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The past week has not been kind to the Insurance Australia Group Ltd (ASX: IAG) share price.

Since the start of the COVID-19 pandemic, there have been numerous catalysts heaping pressure on the IAG share price.

Let’s take a look at why shares in Australia’s largest insurer have been struggling.

IAG share price suffers on outlook

Many investors and shareholders in IAG will be looking at how the company has performed for the year.

Shares in the insurer came under pressure last week after releasing a preliminary set of results for the full year.

Judging by the price action, investors were less than impressed.  

The insurer flagged a statutory net loss of the full year, down from a $435 million net profit in FY 2020.

IAG also expects to report gross written premium growth of 3.8% and an underlying insurance margin of 14.7% for the year.

In its preliminary report, the company cited corporate expenses of $1.51 billion in FY 2021, including a $1.15 billion business interruption provision.

IAG is slated to report its earnings on Wednesday 11 August.

More on the IAG share price

In addition to struggling this past week, the IAG share price has not enjoyed a good year thus far.

Since the start of the year, shares in the insurer are trading around 4.5% higher.

In comparison with the S&P/ASX 200 Financials Index (ASX: XFJ) which is up more than 19% for the year, the IAG share price has been lagging severely.

Several catalysts have made it tough for the IAG share price to recover.

IAG was on the receiving end of an unsuccessful court case in New South Wales last year. The landmark court case sought to exclude pandemic lockdowns from business interruption policies.

Shares in the insurance giant also came under pressure in mid-June, following flood events in Victoria.

The Victorian floods were the third major claim this year following previous floods in New South Wales, and Cyclone Seroja in Western Australia.

For FY 2021, IAG’s net costs for natural disasters are approximately $660 million, having budgeted for only $658 million in natural disaster claims at the beginning of the financial year.

Shares in IAG closed yesterday’s trading session at $4.87.

The post The IAG (ASX:IAG) share price has dropped this last week. Here’s why appeared first on The Motley Fool Australia.

More reading

• How is the IAG (ASX:IAG) share price performing against the financial services sector?
• Is the IAG (ASX:IAG) share price in the buy zone?
• Own IAG (ASX:IAG) shares? Here’s what to look for during reporting season
• 5 things to watch on the ASX 200 on Monday
• ASX 200 midday update: Crown-Star merger talks end, Evolution jumps

Motley Fool contributor Nikhil Gangaram 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 Insurance Australia Group 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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Sometimes there are ASX shares that have been heavily sold off.

That may be completely justified. It may be an opportunity.

There is a saying about trying to catch ‘falling knives’. Sometimes falling shares can keep falling.

With that in mind these two ASX shares, which have been beaten-up in recent months, could be good ideas to think about:

Kogan.com Ltd (ASX: KGN)

The Kogan share price has dropped by around 37% over the last six months.

It’s an e-commerce business that sells a wide variety of products and other services online. Some of those services includes insurance, superannuation and mobile.

The ASX share has been suffering from excess inventory costs. That includes demurrage costs and warehousing. To bring down the level of inventory it has been lowering item prices and spending on advertising.

Despite those problems, Kogan saw more volume in FY21 than FY20 – gross sales grew 52% and gross profit rose by 60%.

The month of June 2021 saw am acceleration of gross sales, gross profit and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), suggesting a recovery could be underway.

Kogan may be able to get back to delivering operating leverage improvements in FY22, where profit could rise faster than revenue, thanks to its growing size and number of customers.

ELMO Software Ltd (ASX: ELO)

Over the last six months the ELMO share price has fallen by 25.6%.

ELMO is a business that provides cloud-based HR and payroll software for small businesses and mid-market organisations to management people, process and pay. It provides services in the UK, New Zealand and Australia.

The business is steadily launching more modules so that it can provide a better service, ensure it’s more integrated with a business’ operations and potentially make more money from each client.

Despite the decline of the share price, its annualised recurring revenue (ARR) continues to grow. In the first half of FY21, the ARR grew by 42.8% to $74.2 million and cash receipts rose 25.5% to $34.4 million in the half-year.

In a guidance update a couple of months ago, the ASX share said that its momentum had continued, with growth across the business. ELMO pointed out that an increasingly remote-based workforce has highlighted the mission critical nature of having cloud-based business solutions, like ELMO’s.

The ELMO CEO and co-founder Danny Lessem said:

There is positive sentiment in the market, and it is pleasing to see procurement starting to return to pre-COVID levels.

Our growth strategy remains on track…Our value-proposition is stronger than ever, and ELMO remains well placed to benefit from tailwinds in the adoption of cloud-based technology.

The post 2 beaten-up ASX shares that could be buys in August 2021 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Elmo (ASX:ELO) share price spikes on new ‘Experiences’
• 2 buy-rated growth shares for ASX investors in August
• The Kogan (ASX:KGN) share price was a lockdown winner, so what’s going on now?
• These are the 10 most shorted ASX shares

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. owns shares of and has recommended Elmo Software and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Elmo Software and Kogan.com ltd. 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 Mineral Resources Limited (ASX: MIN) share price has been on the decline since last Friday. This follows the company’s announcement to the ASX regarding its acquisition of the Red Iron Ore Joint Venture (RHIOJV).

At Tuesday’s closing bell, Mineral Resources shares ended the session down 0.22% to $60.14, representing a 5.3% fall since last Friday.

What did Mineral Resources recently announce?

According to its last release, Mineral Resources advised it will take over the 40% interest in RHIOJV held by Red Hill Iron Limited (ASX: RHI). The remaining 60% interest is controlled by the Australian Premium Iron Joint Venture (APIJV).

The mining services company said the purchase price for the assets was to the tune of $400 million. This comprises a $200 million cash payment on completion of the transaction. The remaining $200 million would be paid when the first commercial shipment of iron ore extracted from RHIOJV departs the port.

In addition to the payments, Red Hill Iron will receive a royalty fee of 0.75% of free on board (FOB) revenue.

The proposed acquisition is expected to enhance Mineral Resources’ strategy in expanding its resource inventory around the Ashburton Hub.

The RHIOJV tenements, located in the West Pilbara region of Western Australia, contain a mineral resource of 820 million tonnes (Mt) with a grade of 56.44% iron ore.

Although the Red Hill Iron board recommended shareholders vote in favour, it won’t be until early September 2021 for the deal to be completed.

What’s going on with the Mineral Resources share price?

A possible catalyst for investors selling Mineral Resources shares could be a series of brokers weighing in on the company.

Analyst at Goldman Sachs maintained their neutral rating on Mineral Resources, indicating a 12-month price target of $61.00. The broker noted that that company’s fourth-quarter result was broadly ahead of its estimates, despite softer than expected iron ore shipments.

Goldman Sachs further commented that the recent acquisition of RHIOJV could further consolidate Mineral Resources interest in the West Pilbara Iron Ore Project. This would potentially improve the economics of developing the Ashburton Hub.

In addition to the Goldman Sachs report, Citi and Morgan Stanley raised their 12-month price targets by 27% to $65.00, and 10% to $49.70, respectively.

However, it appears that investors are taking Morgan Stanley’s underweight rating into stronger consideration. The broker believes that the market is not factoring in the risks associated with project development, along with discounts applied to low-grade iron ore.

Based on the current Mineral Resources share price of $60.14, this implies a downside target of around 17%.

The post The Mineral Resources (ASX:MIN) share price is down 5% this last week. Here’s why appeared first on The Motley Fool Australia.

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• 2 buy-rated ASX dividend shares with 5%+ yields
• Leading brokers name 3 ASX shares to sell today
• Why ASX lithium shares are beating the iron ore majors – again
• Up 275% today, Red Hill Iron (ASX:RHI) share price enters stratosphere
• Why the Mineral Resources (ASX:MIN) share price will be on watch today

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. 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 A2 Milk Company Ltd (ASX: A2M) share price has struggled through the last 7 days despite no news having been released by the embattled company.

In fact, the last time the market heard price-sensitive news from A2 Milk was way back on 10 May.

However, as The Motley Fool Australia reported yesterday, brokers are bearish on A2 Milk.

Since this time last week, the A2 Milk share price has fallen 6.88%. Shares in the company at market close today are swapping hands for $5.96 apiece.

Let’s take a closer look.

What’s driving A2 Milk lower?

A2 Milk’s shares have been struggling this week for no apparent reason.

However, Credit Suisse analysts did put out a note on A2 Milk yesterday. They have retained their underperforming rating and $5.50 target on A2 Milk’s shares.

The analysts cited their belief the Chinese e-commerce market won’t improve enough to see its outlook on A2 Milk turn positive.

Credit Suisse’s lack of confidence in A2 Milk seemingly echoes that of A2 Milk itself.

The last time we heard price-sensitive news from the company was months ago, when it downgraded its own guidance for the fourth time.

Perhaps understandably, the A2 Milk share price sank 13.1% following the downgrade’s release.

The company’s original guidance for the 2021 financial year was revenues of NZ$1.73 billion.

Now, A2 Milk has told the market it expects to bring in between NZ$1.2 billion and NZ$1.25 billion through the 2021 financial year.

A2 Milk share price snapshot

It likely doesn’t come as a surprise that the A2 Milk share price has been struggling lately.

It has fallen 48% since the start of 2021. It’s also currently 69% lower than it was this time last year.

The company has a market capitalisation of around $4.4 billion, with approximately 742 million shares outstanding.

The post The A2 Milk share price is down 7% this last week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• These are the 10 most shorted ASX shares
• Why a2 Milk, Afterpay, Dicker Data, & Oil Search shares are charging higher
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• These were the worst performing ASX 200 shares last 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 recommended A2 Milk. 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 Wesfarmers Ltd (ASX: WES) share price has continued to climb higher throughout 2021, delivering 23% returns to shareholders year-to-date.

The retail conglomerate is highly regarded as a safe bet in the investing world. Wesfarmers owns businesses such as Bunnings, Kmart, Officeworks and of course Coles Group Ltd (ASX: COL). However, the latter has its own identity on the ASX and operates as a separate entity.

When most people invest in blue chip companies, they are generally seeking ongoing dividends more so than growth. After all, Wesfarmers with a market capitalisation of around $70.5 billion, is unlikely to double in value anytime soon. Therefore, shareholders won’t be expecting its share price to break past $120.00 without significant time invested.

During market close on Tuesday, Wesfarmers shares finished relatively flat at $62.21.

Quick take on Wesfarmers’ recent dividend history

Over the last 12 months, Wesfarmers have paid dividends to shareholders of $1.83 per share. This comprises FY20’s final dividend of 77 cents per share along with a special dividend of 18 cents. The special dividend reflected the distribution of profits on the sale of the group’s 10.1% interest in Coles during FY20. The last dividend payment came from the company’s interim FY21 report, paying shareholders 88 cents per share.

Based on the current share price of Wesfarmers, this translates to a dividend yield of around 2.9%. It’s worth noting though that all of its dividends have been fully-franked, which offsets any tax liabilities.

What to expect for Wesfarmers upcoming dividend?

While Wesfarmers isn’t due to report its FY21 financial results until 27th August, investors may be curious about what to expect for the upcoming dividend.

According to Goldman Sachs, analysts are expecting Wesfarmers to report full-year revenue of $34,132.1 million. This implies an increase of 10.7% compared to the prior corresponding period.

Earnings before interest and tax (EBITDA) is forecasted to come in at $3,508 million, reflecting a 9.6% lift on FY20.

In line with the strong earnings, the broker predicts a full-year dividend of $1.84 per share. When factoring in the FY21 interim dividend payment of 88 cents, this equates to about 86 cents for the second half.

How is the Wesfarmers share price valued?

Goldman Sachs’ latest report maintained its buy rating on the retail conglomerate’s shares. The investment bank indicated a 12-month price target of $59.70, which is slightly lower than the current Wesfarmers share price.

A reason for the bullish performance of the company’s shares could be that the market is anticipating better-than-expected results.

The post Should you buy Wesfarmers (ASX:WES) shares in August 2021 for the dividend yield? appeared first on The Motley Fool Australia.

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• Is it a good time now to buy Wesfarmers (ASX:WES) shares?
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• API share price (ASX:API) falls after rejecting Wesfarmers takeover offer
• Wesfarmers (ASX:WES) share price falls after API rejects takeover offer
• Own Wesfarmers (ASX:WES) shares? Here’s what to look for during reporting season

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Wesfarmers 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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Motley Fool Chief Investment Officer Scott Phillips is joined by analyst and portfolio manager Ryan Newman to break down the mechanics of the Afterpay Ltd (ASX: APT) takeover by Square Inc (NYSE: SQ) — what it means for your shares, and what your options are…

The post What happens to my Afterpay shares in the Square takeover? appeared first on The Motley Fool Australia.

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• ASX 200 drops, Afterpay jumps again, Credit Corp rises
• The IOUpay (ASX:IOU) share price is soaring 11% today. Here’s why
• Why Afterpay, Bellevue Gold, Pilbara Minerals, & Zip are charging higher
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Motley Fool contributor Scott Phillips 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 AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 growth shares to buy, then the tech sector could be a great place to start. At this side of the market there are a number of companies with the potential to grow materially in the future.

With that in mind, I have picked out two top tech shares to consider. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is this family-focused mobile app maker.

It has been a very strong performer this year and continues to report meteoric growth in active users. For example, last week Life360 released its second quarter update and revealed that its global monthly active user (MAU) base increased by 4.2 million over the three months to reach 32.3 million users.

This underpinned a 28% increase in quarterly underlying revenue to US$25 million and a 36% jump in annualised monthly revenue (AMR) to US$105.9 million.

In response to the release, the team at Credit Suisse retained their outperform rating and lifted their price target on company’s shares to $10.00. It appears confident the company can exceed its guidance in FY 2021.

Nitro Software Ltd (ASX: NTO)

The second tech share to look at is Nitro. It is a global document productivity company that helps businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation.

Demand for its offering has been growing strongly, which is leading to stellar recurring revenue growth. For example, last week Nitro also released its second quarter update. That update revealed that its annualised recurring revenue (ARR) reached US$33.8 million at the end of June. This was an increase of 56% over the prior corresponding period.

It expects this trend to continue in the second half and is forecasting full year ARR in the region of US$39 million and US$42 million. Positively, this is still only a fraction of its overall market opportunity.

Morgan Stanley is very positive on the company. Last week its analysts put an overweight rating and $3.70 price target on the company’s shares.

The post 2 exciting ASX tech shares rated as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
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• Why Afterpay, Nickel Mines, Nitro, & St Barbara shares are sinking
• Why Eagers Automotive, Life360, Spark, & Virgin Money UK are pushing higher
• Why the Life360 (ASX:360) share price is marching 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 Life360, Inc. The Motley Fool Australia has recommended Nitro Software 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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As half of Australia continues to suffer from COVID-19 lockdowns, certain lifestyle habits come into play.

One trend, first seen last year during the first wave of the pandemic, is the increased usage of private cars.

Understandably, Australians are more averse to riding public transport when a deadly virus is spreading.

According to multiple experts, there is one particular ASX stock that is set to take advantage of this theme.

Expert reveals he owns this ASX share himself

Online loan provider Money3 Corporation Limited (ASX: MNY) specialises in financing for second-hand car purchases.

Shaw and Partners senior investment advisor Adam Dawes revealed he has the stock stashed in his own superannuation portfolio.

“It’s a really good business; it’s a really good technology business. I’m really comfortable with it,” he told Switzer TV Investing.

“I like recommending it to clients.”

Dawes liked that Money3 revised its financial forecast upwards a couple of months ago.

“They were looking for a net profit of about $36 million. They upgraded that to $38 million,” he said.

“They’ve had a couple of acquisitions that they’re bedding down at the moment which seem to be working on the right space.”

Money3 will rake it in while cars are going like hotcakes

Burman Invest chief investment officer Julia Lee agreed with Dawes that Money3 was heading in a positive direction.

“The outlook for cars is extremely strong,” she said.

“If you want to try to buy a new car there’s a long wait — and if you’re trying to buy a used car, the price has gone up substantially than what you would’ve paid 2 years ago.”

Lee added that Money3 has “a good team” running the ship.

Dawes also saw the consumer shift to private vehicles as a major tailwind.

“We know that the second-hand vehicle market has gone absolutely ridiculous because it takes 6 months to get a new car delivered,” he said.

“And people need cars straight away sometimes — and that’s why that second-hand car market has done so [well].”

Money3 started off as a bricks-and-mortar business and listed on the ASX in 2006. 

Its shares have risen almost 80% over the past 12 months, going for $3.10 on Tuesday afternoon. Money3 now has a market capitalisation of just under $650 million.

The post The ASX tech share to rocket during lockdown appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best ASX fintech shares of the 2021 financial year

Motley Fool contributor Tony Yoo 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 ASX shares in the e-commerce space have seen significant change over the last 18 months. Some of them could still be an opportunity.

Businesses in the digital space are tapping into growing demand for the ability to buy products online. Customers have been buying a lot of things online due to various effects of the global COVID-19 pandemic.

These two ASX shares in the e-commerce space could be opportunities:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a beauty focused e-commerce business. The business says that it has integrated content, marketing and an online retail platform. It partners with a broad and diverse portfolio of over 260 brands and 10,800 products. Adore Beauty operates in both Australia and New Zealand.

It’s currently rated as a buy by the broker UBS with a price target of $5.60. That suggests a double digit increase of the share price over the next 12 months, if the broker is right.

The broker is attracted to the story of the digital growth trend, loyal customers and long-term growth of revenue.

In an update for the third quarter of FY21, it said that its revenue was $39.4 million – an increase of 47% on the prior corresponding period. It also said that its active customers had increased 69% over the prior corresponding to 687,000.

Adore Beauty boasted of strong retention and re-engagement rates for new customers acquired during the COVID-19 period. It’s seeing a structural shift in consumer behaviour towards online retail, based on continued strong retention of customers.

At the time, the e-commerce ASX share said that it was on track to achieve FY21 revenue growth of between 43% to 47%.

The company is investing heavily for growth, but it’s expecting scale benefits and increased operating leverage as it gets bigger, leading to a higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another business in the e-commerce space.

The company is very clear with its goals. At the time of its FY21 result release, it said:

We will continue our reinvestment strategy, investing into growth areas of the business to grow our online market leadership position with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in our home market.

The business is seeing high levels of demand and growth and it wants to pursue even more.

In FY21 it saw full year revenue growth of 85% to $326.3 million. In the first few weeks of FY22 in July it saw revenue growth of 39%.

The e-commerce ASX share says it is benefiting from a number of tailwinds. That includes the ongoing adoption of online shopping due to structural and demographic shifts, an acceleration of these trends due to COVID-19, an increase in discretionary income due to travel restrictions and strong housing market growth.

Revenue per active customer increased 12% year on year due to customers repeat buying more often and spending more when they do.

Temple & Webster is expecting scale benefits as it gets bigger. But for now, it’s going to heavily invest for growth so it can capture the shift to online spending by households.

The post 2 leading ASX e-commerce shares that could be buys in August 2021 appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares rated as buys
• Top brokers name 3 ASX shares to buy next week
• 2 ASX growth shares that may be buys in August 2021
• Oz Minerals, Bluescope and Temple & Webster share prices surge. Scott Phillips on Nine’s Late News
• Top brokers name 3 ASX shares to buy today

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. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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Of course, the best way to judge whether an ASX share is a good purchase is to examine the company’s fundamentals and future potential.

But if all those signs are positive, it also helps to buy in at a low price.

This is where a technical analysis of stock price movements can help.

Fairmont Equities managing director Michael Gable is a specialist in this area, helping clients to buy ASX shares at the most advantageous time.

This week he revealed 3 stocks that are looking ripe for buying.

Commonwealth Bank’s ‘false break’

As a post-COVID recovery beneficiary, Commonwealth Bank of Australia (ASX: CBA) shares have risen almost 45% in the past 12 months.

However, the middle of June saw the stock’s rise stall at the $100 mark.

“However, instead of taking the higher probability route by falling away to lower levels, it managed to spend the last several weeks trading sideways in a narrow range instead,” said Gable in a memo to clients.

About a fortnight ago CBA shares dipped below $100 suddenly, but this only lasted a couple of days.

“This break of support a couple of weeks ago is, therefore, a ‘false break’ and that is a powerful sign that strong buying support [still] exists for CBA.”

CBA on Tuesday afternoon traded for $101.37. They are now “pushing to the upside”.

“This is, therefore, another buying opportunity and CBA is likely to continue trending higher from here and should be making new highs shortly.”

CSL’s irresistible dip

CSL Limited (ASX: CSL) hit a 2021 high on 18 June, finishing the day at $305.52.

At the time, Gable warned that the rise would reverse in the short term.

“That dip would be the next buying opportunity before it makes another run towards the old high, near $340,” he said on 22 June.

His words proved to be spot on, as CSL shares hit a trough of $275.15 by mid-July. But the ASX stock has since picked up upwards momentum, trading for $294.04 on Tuesday afternoon.

So now is the buying opportunity that he previously predicted.

“The jump [in] CSL a couple of weeks ago looked bullish and the last several days has merely seen it form a flag as it prepares for the next rally,” Gable said this week.

“It, therefore, looks as though CSL is on the move again here and it is likely to make an attempt to break the June high. That would be another buying opportunity.”

This ASX share is ‘ready to rally’

Online luxury goods retailer Cettire Ltd (ASX: CTT) was the darling of the ASX in the first half of the year. But its shares tumbled sharply in June, only to peak again by the end of that month.

The stock started July at $2.77 but on Tuesday afternoon traded at $2.28.

Gable reckons Cettire is “ready to rally again from here”.

“The fall in the share price since the July retest has been a lot slower than the June decline. We have also seen it level out near the June low and then bounce off it, which is a positive,” he said.

“A break of the June high would be the next buy signal.” 

According to Gable, it’s imperative Cettire shares keep their head above $2, to prevent a medium-term malaise.

“Current levels provide a good risk/reward opportunity.”

The post Here are 3 dipping ASX shares now ready to rally appeared first on The Motley Fool Australia.

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• Leading broker slaps $89 target on CBA (ASX:CBA) share price
• CBA (ASX:CBA) share price lifts amid soaring property prices
• Is it a good time now to buy CSL (ASX:CSL) shares?

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and Cettire Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Cettire Limited. The Motley Fool Australia has recommended Cettire 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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