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There are a lot of high quality companies listed on the Australian share market. This can make it hard to decide which shares to buy above others.

To help narrow things down, I have picked out two ASX shares that are highly rated. Here’s why they could be buys:

NEXTDC Ltd (ASX: NXT)

NEXTDC could be an ASX share to buy. It is one of the Asia-Pacific region’s leading data centre operators with a growing portfolio of world class centres in key locations across Australia. Thanks to the insatiable demand for data centre capacity due to the structural shift to the cloud, NEXTDC has been growing at a strong rate for years.

Pleasingly, this trend is expected to continue and support further growth in the coming years. In addition to this, NEXTDC is now looking to boost its growth by expanding into the Asian market. If this is a success, it could provide it with a significant market opportunity.

Citi currently has a buy rating and $14.45 price target on the company’s shares. This compares to the latest NEXTDC share price of $11.85. It notes that a majority of its near-term earnings are already contracted and customer expansion is underpinning its medium-term forecasts.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.  Temple & Webster has been benefiting greatly from the structural shift to online shopping. This underpinned explosive growth during the first half of FY 2021.

Pleasingly, online furniture shopping is still in its infancy compared to other categories. But this is expected to change in the future, which is why management is now aiming to cement its leadership position by investing heavily in marketing.

Credit Suisse supports this decision and currently has an outperform rating and $12.54 price target on its shares. The broker sees scope for the furniture industry to reach ~13% in online penetration by FY 2025. It believes Temple & Webster is well-placed to benefit from this.

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

More reading

• These are the 10 most shorted shares on the ASX
• 2 ASX growth shares that could be buys in July 2021
• 3 high quality ASX growth shares analysts love
• 2 ASX shares that are rapidly growing
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. 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 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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Although the shares listed below may not offer the largest yields on the market, they are growing at a solid rate. This could make them great long term options for patient income investors.

Here’s why analysts are rating them as buys right now:

Carsales.Com Ltd (ASX: CAR)

The first dividend share to look at is Carsales. It is a leading online advertising services company with a focus on the automotive industry. It generates its revenue predominantly from classified and display advertising. The former is from private sellers and dealer customers selling vehicles, whereas the latter is advertising from corporate customers such as finance and insurance companies.

It has been tipped for growth over the 2020s thanks to its dominant auto listings business in the ANZ market and its growing international operations. The latter will soon be boosted by the acquisition of a majority stake in US based Trader Interactive. It is a digital marketing solutions and services provider to the commercial truck, recreational vehicle, powersports, and equipment industries.

One broker that is positive on its prospects is Morgan Stanley. The broker currently has an outperform rating and $23.00 price target on its shares. This compares to the latest Carsales share price of $20.61. Morgan Stanley is forecasting dividends per share of 62 cents in FY 2021 and then 71.6 cents in FY 2022. This represents fully franked dividend yields of 3% and 3.5%, respectively.

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care could be an ASX dividend share to consider. It is a global private healthcare company with facilities catering for a broad range of healthcare needs. This ranges from primary care to highly complex surgery, as well mental health care and rehabilitation.

The company is currently looking to add to its portfolio with the acquisition of Spire Healthcare. This morning Ramsay increased its offer in the hope of sealing a deal. If the takeover is a success, it is expected to create a leading private health care services provider in the lucrative UK market. It will also diversify its UK payor sources, case mix, expand the geographic reach of its capabilities, and improving capacity utilisation.

For now, though, Ramsay appears well-placed to benefit from a post-pandemic backlog in surgeries in the near term. This is expected to underpin solid earnings and dividend growth in the coming years.

Citi is bullish on Ramsay and currently has a buy rating and $76.00 price target on its shares. This compares to the latest Ramsay share price of $62.90. The broker is forecasting fully franked dividend yields of 2.4%, 3.3%, and then 3.6% over the next three financial years.

The post 2 growing ASX dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• 5 worst-performing ASX 200 healthcare shares of FY21
• ASX 200 drops, Myer soars, Ramsay down
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
• Ramsay (ASX:RHC) share price lower on UK acquisition update
• Wesfarmers (ASX:WES) reportedly looking to buy cancer care provider

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 Ramsay Health Care Limited and carsales.com 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 Rent.com.au Ltd (ASX: RNT) share price has spent today’s session firmly in the green, shooting up 11.5% in early trading.

The Rent.com.au share price was trading at 14.5 cents at the market close today, up 7.69% after hitting an intraday high of 15 cents. This means it has finished the previous 5 sessions more than 16% higher.

Let’s take a look at the Rent.com.au share price and some of the news around its price action this year.

Rent.com.au share price trends

Despite there being no market-sensitive information specific to the company today, shares in the rental property website continue an impressive run this year to date.

Since 1 January, Rent.com.au shares have catapulted more than 190%, far outpacing the S&P/ASX 200 Index (ASX: XJO)’s return of 9.7% over the same time period.

Over the previous 12 months, the Rent.com.au share price has delivered a return of 311%, again outpacing the broad index’s return of ~22% for the same period.

Much of this upside can likely be attributed to two key events in the company’s growth narrative.

Firstly, Rent.com.au announced back in February that well-known Australian tech investor Bevan Slattery had made a $2.75 million investment in the company. The share price rocketed 218% higher on the day of the announcement.

Later in March, the company announced that its FinTech offering RentPay had secured an agreement with SkyCredit Ltd, effectively adding beneficial features to the RentPay platform. RentPay is an application that allows direct debit forms of rent servicing, all provided on a ledger for future rental reference.

Both announcments seem to have been welcomed by the market with the company’s share price skyrocketing from 4 cents to a high of 39.5 cents.

Rent.com.au share price snapshot

The Rent.com.au share price is currently trading well off its 52-week high of 39.5 cents but is sitting above the 52-week low of 3 cents.

At the current share price of 14.5 cents, Rent.com.au has a market capitalisation of $57.7 million.

The company has negative earnings per share from the most recent filings and does not pay a dividend to shareholders.

The post The Rent.com.au (ASX:RNT) share price surged 11.5% today appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX shares that could be buys for a retirement portfolio
• 2 ASX 200 shares that could be buys for dividends
• 5 worst-performing ASX 200 healthcare shares of FY21
• ASX 200 drops, Myer soars, Ramsay down
• Australia’s favourite international shares? Tesla (NASDAQ:TSLA) tops the list

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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If you’re looking for options for a retirement portfolio, then you might want to look at the shares listed below.

These high quality ASX shares could be great options for retirees. Here’s what you need to know about them:

Lifestyle Communities Limited (ASX: LIC)

The first option for retirees to consider is Lifestyle Communities. It builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50. Its land lease model allows working, semi-retired, and retired people to downsize their family home to free up equity in retirement whilst enjoying resort style living.

According to a note out of Goldman Sachs, its analysts see strengthening demand for land lease as the ageing population looks to enhance retirement by releasing equity from the family home.

Its analysis suggests the current 2% to 3% of people over 65 living in a land lease community could rise to 5% over the medium term. In light of this, it feels Lifestyle Communities is well-placed for growth in the coming years.

As a result, the broker has a conviction buy rating and $16.50 price target on the company’s shares. This compares to the latest Lifestyle Communities share price of $14.80.

Goldman is also forecasting consistent dividend growth over the next few years. And while the current yield on offer is a touch on the slender side, it will grow in time.

Wesfarmers Ltd (ASX: WES)

Another retirement share to consider is this $66 billion leading conglomerate.

Wesfarmers has a portfolio of high quality businesses. This includes retailers, such as Bunnings and Kmart, industrial businesses, and even a lithium miner. Combined, these businesses have positioned Wesfarmers for growth over the 2020s.

In addition, the company has significant balance sheet strength. This gives Wesfarmers the opportunity to make potentially lucrative and value accretive acquisitions in the near future.

Goldman Sachs is a fan of Wesfarmers as well. It currently has a buy rating and $59.70 price target on the company’s shares.

The broker is also forecasting fully franked dividends per share of $1.84 in FY 2021, $1.93 in FY 2022, and then $2.08 in FY 2023. Based on the latest Wesfarmers share price, this means yields of 3.2%, 3.3%, and 3.6%, respectively.

The post 2 excellent ASX shares that could be buys for a retirement portfolio appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Why the Wesfarmers (ASX:WES) share price hit an all-time high in June
• 2 ASX 200 shares growing their dividends
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak
• How one ASX investor turned $156k into $12 million

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 owns shares of and has recommended 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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S&P/ASX 200 Index (ASX: XJO) dividend shares could be the answer to boost investment income.

Some boards of directors of ASX 200 shares feel comfortable paying out a certain level of profit as dividends (or distributions) to investors each year, whilst retaining some profit for more growth.

However, just because a business pays a dividend doesn’t automatically mean that it’s worth owning.

These two ASX 200 shares might be ideas to think about for income:

Rural Funds Group (ASX: RFF)

Rural Funds is a fairly unique real estate investment trust (REIT). It owns agricultural property across the country in different sectors including cattle, vineyards, almonds, macadamias and cropping (sugar and cotton).

Its farms are spread both geographically and in different climate conditions, offering useful diversification and protection against certain risks. But, Rural Funds doesn’t carry the operational risk of the farms – that’s on the tenants. Rural Funds also owns a substantial amount of water entitlements for tenants to use.

Rural Funds has an aim of increasing its distribution by 4% each year for investors. That is funded organically by two main strategies. The first is that there are rental increases built into contracts, either a fixed 2.5% annual increase or linked to CPI inflation, plus market reviews.

Rural Funds’ other way to boost the distribution is to invest into its farms, such as improved water access, to increase the valuation and rental potential of the properties.

It also sometimes acquires farms to convert them to a better, more profitable use, depending on the farm type at the time of purchase. Sometimes Rural Funds just leaves a cattle farm as a cattle farm, for example. 

The ASX 200 dividend share has provided guidance of a FY22 distribution of 11.73 cents per unit. That translates to a distribution yield of 4.5%.

Bapcor Ltd (ASX: BAP)

Bapcor is the leading auto parts business in Australia and New Zealand.

It has some of the most recognisable brands in the auto market in its portfolio. Burson, Autobarn, ABS and Midas are some of the businesses it runs. Bapcor also has other specialist divisions such as electrical and truck parts.

The trade business, being predominately Burson, makes the lion’s share of the profit.

Burson has been growing profit over the years through a number of different ways. It’s growing same store sales, growing the store network size and increasing profit margins (and efficiencies).

Bapcor is expanding to another country with expansion into Asia in Thailand with Burson. It currently only has a handful of stores with a few million dollars of annual revenue, but it has plans for dozens of stores and hopefully reach $100 million of revenue in five years.

The ASX 200 dividend share has a total Asian revenue target of $500 million. This target includes the $200 million revenue currently generated by Tye Soon – an Asian business listed in Singapore which Bapcor owns a quarter of.

Bapcor has plans to increase its domestic store network size, refurbish stores and increase the own brand percentage of products sold.

It has increased its dividend each year since 2015, including in the difficult COVID-19 year of 2020.

Using the last 12 months of dividends, at the current Bapcor share price it has a grossed-up dividend yield of 3.2%.

The post 2 ASX 200 shares that could be buys for dividends appeared first on The Motley Fool Australia.

More reading

• 5 worst-performing ASX 200 healthcare shares of FY21
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21
• Here are 3 ASX 200 shares that were on the move today
• 3 companies that broke their way into the ASX 200 in FY21
• The Cochlear (ASX:COH) share price drops 3% today

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. 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 Bapcor and RURALFUNDS STAPLED. 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) accommodates some of the most successful healthcare shares in Australia, but there are always exceptions to the rule.

Shares that overlap the ASX 200 and the healthcare sector generally keep the attention of market watchers. However, not all shares can be winners.

These are the 5 worst performing ASX 200 healthcare shares of the financial year just been.

5 worst ASX 200 healthcare shares of FY21

Mesoblast Limited (ASX: MSB)

The Mesoblast share price had a shocking financial year on the ASX – it fell 39% in the 12 months ended 30 June 2021. The drop saw its share price go from $3.25 to $1.98.

Mesoblast is a biotech company with a focus on cellular medicines. Its share price experienced 3 noticeable drops last financial year.

The first was in August when the US Food and Drug Administration (FDA) released a briefing document that cast doubt over whether the company’s remestemcel-L product would pass through a scheduled meeting with the Oncologic Drugs Advisory Committee (ODAC).

The news saw the Mesoblast share price close 31% lower than its previous session. The ODAC eventually voted in favour of remestemcel-L’s efficacy.

The FDA caused another headache for the Mesoblast share price in October when it announced Mesoblast would have to conduct an additional randomised control study before it would approve remestemcel-L for use. Mesoblast’s shares plummeted 37% on the news.

Finally, on 18 December, Mesoblast announced its trial, testing if remestemcel-L could help reduce mortality in COVID-19 patients, failed to achieve its objectives. As a result, the Mesoblast share price ended the day 36% lower than its previous close.

On top of this, Mesoblast faced multiple class actions in the US and rumours of another in Australia.

Nanosonics Ltd (ASX: NAN)

Despite hitting a record high in December and January, Nanosonics’ shares ended the 2021 financial year 13% lower than when they started it. The company’s shares fell from $6.82 to $5.87 over the 12 month period.

The healthcare technology company is best known for its trophon technology that disinfects ultrasound probes.

Poor quarterly results released in February ultimately killed Nanosonic’s run and its sustained silence didn’t help its share price recover.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Despite releasing consistently strong results and, ultimately, staying extremely quiet during the 2021 financial year, the Fisher & Paykel share price fell 8%.

On 30 June 2020, the Fisher & Paykel share price was $32.84. Exactly 12 months later, it was $28.92.

Alas, there’s no real reason as to why the long-term market resident’s shares fell this financial year. It’s just one of the ASX’s many mysteries.

Ramsay Health Care Limited (ASX: RHC)

The 2021 financial year was a rollercoaster for the Ramsey share price, which finished 4% lower than it started. The company’s shares fell from $66.52 to $62.95 over the period.

Ramsay operates 221 hospitals and 14 day surgery centres, treatment facilities, rehabilitation and psychiatric units, and a nursing college across Australia, the United Kingdom, France, Indonesia, Malaysia, and Italy.

Despite barrages of good news and decent quarterly reports, the Ramsay share price just couldn’t get it together last financial year.  

During the 12 months ended 30 June 2021, Ramsey was able to start taking private patients in the UK and received an investment-grade credit rating from credit rating agency Fitch.

It also announced it was acquiring Spire Healthcare, an independent hospital group in the UK.

CSL Limited (ASX: CSL)

Finally, CSL shares only just finished the financial year in the red. They closed the period 0.6% lower than they started. Having begun the financial year trading for $287, the CSL share price was $285.19 on 30 June 2021.

CSL was in the headlines for a lot of the financial year. This was mostly because of its agreement with the Commonwealth of Australia to make AstraZeneca‘s COVID-19 vaccine in Melbourne.

Originally, the agreement would have seen CSL also making the University of Queensland’s COVID-19 vaccine. Unfortunately, that was scrapped as a vaccine candidate in December.

In February, CSL shocked investors when currency conversions saw its shareholders receiving a dividend that was 9% less than their previous payout.

Finally, an agreement for CSL to commercialise and licence a novel late-stage gene therapy candidate saw its shares fall in May.

The post 5 worst-performing ASX 200 healthcare shares of FY21 appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares that could be buys for dividends
• ASX 200 drops, Myer soars, Ramsay down
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21
• Here are 3 ASX 200 shares that were on the move today
• 3 companies that broke their way into the ASX 200 in FY21

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. owns shares of and has recommended CSL Ltd. and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. 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) fell by 0.7% today to 7,262 points.

Here are some of the highlights from the ASX today:

Myer Holdings Ltd (ASX: MYR)

The Myer share price jumped almost 15%.

There was an announcement that major shareholder Premier Investments Limited (ASX: PMV) has increased its shareholding.

According to reporting by the Australian Financial Review, Solomon Lew wants to get a seat on the board of Myer.

In an ASX disclosure, it was revealed that Premier Investments had bought 41 million shares on Monday and the AFR reported it had bought another large block of shares on Tuesday.

These investments would increase the Myer stake from 10.7% to over 17% according to the AFR.

Westpac Banking Corp (ASX: WBC)

Westpac announced that it has agreed to sell its New Zealand Life Insurance business for NZ$400 million. It’s selling this business to Fidelity Life Assurance Company Limited. The two businesses are also entering into an exclusive 15-year agreement for the distribution of life insurance products to Westpac’s New Zealand customer.

The transaction is expected to result in a post-tax gain on sale for the ASX 200 share and add approximately 7 basis points to its CET1 capital ratio.

Westpac CEO Peter King said:

This transaction is the latest step in simplifying our business while continuing to help customers with their life insurance needs.

Life insurance products are important for many New Zealanders and we are pleased to be entering a long-term partnership with a life insurance specialist to continue to help our customers protect themselves and their loved ones.

The Westpac share price fell around 0.3%.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay share price fell by around 0.3% after announcing an increase of its offer for the UK healthcare provider Spire Healthcare.

The ASX 200 share announced an increased and final cash offer of 250 pence per share in cash. This offer values the issued share capital at £1.04 billion.

Ramsay CEO and managing director Craig McNally said:

We are confident that our 250 pence cash offer per Spire share, which was reached after extensive negotiations with the Spire board, is fair and reasonable. It is therefore our best and final offer.

Ramsay is a global health care operator delivering a wide range of acute and primary healthcare services to private and public patients from over 500 locations across 10 countries caring for 8.5 million plus patient visits and admissions per annum. We have been operating in the UK market for 15 years and as such have strong operational insight and a good appreciation of the industry dynamics and long-term outlook for the market. We have called on this deep understanding to determine what we believe is a full and fair price for the Spire business.

Ramsay has an established reputation for delivering high quality patient care and outcomes in the UK which we are committed to continuing. The proposed acquisition of Spire enables us to build a broader platform from which to continue to deliver best in class healthcare and lead the way on patient outcomes, through bolstered partnerships with private health insurers, the NHS, our doctors, clinicians and associated clinical networks.

The post ASX 200 drops, Myer soars, Ramsay down appeared first on The Motley Fool Australia.

More reading

• Why the Myer (ASX:MYR) share price is up 9% today
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
• Ramsay (ASX:RHC) share price lower on UK acquisition update
• Westpac (ASX:WBC) share price on watch after announcing asset sale
• 2 blue chip ASX dividend shares rated as buys

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 owns shares of and has recommended Premier Investments Limited. 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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Tesla Inc (NASDAQ: TSLA) has bumped Apple Inc (NASDAQ: AAPL) from its top spot.

The spot in question comes from the list of favourite international shares held by Australian retail investors. A list put together from global user data by the global multi-asset investing platform eToro.

Apple, in fact, dropped from first place in the previous quarter to fourth spot in Q2 2021.

Coming in at number 2 for the quarter just gone by is Tesla’s fellow electric vehicle (EV) maker and Chinese rival Nio Inc. (NYSE: NIO). Nio moved up from ninth most favourite international share in the previous quarter.

Why Aussie investors are increasingly interested in Tesla

Australian investments in Tesla increased 4% compared to the prior quarter, while Aussie investments in Nio fell 8%.

According to Josh Gilbert, eToro’s Australian market analyst:

Tesla and Nio have both been the 2 most prominent stocks for Australian investors over the last six months. We can see that Australian investors are adapting to a long-term buy-and-hold strategy with both these assets, anticipating that the EV space will dominate the automotive industry for many years to come.

Tesla has slightly more skin in the game than Nio, and that’s why Australian investors are opting for Tesla shares right now.

What other international shares are attracting Australian investors?

Atop Tesla, Nio and Apple, the 7 other shares making the top-10 list in Q2 2021 are:

• GameStop Corp. (NYSE: GME) – moving to number 3 spot, from 259 the previous quarter
• Palantir Technologies Inc (NYSE: PLTR) – making the list for the first time at number 5
• Amazon.com, Inc. (NASDAQ: AMZN) – up to number 6 from number 4 in Q1
• BioNano Genomics Inc (NASDAQ: BNGO) – also not on the list in Q1, now at number 7
• Microsoft Corporation (NASDAQ: MSFT)
• AMC Entertainment Holdings Inc (NYSE: AMC), and
• Alibaba Group Holding Ltd (NYSE: BABA)

Investors shrugging off inflation fears

There’s been a lot of ink spilled in the financial media about the looming rise of inflation. This would see central banks raise interest rates and, with the end to easy money, could put a crimp in share market performance.

Commenting on investor’s inflation concerns, eToro’s Global Markets Strategist, Ben Laidler said:

Tesla’s and Nio’s enduring popularity suggests investor confidence in the electrical vehicle sector as a long-term investment opportunity, despite fears over a prolonged inflationary period. The fact that Apple, Microsoft and Palantir also remain in the top 10 most held stocks on eToro also suggests that investors believe the recent bout of inflation may be temporary.

Laidler added:

Investors are currently facing a lot of uncertainty but our data shows that they seem to be sticking to their long-term strategies. We may start to see more investors diversify their holdings if central banks such as the Federal Reserve, Bank of England and European Central Bank change their tune on inflation.

How has the Tesla share price moved this year?

Tesla tops the list of favourite international shares for Aussie investors in Q2 despite shares in the EV pioneer falling 7% this calendar year.

Still, Tesla’s shares have gained 147% over the past 12 months. And the past month’s price moves suggest a possible turnaround, with shares up 12% since 7 June.

The post Why Tesla (NASDAQ:TSLA) heads the list of top international shares appeared first on The Motley Fool Australia.

More reading

• ASX investors were buying DiDi and Virgin Galactic shares last week
• Warren Buffett owns these dividend-paying growth stocks — should you?
• Could Tesla build 1 million vehicles this year?
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• Will Windows 11 Help or Harm Microsoft Investors?

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Apple, Microsoft, NIO Inc., Palantir Technologies Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX bank shares performed strongly in the last financial year. In fact, the financial sectors outperformed the S&P/ASX 200 Index (ASX: XJO) by roughly 7% over the period. But not every bank share in the All Ordinaries performed so exceptionally.

We have compiled a list of the best-performing bank shares featured in the All Ordinaries index for FY21. This also includes non-bank lenders, just to broaden out the list a bit further than the big four.

While there’s a couple you might be familiar with, there are others that might have flown under your radar. Despite the Commonwealth Bank of Australia’s (ASX: CBA) impressive 42.9% share price gain, it didn’t make the cut…

So, no more suspense – here are the banks that did it best in FY21.

5 best performing ASX bank shares

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Bendigo and Adelaide Bank Ltd is Australia’s largest retail bank outside of the big 4 ASX banks. The company has a network of brands that provide products to customers including personal banking, business banking, and insurance.

Compared to the big four, Bendigo Bank pulls humble-sized revenue and earnings. However, it is the pace at which this bank’s earnings bounced back that grasped investors’ attention. Between June 2020 and December, Bendigo Bank’s 12-month trailing earnings jumped 50.9% to $290.9 million. At the same time, CBA (the largest bank on the ASX) continued to experience a slide in earnings.

On top of that, the Bendigo and Adelaide Bank board declared a fully franked dividend of 28 cents per share in its half-year results.

With all that positive sentiment, it’s no wonder the Bendigo and Adelaide Bank share price gained 48.4% during FY21.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Next on the list is one of the big four banks. Shares in ANZ were bought up by investors during FY21 as revenue and earnings rebounded. Although these numbers didn’t climb at the same rate as the previous bank, the magnitude was much larger.

During the first half, ANZ delivered a statutory profit after tax of $2,943 million. This result represented a 45% increase on the bank’s second half of FY20. Analysts at Morgans are expecting this trend to continue.

Correspondingly, Morgans is forecasting these growing earnings will translate into dividends of $1.45 and $1.63 per share over the next two years.

The ANZ share price returned 49.1% over the course of the last financial year.

Australian Finance Group Limited (ASX: AFG)

Making the podium finish is Australian Finance Group. This company has been a leading mortgage broker in the country for more than 20 years. AFG provides mortgage aggregation as well as business finance, insurance, etc. The company services more than 27,000 home loans and boasts a residential loan book worth more than $160 billion.

A true testament to this ASX bank share, AFG’s revenue and earnings didn’t skip a beat throughout the past 18 months. In the company’s half-year result, total revenue increased 11% year-over-year, while underlying net profit after tax rose 41% to $24.88 million. This result was largely supported by the strong residential mortgage market.

Investors must have liked the look of the growing profitability with the share price rising 66% during the last financial year.  

Virgin Money UK CDI (ASX: VUK)

Coming in at second-best on the list is Virgin Money UK. For those unaware, this is a holding company that owns and operates Clydesdale Bank, Yorkshire Bank, and B. Between these UK-based banks, Virgin Money serves around 3 million customers through its credit cards, personal loans, mortgages, etc.

The company suffered a massive blow to its revenue during the COVID-19 fallout. Between the end of 2019 and the end of 2020, Virgin Money’s revenue fell from UK£1.441 billion to UK£1.004 billion. Since then, a global economic rebound and government stimulus have seen sentiment swing towards positive.

Shareholders of this ASX-listed bank share would be celebrating their 113% return in FY21. That’s nearly 5 times better than the benchmark index.

Resimac Group Ltd (ASX: RMC)

Finally, the crème de la crème in FY21… Resimac Group. This company is a non-bank lender which means Resimac doesn’t offer transaction and savings accounts to lend out to others. Instead, the company takes on debt in the form of a credit line and then lends it out to customers.

Resimac has been a beneficiary of the booming property market. According to the company’s first half, home loan assets under management (AUM) increased from $11.3 billion to $12.9 billion year-over-year. Additionally, the increase in AUM drove the company’s earnings up 88% to $50.5 million compared to the prior corresponding period.

The strong performance pushed the Resimac share price higher in FY21. Shareholders were laughing all the way to the bank with a 135% gain during the financial year.

The post Forget CBA! Here are the 5 best performing ASX bank shares of FY21 appeared first on The Motley Fool Australia.

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• Here are 3 ASX 200 shares that were on the move today
• Leading brokers name 3 ASX shares to sell today
• 3 companies that broke their way into the ASX 200 in FY21
• The Cochlear (ASX:COH) share price drops 3% today
• Near all-time highs, why the ASX 200 could keep running higher

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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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Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s brokerage platform CommSec tells us the most popular international shares (which are usually US shares) that its Aussie customers have been investing in over the week just gone.

CommSec is one of the most popular ASX brokers in the country. As such, its data can give us a valuable window into the minds of ASX investors. My Fool colleague James has already taken a look at CommSec’s most popular ASX shares today. So here are the top 10 international shares that CommSec-ers were trading last week. This week’s data covers June 28 – July 2.

Tesla still the one, but DiDi IPO excites

1. Tesla Inc (NASDAQ: TSLA) – representing 3.6% of total trades with a 51%/49% buy-to-sell ratio.
2. GameStop Corp. (NYSE: GME) – representing 2.6% of total trades with an 87%/13% buy-to-sell ratio.
3. Nio Inc. (NYSE: NIO) – representing 2.1% of total trades with a 57%/43% buy-to-sell ratio.
4. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.1% of total trades with a 70%/30% buy-to-sell ratio.
5. Apple Inc (NASDAQ: AAPL) – representing 1.9% of total trades with a 51%/49% buy-to-sell ratio.
6. DiDi Global Inc (NYSE: DIDI)
7. Microsoft Corporation (NASDAQ: MSFT)
8. Virgin Galactic Holdings Inc (NYSE: SPCE)
9. Alibaba Group Holding Ltd (NYSE: BABA)
10. Palantir Technologies Inc (NYSE: PLTR)

What can we learn from these trades?

Mostly that Aussie investors can’t get enough of the high flying US shares at the moment. Of these 10 companies, only three (Apple, Alibaba and Microsoft) don’t fall into the category of ‘high-octane growth shares’. And even Alibaba toes that line somewhat. Yes, the top three companies, as well as the remaining four, can arguably still be in the growth/speculative pigeonhole. But we have two companies here that haven’t seen this list for a while. The first is Virgin Galactic. Investors have been very excited in the past over this company’s plans to commercialise space travel. However, this company had recently fallen out of favour, and was down roughly 70% between February and May this year. That was until Virgin Galactic rocketed 245% between 14 May and 25 June. A new planned space flight, this one involving Virgin founder Sir Richard Branson, appears to be the catalyst here.

In the case of Chinese ridesharing company DiDi, well, it IPOed last week, joining the US markets for the first time. Clearly, ASX investors are keen to put their money where their rear ends might be at the end of a big night out with this one. That’s despite the fact that DiDi’s IPO hasn’t exactly resulted in a lot of financial success so far.

The post ASX investors were buying DiDi and Virgin Galactic shares last week appeared first on The Motley Fool Australia.

More reading

• Warren Buffett owns these dividend-paying growth stocks — should you?
• Could Tesla build 1 million vehicles this year?
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• Will Windows 11 Help or Harm Microsoft Investors?
• How big could Tesla get by 2030?

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Apple, Microsoft, NIO Inc., Palantir Technologies Inc., Tesla, and Virgin Galactic Holdings Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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