Tag: Motley Fool

When an S&P/ASX 200 Index (ASX: XJO) stock outperforms all and sundry one year but then suddenly dips, you need to at least check out what’s happening.

Neuren Pharmaceuticals Ltd (ASX: NEU) was the highest climber in the ASX 200 last year, gaining an insane 214% over the calendar year.

But a reality check has been delivered for investors this year, with an 18.6% tumble so far.

So what’s doing? Is this a bargain just waiting to be bought?

Why has Neuren become a cheap ASX stock?

Neuren develops treatments for rare neurological conditions. 

While it’s developing and testing future products, it already has a drug called Daybue on sale through its US licensee Acadia Pharmaceuticals Inc (NASDAQ: ACAD).

The analysts at Blackwattle explained in a memo that the main reason why Neuren shares have plunged in 2024 lies in this relationship.

“The underperformance resulted from a ‘short report’ released on Neuren’s US distributor, questioning the efficacy of NEU’s therapy and the retention rate of patients.”

The author of the report, Culper Research, claimed that Daybue has been “a total flop”.

“The sell-side sell calls for over $800 million in peak Daybue revenues, but our research suggests that Daybue new patient starts already topped this past summer, peak revenues will be a mere fraction of sell-side estimates, and Daybue’s flop will have knock-on effects as ACADIA remains a cash-burning machine.”

Ouch.

Should you buy Neuren Pharmaceuticals?

So is this a value trap or a golden opportunity to buy into a fast-growing company for dirt cheap?

Multiple Australian investment houses disagree with the short report.

The Blackwattle memo admitted the damaging claims have “impacted sentiment towards the stock” in the near term, but the short report is “at odds with trial data and the real-life experience of medical specialists, patients, and their carers”.

The team at the Elvest Fund is also keeping the faith.

“Our thesis for Neuren Pharmaceuticals is unchanged,” it said in its memo to clients.

“New CY24 Daybue sales guidance of US$370 to US$420 million (+120%) underpins another solid year of royalty and milestone revenue for Neuren.”

Broking platform CMC Invest shows unanimous agreement, with all six analysts surveyed there still rating the stock as a buy.

So it seems this “cheap” ASX stock could be a genuine bargain for those willing to hold on for the long run.

The post 1 secretly cheap ASX 200 stock I’m buying for the long run 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 stocks boasting better margins than Nvidia
• The best ASX shares to invest $500 in right now
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• $10k of savings? I’d buy these ASX 200 shares to grow my money

Motley Fool contributor Tony Yoo 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/D98FkAU

The Resmed CDI (ASX: RMD) share price has made an impressive recovery since its October 2023 depths. The medical equipment maker’s shares are up 41% from their lowest lows, crawling from $21.14 to their current $29.90 level.

It’s true, Resmed shares are not at the bargain basement prices they once were. Now trading on a price-to-earnings (P/E) ratio of 32 times FY2024 earnings, putting it on par with the global medical equipment industry average. There is hardly any upside from here, some might say…

I could be blowing some minds here. But I’m still invested in Resmed shares and expecting considerable gains to come.

Drug disruption overdone

A quick refresher. Resmed provides respiratory devices used to treat obstructive sleep apnea (OSA). It is suggested that around 70% of people suffering from OSA are obese. One would then assume the two are somewhat linked.

Then glucagon-like peptides (GLP-1) agonists came along — a medication found to reduce weight rapidly. People have flocked to the drug, with its promise of effortless weight loss with a single injection per week.

As it stands, some research indicates GLP-1s may improve sleep apnea. United States pharmaceutical giant Eli Lilly and Co (NYSE: LLY) is studying how its GLP-1 variant affects sleep apnea, with results anticipated in the coming months.

I’m speculating here, though, I suspect the drug will help reduce the severity of OSA but not eliminate it. Complete elimination might occur for those small numbers of people who experience minor sleep apnea to begin with.

This is supported by Resmed’s internal estimates, as shown above. Under the most impactful scenario, GLP-1s may reduce the global market opportunity in 2050 from 1.4 billion people to 1.2 billion.

My Resmed share price estimate

I believe Resmed is an exceptional company with quality products in a growing industry.

Although this company already looks large, the enormous market for sleep apnea devices provides a long runway for expansion. For this reason, it seems completely feasible — in my opinion — that Resmed continues to increase its revenue by 10% to 12% each year.

Based on this, I expect Resmed to generate A$9.34 billion in revenue in FY2027. Likewise, net profits after tax (NPAT) of A$1.96 billion seems achievable. That would peg the market capitalisation at A$41.46 billion at a reasonable P/E ratio of 28 times — approximately 18% above the current Resmed share price.

You might say, “But Mitchell, that is three years away…” And yes, you’re right. However, with connected devices expected to increase more than fourfold between now and 2050, I doubt the growth will stop there.

By FY2029, I think Resmed could pull in A$2.63 billion in after-tax profits. I believe a market cap of around $70 billion would be possible then. That would equate to about $47.80 for the Resmed share price.

The post Here’s why I think the Resmed share price should be 18% higher 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

• Where to invest $8,000 in April 2024
• 4 defensive ASX shares to own in a greedy market: Macquarie
• My top 3 ASX shares to consider buying before April
• 2 ASX shares that could help set you up for life
• 1 ASX stock to consider buying that could be the next ResMed

Motley Fool contributor Mitchell Lawler 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 ResMed. 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/rjWSohB

The post Here are the top 10 ASX 200 shares 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

• Expert: This is where the S&P 500 is going next
• Why ASX 200 investors are celebrating today’s Aussie inflation print
• The 8% yield ASX 200 dividend stock insiders are buying up big
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Johns Lyng Group. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended 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/IU8Ozwk

I’m a big fan of ASX index fund investing. The inherent qualities of an index fund – mainly instant diversification and a guaranteed return at the rate of the market – make it a perfect investment for almost anyone in my view.

But thanks to the explosive growth in popularity of index investing in recent years, the ASX is now awash with index ETFs. As such, choosing one that works for you can get a little overwhelming. So today, I’m going to discuss three ASX index funds that I think are a buy today.

3 ASX index funds I’d happily buy today

iShares S&P 500 ETF (ASX: IVV)

To start off with, let’s discuss an ASX index fund endorsed by the legendary Warren Buffett himself. The S&P 500 Index is the most widely tracked and invested index in the world.

It is a barometer of the entire US stock market and represents the largest 500 companies listed on the American markets. That’s everything from Apple and Amazon to Coca-Cola and McDonald’s.

Warren Buffett has recommended an S&P 500 index fund as the perfect investment for “most people”, calling it a slice of America. I think this ASX index fund contains most of the world’s highest-quality companies. As such, it’s a no-brainer.

iShares MSCI Japan ETF (ASX: IJP)

This ASX index fund is a little exotic. It gives investors exposure to an index that reflects most companies on the Japanese stock exchange.

I think Japan houses some of the world’s best companies outside of the United States. Through this ETF, investors will gain exposure to the likes of Toyota, Nintendo, Sony, Honda, Softbank and Mitsubishi Heavy Industries.

In my view, this is a great investment for any Australian to consider, given the healthy diversification it can add to any portfolio. This ASX index fund has gained more than 30% over the past year. But I think there is plenty of upside going forward.

VanEck Australian Equal Weight ETF (ASX: MVW)

Finally, we have an unconventional investment to discuss. Most index funds on the ASX, including the most popular choices, are weighted by market capitalisation.

This means that the larger companies command more weight and influence within each fund than the smaller ones. It’s why a typical ASX fund is more heavily influenced by the movements of the Commonwealth Bank of Australia (ASX: CBA) share price than JB Hi-Fi Ltd (ASX: JBH).

As such, a normal ASX index fund is very heavily tilted towards the big four banks and the large miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). That might be great for dividend lovers. But this doesn’t sit well with other investors. That’s where the VanEck Equal Weight ETF comes in.

Instead of giving the lion’s share of the ETF to the largest stocks, the index fund gives the largest 75 or so shares on the ASX equal treatment within the ETF. Because of this, CBA stock has just as much influence here as JB Hi-Fi shares.

This approach has worked well for this ETF in recent years. Current data shows MVW units outperforming a standard ASX 200 index fund over the last three years on average.

The post 3 top ASX index funds to buy 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

• The pros and cons of buying the iShares S&P 500 ETF (IVV) right now
• 12 ASX ETFs breaking the mould to hit 52-week highs today
• 4 top ASX exchange-traded funds smashing record highs on Wednesday
• 3 Australian shares to buy and hold forever in your ASX portfolio
• Can you buy Nvidia shares on the ASX?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, and McDonald’s. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo. The Motley Fool Australia has recommended Amazon, Apple, Jb Hi-Fi, and iShares S&P 500 ETF. 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/gtFAwV0

There are plenty of options for income investors to choose from on the ASX 300 index.

But which ones could be buys?

Three that come from different sides of the market and have been named as buys are listed below. Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

Morgans thinks that HomeCo Daily Needs could be an ASX 300 dividend share to buy. It is a property company with a focus on neighbourhood retail, large format retail, and health and services.

The broker has been pleased with the company’s shifting focus from large format retail to daily needs. It has an add rating and $1.37 price target on its shares.

As for dividends, Morgans is forecasting dividends per share of 8 cents in FY 2024 and then 9 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.3% and 7%, respectively.

Orora Ltd (ASX: ORA)

Analysts at Goldman Sachs think this packaging company could be an ASX 300 dividend share to buy. The broker likes Orora due to its defensive qualities and positive growth outlook.

Goldman currently has a buy rating and $3.40 price target on its shares.

In respect to income, the broker has pencilled in dividends per share of 13 cents in FY 2024 and 14 cents in FY 2025. Based on the current Orora share price of $2.67, this will mean yields of 4.9%, 5.2%, and 5.3%, respectively.

Rural Funds Group (ASX: RFF)

A third ASX 300 dividend share that could be a buy is agricultural property company Rural Funds.

Bell Potter is a fan of the company and sees plenty of value in its shares at current levels. The broker has a buy rating and $2.40 price target on its shares.

As for dividends, Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors in both years.

The post 3 ASX 300 dividend shares to buy in April 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 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
• Top ASX shares to buy instead of a term deposit in March 2024

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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT 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/9B2saFM

If you are looking for portfolio additions, you might want to see the ASX 200 shares that analysts at Macquarie are recommending right now.

The broker has a model portfolio which it believes represents a starting point to form a portfolio with growth characteristics.

Listed below are the top five holdings in the model portfolio at present:

Goodman Group (ASX: GMG)

Taking the top spot in the model portfolio with a weighting of 8.8% is industrial property giant Goodman. Macquarie currently has an outperform rating and $34.84 price target on its shares. It is forecasting earnings per share growth of 12.4% in FY 2025.

Aristocrat Leisure Limited (ASX: ALL)

In second spot in the portfolio with a weighting of 8.1% is this gaming technology company. Macquarie has an outperform rating and $48.50 price target on the ASX 200 growth share. Its analysts believe the company’s earnings per share will increase by 9.4% in FY 2024.

CAR Group Limited (ASX: CAR)

Next in line is the company formerly known as Carsales, CAR Group. Macquarie has the auto listings company in its model portfolio with a 7.5% weighting. However, it is worth noting that the broker only has a neutral rating and $32.70 price target on its shares at present. This price target is lower than where its shares trade today.

NextDC Ltd (ASX: NXT)

This data centre operator is in the broker’s model growth portfolio with a 7.1% weighting. Macquarie currently has an outperform rating and $20.00 price target on this ASX 200 share.

CSL Limited (ASX: CSL)

Rounding out the top five in Macquarie’s model portfolio is this biotherapeutics giant with a weighting of 7.3%. Macquarie currently has an outperform rating and $310.00 price target on its shares. It expects earnings per share growth of 11.1% in FY 2024.

The post Here are the top five ASX 200 shares in Macquarie’s model growth portfolio 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

• CSL share price leaping higher amid $1.9 billion funding news
• 3 ASX shares to buy in 2024 and hold for the next 10 years
• Missed out on Nvidia? My best ASX tech stock to buy and hold
• Here are the top 10 ASX 200 shares today
• 4 defensive ASX shares to own in a greedy market: Macquarie

Motley Fool contributor James Mickleboro has positions in CSL and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL, Car Group, and Goodman 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/lgJaIHL

The BHP Group Ltd (ASX: BHP) share price kicked off the week with some strength, closing up 0.2% on Monday.

But shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner gave up those gains and then some yesterday, closing down 0.6% at $43.62 apiece.

In early afternoon trade today, the BHP share price is down 0.3% at $43.47.

That sees the ASX 200 mining stock down 13.8% since the closing bell rang on 2023. That compares to a 2.8% gain posted by the ASX 200 over this same period.

Here’s why the miner has come under selling pressure again today.

Headwinds from the Middle Kingdom

BHP derives the bulk of its revenue from digging up and processing iron ore.

Copper comes in at number two.

If you have a look at how those two base metals are performing, it explains a lot of the pressure we’re seeing on the BHP share price.

Iron ore futures dropped 4.2% overnight to US$104.05 per tonne. On Friday, the steel-making metal appeared to be in recovery mode, trading for US$109.15. Though that remained well below the US$144 that same tonne was trading for on 2 January.

Copper has retraced as well, down 2.5% since Monday. The red metal is currently trading for US$8,862 per tonne. However, in copper’s case, that’s up 3.8% in 2024 from US$8,545 per tonne on 2 January.

The headwinds hitting base metal prices and the BHP share price are once again blowing out of China.

Last week’s iron ore rebound was driven by expectations of a pick up in growth from the world’s number two economy and Australia’s top export market.

This week, the market looks to be having its doubts as to the likelihood that China’s struggling, steel hungry property sector has turned the corner.

Investors are still awaiting increased stimulus measures from the Chinese government. But it remains uncertain if those will materialise.

Commenting on the metals markets, Wei Ying, an analyst at China Industrial Futures, said (quoted by The Australian Financial Review), “Investors are very cautious about the demand outlook. Prices fall whenever there are signs of demand weakness.”

She noted that Chinese steel trading volumes had slipped again.

Jiang Hang, head of trading at Yonggang Resources, added:

The rally in base metals prices has gone ahead of real demand. Chinese demand has been badly hit after prices rose, especially copper.

Now what?

While the future is inherently uncertain, the sell-off in the BHP share price so far in 2024 could offer an opportune entry point.

Commenting on the iron ore price outlook last week, Australia and New Zealand Banking Group Ltd (ASX: ANZ) analysts Daniel Hynes and Soni Kumari said:

Iron ore prices may be near a floor amid a reset in expectations around [China’s] demand. Weak consumption from the property sector is being countered by robust demand from other sectors.

Atop a potential share price rebound following this year’s sell-down, BHP shares trade on a fully franked dividend yield of 5.4%.

As always, whether you’re looking at buying BHP or any other ASX stock, make sure to do your own extensive research first. If you’re uncomfortable with that or just short on time, then reach out for some expert advice.

The post Down 14% in 2024, why is the BHP share price sliding again 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

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• Shares vs. property: How to generate $500 passive income per month
• Here’s how the ASX 200 market sectors stacked up last week
• Why the BHP share price crushed the benchmark this week
• Here is the profit forecast to 2026 for BHP shares

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/2Nka4sV

Predicting what any share market – whether that be the S&P 500 Index  (INDEXSP: .INX) or the S&P/ASX 200 Index (ASX: XJO) – will do even tomorrow is a big ask. But predicting what the markets might do in a month or year’s time is a devilish task indeed.

But that hasn’t stopped a few ASX experts from giving it a crack.

Investors all around the world are probably fairly content bunch as we close out the month of March 2024. Both the American and Australian stock markets have been rising steadily over the year to date. As it stands today, the ASX 200 has gained a decent 2.3% this year, hitting a new all-time high in the process.

The S&P 500 has done even better. Not only has the flagship index of the United States markets hit new all-time records of its own, but it’s climbed a happy 9.7% over the year so far. Not bad for three months; work.

And one expert reckons the S&P 500 might climb even higher. According to a report in the Australian Financial Review (AFR) today, analysts at investment bank HSBC have just lifted their S&P 500 forecasts.

HSBC now reckons the S&P 500 will hit 5,400 points by the end of 2024. If this does come to pass, it would see the index gain another 3.8% or so from where it is today, and hit even loftier record highs.

What’s next for the S&P 500 Index?

This target is based on an expectation of higher company earnings, resilient GDP growth and positive sentiment. However, it also assumes that US interest rates will start coming down this year. Here’s some of what the HSBC analysts said in a note:

Our target is predicated on the [Federal Reserve] cutting rates in June with 75 basis points of total cuts in 2024, in line with consensus and Fed expectations based on the recent dot plot…

We expect a more volatile second half of 2024 on US elections, elevated earnings expectations, and a shifting narrative from ‘when’ to ‘how much’ the Fed will cut.

That is HSBC’s base case scenario. However, the bank also had a ‘bull case’, which would see the S&P 500 limb to 5,700 points. For this to happen, the bank reckons we would need to see “above-trend GDP growth but with inflation remaining subdued”.

In addition, HSBC does warn that if the US economy runs “too hot” this year, it could result in higher inflation and no rate cuts. Under this bear case, HSBC sees the S&P 500 finishing 2024 at just 4,800 points.

The divergence of these three scenarios just goes to show how difficult it is to predict what might happen with a broad-market index like the S&P 500. But whatever this index does over the rest of 2024 will almost certainly have implications for our own ASX.

The post Expert: This is where the S&P 500 is going next 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 ASX 200 investors are celebrating today’s Aussie inflation print
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. 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 recommended HSBC Holdings. 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/Nf1qwvo

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

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

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Citi, its analysts have retained their buy rating and $24.15 price target on this travel agent’s shares. It highlights that there has been some industry consolidation in the United States with AMEX GBT acquiring business travel solutions provider CWT for US$570 million on a cash-free, debt-free basis. The broker feels this is a positive for Flight Centre as it reduces the number of competitors in the market. In addition, it sees potential for some forced divestments to get the deal over the line. This could provide Flight Centre with an opportunity to add to its portfolio. The Flight Centre share price is trading at $21.45 today.

Monadelphous Group Ltd (ASX: MND)

A note out of Bell Potter reveals that its analysts have initiated coverage on this engineering company’s shares with a buy rating and $15.40 price target. The broker believes that Monadelphous’ short-and-medium-term outlooks are supported by a growing pipeline of committed developments across the energy, lithium and rare earths sectors. In addition, it sees opportunities for the company to benefit from a growing renewable energy investment pipeline. The Monadelphous share price is fetching $13.98 this afternoon.

Premier Investments Limited (ASX: PMV)

Analysts at Morgan Stanley have retained their overweight rating on this retail giant’s shares with an improved price target of $38.00. This follows the release of a half-year result which revealed earnings comfortably ahead of guidance. The broker was also pleased to see the company planning to divest its Smiggle and Peter Alexander businesses in 2025. Overall, Morgan Stanley continues to see Premier Investments as its top pick in the industry. The Premier Investments share price is trading at $30.87 on Wednesday.

The post Top 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

• Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today
• Guess which ASX 200 share offers 12% upside and a 4% dividend yield
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• These 5 ASX 200 shares just hit new 52-week highs

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group and Premier Investments. 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/awHCJ1O

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has fought back from a soft start and is pushing higher. The benchmark index is up 0.25% to 7,799.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are outperforming:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 9% to 52.5 cents. This biotech company’s shares have been on fire this week after the US Food and Drug Administration (FDA) gave it a big boost. The FDA advised that there appears to be sufficient results to support the submission of the company’s proposed Biologics License Application (BLA) for its remestemcel-L medicine to treat paediatric patients with steroid-refractory acute graft versus host disease.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is up 2% to 90 cents. This may be a delayed reaction to an announcement this week which revealed the discovery of a new spodumene pegmatite occurrence at the Corvette project in Canada. The company advised: “The discovery highlights the extensive nature of the spodumene mineralized system along the CV Lithium Trend, which extends across the Property where a large portion remains unexplored for lithium pegmatite.”

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is up 5% to $1.31. This is despite there being no news out of the pharmacy chain operator and distributor. Though, it is worth noting that its shares have been performing very strongly since its results release. In addition, investors appear very excited over its potential merger with Chemist Warehouse.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 3% to $1.52. Once again, this is despite there being no news out of the buy now pay later provider. At one stage today, Zip’s shares climbed to a new 52-week high of $1.59. When its shares reached that level, it meant that they were up over 180% since this time last year. Investors have been impressed with its growth in the United States and success with its profitability targets.

The post Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher 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

• Mesoblast share price rockets 36% on breaking FDA news
• Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today
• Why Arafura, Pentanet, Sigma, and Webjet shares are falling today
• Why Australian Strategic Metals, Evolution, Sigma, and Webjet shares are storming higher
• Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

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 Zip Co. 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/mdPsVTW