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It certainly has been a disappointing year for the Telstra Corporation Ltd (ASX: TLS) share price.

Despite the telco giant hitting its guidance in FY 2020, its shares are down a sizeable 22% since the start of the year.

Here are three reasons I think the Telstra share price weakness is a buying opportunity.

Valuation.

At the current level, I estimate that Telstra’s shares are changing hands at approximately 20x FY 2021 earnings. I think this is good value for a blue chip company which has a strong market position and defensive qualities. Furthermore, it looks good value in comparison to some of its peers. For example, at present the TPG Telecom Ltd (ASX: TPG) share price is trading at 40x forward earnings and the Vocus Group Ltd (ASX: VOC) share price is commanding 23x forward earnings.

Attractive dividend yield.

The market appears incredibly divided on what dividend Telstra will pay in FY 2021. This is due to its guidance for the year ahead, which was softer than expected due to weaker roaming revenues. Based on its guidance, a dividend cut to somewhere in the region of 12 cents per share would be necessary given its current policy. However, it is worth noting that Telstra’s free cash flows are now greater than its accounting earnings. As a result, a shift to a free cash flow-based dividend policy would give it sufficient funds to maintain its 16 cents per share dividend. I’m optimistic that this shift will take place this year. If this happens, based on the current Telstra share price, it will provide investors with a fully franked 5.7% dividend yield.

5G internet.

Another reason I’m positive on Telstra is the arrival of 5G internet. Although it has been here for a little while, it hasn’t yet truly taken off. However, next week Apple will be holding its iPhone event and has hinted that its new phone will be 5G compatible. I believe this launch will be the catalyst for 5G to go mainstream in Australia, which should underpin improving mobile revenues in the coming years. Combined with the easing NBN headwind and its rampant cost cutting, I believe a return to earnings and dividend growth won’t be too far away for the company. This could make now an opportune time to make a patient investment.

More reading

• 2 quality ASX dividend shares to buy before the RBA meeting
• How to generate a passive income of $50,000 with ASX shares
• Meet the ASX 200 stock with a dividend yield that’ll hit ~14% in FY22
• The Telstra (ASX:TLS) share price is at a new 52-week low
• 2 high yield ASX dividend shares to solve your income needs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Buying ASX dividend shares for income used to be a lot easier than it is today. With the coronavirus pandemic still ongoing, it’s been an especially challenging year for many ASX dividend shares to cough up their usual streams of income. Luckily, this hasn’t affected every dividend payer on the ASX, so here are 3 ASX dividend shares that I would happily buy today for income:

Coles Group Ltd (ASX: COL)

Coles is my first income pick. It’s a business we’d probably all be familiar with as Australia’s second-largest grocer and supermarket. I particularly like Coles’ defensive nature in this light – as we all saw back in March, companies that sell household essentials do just fine in all kinds of economic weather. That in turn lends great stability and reliability to Coles’ dividend in my view. Although it’s not the largest yield you can get on the ASX today, Coles’ fully franked, trailing yield of 3.26% on current prices isn’t a bad deal. Especially if you consider that interest rates are at virtually zero.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is another dividend payer that I think is worthy of consideration today. Iron ore miners like Fortescue (in contrast to Coles) are not normally the steadiest dividend payers due to the cyclicality of the iron price over time. Even so, I think Fortescue runs so tight a ship that it is able to pay out generous dividends under most pricing scenarios.

And since iron ore has been relatively expensive in 2020 so far (holding well over US$100 a tonne for most of the year), Fortescue shares aren’t a bad option today, even at their relatively high price. On current pricing, Fortescue is offering up a whopping trailing dividend yield of 10.51%, which also comes fully franked. Even if Fortescue cuts this dividend in half next year, it’s still a worthwhile income stock. As such, I think this company is a buy today for income investors.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Our final dividend share today is actually an exchange-traded fund (ETF). VHY aims to hold a basket of the ASX’s best and most robust dividend-paying shares. You’ll find BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES) and the big four banks in its top holdings, as well as Coles and Fortescue incidentally. What’s great about an ETF like VHY is that it periodically rebalances its holdings to reflect the dividend environment of the time.

As such, you can easily buy this ETF and ‘put it in the bottom drawer’, knowing that it will automatically weed out dividend underperformers. VHY offers a trailing dividend yield of 5% on current prices. Unlike most ASX shares, it also pays out its distributions quarterly – an attractive quality for many investors.

More reading

• Top brokers name 3 ASX shares to buy today
• Why you may not need ASX REITs for dividends
• Buy Fortescue (ASX:FMG) and this ASX dividend share for income
• My 3 favourite ASX dividend shares to buy this year
• Why the Coles Group (ASX:COL) share price just got upgraded to “buy”

Motley Fool contributor Sebastian Bowen owns shares of Vanguard Australian Shares High Yield Etf. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With interest rates at record lows and potentially still going lower in November, I continue to believe that investors would be better off putting any excess funds into the share market rather than leaving them to gather only paltry interest in a savings account.

But where should you invest these funds? Here are two unstoppable ASX shares I would invest $5,000 into right now:

Appen Ltd (ASX: APX)

The first option for investors to consider investing $5,000 into is Appen. I’m a big fan of the company because of its position as the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Appen has achieved this thanks to its global crowd of more than 1 million skilled contractors, an expertise in more than 180 languages, and the industry’s most advanced AI-assisted data annotation platform.

With such a strong pedigree, it is no surprise that Appen provides solutions to the many of the global leaders in technology, automotive, financial services, retail, manufacturing, and government. The good news is that spending on machine learning and AI is expected to increase materially over the next decade, putting Appen in a perfect position to continue growing its earnings at a strong rate for many years to come.

Pushpay Holdings Group Ltd (ASX: PPH)

Another option to consider for that $5,000 investment is Pushpay. It is a donor management and community engagement platform provider with a focus on the church market. Pushpay has been a very strong performer in recent years and has carved out a big slice of the lucrative U.S. market. This has underpinned very strong revenue growth and, thanks to the benefits of scale, even stronger operating earnings growth.

Pleasingly, Pushpay appears well-positioned to gain further market share in the coming years thanks to the quality of its platform, the shift to a cashless society, and the digitisation of the church. Another positive is last year’s US$87.5 million acquisition of church management system provider Church Community Builder. This acquisition has strengthened its offering significantly and is expected to support further margin expansion. Overall, I believe Pushpay can be a market-beater over the 2020s, making it a great place to invest today.

More reading

• 3 ASX shares to buy in a US election selloff
• The Appen (ASX:APX) share price is up 55% in 2020: Too late to buy?
• Why this ASX tech share could be better than BNPL stocks 
• You could become very wealthy by investing $1,000 into these ASX shares
• 4 stellar ASX growth shares to buy right now

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Weebit Nano Ltd (ASX: WBT) share price has rocketed following the release of a company update. The share price surged 17% to 88 cents this morning before falling back to 84 cents at the time of writing.

Let’s take a look at the company does and see why the Weebit Nano share price is soaring higher today.

What does Weebit Nano do?

Weebit Nano develops next generation computer memory technology. The Israeli company addresses the growing need for data storage through its resistive random-access-memory (ReRAM) technology. Weebit states that ReRAM is more than 1000 faster and uses 1000 times less power than traditional storage options like flash.

Milestone achievement

Weebit announced it had successfully completed the technology stabilisation process for its ReRAM product. The final stabilisation stage was completed with Leti, a research and development institute that specialises in nanotechnologies.

The stabilisation process saw reduced cell-to-cell and die-to-die non-uniformity, thus increasing the level of functional cells and batch-to-batch repeatability. Weebit noted the improvements to its silicon oxide ReRAM technology as an important milestone on the path to commercialisation.

The company advised the next phase will see the transfer of its technology to a semiconductor fabrication plant. In addition, Weebit is working towards a module IP design for the embedded market, standalone memory for mass storage, and production in a foundry.

What did the CEO say?

Chief executive officer Coby Hanoch validated the hard work done by the company. He said:

The successful completion of the stabilisation process follows four years of extensive research and development by the joint Weebit and Leti engineering teams, which has created a unique and highly competitive ReRAM technology.

Our close collaboration with Leti will continue, as we constantly strive to improve and further optimise the technical parameters of our silicon oxide ReRAM.

Hanock went on to say:

In parallel to completing the stabilisation process which has reinforced the capabilities of our technology, we are moving closer to commercialisation, engaging in discussions with a production partner and working towards transferring our IP and achieving technology qualification in the partner’s fab.

About the Weebit share price

Weebit shares were almost static before strongly performing since late August. A major catalyst for this could be from the investor hype in the sector. Brainchip Holdings Ltd (ASX: BRN) and 4DS Memory Ltd (ASX: 4DS) have both seen their share price rise to astronomical levels.

The Weebit share price was trading around 30 cents region, until it reached a 52-week high of $1.04 in September. Sitting 16% below, the Weebit share price is in reach of creating new multi-year high.

More reading

• Which ASX share may benefit from the jobs-led recovery Budget?
• “Incredible surge” in Pointsbet (ASX:PBH) share price appears justified according to one of the country’s best performing funds
• Top brokers name 3 ASX shares to buy today
• 3 ASX shares to buy in a US election selloff
• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Partisan politics continue to hamstring new stimulus measures in the United States. But here in Australia – with the real (inflation adjusted) rate of interest the government pays to borrow essentially zero – it looks likely that Labor will back the Federal Government’s massive new Budget proposal.

The Budget Treasurer Josh Frydenberg detailed last night will unleash record stimulus into the economy, with a focus on job creation. That spells good news for people currently unemployed as well as for Aussie workers on all levels of income. With stage 2 tax cuts brought forward and backdated to July, it means workers will be handing over less of their hard-earned money to the Australian Tax Office, leaving them more to spend and invest.

The Budget is even better news for most Aussie companies, as the Government leans on the business sector to help drive job growth and an economic recovery. A range of multi-billion-dollar business tax cuts and new spending packages should offer a welcome tailwind to many ASX share prices.

Here’s what Morgan Stanley has to say about it in the Australian Financial Review:

For financial markets, the highlight of the budget was the strong support given to business. Immediate capital write offs (in full) for businesses with less than $5 billion turnover on depreciable goods will remain in place until June 2022 (cost $27 billion) and be used in combination with tax loss carry-back.

Manufacturing, R&D incentives and energy also feature in business-friendly initiatives. This combined with previously announced deregulation of lending guidelines should allow for animal spirits to rise, and help the clear focus of a business-led recovery.

We’ll get back to those rising animal spirits, and one ASX share I believe investors should consider adding to their portfolio today, in a tick.

But first…

Trump’s trademark backflip

Like it or not, in today’s world politics has a greater influence on share markets than ever before.

To illustrate the point, the following two headlines come from the Sydney Morning Herald.

This one was published yesterday: ‘ASX set for more gains as Wall Street bounces higher on Trump, stimulus’.

And this headline was published this morning: ‘Wall Street dives as Trump orders halt to stimulus talks until after election’.

If you’re prone to motion sickness, you may want to reach for the Dramamine. With the last 3 years as a guide, President Donald Trump’s policy backflips have a penchant for repeating themselves.

Just this weekend, he urged Republicans and Democrats to bridge their differences and pass the next round of US stimulus spending, tweeting, “WORK TOGETHER AND GET IT DONE.”

Yesterday, he had a change of mind, tweeting, “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”

The Democrats are still pushing for a US$2.2 trillion (AU$3.1 trillion) spending package while the Republicans have drawn the line at US$1.6 trillion.

Now if you’re day-trading shares (which we don’t recommend), there are a lot of ways to make or lose money trying to guess when the US government finally opts to ‘work together and get it done’.

But if you’re a long-term investor you can simply keep your eyes on the calming horizon. Because whether it happens this week, next month or even further down the track, I’m happy to go out on a very sturdy limb here and say that the next round of massive US stimulus spending is inevitable.

And share markets will rally.

Back in the lucky country

While Australians have escaped the widespread coronavirus infections and high death tolls witnessed across much of the world, the measures taken to contain the virus have put many out of work.

The Government now expects unemployment to hit a high of 8% towards the end of 2020. That’s the highest it’s been since 1998 following the Asian financial crisis.

But last night Frydenberg made it clear that creating jobs was the Government’s top priority and core focus of the new Budget. He said:

There is great uncertainty, unprecedented uncertainty in the economic environment not just here in Australia but globally right now. What we have sought to do is create a series of incentives and make a series of investments that are designed to create more jobs. There is a record amount of spending but also important supply side structural reforms…

There is no economic recovery without a job’s recovery. There is no budget recovery without a job’s recovery. This budget is all about jobs.

Which brings us to one ASX share that should continue to benefit from the new jobs push, SEEK Limited (ASX: SEK).

The online job advertising giant, with a market cap of $7.8 billion, reports that job ads on its platform in the fortnight through to 27 September reached 80% of pre-COVID levels.

Victoria still lags with only 56% of the jobs listings the state had before the virus struck. But a number of states now have more job postings on SEEK than they did in February.

SEEK ANZ managing director Kendra Banks said:

South Australia and Western Australia have joined Tasmania and Northern Territory as having a higher number of jobs listed on seek.com.au than in February, surpassing pre-COVID levels…

As our recent data has shown when restrictions ease and economies stabilise this leads to an improvement in job ads.

As job ads increase, so too does SEEK’s core revenue base.

The SEEK share price fell more than 50% from 29 January’s record high through to the 23 March trough. Since that low it’s rebounded 86%. That leaves the share price down 7% from its all-time highs.

With the Government driving a job’s led recovery, and new listings already exceeding pre-pandemic levels in some states, I expect the SEEK share price will soon be back in record high territory.

More reading

• Why a2 Milk, Afterpay, ARB, & SEEK shares are pushing higher today
• 2 blue chip ASX shares to buy and hold until 2030
• 3 outstanding blue chip ASX shares to buy in October
• Where to invest $10,000 into ASX shares immediately
• ASX 200 rises 1%, SEEK (ASX:SEK) jumps 9%

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late August, the Pointsbet Holdings Ltd (ASX: PBH) share price soared 87% higher in a single trading day after the online betting company signed a transformational marketing deal with NBC Universal Media (NBC), making it the Official Sports Betting Partner of NBC Sports in the US.

The partnership will deliver the largest sports audience of any US media company, with 184 million viewers across 120 million households. NBC’s portfolio of sports rights includes NFL, PGA Golf, NHL, Nascar and Premier League football.

The US sports betting market is still in its infancy, with some estimates projecting it will be a $US30 billion addressable market at maturity.

As part of the partnership with NBC, Pointsbet has committed to a marketing spend of $US393 million to be allocated progressively in increasing amounts over the five-year media partnership.

Despite the massive jump in the Pointsbet share price, the Saville Capital Emerging Companies Fund remains invested in the company.

Writing in the August 2020 monthly update, fund manager Jonathan Collett said he sees the deal as taking Pointsbet’s position in the US sports betting market from a potential niche player to a likely key long-term player. As such, he said the “incredible surge” in Pointsbet shares in response to the announcement “would appear to be justified.”

The Saville Capital Emerging Companies Funds has an outstanding track record, generating returns of 44.9% per annum since inception in February 2017. The fund runs a very concentrated portfolio, with around 90% of its capital invested in 17 stocks. Other portfolio holdings include Redbubble Ltd (ASX: RBL) shares and Class Ltd (ASX: CL1) shares.

More reading

• Why Flight Centre, OneVue, Paradigm, & PointsBet shares are charging higher
• PointsBet (ASX:PBH) share price in focus after U.S. update
• Is it too late to buy the PointsBet (ASX:PBH) share price? 
• PointsBet (ASX:PBH) share price higher on U.S. expansion news
• Should you buy the PointsBet (ASX:PBH) share price after its capital raising? 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of Class Limited. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Austal Limited (ASX: ASB)

According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $4.35 price target on this shipbuilder’s shares. The broker notes that the US Navy has released its updated long-term fleet plans. These plans include a 500 vessel fleet by 2045 and a traditional battle force fleet of 355 by 2035. Goldman believes this is a significant positive for Austal and notes its expanding total addressable market. I think Goldman makes some great points and Austal could be worth a closer look.

Coles Group Ltd (ASX: COL)

Analysts at Credit Suisse have upgraded this supermarket operator’s shares to an outperform rating with an improved price target of $20.16. According to the note, the broker has lifted its earnings estimates to partly reflect improving margins. In light of this and recent share price weakness, Credit Suisse believes now is an opportune time to buy shares. I agree with the broker on this one and would be a buyer of Coles shares.

Westpac Banking Corp (ASX: WBC)

A note out of the Macquarie equities desk reveals that its analysts have upgraded this banking giant’s shares to an outperform rating with an improved price target of $18.00. While the broker acknowledges that trading conditions will remain tough in the short term, it believes this is priced into its shares. Looking further ahead, Macquarie believes Westpac’s positive business mix is underappreciated by the market. I think Macquarie is spot on and Westpac would be a good option if you don’t already have exposure to the banking sector.

More reading

• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses
• Why the Coles Group (ASX:COL) share price just got upgraded to “buy”
• Why I would buy CSL (ASX:CSL) and this blue chip ASX share
• Which ASX banking share is the cheapest today?
• ASX 200 jumps 2.6%, big 4 banks surge

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think that some ASX shares could become excellent opportunities if there is a selloff because of the US election.

According to media reporting, President Donald Trump said that he’s ending negotiations over a COVID-19 relief package and will only resume talks after the election, immediately after he wins.

The S&P 500 dropped 2% after that news, ending the day down by 1.4%. The next month could be quite volatile if the last week has been anything to go by.

There could be some ASX shares that suffer more volatility because of the upcoming US election.

With that in mind, if there’s a selloff, then these ASX shares could be buying opportunities:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This exchange-traded fund (ETF) gives investors exposure to 100 of the largest businesses listed on the NASDAQ, an American stock exchange.

Many of the world’s best technology businesses are within this ETF’s holdings. Businesses like Apple, Microsoft, Amazon, Facebook, Alphabet, Tesla, Nvidia, Adobe and PayPal.

This is a high-performing ETF because of the underlying holdings. Including the annual management costs of 0.48% per annum, it has generated net returns of 22.3% over the past five years.

If this ETF falls materially then it could be one of the best investments to buy because of the long-term growth potential.

Pushpay Holdings Ltd (ASX: PPH)

This ASX share generates most of its earnings from the US because its main client base is large and medium US churches. It also reports in US dollars.

If the US share market and economy suddenly looks a bit shaky then Pushpay would still be a good buy to me, if it drops it could become an even more compelling buy in my opinion. People aren’t going to stop donating to their church just because of politics – they have continued to donate during this difficult COVID-19 crisis.

The ASX share announced that its total processing volume increased by 39% to US$5 billion in FY20 and it’s expecting to at least double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to range of US$50 million to US$54 million. It’s looking good. 

I believe that Pushpay is one of the most promising ASX shares because of how scalable it appears to be. Its gross profit margin increased by five percentage points over FY20 to 65%. If Pushpay can keep increasing its revenue closer to its US$1 billion goal then its profit could grow even faster.

At the current Pushpay share price it’s valued at 38x FY21’s estimated earnings.

CSL Limited (ASX: CSL)

CSL is one of the highest-quality blue chip ASX shares in my opinion. It has managed to grow significantly over the past decade.

The company has been tasked with manufacturing the potential COVID-19 vaccines for Australia. That project may not be that important for the ASX share’s earnings, but it is imperative for the whole country.

CSL did really in FY20, growing its net profit after tax (NPAT) by 17% in constant currency terms. In FY21 CSL is expecting net profit to be between US$2.1 billion to US$2.265 billion. That means profit will be, at worst, flat and could grow as much as 8%.

People will continue to need quality healthcare treatments and vaccines, so demand for CSL’s services should continue to be robust even if the US election throws up some volatility.

I like that the ASX share continues to invest heavily in research and development, which will hopefully unlock future earnings streams for CSL. Its existing products were created at some point by research and it will take further breakthroughs for new life-altering products.

At the current CSL share price it’s valued at 34x FY23’s estimated earnings.

More reading

• Federal Budget: What it means for the CSL (ASX:CSL) share price
• Why this Federal Budget is good for many ASX shares
• Why I would buy CSL (ASX:CSL) and this blue chip ASX share
• Why this ASX tech share could be better than BNPL stocks 
• Leading brokers name 3 ASX shares to buy today

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 BETANASDAQ ETF UNITS, CSL Ltd., and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is on course to extend its winning run. The benchmark index is currently up 0.4% to 5,987.5 points.

Here’s what is happening on the market today:

Big four banks push higher.

The big four banks are all in positive territory on Wednesday and helping to drive the ASX 200 index higher. The best performer in the group is the Commonwealth Bank of Australia (ASX: CBA) share price with a 0.65% gain. Not far behind is the Westpac Banking Corp (ASX: WBC) share price, which is pushing higher after being upgraded to an outperform rating by equity analysts at Macquarie this morning. The broker has an $18.00 price target on the bank’s shares.

ARB update impresses.

The ARB Corporation Limited (ASX: ARB) share price surged to a record high this morning following the release of a first quarter update. The 4×4 accessories company has experienced strong demand in export markets, leading to unaudited sales revenue growth of 17.7% during the first quarter of FY 2021. Also rising strongly was its profit before tax, which came in at $29.7 million for the quarter. This represents 86% of the profit before tax that ARB recorded during the entire first half of FY 2020.

Tech shares rise.

The tech sector has been a great place to be on Wednesday. The likes of Altium Limited (ASX: ALU) and Zip Co Ltd (ASX: Z1P) shares are recording decent gains today and helping drive the S&P/ASX All Technology Index (ASX: XTX) higher. At the time of writing, the All Technology Index is up over 1.6% to 2,489.3 points.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the Eagers Automotive Ltd (ASX: APE) share price with a 4.5% gain. Investors appear to believe that tax cuts could support vehicle sales in the near future. The worst performer on the index today has been the Newcrest Mining Limited (ASX: NCM) share price with a 3% decline. A number of gold miners are dropping lower today after a pullback in the spot gold price.

More reading

• Why BHP, Estia Health, Newcrest, & Starpharma shares are dropping lower
• Why a2 Milk, Afterpay, ARB, & SEEK shares are pushing higher today
• Why you may not need ASX REITs for dividends
• Why the ARB (ASX:ARB) share price is charging to a record high today
• How the federal budget will impact on your ASX stock portfolio

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended ARB Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The CV Check Ltd (ASX: CV1) share price has surged today after the company updated the market with its first quarter FY21 performance. The news sent the CV Check share price surging to 15 cents, up 30%, before dropping back to 14 cents at the time of writing.

In comparison, the All Ordinaries Index (ASX: XAO) is up 0.4% at 6,191 points.

First quarter results

CV Check recorded a strong sales recovery, achieving a revenue of $3.4 million for the first quarter of the financial year. The 40% increase in revenue over the prior corresponding period (pcp) was a result of new client wins and recovering order flow from existing customers. CV Check’s B2B segment came in at $2.6 million in earnings followed by $0.8 million in its B2C division.

The company also set a new sales record for the month of September, driven by record demand for total website users and new account sign ups over the 12 months.

Furthermore, the integration of CV Check with RealMe, a digital identity verification system, jumped 156% in sales on the pcp. The platform which is operated by the New Zealand government, continues to rise on the average number of checks per order.

CV Check reported it has no debt and a cash balance of $5.2 million as of September 30.

Notable new customers

CV Check welcomed new business customers to its growing list. The new additions include Amaysim Australia Ltd (ASX: AYS), the Australian Digital Health Agency, Sigma Healthcare Ltd (ASX: SIG), Village Roadshow Ltd (ASX: VRL) and others.

The company saw these new clients place their first orders, highlighting the strength of CV Check’s range of screening and verification products.

What did management say

CV Check chief executive officer Rod Sherwood noted the company’s resilience in the face of COVID-19. He said:

A resurgence of CV1 revenues was experienced during the past quarter with record sales being achieved for the month of September despite renewed shutdowns across New Zealand and Victoria.

Our team’s agility was demonstrated in their effective, measured response to pandemic related developments in those geographies. New client wins were strong throughout the period before accelerating during September while sales to established customers recovered strongly.

CV Check share price summary

The CV Check share price has risen 326% since falling to its 52-week low of 4.6 cents in March. Although materially higher of late, the CV Check share price has barely moved since the start of the calendar year, up 3% after today’s meteoric rise.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the CV Check (ASX:CV1) share price has soared 30% today appeared first on Motley Fool Australia.

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