Tag: Motley Fool

When it comes to investing in exchange-traded funds (ETFs), I think some of the best options out there are growth ETFs. ETFs have a reputation for being ‘passive’ investments best suited to investors who want to put them in the bottom drawer and never look at them again. Whilst that’s true for index funds like the iShares Core S&P/ASX 200 ETF (ASX: IOZ), not all ETFs should be tarred with this brush. So here are 3 high-growth ETFs that I think all growth investors should be looking at investing in today.

3 high-growth ETFs

1) BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

This is a relatively new ETF, having only started out back in March of this year. However, since then ATEC has been on an absolute tear, rising more than 40% since its inception (and that includes through the March crash). I like ATEC as it’s one of the only ASX ETFs purely dedicated to tracking ASX tech companies. You’ll find the popular buy now, pay later share Afterpay Ltd (ASX: APT) and online furniture hawker Temple & Webster Group Ltd (ASX: TPW) here, as well as other WAAAX shares like Xero Limited (ASX: XRO) and Appen Ltd (ASX: APX). If you’re bullish on the ASX tech sector, I think this ETF is a great candidate for your portfolio today.

2) ETFS FANG+ ETF (ASX: FANG)

This ETF is also a relatively new addition to the ASX, having started life in February of this year. FANG invests in the shares held in the NYSE FANG+ Index. This includes the eponymous FAANG stocks of Facebook Inc (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). It also includes a few more tech high flyers such as Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA), Alibaba Group (NYSE: BABA), NVIDIA Corporation (NASDAQ: NVDA), Baidu Inc (NASDAQ: BIDU) and Twitter Inc (NYSE: TWTR).

Having only these 10 holdings makes FANG a highly concentrated investment, but with its growth titan holdings, investors might not mind too much. FANG has also had a stellar start to life, delivering a return of 45.91% since its inception. If you don’t have as many of these companies in your portfolio as you might otherwise like to, I think FANG is a perfect choice for a growth-orientated portfolio today.

3) Betashares Global Cybersecurity ETF (ASX: HACK)

Our final high-growth ETF is another fund from BetaShares, this time specialising only in companies within the cybersecurity space. With the increasing importance of the digital world to corporations and governments globally, I see a bright future for this sector. And this ETF gives us an easy ticket in.

HACK holds a basket of 43 shares from around the world, with its top holdings including Crowdstrike Holdings Inc (NASDAQ: CRWD), Broadcom Inc (NASDAQ: AVGO), Okta Inc (NASDAQ: OKTA) and Splunk Inc (NASDAQ: SPLK). HACK has been around a little longer than ATEC or FANG and has returned an average of 22.6% per annum over the past 3 years. Not a bad return!

More reading

• 3 ASX 200 shares to buy with $3,000 this week
• Afterpay and Brainchip were among the most traded shares on the ASX last week
• The biggest global stock winners from the lockdown revealed
• Why I would buy Appen and these ASX tech shares after the selloff
• A practical guide on how to invest in ASX shares

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Facebook, Microsoft, Netflix, NVIDIA, Tesla, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd and Xero and recommends the following options: long January 2022 $1920 calls on Amazon, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, and BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, Facebook, Netflix, NVIDIA, and Temple & Webster Group 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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Today, the Brainchip Holdings Ltd (ASX: BRN) share price soared 30.36% to 73 cents at the time of writing.

Why is the Brainchip share price soaring?

It’s possible that last week’s positive news contributed to the Brainchip share price soaring higher today.

Last week, Brainchip signed a deal with US-based VORAGO Technologies to provide early access to its Akida neuromorphic processor. The collaboration is intended to support a phase I NASA program for a neuromorphic processor that meets space flight requirements.

Brainchip said the Akida neuromorphic processor was uniquely suited for spaceflight and aerospace applications. The early access agreement included payments to offset expenses incurred when supporting VORAGO Technologies with its needs.

The Brainchip Holdings share price has surged 135.48% since the collaboration was announced. Also last week, it was announced that Brainchip would be added to the S&P ASX All Technology Index (ASX: XTX).

What does Brainchip do?

An artificial intelligence technology company, Brainchip has developed a processor that acts on information in a way that is inspired by the human brain. The technology learns through experiences without needing to send information to a data centre for processing and can adapt to new situations without needing to undergo retraining.

The processing architecture developed by Brainchip, called Akida, has applications in processing visual, audio and smell data along with smart transducer applications which measure movement and changes in pressure.

About the Brainchip share price

In the year to 30 June 2020, Brainchip had revenue of US$13,397, down 80% compared to the prior year. The company posted a loss of US$6.86 million in the year to 30 June 2020. This was a basic loss per share of US 0.48 cents per share.

The Brainchip share price is up 2333.33% since its 52-week low of 3 cents, and up 1360% since the beginning of the year. The Brainchip share price is 1725% higher than this time last year. 

More reading

• Afterpay and Brainchip were among the most traded shares on the ASX last week
• ASX All Technology Index swells with new additions
• Why Brainchip, De Grey, Mesoblast, & SKYCITY shares are pushing higher
• 3 defence ASX shares set for explosive growth
• Why Brainchip and these ASX shares just surged to new highs

Motley Fool contributor Chris Chitty 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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The Castillo Copper Ltd (ASX: CCZ) share price is up 2.13% after topping at 4.3% in late afternoon trading today. That gain is enough to put the company’s share price up 140% year-to-date.

In comparison, the All Ordinaries Index (ASX: XAO) is still down 9% in 2020.

Castillo’s share price was initially unfazed by the COVID-19 panic selling that gripped the ASX in late February. But in early March, the share price crashed 50% in a single day, down to 1 cent per share. The recovery began on 7 April. Since then, the Castillo Copper share price is up a whopping 395%.

What does Castillo Copper do?

Castillo Copper, as the name implies, is a metals explorer with a primary focus on copper. The company also hunts for nickel, zinc and cobalt.

Castillo’s prime asset is the Cangai Copper Mine. Located in northern New South Wales, Cangai counts among Australia’s highest grading historic copper mines. Castillo also has the Mt Oxide project in the Mt Isa district. Located in north-west Queensland, the area is known to be a copper-rich region. In addition, Castillo has prospects in Zambia, the second largest copper-producing nation in Africa.

Why could Castillo’s share price run higher?

Just as gold explorers’ share prices are closely tied to the price of bullion, so too are copper explorers’ share prices linked to the price of copper. There are other factors involved, of course. Good management and an element of luck go a long way to aiding an explorer’s share price.

But for a copper explorer like Castillo, the price of copper is a big factor in how well the share price will perform. Today copper is trading for US$6,789 per metric tonne, levels not seen since mid-2018.

The copper price is surging due to an increase in global demand, predominantly from China, along with falling global inventory levels. That explains some of Castillo’s 2020 success. But the latest data in from China indicates that its copper demand remains at almost record levels. Copper imports in August were only slightly lower than July, which set a new record high.

Castillo’s latest review, reported yesterday, of its Mt Oxide Pillar project also looked encouraging.

Commenting on the review, Castillo Copper’s Managing Director Simon Paull said:

The ongoing geological review at the Mt Oxide Pillar continues to deliver dividends, with interpretation of the evidence highlighting potential prospectivity for structurally controlled copper mineralisation. This delivers another attractive target to investigate and cumulatively builds on the Mt Oxide Project’s exploration upside.

If you’re considering investing in Castillo, be sure to do your own thorough research. And remember that small-cap shares (Castillo has a market cap of $48 million) tend to be riskier than bigger shares. And certainly more volatile.

Over the past 12 months the Castillo Copper share price has traded as low as 0.6 cents and as high as 5.3 cents.

More reading

• Top ASX growth shares to buy in September 2020
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• IGO share price drops despite exploration deal
• De Grey share price rockets 17% higher on new gold find
• Gentrack share price higher on announcement of new CEO

Motley Fool contributor Bernd Struben 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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With a total of 200 shares trading on the S&P/ASX 200 Index (ASX: XJO), there certainly is a lot of choice for investors.

Among the many quality options on the benchmark index, I think the three listed below are standout picks right now.

Here’s why I would invest $3,000 across these ASX 200 shares:

Appen Ltd (ASX: APX)

The first ASX 200 share I would buy is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence (AI) markets. This essentially means that it prepares the data that goes into AI models. This is a vital part of the process, as quality data is integral to improving models and allowing them to reach their full potential. Pleasingly, with spending on machine learning and AI expected to grow materially over the next decade, Appen looks well-placed to benefit. Especially given its leadership position in the market and its history of working with tech giants such as Apple, Facebook, and Microsoft.

CSL Limited (ASX: CSL)

Another ASX 200 share to buy is CSL. I think the biotherapeutics giant could be the highest quality company on the index and a great long term option. This is due to its world class therapies and vaccines, high level of investment in research and development, expansive plasma collection network, and talented management team. Combined, I believe they leave CSL well-positioned to deliver solid earnings growth over the 2020s.

SEEK Limited (ASX: SEK)

A final ASX 200 share to buy is SEEK. Due to its growing China-based operations and its market domination in the ANZ market, I believe SEEK is well-positioned for long term growth once the pandemic passes. Management certainly appears to believe this is the case. It continues to target revenue of $5 billion later this decade. This will be a very big increase on the revenue of $1,577.4 million it recorded in FY 2020.

More reading

• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• ASX investors given a $1.7bn injection of COVID-19 hope
• Why I would buy Appen and these ASX tech shares after the selloff
• ASX 200 rises 0.3%, CSL reveals COVID-19 vaccine manufacturing deals
• Broker picks best ASX small cap stocks to buy from the reporting season

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Appen Ltd. 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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I think it’s a good idea to have diversification in your portfolio. Some ASX shares can provide excellent diversification very quickly.

There are some high-quality ASX shares out there like A2 Milk Company Ltd (ASX: A2M) and Pushpay Holdings Ltd (ASX: PPH). However, there are individual company risks when you own relatively few names in your portfolio. So it could be an idea to buy ASX shares that offer instant diversification rather than buying additional individual businesses just to make up the numbers.

Here are some great ideas:

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

This is a very diversified option for investors. It’s an exchange-traded fund (ETF) that invests in a number of other ETFs. It’s invested in ASX shares, international shares, global bonds, small international companies, emerging markets and Australian bonds.

It would be possible for this investment to be your only investment forever. It offers exposure to both growth assets and defensive assets.

The bonds may not be the best asset to own right now because interest rates are so low, so they don’t offer much of a return.

However, the ETF has enough growth exposure that it could deliver good total growth. Since inception in November 2017 its net returns have been 6.6% per annum.

The ETF comes with an annual management fee of 0.27% per annum. That’s cheap for what it does in my opinion.

Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is a listed investment company (LIC) which invests in indirectly in global shares.

The ASX share invests into the funds of Australian fund managers that invest in global shares. The great thing is that there are no management fees charged by Future Generation Global or the underlying fund managers, they work for free. They do this so that Future Generation Global can donate 1% of its net assets each year to youth mental health charities.

The LIC has money invested with a variety of managers including outfits like Magellan Financial Group Ltd (ASX: MFG), Cooper and Munro Partners.

The ASX share has outperformed its benchmark (the MSCI AC World Index (AUD)) over the past month, six months, 12 months three years and since inception (in September 2015). Over the past three years the Future Generation Global gross portfolio return has delivered a return of 13.1% per annum, outperforming its benchmark by 2.1%.

At the current Future Generation Global share price it’s trading at a 14% discount to the net tangible assets (NTA) per share at 14%. Buying outperformance at a discount is attractive to me, particularly during the current COVID-19 times.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is a reliable investment conglomerate ASX share.

It’s invested in private businesses in industries like agriculture, swimming schools, resources and financial services.

Soul Patts is also invested in listed ASX shares such as TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Clover Corporation Limited (ASX: CLV).

I like the mix of large holdings above, plus it also has a large cap portfolio and small cap portfolio within its asset base.

Not only does Soul Patts regularly deliver outperformance of the broad ASX, but it is increasing its diversification. It has plans to invest in regional data centres.

The investment house has been around since 1903. It has great longevity. The management team are involved in the business for the long-term and investing within Soul Patts itself for the long-term.

At the current Soul Patts share price, it offers a grossed-up dividend yield of 4.1%.

Foolish takeaway

I really like each of these ASX shares as long-term diversification options. I like Soul Patts as a long-term idea, but Future Generation Global looks very good value to me. It’s also good to buy now because of the strength of the Australian dollar.

More reading

• 3 unstoppable ASX shares to invest $2,000 into right now
• Top ASX growth shares to buy in September 2020
• These 2 ASX 200 shares could be the best value ideas
• New to investing? Here are 5 ASX dividend shares to buy now
• New to investing? More ASX growth shares to buy now

Tristan Harrison owns shares of Future Generational Global Investment Company Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. 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 Recce Pharmaceuticals Ltd (ASX: RCE) share price has returned from its trading halt on Tuesday and is shooting higher.

In afternoon trade the biotechnology company’s shares rocketed as much as 27% higher to a record high of $1.87 at one stage.

They have since dropped back a touch but are still up 10.5% to $1.63 at the time of writing.

Why is the Recce share price rocketing higher?

Investors have been buying Recce’s shares after it provided an update on the international SARS-CoV-2 (COVID-19) in vitro studies undertaken by Path BioAnalytics and the University of Tennessee’s Health Science Centre.

According to the release, Recce 327 (R327) and Recce 529 (R529) compounds have shown concentration-dependent reductions in the COVID-19 virus in an in-vitro study using organoids made from human airway epithelial cells.

Management also advised that the concentrations of R327 and R529 further indicated an excellent toxicity profile (<0.25%) on Vero (monkey) cells, in a separate but related study.

In light of these results, the researchers have recommended that the company should advance research of both R327 and R529. To do so, it has secured testing of the compounds in a gold-standard in-vivo COVID-19 infection study in ferrets. This US ferret study is expected to begin this month and be completed prior to the end of 2020.

Non-Executive Chairman Dr John Prendergast said: “We are very pleased with the anti-viral activity against SARS-CoV-2 demonstrated by our two compounds, RECCE 327 and RECCE 529 in vitro, and look forward to further success in the forthcoming ferret model studies. As COVID-19 infections and mortalities continue to rise, an effective treatment is critical. Recce’s anti-infective technology is striving to address the global health problem of emerging viral pathogens.”

Though, the company warned investors not get too excited just yet.  It explained: “Whilst Recce is delighted by the results, further testing must be completed before either (or both) compounds may be deemed safe or effective as a treatment of SARS-CoV-2.”

In other news.

Recce isn’t the only junior biotech company that is hoping to develop compounds to fight COVID-19.

On Monday, the Biotron Limited (ASX: BIT) share price rocketed higher after providing an update on the screening of select compounds against COVID-19.

According to the release, Biotron has concluded the first stage of its screenings and found that several compounds have been shown in laboratory cell-culture studies to have antiviral activity against COVID-19.

More reading

• The Castillo Copper (ASX:CCZ) share price is up 140% in 2020. Here’s why.
• 3 ASX 200 shares to buy with $3,000 this week
• 3 ASX shares I’d buy to quickly add diversification
• Leading brokers name 3 ASX shares to sell today
• Electro Optic (ASX:EOS) share price shoots higher on new product release

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

ASX Ltd (ASX: ASX)

According to a note out of Morgans, its analysts have retained their reduce rating and cut the price target on this stock exchange operator’s shares to $74.82. This follows the release of its activity statement for August. Morgans felt that its update was weak, particularly in respect to futures. As a result, the broker has lowered its earnings estimates and its price target accordingly. The ASX share price is changing hands for $83.47 this afternoon.

Cochlear Limited (ASX: COH)

Analysts at Goldman Sachs have retained their sell rating and $190.04 price target on this hearing solutions company’s shares. The broker has been looking into the medical technology industry this week. It notes that trading conditions are difficult in the hearing aid market due to the pandemic. This is because its target market (the over 65s) are most at risk from the current pandemic and likely to be holding off elective surgeries for implantable devices. This is expected to weigh on demand until the crisis passes. The Cochlear share price is trading at $191.75 on Tuesday.

Perseus Mining Limited (ASX: PRU)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this gold miner’s shares to $1.40. It increased its price target after Perseus suggested its first gold could be poured at Yaoure in December. However, it hasn’t made a change to its underperform rating just yet on valuation grounds. This follows a very strong share price gain in 2020. The Perseus share price is now trading below this price target at $1.32.

More reading

• Why Afterpay, ASX, Mesoblast, & Sydney Airport shares are dropping lower
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy right now
• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
• Where I would invest my BHP dividends in September

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Electro Optic System Holdings Limited (ASX: EOS) shares have shot higher in mid-afternoon trade following the company’s announcement of its new, world-first, full-spectrum system for defence against attacks from unattended aerial system (UAS) or drones. This morning, the Electro Optic share price fell as low as $5.04 but, following the announcement at 12.30pm (AEST), the company’s shares shot as high as $5.63. At the time of writing, the Electro Optic share price is trading at $5.31 representing a 2.9% gain for the day so far.

Product release

The new counter drone product (CUAS), named Mopoke, after the native Australia bird of prey, is used entirely for defensive systems. The ground-breaking product is focused on denial of attack capabilities presented in today’s drones.

Mopoke, unlike other counter drones, consists of a wide range of capabilities that include radar sensors, drone interference technology, electronic and electro-optic sensors, command and control (C2) systems, and kinetic and laser weapons to destroy incoming threats.

CUAS market opportunity

Electro Optic is the only aerospace provider of a CUAS that can be deployed in both large-scale formations with all capabilities, and smaller-scale environments. The global defence contractor said that no competitor can match its CUAS in terms of offering more than four capabilities from a single source.

Industry market surveys and forecasts estimate the total addressable market for CUAS products to be US$48 billion by 2030. Electro Optic estimates that the CUAS market from its own customers is around US$21 billion.

Electro Optic has already been selected as a preferred provider for a major CUAS requirement. Contract negotiations with the mystery international customer have already commenced. The company expects its first phase of the contract to be completed over the next six months.

In addition, Electro Optic has initiated discussion with four other customers regarding its CUAS defence technology.

Management comments

Electro Optic CEO, Grant Sanderson, was upbeat about his company’s newest product to fulfil a global market need. He said:

EOS customers suffered over US$20 billion in losses of critical infrastructure due to drone attacks in 2019. Globally this figure would be higher and the inestimable cost of drone attacks in human lives adds to these high economic costs.

EOS has applied its capability to manage complex systems to fast-track to production the most capable and coherent suite of counter-drone technologies in the world. The Mopoke suite offers several unique elements including the world’s first proven directed energy (laser) kill system for drones, and the first overlapping capabilities in kinetic defence.

The EOS suite of capabilities is already being recognised in key markets where scalable performance is required to meet sophisticated asymmetric threats.

Is the Electro Optic share price a buy?

I think this the new product release presents a huge opportunity for Electro Optic to tap into this market. As the world advances forward with the use of drone technology, the need for counter drones is becoming increasingly apparent.

The company has been making strides this year with a raft of contracts. I believe the current Electro Optic share price does not reflect its robust growth profile for the near term. As such, I rate today’s Electro Optic share price as a strong buy.

More reading

• 3 defence ASX shares set for explosive growth
• Electro Optic share price drops after half-year results
• Why the Electro Optic share price rose 5% today
• New to investing? Here’s how I would make my first $100,000
• 3 ASX shares to buy and hold through COVID-19

Motley Fool contributor Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings 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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Australia’s leading investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

Once again, there were a number of familiar names in the list this week, most notably from the buy now pay later (BNPL) industry.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

For yet another week, this BNPL provider was extremely popular with ASX investors. Zip shares accounted for a massive 7.6% of total trades made on the CommSec platform last week, with a sizeable 74% of these trades coming from buyers. Despite this buying, it wasn’t enough to stop the Zip share price from crashing 24% lower over the five days. Concerns over PayPal’s entry into the BNPL market spooked investors.

Afterpay Ltd (ASX: APT)

Also popular with CommSec investors last week was Afterpay. The payments company’s shares accounted for 3.3% of trades on the platform over the period. And although approximately 61% of these trades came from buyers, the Afterpay share price fell 12% last week. A combination of the PayPal news and a selloff on the tech-heavy Nasdaq index weighed heavily on its shares.

Brainchip Holdings Ltd (ASX: BRN)

For a second week in a row, this provider of ultra-low power high performance artificial intelligence technology was among the most traded shares on the CommSec platform. Brainchip shares accounted for 3.2% of trades on the platform last week, with buyers behind 66% of these trades. It certainly paid off for those investors. Brainchip’s shares recorded a 57% gain last week. Brainchip announced a potential program collaboration with NASA on the Monday.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

It’s not often that an exchange traded fund (ETF) makes the list, but that’s what happened last week. The BetaShares NASDAQ 100 ETF accounted for 1.8% of trades on the CommSec platform over the five days. And with 89% of these trades coming from buyers, it appears as though investors saw the aforementioned Nasdaq selloff as a buying opportunity.

Sezzle Inc (ASX: SZL)

Finally, Sezzle is back among the most traded shares. The BNPL provider accounted for 1.7% of trades on the CommSec platform. Once again, the high level of trading appears to have stemmed from news that PayPal is entering the fast-growing BNPL market with its Pay in 4 product. The payments giant intends to launch in the United States during the final quarter of 2020. The Sezzle share price lost a third of its value last week.

More reading

• CBA CEO thinks Afterpay’s merchant fees will come under pressure
• Afterpay, Zip founders team up for ‘Aussie Robinhood’ app
• Why the Ramelius share price is leading the gold sector higher today
• ASX 200 up 0.5%: CSL signs COVID-19 vaccine agreements, big four banks charge higher
• Why Afterpay, ASX, Mesoblast, & Sydney Airport shares are dropping lower

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 BETANASDAQ ETF UNITS and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Sezzle Inc. 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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Brokers have just picked their latest ASX buy ideas and investors who aren’t perturbed by the market volatility might want to pay attention.

While the S&P/ASX 200 Index (Index:^AXJO) is hanging on to early gains, it’s come off its high and is struggling to retake the psychologically important 6,000 level.

But who can blame investors for lacking conviction? The uncertain road to recovery from the COVID-19 mayhem and the upcoming November US presidential election is forcing many to sit on their hands.

ASX stock upgraded to “buy”

For the rest who are still hunting for attractive ASX stocks to buy, the Magellan Financial Group Ltd (ASX: MFG) share price might be worth a look after Credit Suisse upgraded the stock to “outperform” from “neutral”.

The broker turned bullish on the listed fund manager after the stock fell around 10% since its reported its FY20 results.

“We consider some of the recent concerns and opportunities and are now even more confident in the outlook for flows,” said the broker.

“We upgrade our earnings 1-2% for higher net flow forecasts which now include A$12bn of inflows (previously A$10bn) over the next three years.”

Credit Suisse also lifted its price target on the stock to $65 from $60 a share.

Right road to recovery

Meanwhile, the Transurban Group (ASX: TCL) is shaping up to be a favourite among brokers. The extended harsh lockdown in Victoria is weighing on the toll road operator, but this could be an opportunity for long-term investors.

JPMorgan is one that feels that way as it reiterated its “overweight” recommendation on the stock.

“It has the largest portfolio of toll roads in Australia, and its traffic growth is relatively predictable and has historically materially outpaced GDP growth,” said the broker.

“We expect TCL’s earnings to stabilize at 20% above pre-COVID-19 levels in FY23 and then grow at a relatively strong 7-9% p.a.”

The broker’s 12-month price target on Transurban is $16 a share.

Underperformance can’t be justified

There’s too much bad news priced into the listed property sector, according to Macquarie Group Ltd (ASX: MQG). This spells opportunity for the brave.

“We are positively disposed to the sector with value remaining evident on both a top down and bottom up basis,” said Macquarie.

“The sector has underperformed the broader market by ~760bps in 2020 YTD [year-to-date].”

Further, the reporting season didn’t turn out to be half bad for the sector. While earnings are likely to remain pressured for retail and office properties due to the ongoing impact from coronavirus, the bad news is in the price.

One of the stocks that Macquarie thinks is undervalued is the Lendlease Group (ASX: LLC) share price. The broker rates the stock as “outperform”.

More reading

• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• Air New Zealand share price flat on market update
• Here’s why I avoid these terrible ASX shares at all costs
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher
• Magellan share price up after reporting increased FUM for August

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Transurban Group. 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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