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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form again and recorded a solid gain. The benchmark index rose 0.4% to 7,095.8 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to push higher again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% higher. This follows a mixed night on Wall Street, which has seen the Dow Jones rise 0.3%, the S&P 500 edge 0.1% higher, and the Nasdaq fall 0.4%.

NAB half year update

The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when it releases its half year results. According to a note out of Goldman Sachs, it expects the banking giant to report cash earnings of $3,031 million. This will be up 77% on the prior corresponding period. On the very bottom line, the broker is forecasting earnings per share growth of 43% to 85.4 cents. This is expected to lead to the NAB board declaring a 55 cents per share fully franked interim dividend.

Oil prices lower

It could be a subdued day of trade for energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.6% to US$65.29 a barrel and the Brent crude oil price has fallen 0.3% to US$68.67 a barrel. Oil prices softened despite inventories declining.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.55% to US$1,785.90 an ounce. The gold price rose after the US dollar pulled back.

ANZ rated as a buy

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could be good value according to analysts at Goldman Sachs. This morning the broker responded to its half year results by putting a buy rating and $30.20 price target on its shares. Goldman is also forecasting a 5% dividend yield in FY 2021.

More reading

• ASX 200 rises, ANZ drops, Nearmap jumps
• How this new forecast could put ASX copper shares under pressure
• ASX stock of the day: Brickworks (ASX:BKW) shares top the ASX 200
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• The ASX 200 is within an arms reach of all-time record highs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) went up 0.4% to 7,096 points.

Here are some of the highlights from the ASX:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

ANZ reported its HY21 result today. Compared to the second half of FY20, statutory profit after tax grew by 45% to $2.94 billion, cash profit (continuing operations) rose by 28% to $2.99 billion.

One of the key drivers was a net credit provision release of $491 million.

ANZ’s board decided to increase its dividend per share by $0.35 to $0.70. This decision was taken after a 110 point increase of the common equity tier 1 (CET1) capital ratio to 12.4%.

The CEO of ANZ, Shayne Elliott, said:

Following the trends of the first quarter, all parts of our business performed well. Costs were down 2% and we also increased investment in new digital capability that will provide ongoing productivity improvements and better customer outcomes.

Australia retail and commercial had another good half, becoming the third largest home lender in the market. Deposits performed well, with retail and small business customers behaving prudently by building solid savings and offset balances through the half.

Lower revenues in our institutional business were largely expected due to the impact of falling interest rates as well as a normalisation of markets revenue after an exceptionally strong 2020. Our disciplined focus on credit management has been a positive with our largest customers going into the pandemic from a position of strength and adapting fast to the rapidly changing environment.

New Zealand continued its recent strong performance with record lending growth combined with disciplined cost management. This is a well-run business that is an important part of our overall portfolio and is well-placed to manage increased regulatory capital demands.

Improving credit conditions resulted in a release of almost $500 million during the half. While the pandemic hasn’t resulted in large credit losses to date, we still have almost $4.3 billion in reserve if conditions deteriorate.

The ANZ share price fell over 3% today, making it one of the worst performers in the ASX 200.

Nearmap Ltd (ASX: NEA)

The Nearmap share price went up 14.5% today before going into a trading halt this morning.

Yesterday afternoon, Nearmap increased its FY21 annual contract value (ACV) guidance to a range of $128 million to $132 million, up from $120 million to $128 million.

After a strong first half of FY21, the company has seen momentum continue with growth across its core industry segments from both new and existing customers.

Management boasted that this reinforces the attractiveness of the company’s subscription business model, its technology and the differentiated customer offering which combine to give Nearmap a significant competitive advantage.

Nearmap continues to invest the proceeds from the FY21 capital raise into key growth initiatives, including the development of HyperCamera3 which remains on track to be rolled out in FY22. With each of the investment initiatives on track and with continued momentum in ACV growth, Nearmap now expects the net cash outflow to be less than $10 million this financial year.

In early trading, Nearmap shares went into a trading halt to respond to the potential legal proceedings. It was the best performer in the ASX 200 before the trading halt. 

Ramsay Health Care Limited (ASX: RHC)

The Ramsay Health Care share price dropped over 4% today after giving a trading update yesterday. The private hospital business said that Ramsay Australia has seen volume recovery in the Australian market continues, but it has been impacted by lockdowns.

In the third quarter of FY21, it saw a 4.6% increase in total patient revenue. That was driven by surgical admissions per work-day going up 8.5% year on year and non-surgical admissions per work-day going up 4.4%.

Ramsay UK was called on by the NHS to help deal with peak surge COVID-19 cases, resulting in the company seeing 14 hospitals being utilised during certain periods. Ramsay was paid on a cost recovery basis for this. The business has continued to treat non-COVID NHS priority cases and to provide private patient services during the third quarter. Admissions were down 6.2%.

The Ramsay share price was one of the worst performers today in the ASX 200.

More reading

• How this new forecast could put ASX copper shares under pressure
• ASX healthcare shares could be next to be hit by the digital disruption
• ASX stock of the day: Brickworks (ASX:BKW) shares top the ASX 200
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• Here’s why the Nearmap (ASX:NEA) share price is in a trading halt

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and 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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If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

But which blue chip ASX 200 shares should you buy? Two that are highly rated are listed below:

ResMed Inc. (ASX: RMD)

The first blue chip ASX 200 share to look at is ResMed. It is one of the world’s leading medical device companies with a focus on sleep disorders.

ResMed appears well-placed for growth over the long term thanks to its enormous addressable market, its industry-leading technology, and its digital health ecosystem. At the end of December, this ecosystem reached over 12 million cloud connectable medical devices.

Positively, its investment in digital health also gives it an advantage over much of the competition and puts it in a strong position to benefit from the shift to home healthcare.

Morgans is positive on the company. Earlier this week the broker put an add rating and $29.14 price target on its shares.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share to consider is retail conglomerate Woolworths.

Woolworths has been a very positive performer in FY 2021 thanks to strong performances across its BIG W, BWS, Dan Murphy’s, and Woolworths supermarkets businesses.

This led to the company reporting a 10.5% increase in first half revenue to $35.8 billion and a 15.9% increase in net profit after tax to $1,135 million.

And although its growth is now slowing as it cycles the panic buying at the height of the pandemic, Woolworths looks well-placed to resume its solid growth once trading conditions normalise. This is thanks to its strong market position, online growth, and the unlocking of value via the Endeavour demerger.

Macquarie is a fan of the company. Last late month, the broker put an outperform rating and $44.50 price target on its shares.

More reading

• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• What do brokers think of the ResMed (ASX:RMD) share price dip?
• Why Bubs, IDP Education, ResMed, & Tyro shares are dropping today
• ASX 200 up 0.25%: Westpac result impresses, PointsBet jumps
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for growth shares to buy, then the tech sector could be a great place to start. In this sector there are a number of companies with the potential to grow materially over the next decade.

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

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first option for growth shares to consider is actually an ETF. The BetaShares Global Cybersecurity ETF provides investors with access to the leaders in the growing global cybersecurity sector.

This is certainly a great space to be in. Demand for cybersecurity services has been increasing at a rapid rate in recent years and is expected to continue doing so. This is due to the growing threat of cyberattacks on governments and businesses.

There are a total of 40 companies included in the fund that investors will be buying a slice of. These include Accenture, Cisco, Crowdstrike, Fortinet, Okta, Splunk, and VMware.

Whispir Ltd (ASX: WSP)

Another tech share to look at is Whispir. It is a software-as-a-service communications workflow platform provider.

Demand for Whispir’s platform has been growing strongly over the last few years and has continued in FY 2021.

For example, last month it released its third quarter update and revealed that its annualised recurring revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was driven by continued growth in customers and increased usage.

Pleasingly, with the company recently raising significant capital, it is well-funded to accelerate and execute its growth strategy. 

Ord Minnett is very positive on the company’s prospects. Late last month the broker retained its buy rating and $4.25 price target on its shares. This compares very favourably to the current Whispir share price of $2.99.

More reading

• 3 high quality ETFs for ASX investors in May
• 2 growing small cap ASX shares you need to watch
• 2 exciting ETFs ASX investors need to know about
• Whispir (ASX:WSP) share price charges higher following Q3 update
• 3 excellent small cap ASX shares to watch closely

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 recommends Whispir Ltd. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Whispir 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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Are you looking for some small cap ASX shares to add to your watchlist this month? Then you might want to take a look at the ones listed below.

Here’s why they could be worth keeping a close eye on:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share to watch is Audinate. It is a digital audio-visual networking technologies provider best known for its industry-leading Dante audio over IP networking solution.

This solution is dominating the competition and is expected to continue doing so for the foreseeable future. In fact, as we covered here earlier this week, one fund manager believes Audinate has the potential to be an unregulated monopoly.

Positively, after being disrupted by the COVID-19 pandemic, demand has started to rebound strongly for the company’s offering. This led to Audinate reporting its highest ever quarterly revenue last month.

UBS is a fan of the company. Last month it responded to its third quarter update by putting a buy rating and $10.40 price target on its shares. This compares to the most recent Audinate share price of $7.94.

Nitro Software Ltd (ASX: NTO)

Another small cap to watch is Nitro Software. It is a software company aiming to drive digital transformation in organisations around the world.

Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools. Demand continues to grow for the solution, underpinning strong recurring revenue growth.

For example, in FY 2021, the company is guiding to annualised recurring revenue (ARR) of $39 million to $42 million. This represents year on year growth of 41% to 51.6%.

Morgan Stanley is positive on the company and recently reaffirmed its overweight rating and $3.70 price target on its shares. This compares to the latest Nitro share price of $3.00.

More reading

• Like Bluetooth but better: ASX share excites fundie
• Brokers name 3 ASX shares to buy now
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Why the Nitro (ASX:NTO) share price is surging 6% higher today
• 2 highly rated ASX tech shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX construction shares Boral Limited (ASX: BLD), Brickworks Limited (ASX: BKW), Cimic Group Ltd (ASX: CIM), Reliance Worldwide Corporation Ltd (ASX: RWC), and James Hardie Industries PLC (ASX: JHX) were all in the green today. By market close, they were up 0.8%, 4.23%, 1.47%, 3.99%, and 1.78%, respectively. For comparison, the S&P/ASX 200 Index (ASX: XJO) ended the day 0.4% higher.

Today’s price appreciation came as the Australian Bureau of Statistics (ABS) released figures showing building approvals are continuing at record pace.

Let’s take a closer look at some of the factors impacting ASX construction shares today.

Building approvals up

The number of dwellings approved rose 17.4% in March (seasonally adjusted), following a 20.1% rise in February. That’s according to the data released today by the ABS.

Daniel Rossi, director of construction statistics at the ABS, said the results were the second-highest on record.

“The total number of dwellings approved in March was the second-highest recorded, only exceeded by the November 2017 result,” Mr Rossi said.

New South Wales had the greatest increase in approvals for March at 26.9%. This was followed by Victoria (24.7%), Queensland (12.1%), and South Australia (3.5%). Dwelling approvals in Western Australia and Tasmania actually fell in March.

When only looking at private sector housing, Victoria delivered the most significant growth – up 7.8%. New South Wales had the fastest decline in this metric – down 10.5%.

The value of total buildings approved increased 36.3% to reach a record high. The value of total residential building rose 22.9%, driven by a 25.4% rise in new residential building. Residential alterations and additions rose 7.3%, also reaching an all-time high.

Further, the value of non-residential building reached an all-time high (up 59.4%), driven by a large rise in both private and public projects in March.

Shane Oliver, chief economist at AMP Capital, said the federal government’s HomeBuilder program probably had some effect in boosting approvals. He believes, however, the numbers also show an increase in actual construction in the month.

Aust Mar home building approvals +17%, volatile units +59%, houses +1% at record. Additions & alterations +7%.
HomeBuilder has likely brought forward approvals – but points to a strong rise in home building..+ve for jobs & may help slow house prices.
Non-res approvals also up. pic.twitter.com/l8HrVmVoBz

— Shane Oliver (@ShaneOliverAMP) May 5, 2021

https://platform.twitter.com/widgets.js

While today’s statistics are unlikely to have had a direct effect on ASX construction shares, they are indicative of the environment these companies are trading in. Arguably, today’s positive price movements could be a sign investors believe the building approval rates are indicative of what is to come, as well as what has already occurred.

Strong economic growth forecasts

In yesterday’s Reserve Bank meeting, chair Phillip Lowe said he was expecting GDP growth in 2021 to be stronger than initially expected.

“The Bank’s central scenario for GDP growth has been revised up further, with growth of 4.75 per cent expected over 2021 and 3.5 per cent over 2022,” Dr Lowe said.

He also expects unemployment to fall to 5% by the end of the year and 4.5% by the end of 2022.

Other factors pointing to strong GDP growth are the COVID-19 vaccination rollout (which experts are saying is needed to restart the economy) and rising new car sales. New car sales are widely regarded as an indicator of economic growth.

Shane Oliver says construction and the economy have a positive, almost symbiotic relationship:

While housing construction in total is only around 10 to 15% of GDP and housing construction specifically is only around 5 to 6% of GDP it is hugely cyclical, is a big employer and has big flow on effects to the rest of the economy.

Particularly once completed homes or additions to homes need to be fitted out with furnishings, fittings and consumer goods. So, the massive upswing in building approvals being seen is a positive sign that the economic recovery will remain on track over the next 12 months.

And of course, the relationship between construction and the economy is a positive one in that to the extent that strong construction can help drive a strong economy, the confidence and extra jobs that come with a strong economy can help further drive strong construction.

One could argue that ASX construction shares, therefore, could be the beneficiary of this economic growth. This, in turn, could fuel additional GDP growth in the short term, further benefitting these types of companies.

ASX construction shares’ recent history

By close of trade today, Boral shares were selling for $6.33, Brickworks shares were $21.17 each, Cimic Group shares were trading at $19.30 apiece, Reliance stock was $5.21, and to buy a share in James Hardie would set an investor back $43.51.

Over the last 12 months, the companies have changed in value by roughly +134%, +61%, -17%, +113%, and 99%, respectively.

The market capitalisations of these ASX shares range from $3.2 billion to $19.3 billion.

More reading

• ASX stock of the day: Brickworks (ASX:BKW) shares top the ASX 200
• Why the Future First Technologies (ASX:FFT) share price is surging 5%
• Pssst, I’m a value investor who makes money from growth shares: fundie
• Morgans just added these ASX shares to its “best ideas” buy list
• ASX 200 Weekly Wrap: Shares have average week but a great month

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Reliance Worldwide 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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Next Science Ltd (ASX: NXS) shares were on the slide today after the release of the company’s 2021 AGM presentation. By market close, the Next Science share price was trading 2.01% lower at $1.71. This came following gains of almost 5% for the company’s shares yesterday.

Next Science is focused on the research, development and commercialisation of technologies that aim to solve issues in human health caused by biofilms. The AGM was mainly focused on the company’s BlastX wound-treatment products. Let’s dive a little deeper into the presentation.

AGM presentation

Next Science markets itself as “the only company in the world solely dedicated to developing products that resolve biofilm based infections.” The company’s current focus is its wound-care product, BlastX, which has shown significant promise in accelerating the healing of major chronic wounds that are still before the necrotic stage.

The products work at removing pathogens from wound areas. While the company is still seeking some regulatory approvals in key markets, more than 15,000 patients have been treated using its products.

The Next Science share price was in the red today despite the company reporting “returned revenue to growth” in the fourth quarter of 2020. According to Next Science, Q4 revenue showed 75% growth on the same quarter in 2019. The company has commissioned a sales force of over 200 people in the United States and has capital raised $15 million to fund its product commercialisation.

Management comments

Next Science chair Mark Compton briefly admitted the challenges Next Science has faced in the US. He said:

Next Science is a relatively young company, with an exciting future ahead of it. There were many challenges in 2020, with key ones being the health risks to our staff and their families and the sales and marketing constraints of trying to engage a hospital and healthcare system totally focused on dealing with an all-consuming global pandemic that deeply penetrated the US.

As we look back to such a challenging year, I am pleased to report that much progress has been made at Next Science.

Next Science share price snapshot

Despite today’s falls, the Next Science share price has gained almost 30% over the past month. It’s also up by around 37% year to date. Over the past year, however, the company’s shares have only gained 3.64%. Next Science has a current market capitalisation of around $345 million.

More reading

• Why Doctor Care Anywhere, Next Science, NIB, & Talga are charging higher
• Why the Next Science (ASX:NXS) share price opened 40% higher
• Why Alumina, Delorean, Next Science, & Pushpay shares are tumbling lower
• Here’s why the Next Science (ASX:NXS) share price is sinking 6% lower

Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nexus Energy Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lion Energy Ltd. (ASX: LIO) share price was a strong mover today before the company announced a trading halt.

It’s worth noting that the energy producer’s shares soared to an all-time record high of 10 cents. However, some profit-taking led its shares to drop to 9.6 cents, up 20.9% before the halt went into effect.

Why is the Lion Energy share price zooming higher?

A possible catalyst for the rise in Lion Energy shares today could be the release of its green hydrogen strategy presentation.

According to the update, Lion Energy has been busy positioning itself in the production of green hydrogen towards resources and technology markets.

The company established a team of hydrogen experts, which will form a Hydrogen Advisory Board to analyse optimal electrolyser locations in Australia.

The company’s roadmap highlights securing land rights if there is market potential for hydrogen or ammonia. It further noted that it will determine the best value and fit for purpose solar, wind, and electrolyser technology.

In addition, Lion Energy will seek to appoint an experienced feasibility study consultant who can aid on the decision-making process.

The company hopes to establish joint ventures with international firms to build large scale solar/wind farms with energy storage facilities. This in turn would lead to the sale of green hydrogen to domestic and international markets.

Lion executive chair, Tom Soulsby commented:

We are excited to venture into green hydrogen to participate in the energy transition and to leverage Australia’s comparative advantage in renewable energy. We are actively working on delivering against our objectives stated above and will make further announcements in due course.

So why is Lion Energy in a trading halt?

In late afternoon trade, Lion Energy shares were placed in a trading halt at the request of the company.

In the release, Lion Energy cited Chapter 11 of the ASX listing rules to the green hydrogen strategy.

According to the ASX, Chapter 11 falls under the title of ‘Significant transactions.’ This essentially means if a company proposes to make a significant change to the nature of its activities, it must provide details to the ASX before the change.

While the reason for the halt is somewhat ambiguous, investors will have to wait until this Friday or before to find out. It is expected once the announcement is provided to the ASX, the trading halt will be lifted.

Lion Energy share price summary

The Lion Energy share price continued its impressive run today before going into a trading halt. The company’s shares have accelerated over 440% in the past 12 months, with close to 300% on year-to-date gains.

Lion Energy commands a market capitalisation of roughly $23 million, with approximately 238.5 million shares on issue.

More reading

• Why the Lion Energy (ASX:LIO) share price is soaring 65% today
• Here’s why Lion Energy (ASX:LIO) shares rocketed 132% this morning

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nasdaq-100 (INDEXNASDAQ: NDX) is an index that many ASX investors would be familiar with. The Nasdaq houses some of the largest (and arguably, best) tech companies on the planet. The likes of Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA), and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) all call the Nasdaq home. Oh, as does Amazon.com Inc (NASDAQ: AMZN).

The only problem for ASX investors is that the Nasdaq, as you might have gathered by now, is an American exchange. As such, its companies are not available on the ASX. Well, not directly.

The BetaShares Nasdaq 100 ETF (ASX: NDQ) is available on the ASX however. This exchange-traded fund (ETF) is designed to mirror the Nasdaq 100 Index in Australian dollar terms. It contains all 100 of the top companies on the Nasdaq 100, including all of the tech giants mentioned above. Some other notable names that this ETF holds are PepsiCo, Inc (NASDAQ: PEP), NVIDIA Corporation (NASDAQ: NVDA), Netflix Inc (NASDAQ: NFLX), and PayPal Holdings Inc (NASDAQ: PYPL).

This ETF has been a top performer for its investors too. Since its inception in 2015, NDQ has returned an average of 21.01% per annum. Over the past 5 years, that expands to an average of 24.67% per annum. 3 years? 26.53%. And over the past year, we’re looking at a return of 34.9%.

Not bad, one could objectively say.

Tech pullback a buying opportunity for NDQ?

So why is this tech ETF looking enticing today? Well, it’s enjoying something of a rare pullback. NDQ units have lost around 3.8% since mid-April. As you might have gathered from the statistics above, this index does not seem to do pullbacks often. At least in recent years. This most recent pullback seems to be as a result of concern over future inflation — and the rising interest rates that tend to come with it.

The ASX is a top share market. But it doesn’t do well, market capitalisation wise, in the technology space, at least compared to the US markets. That’s where this ETF could prove useful for an ASX investor looking for more exposure: almost half of NDQ’s holdings are in the information technology sector.

NDQ charges a management fee of 0.48% per annum.

More reading

• Tesla boss: ASX lithium shares set to boom
• FAANG stocks crushed earnings; here’s another great reason to buy them
• Better buy: Alphabet vs. Twilio
• Here are the US shares that ASX investors were buying last week
• a2 Milk and Zip were among the most traded ASX shares last week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, PepsiCo, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Facebook, Microsoft, Netflix, NVIDIA, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and recommends the following options: short March 2023 $130 calls on Apple, long March 2023 $120 calls on Apple, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, BETANASDAQ ETF UNITS, Facebook, Netflix, NVIDIA, and PayPal Holdings. 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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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares that brokers think investors should buy:

Infomedia Limited (ASX: IFM)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this automotive software company’s shares. This follows news that it has agreed to acquire SimplePart for up to US$45 million. The broker sees a lot of positives in the acquisition and expects it to be accretive to earnings from FY 2022. Looking ahead, Credit Suisse is forecasting dividends of 4.1 cents per share in FY 2021 and 5.9 cents per share in FY 2022. Based on the latest Infomedia share price of $1.59, this will mean fully franked yields of 2.6% and 3.7%, respectively.

Nick Scali Limited (ASX: NCK)

A note out of Citi reveals that its analysts have retained their buy rating and $12.05 price target on this furniture retailer’s shares. The broker was pleased with Nick Scali’s trading update and notes that trading conditions appear stronger than expected. Based on this and the booming housing market, it feels its FY 2022 forecasts are very conservative. And while it expects Nick Scali’s earnings to decline next year after a bumper FY 2021, it still feels its shares are attractively priced. Furthermore, they offer generous yields in a low interest rate environment. Citi is forecasting dividends per share of 80 cents and 48.6 cents over the next two years. With the Nick Scali share price currently fetching $10.31, this will mean fully franked yields of 7.8% and 4.7%, respectively.

Transurban Group (ASX: TCL)

Analysts at Macquarie have retained their outperform rating and $14.51 price target on this toll road operator’s shares. According to the note, the broker points out that traffic on its roads has been improving since the start of the year. Positively, it feels an improving economic environment is supporting a recovery in road traffic and expects further improvements to come. Particularly as domestic tourism increases and supports traffic on its roads connecting with airports. Macquarie is expecting Transurban to pay a 40.2 cents per share distribution this year and then a 52.1 cents per share distribution in FY 2021. Based on the current Transurban share price of $14.05, this will mean yields of 2.9% and 3.7% for investors over the next two years.

More reading

• Is the Transurban (ASX:TCL) share price a buy for dividends?
• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• Why the Infomedia (ASX:IFM) share price is on the rise today
• Why the Nick Scali (ASX:NCK) share price will be on watch today

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 Infomedia. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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