Tag: Motley Fool

ASX investors seem to have come back from their Easter break with a noticeable spring in their steps. How can we say that? Well, the S&P/ASX 200 Index (ASX: XJO) has today minted a fresh new all-time record high.

Yes, despite a shaky start this morning, the ASX 200 rose up as high as 7,910.5 points in morning trading today – the highest the index has ever climbed to in its long history. What a way to kick off April.

This high exceeds the new record we saw only last Thursday. As we covered at the time, Thursday trading saw the ASX 200 climb up to what was then a huge watermark of 7,901.2 points. So we’ve now had two new all-time highs in two trading days. Happy Easter indeed.

At the time of writing, the ASX 200 has cooled off and pulled back from its new record. The index is presently down 0.25% at 7,877.5 points at the time of writing. Even so, most ASX investors will no doubt be feeling fairly chuffed right now.

How is the ASX 200 at new record highs?

The string of new all-time highs that ASX 200 shares have enjoyed in recent months have been driven by many corners of the market. Perhaps none more than ASX bank stocks though.

Since November last year, all four of the big ASX 200 banks have climbed considerably. Commonwealth Bank of Australia (ASX: CBA) in particular, has soared substantially, printing several new all-time highs of its own.

Investors have also been buoyed by encouraging economic statistics coming out of both Australia and around the globe. These generally show inflation moderating without resulting in a significant uptick in unemployment.

This has in turn gotten investors excited about potential interest rate cuts. While central banks including our own Reserve Bank of Australia (RBA) have not given any decisive signs that they will cut rates this year, there’s no doubt that hopes that this will occur have helped drive global markets to the new heights we have recently seen.

In terms of today’s new record though, it appears that it’s been mining and energy stocks doing most of the heavy lifting. The financial sector is actually showing a bit of weakness today, with many ASX banks, including CBA, in the red. But miners and drillers are on fire.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently up 0.5%, while the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 0.9%. But gold miners are really shining, as you can see from the All Ordinaries Gold Index (ASX: XGD)’s massive gain of 3.2%.

Most commodities have seen an Easter bump in prices, which is at least partially what’s driving these sectors higher. But the ASX 200’s top shares so far today are almost exclusively gold stocks. This isn’t much of a surprise, considering the gold price has just clocked a new record high of its own.

So thank miners and drillers for today’s new ASX 200 highs. Let’s see what the rest of the week brings for the Australian share market.

The post Happy Easter: ASX 200 hits another new record high appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What the latest US inflation data means for ASX 200 investors and interest rates
• How ASX shares vs. property performed in March
• How to tap into the record-breaking ASX 200 performance with just one stock
• Are Wesfarmers shares an ASX bargain buy or overvalued right now?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/L3x69g7

The ASX dividend stock Rural Funds Group (ASX: RFF) is down heavily from its peak. The Rural Funds share price has dropped 34% from the end of 2021.

If you don’t know what this business is, it’s a real estate investment trust (REIT) that owns a farmland portfolio across a number of different sectors including cattle, almonds, macadamias, vineyards and cropping.

Most of the ASX dividend stock’s properties are located in Queensland and NSW, but it also has a few farms in Victoria, South Australia and Western Australia.

There are two main reasons why I think it’s a great buy today.

Lower share price

A share price does not tell us exactly how much a business is actually worth. It’s the market giving a rough estimation – sometimes that guess is a long way off the real underlying value, sometimes it’s too optimistic and sometimes too pessimistic.

In each report, Rural Funds tells the market what its adjusted net asset value (NAV) is – that’s the value of the assets (including the farms) minus the liabilities (such as debt). The adjusted NAV recognises the value of the water entitlements at their market (sellable) value rather than the balance sheet value.

At the end of December 2023, the Rural Funds’ adjusted NAV was $3.07, which was an increase of 4.8% for HY24 – the ASX dividend stock benefited from (independently) revalued assets, primarily in cattle and macadamia.

The current Rural Funds share price is at a 32% discount to that adjusted NAV. We’d only know what the true NAV is if Rural Funds decided to sell all of its properties, but I think there is a potential appealing discount here, particularly with potential interest rate cuts getting closer.  

The lower Rural Funds share price has also led to a higher distribution yield. It is expecting to pay a distribution of 11.73 cents per unit in FY24, which is a forward yield of 5.6%.

Rental income growth

The current yield is one thing, but I’m also hoping it can return to distribution growth in the longer term.

There is a lot of rental growth built into its various contracts, with most having either a fixed annual rental increase, or inflation-linked increases, plus a market review.

Rural Funds also regularly invests in its farms to increase productivity, rental potential and capital value, which is good for investors.

While debt does cost more, the rental income growth can help offset this. Thankfully, a lot of Rural Funds’ debt is hedged at an interest rate of less than 3% for the next couple of years.

With a weighted average lease expiry (WALE) of more than 12 years, the ASX dividend stock has a lot of rent already locked in.

The post 1 ASX dividend stock down over 34% to buy right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX 300 dividend shares to buy in April
• Why is the Rural Funds share dropping today?
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• 3 high-quality ASX retirement shares to buy this week
• 3 fantastic high-yield ASX dividend shares to buy next week

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9DBnw6T

Is the National Australia Bank Ltd (ASX: NAB) share price a buy? I’m going to look at that question from a passive income perspective, with the ASX bank share offering a grossed-up dividend yield of 7%.

What dividends could the ASX bank share pay?

In the last 12 months, we have seen the company make sizeable increases in its dividends. The FY23 final dividend was increased by 7.7% to 84 cents per share, while the FY23 half-year dividend was increased by 13.7% to 83 cents per share.

The last two dividend payments amount to $1.67 per share, which is a grossed-up dividend yield of 6.9%.

However, those dividend payouts are history. The next 12 months are more important to focus on because they’re the next payments we’ll see.

According to the projection on Commsec, owners of NAB shares are predicted to receive a slight increase of the annual payout to $1.68 per share – this would be a grossed-up dividend yield of roughly 7%.

Is the NAB share price appealing?

As we can see on the chart above, the NAB share price has made rapid progress since the start of December 2023. This is great for existing shareholders, but prospective investors are now getting a lower potential dividend yield. How does that work? For example, if the NAB dividend yield was 8% and then the NAB share price rises 10%, the dividend yield reduces to roughly 7.3%.

Not only is the dividend yield pushed down, but the price/earnings (P/E) ratio has increased, meaning we have to pay more for the same amount of earnings generated by the company.

The projection on Commsec suggests NAB may generate earnings per share (EPS) of $2.25 in FY24, which means it’s now valued at 15 times FY24’s estimated earnings.

This higher NAB share price comes at a time when household loan arrears are rising, there is strong competition in the lending space, NAB is paying more to savers and credit growth is slow.

FY23 saw a credit impairment charge of $802 million, compared to an FY22 charge of $125 million. The increase in underlying charges primarily reflects “volume growth, a deterioration in asset quality and higher specific charges off a low base”.  

I do rate NAB highly compared to other domestic ASX bank shares – I think it has been quality under the leadership of Ross McEwan, but it’s cheaper than Commonwealth Bank of Australia (ASX: CBA) on a P/E ratio basis.

However, I wouldn’t call NAB a great buy today after the strong recent rise amid challenging economic conditions. Instead, there are other ASX dividend shares in different sectors I’d rather go for.

The post With a 7% dividend yield, are NAB shares a buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income
• NAB boss issues dire prediction for Aussie economy
• Shares vs. property: How to generate $500 passive income per month
• If I’d put $5,000 in NAB shares at the start of 2024, here’s what I’d have now
• 4 ‘overheated’ ASX 200 shares to stay away from

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

from The Motley Fool Australia https://ift.tt/s4jkbXH

It’s been an unusually grim few months for the owners of Woolworths Group Ltd (ASX: WOW) shares. Woolworths investors might have gotten used to steadily rising share prices, as well as dividends in recent years.

After all, this is a company that gained around 10% in share price value over the COVID-ravaged years of 2020 and 2021, delivering a rising dividend to boot.

However, the last 12 months have seen some of these gains reversed. It was only in June last year that the Woolworths share price was sitting at over $40. Today, it is down to just $32.92 at the time of writing.

This means that Woolies owners have seen their investment shed 17.8% since June last year. The grocer is also down by close to 12% over 2024 to date.

Investors are often told that we should ‘buy low’ and ‘sell high’. We’re also regularly preached to ‘buy the dip’. So does this mean we should all be flocking in and purchasing Woolworths shares right now? Let’s discuss whether this ASX 200 blue-chip stock is a buy or a sell today.

Lacklustre earnings dent this ASX 200 blue chip

Firstly, it’s worth pointing out why Woolies shares have been in such a funk lately. Investors seemed to lose a lot of confidence in this stock following the release of Woolworths’ latest earnings report back in February.

As we covered at the time, these earnings showed sluggish food sales growth of 1.5% over the six months to 31 December. That was in stark contrast to its arch-rival Coles Group Ltd (ASX: COL), which reported a 3.7% rise in sales over the same period. This may have implied some loss of market share for Woolworths.

The best piece of news was perhaps the revelation that Woolworths’ interim dividend for 2024 would come in at 47 cents per share, fully franked. That was an increase of one cent over last year’s interim payout of 46 cents per share.

But even so, investors were not impressed. On the day these results came out, Woolworths shares plunged more than 7%, likely unassisted by the abrupt departure of CEO Bradford Banducci, which was announced concurrently.

Even today, the Woolworths share price remains down more than 8% from where it was before the earnings were released.

But has this presented investors with a buying opportunity?

Are Woolworths shares a buy or a sell at under $33?

Well, one ASX expert thinks so. As reported by The Bull, Christopher Watt, of Bell Potter Securities, has recently given the supermarket operator a buy rating.

Watt noted he expects the recent share price weakness to be shortlived, with the shares poised to stage a recovery. Here’s what he said in full:

Shares in the supermarket giant have fallen from $37.51 on January 2 to trade at $33.25 on March 28. Sales moderated in the first seven weeks of the second half of fiscal year 2024 in response to lower inflation and a more cautious consumer…

We believe the weaker share price provides a buying opportunity as we expect Woolworths shares to recover.

However, not all experts possess such a positive outlook. Also speaking to The Bull on Woolworths was Damien Nguyen from ASX broker Morgans.

Nguyen took a very divergent path after looking at Woolworths shares, labelling the company a ‘sell’ and seeing “limited potential upside” over the short to medium term.

Here’s what he had to say:

We see limited upside potential in the supermarket giant’s share price during the next 12 months. WOW’s first half result in fiscal year 2024 was in line with expectations. But commentary on sales for the first seven weeks in the second half of fiscal year 2024 was softer than anticipated. Investors may want to consider cashing in some gains.

So there you have it, two contrasting views on where Woolies is heading next. No doubt some Woolworths investors will take comfort from the former views. But we’ll have to wait and see which of these ASX brokers proves to be on the money – only one will be right.

In the meantime, the current Woolworths share price gives this company a market capitalisation of around $40.52 billion, with a trailing dividend yield of 3.2%.

The post Are Woolworths shares a buy or a sell at under $33? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these fantastic blue chip ASX 200 shares in April
• Where to invest $8,000 in April 2024
• Top brokers name 3 ASX shares to buy next week
• Top ASX shares to buy instead of a term deposit in March 2024
• Why Coles shares could be a best buy for blue chip investors

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JxB7e18

S&P/ASX 200 Index (ASX: XJO) gold shares are soaring higher on Tuesday.

In afternoon trade today the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold stocks outside of the ASX 200 – is up 2.9%.

Here’s how these top ASX 200 gold shares are tracking at this same time:

• Northern Star Resources Ltd (ASX: NST) shares are up 1.7%
• Newmont Corp (ASX: NEM) shares are up 4.9%
• De Grey Mining Ltd (ASX: DEG) shares are up 3.6%
• Ramelius Resources Ltd(ASX: RMS) shares are down 1.5%
• Gold Road Resources Ltd (ASX: GOR) shares are up 4.9%
• Evolution Mining Ltd (ASX: EVN) shares are up 3.9%
• Bellevue Gold Ltd (ASX: BGL) shares are up 2.4%

Not bad for a day’s work.

And today’s outperformance follows on a very strong month.

Over the past month, the ASX Gold Index has rocketed 12.6%.

As for the ASX 200 gold shares performance over the last month:

• Northern Star shares have gained 7.3%
• Newmont shares have gained 15.6%
• De Grey shares have gained 0.2%
• Ramelius shares have gained 21.2%
• Gold Road shares have gained 4.2%
• Evolution Mining shares have gained 20.2%
• Bellevue Gold shares have gained 20.6%

That’s some great returns for investors.

The question now, of course, is what can we expect next?

What’s ahead for ASX 200 gold shares?

Much of the boost for ASX 200 gold shares has come amid a surging gold price.

With most of the miners’ costs fixed, higher gold prices tend to usher in higher profits.

Bullion started March at an already historic high of US$2,083 per ounce.

And throughout the month the yellow metal proceeded to set new record highs.

Yesterday gold was fetching just shy of a never before seen US$2,266 per ounce. At the time of writing that’s retraced a touch to US$2,256 per ounce, more than 8% higher than this time last month.

Bullion, and ASX 200 gold shares, have been enjoying a raft of tailwinds.

Among them is gold’s classic haven status, which has seen increased interest during the ongoing geopolitical tensions embroiling the world.

There’s also the increasing likelihood of lower interest rates in the United States, Australia and much of the developed world as inflation comes off the boil. Gold, which pays no yield, tends to perform better in lower and falling rate environments.

“Inflation data, and [Fed chair Jerome] Powell’s comments in particular, have provided a further boost to gold, with the market becoming increasingly convinced that the Fed will start to cut rates in June,” Warren Patterson, head of commodities strategy at ING Groep noted (quoted by Bloomberg).

And central banks have also continued to support demand with many, including China’s central bank, continuing to buy near-record amounts of physical gold.

Now what?

There are numerous factors that will impact how each ASX 200 gold share performs over the coming months and years. Those include the quality of their mining assets, management, and other factors like weather and potential tax changes in the countries where they operate.

But the price of gold will certainly be one of the big factors that could potentially help propel ASX 200 gold shares to new heights.

As for where the gold price is heading, JPMorgan Chase & Co came out with a bullish forecast in March, predicting bullion could trade for US$2,500 per ounce, almost 11% above current levels.

The post ASX 200 gold shares surging as gold price hits new records. Now what? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How ASX shares vs. property performed in March
• 5 things to watch on the ASX 200 on Tuesday
• Top ASX shares to buy in April 2024
• These were the best-performing ASX 200 shares in March
• Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/AQTOyCw

Brickworks Limited (ASX: BKW) shares are edging higher on Tuesday.

In afternoon trade, ASX 200 stock is up 0.25% to $28.55.

This is despite there being some big news out of the building products company which you might have expected to drag its shares lower.

What did the ASX 200 stock announce?

This morning, Brickworks announced the retirement of its long-standing managing director, Lindsay Partridge.

According to the release, Partridge will retire on 31 July 2024 after 39 years with the company and 25 years as its leader.

The company notes that during this time, the outgoing CEO has successfully grown Brickworks from a small brick manufacturing operation with an asset base of $500 million to a large multinational organisation with an asset base of $6 billion.

Commenting on the exit, Brickworks’ chair, Robert Millner, said:

On behalf of the Board and the Brickworks team, I would like to thank Lindsay for his outstanding dedication and leadership and the remarkable contribution he has made in growing and reshaping the Brickworks Group from a small brick making company to an ASX 150 listed company comprising successful international building products and large-scale industrial property JV businesses.

What’s next?

The ASX 200 stock has been quick to announce a replacement, having prepared in advance for this eventuality.

The release reveals that following a comprehensive internal succession planning process, it has appointed Mark Ellenor as Partridge’s successor in the role of CEO. Partridge will assist with Ellenor’s transition to his new role until his retirement.

Mark Ellenor is the current Brickworks chief operating officer and has been with the company for 25 years.

Millner believes that Ellenor will be a great CEO for the company. He adds:

Mark is well suited to lead Brickworks through the next chapter of growth and performance. Mark brings to the role a deep understanding of brick, rooftile and masonry manufacturing, supply and distribution in Australia and North America. He has delivered on multiple plant rationalisations and capital expenditure programs and the positioning of brick as a style choice to architects through the design studio footprint.

Usually when a long-serving CEO leaves a company its share price will crumble due to the uncertainty. However, with this ASX 200 stock edging higher today, it appears that the market believes Ellenor’s appointment will mean business as usual for the company.

Following today’s gain, Brickworks shares are now up 24% over the past 12 months.

The post Guess which ASX 200 stock is losing its CEO after 25 years appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• This ASX 200 dividend stock looks like a top buy to me
• Brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Friday
• Why AGL, Brickworks, IGO, and New Hope shares are dropping today
• Brickworks share price tumbles on disappointing half-year loss

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 positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/KER3ABz

With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Coronado Global Resources Inc (ASX: CRN)

According to a note out of Bell Potter, its analysts have retained their buy rating on this coal miner’s shares with a trimmed price target of $1.65. Bell Potter believes that throughout 2024, Coronado should realise improved production volumes and subsequent cost benefits following its self-funded investment across its Australian and US operations. It expects this to lead to the generation of more consistent free cash flow and shareholder returns going forward. In addition, Bell Potter highlights a supply constrained met coal environment, which it believes will support long term prices. The Coronado Global share price is trading at $1.24 on Tuesday.

Domain Holdings Australia Ltd (ASX: DHG)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this property listings company’s shares with a slightly trimmed price target of $3.75. The broker has been looking into the industry and believes that Domain’s network effect remains intact. In addition, it highlights that positive operating conditions for new residential buy listings are ongoing, underpinned by low unemployment, population growth, and a stabilising outlook for interest rates. The sum of the above is Bell Potter forecasting an earnings per share compound annual growth rate of 25% between FY 2024 and FY 2026. The Domain share price is fetching $3.26 this afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at UBS have retained their buy rating on this wine giant’s shares with an improved price target of $12.74. This follows news that the Chinese Ministry of Commerce (MOFCOM) has announced that tariffs on Australian wine imports into China will be reduced to nil, effective 29 March 2024. According to the note, the broker was pleased with the news and believes that Treasury Wine’s shares now deserve to trade on higher earnings multiples given its larger addressable market. Its analysts have also boosted their earnings estimates for the coming years to reflect the news and higher margin assumptions for its premium wine. The Treasury Wine share price is trading at $12.74 on Tuesday afternoon.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Treasury Wine share price climbs after China removes wine tariffs
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why this could be one of the best blue chip ASX shares to buy right now
• $2.1 million! Who are the highest paid ASX 200 directors?

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/QuOUVlN

The S&P/ASX 200 Index (ASX: XJO) just popped into potentially new all-time high closing territory.

Again.

After closing at a fresh record high of 7,896.9 points on Thursday, the ASX 200 is currently at 7,907.0 points. If it can hold onto these gains, the benchmark index will kick off April breaking yet another record close.

The rally comes despite a slight retrace in US markets yesterday, with the S&P 500 Index (SP: .INX) closing down 0.2%.

What’s happening with interest rates in the US?

At the Federal Reserve’s last meeting, the US benchmark interest rate was left unchanged in the range of 5.25% to 5.50%.

On Friday, when the ASX 200 was closed for the Easter holidays, Fed chair Jerome Powell watered down expectations of an imminent rate cut from the world’s most influential central bank, saying Fed members are still waiting for more evidence that inflation is under control before pulling the rate cut trigger.

According to Powell:

The fact that the US economy is growing at such a solid pace, the fact that the labour market is still very, very strong, gives us the chance to just be a little more confident about inflation coming down before we take the important step of cutting rates.

However, he placated investors by adding that it’s still likely the Fed will begin to cut rates “at some point this year”.

Veronica Clark, an economist at Citigroup, is still confident that the Fed will begin easing in 2024, which should offer some tailwinds to US stocks and the ASX 200.

According to Clark (quoted by The Australian Financial Review):

The overall message really hasn’t changed too much. It seems like February inflation data came in line with how they were expecting, and that’s in line with more prints that they would be OK with.

We’re in the mode now of just gaining a bit more confidence, a couple more months of data, and they’re still going to be willing to cut mid-year.

ASX 200 investors also eyeing the RBA

As for the Reserve Bank of Australia (RBA), the March minutes showed that the central bank did not discuss raising interest rates, something they had considered in prior meetings.

Still, National Australia Bank Ltd (ASX: NAB) senior economist Rodrigo Catril believes ASX 200 investors may be waiting until 2025 to see the first RBA rate cuts.

“We still have an inflationary problem,” Catril said (quoted by the AFR). “We believe the RBA will be on course to cut in November, but the resilience of the labour market may prove to be a challenge.”

Catril added, “We need to see a weakening of the labour market for the Reserve Bank to consider a rate cut and at the moment, it remains unclear whether that will happen as soon as November.”

Stay tuned!

The post What the latest US inflation data means for ASX 200 investors and interest rates appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How ASX shares vs. property performed in March
• How to tap into the record-breaking ASX 200 performance with just one stock
• Are Wesfarmers shares an ASX bargain buy or overvalued right now?
• 5 things to watch on the ASX 200 on Tuesday
• Here’s how the ASX 200 market sectors stacked up last week

Motley Fool contributor Bernd Struben 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/YDHzR5N

A bunch of ASX All Ords shares were upgraded in March to the most positive rating you can get on CommSec, which is a ‘strong buy’.

The ratings on CommSec are based on the consensus view of analysts covering the stock.

Let’s take a look at a few who were elevated to a strong buy call.

7 ASX All Ords upgraded to a strong buy rating in March

South32 Limited (ASX: S32)

South32 shares were upgraded to strong buy on 8 March.

Today the South32 share price is $3.05, up 1.5%.

Morgans has an add rating and a 12-month share price target of $4.10 on the ASX All Ords mining share. This implies a potential upside of 34% for investors.

Morgans says:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile.

Qantas Airways Limited (ASX: QAN)

The consensus analyst rating on Qantas shares changed to a strong buy on 7 March.

The ASX All Ords travel share is currently trading at $5.49, up 0.79%.

Goldman Sachs reckons it can go a lot higher than this. The broker has a 12-month share price target of $8.05 on Qantas. This implies a potential upside of 46%.

In a note, the broker said the company’s 1H FY24 earnings provided “another proof point on reset earnings capacity”.

Johns Lyng Group Limited (ASX: JLG)

Johns Lyng shares were upgraded to a strong buy on 5 March.

The Johns Lyng share price is currently $6.19, down 3.5%. My colleague Tristan has been buying the stock after seeing the company’s FY24 first-half results.

According to CommSec, Johns Lyng is delivering superior earnings growth:

Over the last 3 years, earnings growth has averaged 24.84% annually at JLG. This is better than the industry average growth of 2.15%. For fiscal years 2024 and 2025, analysts are estimating that average annualized growth will be weaker than during the last 3 years.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The consensus analyst rating on Clinuvel Pharmaceuticals shares changed to strong buy on 15 March.

The ASX All Ords share is currently changing hands for $15.21, up 5.9%. Morgans has an add rating and a $22 share price target on the stock.

The company itself reckons it’s going for cheap, too, and announced a share buyback in mid-March. Clinuvel is aiming to buy back up to 1.5 million shares over the next 12 months.

Management said the recent share price decline had taken the stock to a market valuation that was “no longer commensurate with the performance and expected outlook for the company”.

MMA Offshore Limited (ASX: MRM)

The consensus analyst rating on MMA Offshore shares changed to a strong buy on 28 March.

The share price of the ASX All Ords marine services provider is currently steady at $2.61.

MMA reported one of the biggest profit jumps of the last earnings season with a 339% rise in underlying net profit after tax (NPAT) to $39.5 million in 1H FY24.

Last week the ASX All Ords share rocketed 10% on a $985 million cash bid from Cyan MMA Holdings.

Janison Education Group Limited (ASX: JAN)

The consensus analyst rating on Janison Education shares changed to a strong buy on 15 March.

Shares in the ASX All Ords education technology provider are currently trading at 29 cents, down 3.33%.

According to CommSec, Janison’s earnings growth is well ahead:

Over the last 3 years, earnings growth has averaged 55.13% annually at JAN. This is better than the industry average growth of -1.26%. For fiscal years 2024 and 2025, analysts are estimating that average annualized growth will be weaker than during the last 3 years.

Ventia Services Group Limited (ASX: VNT)

The consensus analyst rating on Ventia shares changed to a strong buy on 5 March.

Shares in the ASX All Ords infrastructure maintenance services provider are currently $3.88, up 0.78%.

Ventia delivered a strong set of FY23 results, including a 12.5% increase in net profit after tax and amortisation (NPATA) to $202 million. It’s now guiding 7% to 10% growth in NPATA for FY24.

According to CommSec, the company’s earnings growth is notable:

Over the last 3 years, earnings growth has averaged 30.50% annually at VNT. This is better than the industry average growth of 2.15%. For fiscal years 2024 and 2025, analysts are estimating that average annualized growth will be weaker than during the last 3 years.

The post 7 ASX All Ords shares elevated to ‘strong buy’ status in March appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX 200 shares could rise 20% to 40%
• Could this rumoured ASX IPO become a billion-dollar takeover target?
• Will Qantas shares pay a dividend in 2024?
• 2 ASX shares I have been buying in 2024!
• Is Qantas a bargain ASX 200 stock today?

Motley Fool contributor Bronwyn Allen has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Janison Education Group and Johns Lyng Group. The Motley Fool Australia has recommended Janison Education Group and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1mTCHjd

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a very small gain. At the time of writing, the benchmark index is up slightly to 7,901.6 points.

Four ASX shares that have failed to follow the market’s lead are listed below. Here’s why they are falling:

Cettire Ltd (ASX: CTT)

The Cettire share price is down 15% to $3.46. This appears to have been driven by weakness in the consumer sector and a broker note out of Bell Potter. In respect to the latter, the broker has downgraded Cettire’s shares to a hold rating with a trimmed price target of $4.50. It said: “[A]s we now head into 4Q24, we think the stock looks reasonably well priced at current levels considering the tougher comps ahead from 4Q24 onwards and as we anticipate the China market entry to be leaning well into FY25, post the current seasonal period which is CTT’s second largest trading period given the Northern Hemisphere summer.”

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down almost 2% to $5.06. This has been driven by the retail giant’s shares going ex-dividend this morning for its interim dividend. Last month, Harvey Norman released its half-year results and declared a 10 cents per share fully franked interim dividend. Eligible shareholders can now look forward to receiving this payout at the start of next month on 1 May.

Orora Ltd (ASX: ORA)

The Orora share price is down almost 14% to $2.35. Investors have been hitting the selling button today after the packaging company downgraded its earnings guidance for FY 2024. Orora now expects its earnings before interest and tax (EBIT) excluding Saverglass to be slightly lower versus FY 2023. This compares to its previous guidance for EBIT to be higher year on year in FY 2024. In addition, its recently acquired Saverglass business has also been underperforming. Management advised that a weaker February and March trading result has confirmed that there is no noticeable improvement in forward customer demand as destocking is continuing.

Resmed Inc (ASX: RMD)

The Resmed share price is down 3.5% to $29.12. This is despite there being no news out of the sleep disorder-focused medical device company on Tuesday. However, it is worth highlighting that its shares on Wall Street pulled back sharply during overnight trade. This may have been driven by profit taking after some very strong gains recently. For example, even after today’s weakness, ResMed shares are still up 33% since the end of October.

The post Why Cettire, Harvey Norman, Orora, and ResMed shares are sinking today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is this ASX 200 stock crashing 16% to a 52-week low on Tuesday?
• These ASX 200 shares could rise 20% to 40%
• 13 ASX 200 shares at 52-week highs
• Here’s why I think the Resmed share price should be 18% higher
• 3 ASX 300 dividend shares to buy in April

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended Harvey Norman and ResMed. The Motley Fool Australia has recommended Cettire and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6RfatCw