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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Earnings season has hit top gear for the stocks that make up the largest components of the Nasdaq Composite (NASDAQINDEX: ^IXIC). The Nasdaq has been near all-time record highs, but on Thursday, the index pulled back from what appeared to be the beginning of a record run. As of 12:30 p.m. EDT, the Nasdaq was down more than half a percent after having risen early in the session.

Investors still pay a lot of attention to the FAANG stocks, because they have such a large impact on the entire stock market. Today, investors got a chance to react to earnings reports from Facebook (NASDAQ: FB) and Apple (NASDAQ: AAPL), and even a big gain in one of the stocks wasn’t enough to keep the Nasdaq from losing ground. Below, we’ll take a closer look at the latest from the two powerhouse tech giants to see what they had to say.

Facebook is stronger than ever

Shares of Facebook climbed almost 6% Thursday afternoon. The social media giant’s first-quarter financial report showed just how dominant it has become as a global force in its niche.

Sales at Facebook climbed 48% from year-ago levels, lifted by a 46% rise in advertising revenue. The company implemented excellent cost-containment measures that kept expense expansion to a relatively low 25% figure, and that resulted in net income soaring 94%. Earnings of $3.30 per share were far above expectations and nearly doubled year over year as well.

Facebook’s audience kept growing as the pandemic continued. Daily active users came in at 1.88 billion, up 8% from year-earlier levels. Monthly active users accounted for 2.85 billion people, higher by 10%. When you include the full suite of Facebook’s platforms, including Instagram and WhatsApp, the numbers rise even further to 2.72 billion daily users and 3.45 billion monthly users.

In particular, Facebook has seen a huge rebound in advertising revenue in the first quarter of 2021, including a 30% boost in average prices per ad. Further pricing increases could help bolster Facebook’s potential for the rest of the year, and that would be good news for the stock as the company marches toward a $1 trillion market capitalization.

Sweet success for Apple

Elsewhere, Apple also reported favorable financial results. However, the stock price didn’t react the same way, falling about half a percent in early afternoon trading on Thursday.

Apple’s fiscal second-quarter numbers showed many areas of strength. Revenue climbed 54% year over year, with a 62% jump in product-related sales leading the way higher. Service revenue rose as well, albeit by a more modest 27%. Margin performance was noteworthy, as gross margin climbed more than 4 full percentage points.

Apple also held operating expenses in check. Costs climbed just 11% from year-earlier levels. That helped net income more than double from fiscal 2020’s second quarter, and earnings of $1.40 per share were far greater than the roughly $1-per-share consensus among those following the stock.

CEO Tim Cook reported that Apple set new all-time records in the Mac and services segments, and iPhone, wearables, home, and accessories all did better than they had ever done before in a March quarter. However, he also commented on shortages that Apple is facing with respect to vital components, and that could affect the iPad and Mac product lines going forward.

Both Facebook and Apple have growth opportunities that you wouldn’t expect to find in such massive companies. That should keep both FAANG stocks among the most influential in the Nasdaq for a long time to come, even if their strong past performance might make it difficult for their share prices to keep rising at recent rates.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Why Facebook is still great value

Dan Caplinger owns shares of Apple. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Facebook and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Facebook and Apple couldn’t lift the Nasdaq Thursday appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Share investors are worried. They are worried that things have been too good.

That’s the sad life of a shareholder. When good times arrive, you fear that they can’t last. When bad times arrive, you wonder how much further damage could come.

After a boom year since the March 2020 coronavirus crash, many experts are worried equities are now overvalued.

However, Sydney’s Ophir Funds, in its latest investment strategy note, still has unwavering faith in the power of shares.

“That’s because, compared with other asset classes, equities are still offering investors the most compelling investment case in our opinion. And the most compelling chance to build long-term wealth.”

History is on shares’ side

Although past performance is never an indicator of future performance, over a very long period, shares outperform all other investments.

Ophir compared different investments over 121 years in the US.

“Equities performed best, returning 9.7% per year versus 5.0% on bonds, 3.7% on cash, and inflation of 2.9% per year,” it told investors.

“Furthermore, this study captures some notable setbacks: two world wars, the great depression, an OPEC oil shock, the GFC and COVID-19. In each case, equities eventually recovered and reached new highs.”

Fixed income and cash LOSE money

Near-zero or negative cash rates set by central banks around the globe have devastated fixed income and cash as investments.

“Although inflation is soft and likely to be contained, it still sits at a level above both short and long-term interest rates. Because of this, rates in Australia are negative in real terms,” Ophir’s memo read.

“This means that investment dollars sitting in these cash and fixed income asset classes are generally losing value after inflation.”

The investment firm advised that those aiming for long-term wealth creation should stay away from government bonds, and cash levels should be kept to “the bare minimum”.

Shares are still relatively cheap

While the stock market’s valuation may be higher now compared to other times in history, it’s still cheaper than bonds.

Ophir quantified this by calculating the price-to-earnings (P/E) ratio equivalent for bonds.

“The Australian equity market’s current PE of around 20x is often pointed out as expensive and a sign of poor future returns,” the memo read.

“But this 20x multiple – which implies a yield of 5% — looks cheap compared against the 55x multiple investors are effectively paying when buying Australia’s government bonds that currently yield just 1.8%.”

What should our expectations be for shares?

With such low returns from other asset classes, shares don’t have to do much to look appealing.

So what performance expectations should we have for our stock portfolio?

“In our opinion, when you combine earnings growth, dividends, and the boost from franking credits, a 10% annual return from the Australian share market overall should be achievable over the long term,” Ophir told investors.

“We acknowledge though that over the next few years it might be lower than this.”

The investment house also stated overseas shares “probably will not outpace” ASX shares after franking credits are taken into account. 

“Global stocks do, however, become competitive on risk-adjusted measures once market diversification and currency impacts are considered.”

The fact that markets are at or near all-time highs in itself shouldn’t deter investors.

“Even after record highs, subsequent 12-month returns from equities have generally been strong,” stated the memo.

“Furthermore, while buying into the market slowly in dribs and drabs (dollar-cost averaging), can help mitigate investors’ fears of bad market timing, history suggests that investing all at once into the share market generates higher returns than dollar-cost averaging on average.”

More reading

• 3 reasons why the Pushpay (ASX:PPH) share price is a great buy
• How the St Barbara (ASX:SBM) share price hit a 52-week low
• These ASX 200 shares are tracking the Aussie economy higher in 2021
• Why the OceanaGold (ASX:OGC) share price is on watch
• Why the Janus Henderson (ASX:JHG) share price is on watch

Motley Fool contributor Tony Yoo 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.

The post Why the share market is still the best place to make money appeared first on The Motley Fool Australia.

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There are a few reasons why the Pushpay Holdings Ltd (ASX: PPH) share price looks attractive right now.

What’s Pushpay?

Pushpay is an ASX share that predominantly operates in the digital donation space.

It provides services to the large and medium US church sector.

Some of the services it provides includes church management systems, donation tools and livestreaming.

The livestreaming option has been particularly useful in the last 12 months with all of the impacts from COVID-19.

Reasons why the Pushpay share price could be really good to look at right now:

Exposure to digital payments trend

There is an ongoing trend around the world of payments going from cash to digital payments.

For the businesses operating these payment networks, it can be a very profitable sector.

Pushpay is one of the businesses driving that change in the church sector. It’s very valuable for churches because it means that the donation doesn’t have to be received physically.

Over the long-term, the trend for more church donations to be done electrnically could continue. 

In the most recent Pushpay result, for the six months to 30 September 2020, it said that total processing volume increased by 48% to 3.2 billion.

Over the long-term, Pushpay is targeting a 50% market share. Management believe this will turn into $1 billion of annual revenue.

Expansion plans

The current earnings is generated by the large and medium US churches.

But Pushpay has further growth plans.

It’s looking to expand its offering into other countries and regions over time. Some of the target places include South America and South East Asia.

Pushpay also said that it has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. Focused investment into the Catholic segment represents a significant milestone as Pushpay continues to execute on its strategy to become the preferred provider of mission critical software to the US faith sector.

There’s also the potential down the track for Pushpay to expand into non-profit organisations as well as education and tertiary sector donations.

Strong growth

Pushpay is generating a lot of growth at the moment, particularly over the last 12 months during this COVID-19 period.

In the six months to 30 September 2020, Pushpay saw operating revenue grow by 53%. This was powered higher by the processing volume increase.

However, Pushpay is also generating a lot of profit growth, cashflow and operating leverage.

In the six months to 30 September 2020 earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) jumped by 177% to US$26.7 million. The EBITDAF margin grew from 17% to 31%. This increase occurred with total expenses falling from 50% to 38% as a percentage of operating revenue.

Operating cashflow surged higher by 203% to US$27 million whilst the net profit after tax (NPAT) went up by 107% to US$13.4 million.

In FY21, Pushpay is expecting EBITDAF to be in a range of US$56 million to US$60 million.  

What’s the Pushpay share price valuation?

According to Commsec, the Pushpay share price is valued at 22x FY23’s estimated earnings. This forward valuation is lower than quite a few ASX shares in the technology space. 

More reading

• 2 exciting ASX tech shares that are highly rated by analysts
• 2 stellar ASX shares growing rapidly
• 3 of the best ASX shares to buy this month
• 2 great ASX payment shares to buy
• Why Alumina, Delorean, Next Science, & Pushpay shares are tumbling lower

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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 reasons why the Pushpay (ASX:PPH) share price is a great buy appeared first on The Motley Fool Australia.

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The St Barbara Ltd (ASX: SBM) share price has had a tough time in 2021. Shares in the Aussie gold miner have slumped 23.5% lower to a new 52-week low on the back of weakening gold prices and some disappointing results.

Why has the St Barbara share price slumped in 2021?

The big news this week came in the form of St Barbara’s quarterly production update. The Aussie gold miner reported an 8.2% drop in production to 82,303 ounces compared to the December quarter.

St Barbara’s all-in sustaining cost (AISC) also climbed 8.7% higher to $1,649 per ounce on a disappointing note for shareholders. Quarterly gold sales slumped 28.3% against December numbers, albeit at a 5.7% higher average realised price of $2,247 per ounce.

That was enough to send the St Barbara share price tumbling 8% lower on Wednesday. It continued a disappointing run of form for the ASX gold share in 2021.

However, St Barbara is far from the only gold miner to see its valuation slide in 2021. Other big-name miners like Northern Star Resources Ltd (ASX: NST) have also been under pressure.

That’s largely a result of weakening commodity prices in 2021. The global gold price was strong in 2020 as investors turned to the traditional safe-haven asset amid the coronavirus pandemic.

However, renewed optimism and a strengthening US dollar have reversed that trend. Gold prices are down ~10% since the start of the year as a result of changing demand dynamics.

That’s likely to have an impact on forecast revenues for some miners and comes after a flurry of new projects capitalising on higher pricing conditions. The St Barbara share price is under pressure alongside many other miners and trading at a 52-week low right now.

Foolish takeaway

The St Barbara share price has been hammered lower to start the year after a strong run of gains in 2020. The Aussie gold miner still boasts a market capitalisation of $1.3 billion and currently trades at a price-to-earnings (P/E) ratio of 10.5 prior to Friday’s open.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why this top broker just upgraded the battered St Barbara (ASX:SBM) share price to “buy”
• ASX 200 rises, Kogan jumps, gold miners sold off
• Why the Gold Road (ASX:GOR) share price was smashed today
• Why JB Hi-Fi, Link, Ramelius, & St Barbara shares are tumbling lower

Motley Fool contributor Ken Hall 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.

The post How the St Barbara (ASX:SBM) share price hit a 52-week low appeared first on The Motley Fool Australia.

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There are two ASX 200 shares that are worth watching right now. That’s because both are outperforming the S&P/ASX 200 Index (ASX: XJO) in 2021 and continue to track the Aussie economy in its post-coronavirus recovery.

Why these ASX 200 shares are tracking the Aussie economy higher

The two shares that have had a solid start to the year are Seek Limited (ASX: SEK) and REA Group Limited (ASX: REA). Seek shares are up 22.1% since the end of February while the REA share price is up 16.9% in that same period.

These are two large cap ASX 200 shares that have been performing strongly in recent months. For context, the benchmark index is up 6.1% since the end of February and 6% year to date.

But more importantly, employment and real estate are two key factors in the Aussie economy right now. All eyes have been on the latest employment numbers as an indicator of our economic health.

Those figures for March showed signs of recovery as the unemployment rate decreased by 20 basis points to 5.6%. The number of unemployed people as defined by the Australian Bureau of Statistics fell from 805,200 to 778,100 in March. 

According to ABS head of labour statistics, Bjorn Jarvis, employment and hours worked in March 2021 were both up with indications that things are returning to their pre-COVID levels.

That means ASX 200 shares like Seek that drive revenue from a good labour market are worth watching. Then there’s the word on everyone’s lips right now: property.

ASX 200 real estate shares have been recovering in recent times as Aussie property booms. Capital city markets, in particular, have been strong with solid clearance rates and rising house prices.

The REA share price boom in the last 2 months or so has been boosted by strong listing numbers. People are beginning to cash in on the housing boom after subdued numbers throughout a COVID-impacted 2020. That has sent the REA share price surging in April as the CoreLogic home value index showed strong gains.

Foolish takeaway

REA and Seek are two ASX 200 shares worth watching as the Aussie economy continues to recover to pre-COVID levels. Both shares have very different but important ties to key economic drivers which are showing early signs of recovery in 2021.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Woolworths falls, Fortescue was flat
• Why ASX 200 oil shares are eyeing US$80 per barrel Brent crude prices
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• Are Woolworths (ASX:WOW) shares too expensive?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX 200 shares are tracking the Aussie economy higher in 2021 appeared first on The Motley Fool Australia.

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The OceanaGold Corp (ASX: OGC) share price is one to watch in early trade. Investors will be keeping an eye on the Aussie gold miner after its latest quarterly results.

Why is the OceanaGold share price on watch?

The Aussie gold miner this morning provided its latest quarterly results for the period ended 31 March 2021 (Q3 2021).

OceanGold produced 83,191 ounces of gold on a consolidated basis at an all-in sustaining cost (AISC) of $1,229 per ounce. Production was up 3% on the prior corresponding period (pcp) but down 16% from the December quarter.

The group’s AISC was marginally higher than the $1,218 per ounce recorded in the previous quarter. OceanaGold increasing consolidated cash costs of $800 per ounce and higher AISC reflected lower production and higher capitalised pre-stripping. 

The OceanaGold share price is one to watch today after the mixed result as the company maintained its full-year guidance numbers.

OceanaGold sold 82,847 ounces of gold during the quarter for revenue of $148.9 million. That was an increase on pcp but down 11.5% from $168.2 million in the December quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $66.5 million for the quarter, down 6% from the December quarter.

Cost increases at the group’s Haile plant reflected lower throughput during the quarter and one-off costs. OceanaGold expects Haile to produce 150,000 to 170,000 ounces at an AISC of $950 to $1,100 per ounce sold for FY2021.

The OceanaGold share price is worth watching today as it remains on-track to achieve full year 2021 guidance. That’s despite challenges at its Phillippines-based Didipio site. Didipio remains “in a state of operational standby” as an ongoing blockade of the access road continues.

The Aussie gold miner said it is unable to provide a specific timeline to complete the Financial or Technical Assistance Agreement (FTAA) renewal. COVID-19 factors mean it may take “up to 12 months” for normal operations to resume.

Foolish takeaway

The OceanaGold share price is one to watch in early trade after the comprehensive quarterly update form the Aussie gold miner.

More reading

• Why the Janus Henderson (ASX:JHG) share price is on watch
• Only 40% of Australians want the AstraZeneca vaccine. What could this mean for CSL (ASX:CSL)?
• Is the Woolworths (ASX:WOW) share price a buy after its Q3 update?
• 7 ASX 200 shares with emission reduction strategies
• Top broker slaps sell rating on Fortescue (ASX:FMG) share price

Motley Fool contributor Ken Hall 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.

The post Why the OceanaGold (ASX:OGC) share price is on watch appeared first on The Motley Fool Australia.

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The Janus Henderson Group (ASX: JHG) share price is one to watch this morning after the UK investment group’s latest quarterly update.

Why is the Janus Henderson share price in focus?

Shares in the UK investment group were smashed 3.0% lower on Thursday ahead of the quarterly results release.

Janus Henderson reported that long-term investment performance remains “solid” despite 3-year investment outperformance edging lower to 62%. Assets under management increased by 1% to US$405.1 billion while the group booked US$3.3 billion in outflows for the quarter.

Adjusted diluted earnings per share (EPS) fell 12.5% from the December quarter to US91 cents per share. Janus Henderson’s dividend per share edged higher to US38 cents, up from US36 cents in Q4 2020. It’s worth watching the Janus Henderson share price as investors react to the dividend increase in early trade.

This comes after the investment group completed a US$230 million share buyback during the March quarter. On the investment side, the company reported a broadly strong performance.

Fixed income, multi-asset and alternatives strategies all had 90% of assets under management (AUM) outperforming on a 1- and 3-year basis. Quantitative equities was the noticeable outlier, with 48% of AUM outperforming on a 1-year basis with 4% and 11% on a 3- and 5-year basis, respectively.

Investors will be keeping an eye on Janus Henderson shares after the company reported a decline in net flows for the quarter and decrease in gross sales.

Adjusted quarterly revenue was down from US$528.5 million to US$516.6 million thanks to a 71% drop in performance fees to US$17.0 million. A 6% increase in total operating expenses at US$315.1 million also punctuated the quarterly result.

Foolish takeaway

The Janus Henderson share price is one to watch this morning after the group’s latest quarterly update. The UK investment group closed with a $42.65 share price and an $8.7 billion market capitalisation on Thursday afternoon.

More reading

• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Ken Hall 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.

The post Why the Janus Henderson (ASX:JHG) share price is on watch appeared first on The Motley Fool Australia.

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New data reveals that only 40% of Australians are willing to take the AstraZeneca plc (LSE: AZN) COVID-19 vaccine. What, if anything, could this mean for CSL Limited (ASX: CSL)?. The data, released Monday in an Essential Research poll, comes at an inopportune time for the country as a whole, with the inoculation roll-out already delayed.

With CSL being the main manufacturer and distributor of the AstraZeneca vaccine in Australia, it would be interesting to know what the company makes of the latest figures.

Let’s take a closer look at the data.

1 in 5 Australian women refuse to get vaccinated

Since Essential’s previous poll, which was taken before news surrounding possible blood clotting side-effects in those under 50 surfaced, the number of people saying they would refuse to get vaccinated increased from 12% to 16%. This includes 20% of all women and 23% of all 18 to 34-year-olds. The 16% figure is still within tolerable levels to achieve herd immunity, it should be noted.

42% of respondents said they want to get vaccinated as soon as possible, while another 42% said they would prefer to wait for a time before receiving their vaccination.

The number who said they would be willing to have any vaccination is 37%. A further 3% said they would have the AstraZeneca vaccine but not the Pfizer Inc (NYSE: PFE) vaccine. Perhaps most concerning is the number of those people aged over 50 who said they would rather have the Pfizer vaccine than the AstraZeneca one.

As mentioned, those under 50 are not recommended to have the AstraZeneca vaccine. The government is also mandating that those over 50 should not be given the Pfizer vaccine if the AstraZeneca one is available. Nearly a third of respondents aged between 50 and 69 said they want the Pfizer injection, as well as 16% of those aged 70+. Men are much more likely than women to accept either vaccine (48% to 27% respectively).

What could this mean for CSL?

As no Australian consumers can buy vaccines directly (they are purchased by the Commonwealth to then be distributed to states, GPs, and other providers) it’s possible CSL may not be greatly impacted by any hesitancy among Australians over the AstraZeneca vaccine. Furthermore, according to JP Morgan healthcare analyst David Low, as reported by The Sydney Morning Herald earlier this year:

CSL’s exposure to vaccines is quite small especially after the University of Queensland vaccine program was terminated. It’s about the relative financial contribution – the potential earnings from COVID vaccines is modest compared with the group’s other business lines.

On the other hand, the government has already responded to public sentiment and changing health advice by recommending against those under 50 having the AstraZeneca vaccine. Motley Fool Australia has contacted CSL for comment.

CSL share price snapshot

Over the last 12 months, the CSL share price has decreased by around 12%. Shares in the company fell from $285.00 each at the beginning of the year to a 52-week low of $242.00 in early March. Since then, the CSL share price has partially recovered to its current level of $273.49. However, the company’s shares are still trading almost 15% lower than their 52-week high of $320.42 reached in November.

CSL has a market capitalisation of $124.5 billion.

More reading

• 4 healthcare share tips from a fundie with a health PhD
• 4 ASX shares to boom when inflation goes up: fundie
• Should CSL (ASX:CSL) be your next dividend share?
• 2 fantastic blue chip ASX 200 shares for your portfolio
• 2 of the best ASX 200 shares according to analysts

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 CSL Ltd. 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.

The post Only 40% of Australians want the AstraZeneca vaccine. What could this mean for CSL (ASX:CSL)? appeared first on The Motley Fool Australia.

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The Woolworths Group Ltd (ASX: WOW) share price was a poor performer on Thursday.

The retail conglomerate’s shares fell almost 4% to $39.81.

Why did the Woolworths share price sink lower?

Investors were selling the company’s shares following the release of its third quarter sales update.

For the three months ended 31 March, Woolworths reported a 0.4% increase in group sales to $16,566 million.

This growth was driven by its BIG W and drinks businesses, which offset softer sales from its supermarkets.

Australian Food sales were down 0.7% on the prior corresponding period to $11,092 million, whereas New Zealand supermarket sales fell 6.9% in local currency to NZ$1,792 million.

What else?

Also weighing on the Woolworths share price was management’s outlook for the fourth quarter.

Woolworths’ CEO, Brad Banducci, warned: “Turning to current trading and outlook, sales growth for the first three weeks of April remained volatile and impacted by prior year growth rates and the timing of public holidays.”

“In Australian Food, total sales were broadly flat compared to last year. This reflects the cycling of mid-single digit sales growth in April last year in comparison to double-digit sales growth in May and June.”

Is this a buying opportunity?

According to a note out of Goldman Sachs, its analysts have seen enough in this result to retain their buy rating.

However, the broker has trimmed its price target to $43.10 after revising its near term earnings estimates slightly lower.

Based on the latest Woolworths share price, this implies potential upside of 8.3% over the next 12 months. And if you include the 2.8% dividend yield the broker is forecasting, this stretches to approximately 11%.

Goldman notes that Woolworths outperformed rival Coles Group Ltd (ASX: COL) during the quarter.

It said: “Woolworths’ 3Q21 update offered a mixed bag. Australian supermarkets reported comparable sales growth below GSe but c. 430bps outperformance vs. Coles Group underpinned by a c. 91% growth in the e-commerce business. While the trading into early April is lacklustre, we believe that the volatility on a weekly basis in pcp makes it difficult to draw any meaningful conclusions regarding performance vs. Coles Group.”

“Amongst the remaining divisions, Endeavour Group, BigW and Hotels reported sales ahead of GSe for the quarter while NZ supermarkets continued to underperform as the industry is impacted by border restrictions. Management expects to release the Endeavour Group demerger documents in mid-May, a potential catalyst for Woolworths Group.”

“Overall, we revise our NPAT forecasts by -0.1% and -1.3% over FY21 and FY22. Our revised 12m Target Price on WOW is at A$43.10, offering a potential total return of +11.1%. We maintain a Buy rating on WOW,” it concluded.

All in all, this could make it worth considering the Woolworths share price after yesterday’s weakness.

More reading

• 7 ASX 200 shares with emission reduction strategies
• ASX 200 rises, Woolworths falls, Fortescue was flat
• Are Woolworths (ASX:WOW) shares too expensive?
• Woolworths (ASX:WOW) fails the pub test with Darwin Dan Murphy’s
• Why Airtasker, Ecofibre, Nuix, & Woolworths shares are sinking

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the Woolworths (ASX:WOW) share price a buy after its Q3 update? appeared first on The Motley Fool Australia.

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Australians, and many ASX 200 companies, are becoming increasingly conscious of the future of our carbon emissions. But the role the private sector has to play in Australia’s approach to tackling climate change has been even more in focus since Prime Minister Scott Morrison’s attendance at the virtual Leaders Summit on Climate last week.

The Prime Minister didn’t add much to the climate change debate at the event. But, as the ABC reported, his comments that our efforts in this area would be largely “driven by our… private sector” help shine the spotlight on the future of carbon emissions that many climate-conscious ASX 200 companies are already addressing.

According to a report published by ASIC late last year, these 7 ASX 200 companies have emissions reduction targets that are approved by the independent Science-Based Targets initiative (SBTi) and are aligned with the Paris Agreement. 

7 ASX 200 carbon-conscious companies

Suncorp Group Ltd (ASX: SUN)

According to Suncorp, the company has concrete plans for sustainable growth.

This ASX 200 share says it is tracking and reducing its operational greenhouse gas (GHG) emissions footprint through its new carbon budget and science-based emissions reduction target.

It plans for a 51% absolute reduction of emissions by 2030.

Origin Energy Ltd (ASX: ORG)

Origin was the first energy company in the world to have its emissions reduction targets approved by the SBTi.

Its emissions reduction strategy is to reduce its direct greenhouse gas emissions by 50%, and emissions caused as a result of its value chain by 25%, by 2032.

Origin plans to be completely carbon neutral by 2050.

The rise of renewables and the impact of emerging digital technologies are creating new opportunities. Which-50 spoke with Origin’s head of Future Energy, Cameron Briggs, about how we are approaching the future: https://t.co/GQXsaICAuU pic.twitter.com/P4SYlXyPdB

— Origin (@originenergy) December 7, 2018

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SkyCity Entertainment Group Limited (ASX: SKC)

SkyCity states that, as a member of the casino industry, it works hard to justify its place in society. Thus, it has a number of environmental and social measures in place to support positive practices.

One of these is its commitment to reducing its carbon emissions by 38% by 2030 and its GHG emissions by 73% by 2050.

SkyCity also says that, by 2023, 67% of what it spends on supplies such as food and drinks will come from companies with science-based emission-reduction targets in place. 

Dexus Property Group (ASX: DXS)

Around 25% of Australia’s carbon and GHG gas emissions come from the construction, operation and maintenance of buildings. According to Dexus, it is now working on reducing those caused by its own buildings.

The ASX 200 real estate group has concrete plans to reduce its direct carbon and GHG emissions by 70% by 2030. It has also pledged to reduce its value chain’s emissions by 25% by 2030.

The race to become Australia’s most sustainable workplace – #betterbuildingscup – is getting festive with our customers at 100 Harris Street in Pyrmont hosting a Sustainable Christmas Gift Market supporting local businesses and a waste-free Christmas. #sustainability pic.twitter.com/srMgmpzH1n

— Dexus (@Dexus) December 16, 2019

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Fletcher Building Limited (ASX: FBU)

Fletcher Building aims to be the Australian and New Zealand leader in sustainable building materials and construction.

To get there, it’s pledged to reduce its carbon and GHG emissions by 30% by 2030. It’s also committed to making sure that 67% of its suppliers will have science-based emission reduction targets by 2024.

QBE Insurance Group Ltd (ASX: QBE)

According to QBE, the company has already met some ambitious and modern goals when it comes to battling climate change.

It has already attained its goal of reducing its corporate air travel by 20% and removed all its direct investments in thermal coal. QBE has also reduced all its emissions by 30% – reaching its self-imposed deadline four years ahead of schedule. 

QBE is now working to reduce its energy use by 15% by the end of this year. It also plans to use 100% renewable electricity for all its operations by 2025.

Today we released our 2020 Sustainability Report outlining the progress we’re making to integrate #sustainability into the way we do business. More: https://t.co/ezXG6DIGOO pic.twitter.com/pqZqqONbOK

— QBE (@QBE) February 18, 2021

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Insurance Australia Group Ltd (ASX: IAG)

Insurance Australia got the ball rolling on climate change relatively early. The company published its first sustainability report in 2005, and is already carbon neutral.

It has set goals for emission reductions of 43% by 2025, 71% by 2030 and a 95% by 2050.

Other ASX 200 companies setting targets

The next time we take a look at which ASX 200 companies have set SBTi-approved emissions targets, we might need to write a longer list. At the time of ASIC’s report, Woolworths Group Ltd (ASX: WOW), Westpac Banking Corp (ASX: WBC) and Telstra Corporation Ltd (ASX: TLS) had all committed to set emissions reduction targets in line with the SBTi and the Paris Agreement in the near future.

Currently, Telstra is proposing to be carbon neutral by the end of this year and plans to run its business with 100% renewable energy by 2025. It has also committed to reducing its total emissions by 50% by 2030. Westpac has committed to reducing its emissions by 34% by 2030. The bank is also currently working on creating emission reductions initiatives for its third-party suppliers.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths 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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