth of 1.6% for the 12 months to 30 June 2021.

BWP reported a full year ordinary distribution of 18.29 cents per unit, the same as FY20. Capital profits were used to offset the lower net profit to maintain the same distribution.

The ASX 200 business is expecting to pay a similar distribution in FY22.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

The Genworth share price increased by around 7.5% today. It reported its half-year result for the first six months of FY21.

Australia’s largest lenders mortgage insurance (LMI) business reported a statutory net profit of $59.4 million, a turnaround from a loss of $90 million in the first half of FY20.

The insurance profit generated in the first six months of the year was $71.5 million, an improvement from the loss of $128.1 million in the prior corresponding period. This was helped by a 21.1% increase of gross written premium to $289.7 million.

The CEO and managing director of Genworth, Ms Pauline Blight-Johnston, said:

The result reflects the improved economy, housing market appreciation and low interest rates experienced during the half. Performance was also supported by operational initiatives implemented last year in response to the new operating environment created by COVID-19.

The stronger economy over the first half has provided good momentum for the company, however, the recent COVID-19 restrictions in some states will affect the ongoing economic recovery and have created renewed uncertainty. The latest round of borrower support programmes will extend the duration of the subdued delinquency behaviour we have been experiencing, pushing out the timeframe over which we will obtain increased clarity regarding ultimate claims outcomes.

Ingenia Communities Group (ASX: INA)

The Ingenia share price rose around 1% after announcing an acquisition.

It said that it’s buying Kings Point Retreat, an award-winning lifestyle and holiday community on the NSW South Coast.

The acquisition includes 147 income-producing sites, including 53 permanent homes. Around 20% of revenue is derived from these permanent residents.

It’s located in the popular tourist destination of Ulladulla, within the group’s established South Coast cluster.

The $15.8 million acquisition is expected to settle in August 2021 and is set to deliver a ‘stabilised’ yield of over 7.7%.

The post ASX 200 rises, BWP Trust falls, Genworth soars appeared first on The Motley Fool Australia.

More reading

• BWP (ASX:BWP) share price tumbles after FY 2021 results
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• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• Genworth (ASX:GMA) share price jumps 7% on half-year earnings
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tristan Harrison 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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If you’re looking for some quality additions to your portfolio this month, then the two ASX shares listed below could be worth considering.

They have been tipped as shares that could generate strong returns for investors in the future. Here’s why they are rated very highly:

SEEK Limited (ASX: SEK)

SEEK is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.

At the end of the first half of FY 2021, SEEK’s local business was averaging 35 million monthly visits and had 160,000 active hirers. This meant it had almost a third of all placements in the region, which is a sizeable five times greater than its nearest rival.

The good news is that this leaves the company perfectly positioned to benefit from Australia’s strong economic recovery from the pandemic. Especially given predictions that Australian unemployment will fall materially over the next 12 months. This bodes well for job ad volumes and SEEK’s top line growth.

Macquarie is very positive on SEEK. It currently has an outperform rating and $40.00 price target on its shares.

Xero Limited (ASX: XRO)

Another highly rated ASX share to look at is Xero. It is a fast-growing provider of a cloud-based business and accounting solution to small and medium sized businesses.

Xero’s rapid growth in recent years has been driven by the shift to the cloud, its global expansion, and a series of bolt-on acquisitions. Positively, these acquisitions have continued over the last 12 months and are strengthening its app ecosystem meaningfully.

This is a big positive because analysts at Goldman Sachs believe the monetisation of this app ecosystem could be the key to multi-decade strong revenue growth. It is partly for this reason that the broker currently has a buy rating and $165.00 price target on Xero’s shares.

The post 2 fantastic ASX shares named as buys by analysts appeared first on The Motley Fool Australia.

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• 2 highly rated ASX 200 growth shares analysts love
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• Now’s the time to buy Xero (ASX:XRO) shares, say experts
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended SEEK 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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Shares in Resmed Inc. (ASX: RMD) are back in focus as the company readies to report tomorrow (ASX Reporting Calendar). Investors are showing eagerness with the share price 1.1% higher to $36.72 in afternoon trade.

Investors are still waiting with bated breath to hear more about the company’s latest sleep apnoea product. The team at Alphinity Investment Management believes the Resmed AirSense 11 could act as a major catalyst for the company.

Could this push the Resmed share price higher?

The Alphinity Australian Share Fund is a diversified portfolio of 35 to 55 stocks selected based on quantitative and fundamental analysis. The fund has delivered investors a net return of 28.4% over the past year. This was roughly in line with the S&P/ASX 300 Accumulation Index return of 28.5%. One of those companies is ASX healthcare titan, Resmed.

In its June quarterly report, Sydney-based boutique investment manager recapped the performance of its Australian Share Fund. On top of that, the fund manager put forward its outlook for the portfolio.

The Alphinity team shared an optimistic perspective towards Resmed, stating:

Resmed has had some challenges with the lagged impact on demand for its sleep apnea products due to a decline in sleep diagnostics during Covid. Testing is now recovering and a significant global product recall by its major global competitor, coinciding with Resmed’s launch of its new S11 airflow generator, is also providing the company with an opportunity for a step-change in market share globally.

The competitor mentioned by the fund manager is Philips. Collectively, ASX-listed Resmed and Philips cater to 90% of the global obstructive sleep apnoea (OSA) devices market and 85% of global OSA markets.

As a result of the 3 to 4 million Philips device recall, Alphinity considers the current landscape to be a considerable opportunity for Resmed. The release date of the healthcare company’s AirSense 11 is yet to be announced, however, it will likely be brought forward.

Are ASX investors sleeping on Resmed?

While the sleep apnoea company took a hit from COVID last year, the fund manager anticipates a recovery in the market. Additionally, the Philips recall opens the gate wide for Resmed to capitalise on expanding market share.

Admittedly, the Resmed share price trading on a price-to-earnings (P/E) ratio may seem expensive. However, the fund believes the market is underestimating the potential earnings upside for the business. ASX-listed Resmed is up 27.9% over the past year.

Lastly, don’t forget to check back tomorrow for its Q4 FY21 results.

The post New Resmed (ASX:RMD) product could shake up market share – Expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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 EML Payments Ltd (ASX: EML) share price closed in negative territory on Wednesday. This comes despite no news being released by the payments company since last Friday.

EML Payments shares finished the day down 2.86% to $3.73. In comparison, the S&P/ASX All Technology Index (ASX: XTX) is up 0.09% to 3,026 points.

What’s causing EML Payments share price to fall?

A possible catalyst for investors selling off EML Payments shares could be ongoing concerns about the company’s issues with one of its acquisitions.

Last week, EML Payments revealed it had identified historical deficiencies related to dormant and expired e-money accounts in its subsidiary, Irish-based business Prepaid Financial Services (PFS).

The company advised that the discrepancy was for periods prior to its acquisition of PFS. It said that normally these funds would be kept in “safeguarding accounts” for 6 years post expiry of the account.

The audit is not expected to impact EML Payments’ profit and loss account as the issues were before its acquisition. However, a cash injection of around £14.1 million ($26.6 million) will be required into safeguarded accounts held by PFS UK.

At the end of June, the company had an unaudited cash balance exceeding $140 million.

Pleasingly, EML Payments said that the monies may be released back over an extended period of time.

EML Payments share price summary

Over the course of the last 12 months, EML Payments shares accelerated to an all-time high in April before nosediving. The severe drop came as the Central Bank of Ireland cited significant regulatory concerns with PFS Card Services.

As a result, the EML Payments share price crashed below $2.80. Since then, the comany’s shares have moved sideways, down 11% year-to-date.

Based on valuation grounds, EML Payments presides a market capitalisation of roughly $1.34 billion, with 361 million shares on issue.

The post What’s going on with the EML Payments (ASX:EML) share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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 Centaurus Metals Limited (ASX: CTM) share price has delivered outsized returns over the previous week.

In addition, whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of 2.66% over the last month, Centaurus shares have climbed 29.5% into the green over this time.

Let’s zoom in on what’s behind the rise of the Centaurus Metals share price over the last week.

Jaguar Nickel Sulphide project to be class-leading

Centaurus announced on 2 August that its Jaguar Nickel Sulphide mine in Brazil was potentially “one of the world’s foremost nickel projects in terms of its carbon footprint”.

A Centaurus commissioned study by a “specialist metals and mining ESG research company” designated that label for the company.

As a result, Centaurus believes it is in a prime position to drive investment from “leading ESG-focused investors and institutions”.

In addition, the study results confirm the Jaguar project’s status as a “class leading” site that can process a “nickel sulphate product on site”.

The Jaguar site also has other “unique attributes” that fold into its low-emissions designation, thereby reducing its carbon footprint. For instance, it is “largely” powered by renewable energy.

Moreover, Jaguar produces E1 emissions at “4.69 tonnes of CO2/tonne of nickel equivalent”. This comes in at a lower rate than “97% of existing global nickel production”, as per the company.

The Centaurus Metals share price has climbed 9.2% into the green since the open on 2 August, also setting a 52-week high.

Centaurus shares are now exchanging hands at $1.01 apiece, a 1.5% gain on the day.

Centaurus Metals share price snapshot

The Centaurus Metals share price has posted a year to date gain of 23%, extending the previous 12 month’s return of 104%.

These results have outpaced the broad index’s climb of around 26% over the past year.

At the time of writing, Centaurus has a market capitalisation of $356 million.

The post Why the Centaurus Metals (ASX:CTM) share price is up 17% in a week appeared first on The Motley Fool Australia.

More reading

• The Euro Manganese (ASX:EMN) share price soared 7% today
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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 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 Euro Manganese Inc (ASX: EMN) share price is soaring 6.78% today despite no news being released by the company.

However, the market heard from Euro Manganese last week when it announced it has received an extra €125,000 from the European Battery Alliances’ EIT InnoEnergy‘s investment.

Prior to that, Euro Manganese announced its subsidiary has received an extension to its Chvaletice Exploration Licenses.

Right now, the Euro Manganese share price is 63 cents, 6.78% higher than its previous closing price.

Let’s take a closer look at the latest news from the battery materials company.

The latest from Euro Manganese

The Euro Manganese share price is soaring today despite the company not releasing any price-sensitive news since last Tuesday.

Then, it announced it has received the second of three tranches of investment funding from EIT InnoEnergy.

EIT InnoEnergy’s total investment into Euro Manganese will be worth €250,000. The second tranche will see EIT InnoEnergy paying €125,000 for 330,647 shares.

So far, EIT InnoEnergy will be receiving 478,027 Euro Manganese shares. The company expects to issue the shares in January 2022.

EIT InnoEnergy leads the European Battery Alliance‘s industrial stream. It’s supported by the European Institute of Innovation and Technology.

The money will go towards the Chvaletice Manganese Project’s definitive feasibility study and demonstration plant.

The demonstration plant will produce samples of high-purity manganese for supply chain qualification by potential customers. The company expects those customers to include European electric vehicle and battery manufacturers.

The Euro Manganese share price didn’t react to the news.

The market also heard from Euro Manganese last fortnight when it announced its subsidiary has received licences to continue exploration at the Chvaletice Manganese Project until 2026. It was also granted a new preliminary mining permit that’s valid until 2026.

The licences mean the company can begin operations at the project in the first quarter of 2022.

The Euro Manganese share price gained 3.3% the day the news was released.

Euro Manganese share price snapshot

This year has been a good one for the Euro Manganese share price.

Right now, it’s 59% higher than it was at the start of 2021. It has also gained a whopping 826% since this time last year.

The company has a market capitalisation of around $220 million, with approximately 371 million shares outstanding.

The post The Euro Manganese (ASX:EMN) share price is soaring 7% today appeared first on The Motley Fool Australia.

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• Magnis Energy (ASX:MNS) share price lifts 11% on battery plant update
• 2 mid cap ASX shares that analysts love

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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The Pilbara Minerals Ltd (ASX: PLS) share price is a top S&P/ASX 200 Index (ASX: XJO) performer on Wednesday, up 4.57% to a record close of $2.06.

Shares in the lithium miner have been a tear in recent weeks, fueled by higher lithium prices and positive investor sentiment towards renewable technology.

What’s driving the Pilbara Minerals share price?

Looming lithium shortage

Fastmarkets sees that increasing and sustained demand for lithium will strain the supply side through to 2030.

To add some perspective of exactly how much lithium the world might need, Fastmarkets reported:

“…a total of 345,000 tonnes of processed lithium was produced in 2020, dominated by resources from the lithium triangle and Australia. Lithium production must quadruple between 2020 and 2030 to meet growing demand, from 345,000 tonnes in 2020 to 2 million tonnes in 2030.”

The increased demand for lithium has helped the Pilbara Minerals share price make a quick turnaround from multi-year lows in early 2020 to setting new record highs every week for the past 6 weeks.

Pilbara Minerals’ inaugural lithium auction

Pilbara Minerals held its inaugural spodumene concentrate auction via its Battery Material Exchange platform on Thursday, 29 July.

Up for grabs was 10,000 dry metric tonnes (dmt) of spodumene concentrate.

The company was pleased to advise that it received 62 online bids from 17 independent buyers during the three-hour auction window.

The winning bid secured the 10,000 dmt at US$1,250/dmt free on board (FOB).

Back in June, Pilbara Minerals noted that spodumene concentrate prices were varying between approximately US$700 to US$975/dmt.

The narrative of surging lithium prices bodes well for the strong performance of the Pilbara Minerals share price.

Expansion towards 1 million tonnes per annum

Another factor supporting the Pilbara Minerals share price could be its aspirational goal of reaching 1 million tonnes per annum (tpa) of spodumene concentrate production.

In the near term, the company believes it can increase its production up to 580,000 tpa by mid-2022.

Driving the growth in lithium production will be the restart of its Ngungaju processing plant in Western Australia.

The plant, formerly owned by  Altura Mining Limited (ASX: AJM), is expected to contribute approximately 180,000 to 200,000 dmt by mid-2022.

Pilbara Minerals share price snapshot

Pilbara Minerals has rallied 16.10% in the first few days of August and up 136.78% year-to-date.

In the last two years, the company has reported its full-year results in the last week of August.

The post Why the Pilbara Minerals (ASX:PLS) share price is up 15% this week appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• Why Afterpay, Bellevue Gold, Pilbara Minerals, & Zip are charging higher
• Why ASX lithium shares are beating the iron ore majors – again
• The Pilbara Minerals share price (ASX:PLS) is booming 8%. Here’s why
• These were the best performing ASX 200 shares in July

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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Bitcoin (CRYPTO: BTC) is down 2% over the past 24 hours, currently trading for US$37,894 (AU$51,208).

That gives the world’s biggest crypto a market cap just north of US$711 billion, down from some US$1.2 trillion at mid-April’s peak.

Bitcoin is still well below its US$64,829 record high.

But even after the past few days of falls, the token remains up more than 27% over the past 2 weeks. On 21 July, as you may recall, it was trading for US$29,790.

And it’s that rapid price gain, among other issues, that’s keeping some crypto investors up at night.

Flying too high too fast?

JJ Kinahan is the chief market strategist at TD Ameritrade. According to Kinahan (quoted by Bloomberg), “This rally has been so quick that you have to be a little bit careful of how quickly it’s accelerated over the last few weeks.”

Technical analysts also point to Bitcoin falling below its 100-day moving average as a sign of potential further weakness.

According to Matt Maley, chief market strategist for Miller Tabak + Co, “If it does indeed bounce back, it’s going to be quite bullish. If, however, it sees much more downside follow-through, things are going to get scary pretty quickly.”

Pressure from US infrastructure bill

Another recent issue that’s cropped up for Bitcoin is the infrastructure package currently being debated by the United States Congress. As part of the package, with the intent of raising US$28 billion in revenue, crypto brokers would need to reports their transactions to the Internal Revenue Service (IRS).

The thing here is that US$28 billion won’t be conjured from thin air. It will come directly from the pockets of crypto investors who’ve banked profits. As the infrastructure bill progresses, it could put further pressure on the Bitcoin price.

And investors who’ve been pining for the US to greenlight a Bitcoin exchange-traded fund (ETF) have been left wanting.

US Bitcoin ETF proposal disappoints enthusiasts

While the Canadian government has approved several Bitcoin ETFs this year, the US has been slow to do. The US has cited concerns over money laundering and fraud, among others.

This week, however, US Securities and Exchange Commission chairman Gary Gensler appeared to open the door to such an ETF. But crypto enthusiasts were disappointed to learn the fund would rely on Bitcoin futures, rather than one actually backed by the token.

Matthew Sigel, head of digital assets research at VanEck, was among those sounding less than pleased. Speaking to Bloomberg over the phone, Sigel said:

We see Bitcoin futures-based funds as inferior products that have consistently underperformed the Bitcoin price and bring additional complexities in regards to how they must be managed, at a higher cost than ETFs. Simply put, they are substandard vehicles…

What the SEC seems to be doing is pushing individual investors into higher-risk, lower-quality products to get their Bitcoin exposure instead of sticking with the tried-and-true ETF wrapper, which has given millions of investors exposure to so many different assets, many of which are much more speculative and illiquid than Bitcoin.

Nate Geraci from the ETF Store views this as a potentially positive first step. But he says it will add unnecessary complexity:

Investors want the real deal and a quick glance north of the border shows the real deal not only exists, but is prospering…

Futures introduce a layer of complexity, as contracts held by an ETF must be managed and rolled. Futures-based ETFs are unlikely to perfectly track the spot price of Bitcoin. Plus, there are differences in taxation.

What about price manipulation?

We’ll leave off with James Seyffart, the ETF analyst for Bloomberg Intelligence, who addresses investor concerns about price manipulation.

Seyffart points out that one benefit of futures is that they’re regulated. He says this “provides a bit of an additional layer of investor protection from the underlying Bitcoin market”.

“But in my mind, it doesn’t make much of a difference,” he adds. That’s “because if you truly believe Bitcoin is manipulated, Bitcoin futures are going to be affected by said manipulation of the underlying market”.

With prices continuing to be highly volatile, the best advice for crypto investors tossing and turning at night remains never to invest more than you’re prepared to lose.

The post Here’s what’s keeping Bitcoin investors awake at night appeared first on The Motley Fool Australia.

More reading

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• Bitcoin price tumbles 6% after 10 days of gains…now what?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Endeavour Group Ltd (ASX: EDV) has been flying in the last month – up 10.2% in the last 30 days.

At the time of writing, shares in the alcohol retailer are selling for $6.74 – down 0.88%. Earlier in the day, however, shares did reach a new all-time high of $6.91.

While the company has not made any price-sensitive announcements since first demerging from Woolworths Group Ltd (ASX: WOW), there are some external factors that may have played an important role.

Let’s take a closer look.

I’ll drink to that!

The biggest story of the last month is of course coronavirus. Australia’s sluggish vaccine rollout combined with the highly infectious delta strain of the virus has plunged almost every major metro area into lockdown sometime over the last month. The country’s largest city, Sydney, is in the middle of a nine-week minimum lockdown. South-East Queensland joined the harbour city over the weekend.

As previously reported, these lockdowns, while challenging for many people and businesses, have been a boon for consumer staples – including bottle shops. Sales are increasing for ASX listed grocers, big box stores and the like as customers are stuck at home with limited shopping options.

While Endeavour does own and operate a number of hospitality venues – the revenues they generate are dwarfed by those earned through its Dan Murphy’s and BWS brand stores.

In the most recent Woolworths half-yearly report, Endeavour Drinks generated $419 million compared to $122 million from hotels. Endeavour’s revenue was up 24% on the prior corresponding period while hotels were down 45%.

Investors may feel that the financial benefit Endeavour experienced last year will return with these new lockdowns. This could be one reason why the Endeavour share price is up.

Yet, as most of the country is not in lockdown, its hospitality venues are not completely destroyed. Regional NSW and Queensland, and every other state, allow hospitality venues to be open in one form or another.

Endeavour share price snapshot

Since listing, the Endeavour share price has increased by 12%.

If an investor bought $10,000 worth of Endeavour shares at its lowest point of $5.77 and sold at its new high of $6.91, they would have made a tidy profit of about $1,975.

Given its current valuation, Endeavour Group has a market capitalisation of $12.2 billion.

The post Here’s why the Endeavour (ASX:EDV) share price is up 10% in a month appeared first on The Motley Fool Australia.

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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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