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If you’re looking for some growth shares to add to your portfolio, then you might want to look at the ones below.

Here’s what you need to know about these highly rated ASX growth shares:

Kogan.com Ltd (ASX: KGN)

The first growth share to look at is Kogan. It is the ecommerce company behind the Kogan, Dick Smith online, and Mighty Ape brands. It also has a number of complementary businesses such as Kogan Mobile, Kogan Internet, and Kogan Money.

The last 12 months have been very mixed for Kogan. After smashing expectations with meteoric sales and profit growth this time last year, inventory issues undid a lot of this and are set to weigh heavily on its full year results in August.

While this is disappointing, it is worth remembering that these issues are only expected to be temporary. In light of this, investors may want to focus on its strong long term growth prospects thanks to its leading market position and the structural shift online.

Credit Suisse believes the weakness in the Kogan share price this year could be a buying opportunity. It currently has an outperform rating and $17.93 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share to look at is WiseTech Global. It is the logistics solutions company behind the popular CargoWise One platform. This platform allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

It has been a very positive performer in FY 2021 despite the pandemic. For example, strong demand led to its first half revenue increasing 16% to $238.7 million and its EBITDA rising 43% to $62.5 million.

Pleasingly, management expects its second half performance to be just as strong and is guiding to full year revenue growth of 9% to 19% and EBITDA growth of 30% to 50%. And despite this growth, WiseTech Global’s revenue will still be only a fraction of the broader Supply Chain Management Expenditure market which is valued at US$15.2 billion.

Morgan Stanley is bullish on WiseTech Global. Its analysts currently have an overweight rating and $35.00 price target on its shares.

The post 2 excellent ASX growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Here’s how some of the top ASX SaaS shares performed in FY21
• Here’s why the Kogan (ASX:KGN) share price is falling on Friday
• Why Magellan, Origin, Piedmont Lithium, & WiseTech Global are dropping
• ASX 200 midday update: Zip rockets, AMP asset sale
• 3 stellar ASX 200 growth shares that could be buys in July

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 Kogan.com ltd and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and WiseTech Global. 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) could be a good option to consider for the long-term.

The exchange-traded fund (ETF) offers a few different things that investors may want to look for.

It’s offered by Vanguard, which has a goal of trying to provide as low cost investment options for investors as it can.

This particular investment option may tick some of the boxes.

Here are a few different reasons why it could be worth considering:

Global diversification

The investment objective of this ETF is to track the return of the MSCI World ex-Australia Index.

It provides exposure to many of the world’s largest companies listed in major developed countries.

There are many different countries represented in the holdings including the US, Japan, the UK, Canada, France, Germany, Switzerland, the Netherlands, Sweden, Hong Kong, Italy, Spain, Denmark, Finland, Singapore, Belgium, Norway, Israel and Ireland.

It can be helpful at mitigating country-specific risk when it’s invested in so many regions, although the US allocation is still at a hefty 68%.

High quality holdings across different sectors

Vanguard is able to share some portfolio characteristics statistics. It says that the return on equity (ROE) ratio was 15.9% and the earnings growth rate was currently 12% as at 31 March 2021.

Some, or many, of the world’s strongest businesses can be found in this portfolio. The biggest 10 weightings are: Apple, Microsoft, Alphabet, Amazon.com, Facebook, JPMorgan Chase, Tesla, Johnson & Johnson, NVIDIA and Berkshire Hathaway.

It has a total of around 1,500 holdings, so there is substantial diversification.

In terms of sector allocation, the biggest weighting is to information technology (21.4%).

Vanguard MSCI Index International Shares ETF’s low management fees

Vanguard’s owners are the investors themselves. The investment management outfit shares the profit with investors by lowering the management costs as much as it can.

Whilst not the lowest on the ASX, the annual cost is lower than many other ETFs out there at 0.18% per annum.

Historical returns

Past performance is not an indicator of future performance.

However, the longer-term returns of the ETF have been double digit numbers.

Over the past three years, Vanguard MSCI Index International Shares ETF has delivered an average return per annum of 13.7%. Over the last five years it has delivered an average return per annum of 12.9%.

A substantial amount of that return was capital growth, though there are distributions paid too. According to Vanguard, the equity yield as at 31 May 2021 was 1.6%.

The post Why Vanguard MSCI Index International Shares ETF (ASX:VGS) could be a good long-term buy appeared first on The Motley Fool Australia.

More reading

• 2 highly rated international ETFs for ASX investors
• 3 high quality ETFs for ASX investors

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 recommended Vanguard MSCI Index International Shares ETF. 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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On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell 0.9% to 7,273.3 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to start the week with a big gain. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1% higher. This follows a very positive end to the week on Wall Street, which saw the Dow Jones rise 1.3%, the S&P 500 climb 1.1%, and the Nasdaq storm 1% higher.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week strongly after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.2% to US$74.56 a barrel and the Brent crude oil price has risen 1.4% to US$75.55 a barrel. Traders were buying oil after US inventories declined.

Tech shares could rise

It could be a good start to the week for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO). This follows a solid night of trade on the Nasdaq index on Friday night, which saw the tech-heavy index hit a new record high. As the local tech sector tends to follow the Nasdaq’s lead, this could may bode well for today’s session.

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,810.6 an ounce. The gold price had its best week in seven amid concerns over the Delta strain of COVID-19.

Viva Energy given buy rating

The Viva Energy Group Ltd (ASX: VEA) share price could be good value according to analysts at Goldman Sachs. This morning the broker has responded to the fuel company’s market update by reaffirming its buy rating and $2.70 price target. Goldman said: “Viva 2Q21 was a strong beat vs GS’ above consensus 2Q21, 1H21 and 2021 forecast, which we expect to drive upgrades to consensus 2021 earnings. A return to ordinary dividends is increasingly probable in 1H21 and we forecast A2.9cps in the half.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• It has been a big past year for the ANZ (ASX:ANZ) share price
• These were the best performing ASX 200 shares last week
• These 3 ASX 200 shares were the most heavily traded today
• ASX 200 drops, Audinate booms, Humm falls

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 AFTERPAY T FPO and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and 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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Are you interested in boosting your income portfolio with some new additions? Then below are two options to consider.

Here’s why these ASX dividend shares have been rated as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

ANZ could be an ASX dividend share to consider. This is due to the increasingly positive outlook for the big four banks thanks to improving trading conditions and cost reductions. The latter sees the bank aiming to reduce its cost base to $8 billion by 2022.

In respect to improving trading conditions, you only need to look at ANZ’s recent half year results to see this. During the first half of FY 2021, ANZ reported a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

One broker that is positive on ANZ is Morgans. Its analysts currently have an add rating and $34.50 price target on its shares. It is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 163 cents per share in FY 2022. Based on the latest ANZ share price of $27.85, this represents yields of 5.2% and 5.85%, respectively.

Scentre Group (ASX: SCG)

Another ASX dividend share that has been recently tipped as a buy is Scentre. This is due to its strong position in the retail market, improving trading conditions, and its exposure to inflation.

In respect to the latter, Goldman Sachs notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under the broker’s coverage.

Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation, which bodes well in the current environment. The broker also highlights that higher inflation aids the profitability of its retailer tenancy base, which benefits from fixed cost leverage.

Its analysts have a buy rating and $3.46 price target on the company’s shares. Goldman is also forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Based on the latest Scentre share price of $2.86, will mean yields of 4.9% and 5.9%, respectively.

The post 2 buy-rated ASX dividend shares with generous yields appeared first on The Motley Fool Australia.

More reading

• It has been a big past year for the ANZ (ASX:ANZ) share price
• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
• ANZ (ASX:ANZ) share price takes the cake among big four bank shares
• 2 highly-rated ASX dividend shares for income investors in July
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21

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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One investment option that is growing in popularity is exchange traded funds (ETFs). And it certainly isn’t hard to see why they are so popular with investors. As well as being an easy way to invest your hard-earned money, they provide you with opportunities that were unattainable a decade ago.

But given the many options, it can be difficult to decide which ones to buy ahead of others. To narrow things down, I have picked out three ETFs that are highly rated right now. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

The first ETF for investors to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. BlackRock, which runs the ETF, highlights that the fund gives investors exposure to the top 500 U.S. stocks through a single investment.

It feels this can be used to diversify internationally and seek long-term growth opportunities for a portfolio. Among the companies you’ll be owning a slice of are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages or “moats”. Moats are something that legendary investor Warren Buffett looks for when he identifies his investments. And considering his success, following his lead could be a good idea.

Currently, there are a total of 49 US based stocks in the fund. This includes Amazon, Bank of America, Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This fund gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports. Among the companies included in the fund are giants such as graphics processing units company Nvidia, and game developers Activision Blizzard, Electronic Arts, and Take-Two.

VanEck highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. In addition to this, it notes that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside the status quo.

The post 3 excellent ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that could be worth looking at this weekend
• Have money to invest? Here are 2 ASX shares that could be buys
• 3 quality ETFs for ASX investors in July
• 2 ASX tech shares that might be buys in July 2021
• 2 ASX growth shares that could be buys in July 2021

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 recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF, VanEck Vectors Morningstar Wide Moat ETF, and iShares Trust – iShares Core S&P 500 ETF. 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 shock move by the Reserve Bank of Australia (RBA) chief to link migration to wages could set the scene for the Aussie to race higher.

ASX investors should pay attention. This development isn’t only relevant to currency traders looking to make a buck from betting on exchange rates.

RBA Governor Philip Lowe’s comments about how COVID-19 border closures are supporting a jobs boom took many by surprise.

Are investors underestimating the Australian dollar?

This is the first time in living memory that any RBA boss has made this connection, reported the Australian Financial Review.  

This is a big deal because it could indicate that the market is underestimating the Aussie battler. The Australian dollar is trading near its lowest level in 2021 at around US74.9 cents as traders believe the US Federal Reserve will lift interest rates before the RBA.

Dr Lowe reiterated the central bank’s view that the cash rate will not rise until 2024 when the Fed is tipped to lift theirs the year before.

Shuttered borders fuel the Aussie dollar rebound

But if the lack of skilled migrants does drive up wages, it will force the hand of the RBA to lift rates much sooner than expected.

Hints of this inflationary pressure will probably start to show in a few short months. This, combined with the belief that net migration will not return to pre-COVID levels for many years, will be enough to lure the Aussie bulls out from cover.

I won’t be surprised to see the Australian dollar running up towards US80 cents!

How the exchange rate will impact on ASX shares

This will create a headwind for the S&P/ASX 200 Index (Index:^AXJO) on two key levels. Most of the larger ASX shares sell products and services in US dollars. The stronger Aussie will reduce their profits when earnings are converted into the local currency. And lower earnings mean less dividends too!

The second point of friction is the inverse relationship between interest rates and ASX share valuations. In general terms, rising rates reduces the appeal of shares to investors.

Big Australia may have little impact on wage growth

But it isn’t all bad news. While Dr Lowe sees the link between the lack of migration and wage increases, not all economists agree.

They believe that wage pressure stems more from loose monetary policy and government stimulus than border closures.

And here’s the rub. Experts do not know how much of our labour tightness is due to fiscal and monetary policies and how much is due to migration.

How lack of migrants will hurt our economy instead

Goldman Sachs economist Andrew Boak thinks migration is only a marginal factor in the inflation debate, reported the AFR.

“At an aggregate level we see only modest upward pressure on wages given most industries have little reliance on migrant workers,” said Boak.

“Moreover, industries that produce goods and services typically demanded by temporary visa holders – for example education services and accommodation services – are likely to experience headwinds to demand and wages growth so long as international borders remain shut.”

Foolish takeaway

This leads me to the final point – while ASX investors should be conscious about what’s happening to the Aussie dollar, they shouldn’t base their investment decision based on where they think the exchange rate is going.

Not even the experts seem to know. What hope in heaven do the rest of us have?

The post Why the Australian dollar may be set to surge and how it will impact on ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 growing small cap ASX shares to watch
• Are these 2 high-flying ASX shares buys?
• Up 36%, why the BHP (ASX:BHP) share price has beaten the ASX 200 in the last year
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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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Investing in the small side of the share market carries significantly more risk than other areas. However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio.

With that in mind, here are three small cap ASX shares that could be worth watching closely:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia’s leading online beauty retailer. Adore Beauty has been growing strongly during FY 2021 and recently revealed that it expects to report full year revenue growth of 43% to 47%. And while its growth is likely to moderate in FY 2022 as its cycles significantly strong sales growth during the pandemic, its future remains very positive. This is thanks to its leadership position and the structural shift online for beauty sales. Online penetration rates are still much lower than other categories and compared to other Western markets.

BlueBet Holdings Ltd (ASX: BBT)

BlueBet is a mobile-first online wagering provider. It allows users to bet on all Australian and international racing and sports through its website and app. BlueBet has been growing very strongly thanks to the increasing popularity of mobile sports betting. This led to the company doubling its customer numbers to ~90,000 over the last 12 months, underpinning a 63% increase in wagering turnover to $266.3 million in 2020. This is forecast to grow a further 47% to $390.3 million in 2021. Positively, management is confident that this trend can continue and believes it is well positioned to substantially grow its current ~1.2% share of the market in Australia. It is also on the verge of expanding into the massive US market.

Serko Ltd (ASX: SKO)

A final small cap to watch is this online travel booking and expense management provider. While times have been hard because of the pandemic, the company recently revealed significant improvements in its performance. And while it isn’t anticipating a full recovery for another year, management believes it is well-placed to benefit when it does. This is due to the increasing popularity of its offering, its game-changing Booking.com deal, and favourable industry trends brought about by the pandemic. The latter is supported by its Zeno product, which has a number of product capabilities to address the challenges of post-pandemic business travel.

The post 3 growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• What’s up with the BlueBet (ASX:BBT) share price?
• The one thing ASX IPO losers have in common
• 2 exciting small cap ASX shares you should be watching closely
• Why the Pushpay (ASX:PPH) share price is under pressure
• 2 impressive ASX shares that could be buys in July 2021

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 Serko Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Serko 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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A few ASX shares have produced extremely strong total shareholder returns. They’re high-flyers – but could they be worth thinking about?

COVID-19 has been a very strange time. Some businesses have seen their share prices boom.

But are those strong ASX share performers still good potential investments?

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the world’s leading businesses when it comes to plus-size clothes and footwear for women. It operates through a number of different brands and businesses including City Chic, CCX, Avenue, Hips & Curves, Evans and Hips & Curves.

Over the last year, the City Chic share price has gone up by 55% – and a year ago wasn’t from the bottom of the COVID-19 crash.

City Chic reported that it is seeing growth despite all the impacts of COVID-19. In the first six months of FY21, it saw comparable sales growth of 20.8% excluding Victorian store closures, or 12.7% including store closures.

Half-year sales revenue went up 13.5% to $119 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 21.8%, with the EBITDA margin rising from 18.2% to 19.6%.

‘Normalised operating cashflow’ increased 25.7% to $21.5 million. Statutory net profit grew 24.8% to $13.1 million.

The ASX share is no longer just a bricks and mortar network in Australia. Around 45% of sales were from the northern hemisphere in HY21 and the business said overall online sales grew by 42% (representing 73% of total sales).  

Despite that profit growth, the broker Citi thinks that the City Chic share price is valued at 53x FY21’s estimated earnings.

Citi currently has a neutral rating on City Chic because of the valuation, though the e-commerce exposure is a good factor of the business. The price target is $4.30.

The broker is expecting more profit growth into FY22. On Citi’s numbers, the City Chic share price is valued at 33x FY22’s estimated earnings.

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and health care groups around the world. It provides a highly scalable platform that can be deployed in both public and private cloud environments.

Over the last year the Pro Medicus share price has risen by around 130%.

Revenue and profit didn’t rise quite as much as that in the last result – HY21 revenue grew 7.8% and net profit grew 12.4% to $13.5 million. The ASX share’s underlying profit before tax went up 25.9% to $18.76 million. The strengthening Australian dollar dampened the growth figures in Australian dollar terms.

In the first half of FY21, Pro Medicus reported one of the highest earnings before interest and tax (EBIT) margins on the ASX – 59%. The company is debt free and has been winning large contracts in both North America and Europe.

One of its latest wins was the 8-year, $14 million deal with The University of Vermont Health Network, further extending its US academic institution footprint.

Morgans doesn’t think the Pro Medicus share price can stay this high, as it may have been boosted by shorters exiting their positions. It has a sell rating on the ASX share.

The broker has a price target of $49.69 on Pro Medicus. At the current Pro Medicus share price, Morgans predicts it’s valued at 134x FY22’s estimated earnings.

The post Are these 2 high-flying ASX shares buys? appeared first on The Motley Fool Australia.

More reading

• Here’s how some of the top ASX SaaS shares performed in FY21
• How these top ASX biotech shares performed in FY21
• ASX company boss finally exits after 98% wiped off share price
• These were the best performing ASX 200 shares in June
• Pro Medicus (ASX:PME) share price eyes all-time high

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 Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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 BHP Group Ltd (ASX: BHP) share price has been a stellar performer over the last 12 months. The Australian-based mining giant outpaced the S&P/ASX 200 Index (ASX: XJO) by around 14% when looking at 1-year returns.

Although the BHP share price slipped on Friday, it isn’t far from reaching its all-time high of $51.82 achieved in May. At the market close, the mining company’s shares were trading at $49.48.

What’s moving the BHP share price?

Investors have continued to snap up the world’s largest mining company’s shares on the back of rising iron ore prices.

BHP has been busy capitalising on the strong price of the steel-making ingredient, pumping out record year-to-date production. The company reported 188.3 million tonnes of iron ore produced, a 4% lift when compared to March 2020. Current FY21 guidance of the metallic iron is estimated to come around at 245 million tonnes to 255 million tonnes.

Meanwhile, the iron ore price has skyrocketed to US$216.32 per tonne, closing in its record-high of $218.38 in December 2020. The rise has provided bumper profits for BHP, producing the steel-making material at a cash cost of less than US$15.00 per tonne.

What about the Chinese demand?

It’s no secret that China has taken punitive economic measures after Australia called for an inquiry into the origin of COVID-19. In the period since, China has imposed tariffs or restrictions on Australian coal, barley, wine, red meat, cotton, timber, and even lobsters.

However, China’s reliance on Australian iron ore is well known, with the country buying around 60% of the commodity from us last year. This equates to more than $80 billion, with a large portion of that going into BHP’s coffers.

Reports have surfaced that China is focusing on promoting domestic production, as well as exploiting untapped deposits in Africa. Fortunately for Australia and BHP, this is easier said than done. Based on the sheer scale of Chinese demand, this would take at least a number of years to produce anything near the iron ore it currently receives.

What do the brokers think?

After reporting its third-quarter results in April, a number of brokers rated the company with varying price points.

Global investment house Goldman Sachs raised its price target for BHP by 1.3% to $54.20. Macquarie followed suit to also increase its rating by 3% to $63.00.

The most recent broker note came from Morgan Stanley two weeks ago, which has initiated a price of $50.70 for the mining outfit.

BHP share price snapshot

The BHP share price has gone from strength to strength over the past year, rising around 36%. The company’s share price is in the upper end of its 52-week range of $33.73 to $51.82.

On valuation grounds, BHP commands a market capitalisation of roughly $145 billion, with approximately 2.9 billion shares on issue.

The post Up 36%, why the BHP (ASX:BHP) share price has beaten the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Can the ASX 200 hit 8,000 points by the end of the year?
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• The BHP Group share price is rising again — so where to from here?
• Here’s what leading brokers are saying about the BHP (ASX:BHP) share price in July 2021.

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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Bega Cheese Ltd (ASX: BGA)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this diversified food company’s shares to $6.35. Morgans has downgraded its earnings estimates to reflect the fact that Bega and rivals are overpaying for milk due to intense competition for supplies. However, it feels this is more than reflected in the current share price. As a result, it sees this as a potential buying opportunity for investors. The Bega share price ended the week at $5.39.

Netwealth Group Ltd (ASX: NWL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this investment platform provider’s shares to $18.25. This follows the release of its fourth quarter update last week. Macquarie notes that Netwealth outperformed its guidance in FY 2021 with inflows of $9.8 billion. The broker believes that this strong flow momentum continues to support its thesis despite elevated valuation metrics. The Netwealth share price was fetching $16.03 at Friday’s close.

TPG Telecom Ltd (ASX: TPG)

Analysts at Morgan Stanley have retained their overweight rating and $9.50 price target on this telco giant’s shares. According to the note, the broker suspects that a potential sale of its towers or other infrastructure assets a la Telstra Corporation Ltd (ASX: TLS) could be a positive catalyst for the TPG share price. Outside this, it continues to see a lot of value in its shares at the current level. The TPG share price was trading notably lower than Morgan Stanley’s price target at $6.21 on Friday afternoon.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk and Bega shares are looking so tasty now: analyst
• 5 things to watch on the ASX 200 on Friday
• Netwealth (ASX:NWL) share price up 5% on quarterly update
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Why the Telstra (ASX:TLS) share price outlook suddenly improved last week

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 Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth and Telstra Corporation 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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