Tag: Motley Fool

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a solid gain. The benchmark index rose 0.5% to 7,811.9 points.

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

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a relatively poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 17 points or 0.2% lower. In late trade in the United States, the Dow Jones is down 0.4%, the S&P 500 is down 0.2%, and the NASDAQ is 0.1% lower.

Pilbara Minerals rated as a hold

Pilbara Minerals Ltd (ASX: PLS) shares could be fully valued according to analysts at Bell Potter. This morning, the broker has responded to its downstream announcement by retaining its hold rating and $3.55 price target. This is 9% lower than where the lithium miner’s shares currently trade. It said: “We retain our hold recommendation on valuation grounds.”

Oil prices rebound

ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a better session on Tuesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$82.05 a barrel and the Brent crude oil price is up 1.6% to US$86.80 a barrel. Oil prices rose amid reports that Russian refineries have been hit by attacks.

Premier Investments results

The Premier Investments Limited (ASX: PMV) share price will be on watch today when the retail conglomerate releases its half-year results. Management is guiding to Premier Retail EBIT for the 26-week period ending 27 January to be approximately $200 million. Goldman Sachs has suggested that there could be some gross margin surprise thanks partly to easing global freight costs.

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session after the gold price pushed higher on Monday. According to CNBC, the spot gold price is up 0.6% to US$2,173 an ounce. Rate cut bets gave the precious metal a boost.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• The ASX 200 stock that could get second time lucky
• Here are the top 10 ASX 200 shares today
• How these ASX 200 energy shares could unexpectedly burn brighter
• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat
• These ASX 200 mining stocks could rise 40% to 50%

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 recommended Premier Investments. 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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Against the grain of a bullish market, there are some quality companies that have dropped out of favour recently.

They might be fighting through a one-off difficulty or adverse external conditions that are out of their control.

Regardless, I think these three cheap ASX shares deserve a fair go because their long-term business prospects remain solid:

Reporting season blues

Johns Lyng Group Ltd (ASX: JLG) shares plunged 20% in a single morning late last month after its half-year results were revealed.

That was despite an upgrade guidance for the current financial year.

Sales revenue and net profit after tax (NPAT) for the first half were both down year-on-year, which may have triggered the disappointment.

Five investment houses did cut their share price expectations over the next year, but CMC Invest shows 9 out of 11 analysts still rating Johns Lyng as a buy.

I think it’s an excellent opportunity to pick up a quality company for cheap.

Nothing doing here

Regenerative medicine producer Avita Medical Inc (ASX: AVH) has seen its share price drop more than 12.3% since market close on 1 March.

No significant news has come out of the company, so one can only assume the valuation is changing from general market movement for biotechs.

If anything, Avita shares should be seeing increased demand because of its addition to the All Ordinaries Index (ASX: XAO) on 18 March.

The professional community is sticking firm on these cheap ASX shares. 

Nine out of 10 analysts covering the stock rate it as a buy, according to CMC Invest, with eight of those considering Avita a strong buy.

These cheap ASX shares are still a value buy

Like Johns Lyng, Camplify Holdings Ltd (ASX: CHL) shares were also burnt during reporting season.

“The stock closed down ~17% on result day, which we largely attribute to some seasonality in Camplify’s key headline metrics (future bookings, gross margins, etc),” said the analysts at Morgans.

With the seasonal nature of the numbers, there has not been much movement in the opinions of fund managers in it for the long haul.

“Our price target remains unchanged and we maintain an add recommendation on the stock,” said the Morgans team.

Indeed all three analysts covering Camplify still rate it as a strong buy, as shown on CMC Invest.

The post 3 struggling ASX shares to buy at a discount appeared first on The Motley Fool Australia.

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More reading

• New to investing? I’d invest my first $1,000 in ASX shares today!
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• 3 reliable ASX shares you can buy at a discount

Motley Fool contributor Tony Yoo has positions in Avita Medical, Camplify, and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Avita Medical, Camplify, and Johns Lyng Group. 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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It was not even on the agenda three years ago, but now there is much talk about nuclear power.

Russia’s invasion of Ukraine in 2022, the ongoing conflict in the Middle East, plus the imperative to reduce carbon emissions are all combining to force nations to reconsider their energy security.

Even in Australia, where by law nuclear power plants are banned, one side of politics is pushing hard for the solution.

Former chief scientist Alan Finkel last week explained some of the advantages of nuclear power.

“The volume of fuel is small, with only one tonne of uranium needed to produce the same amount of electricity as 100,000 tonnes of black coal,” Finkel said in the The Sydney Morning Herald.

“The land footprint is only about three square kilometres for a one-gigawatt nuclear plant versus about 60 square kilometres for a three-gigawatt solar plant that would generate the same annual output.”

Shaw and Partners senior investment advisor Jed Richards is bullish on the ASX uranium sector for this precise reason.

“Australia is closer to accepting nuclear power than ever before. China’s demand for uranium is enough to drive profitability,” Richards told The Bull.

And there is one uranium stock that he would buy right now.

The uranium shares that are ‘our preferred exposure’

Richards calls Paladin Energy Ltd (ASX: PDN) the “premium and most liquid stock in the uranium sector”. 

“It remains our preferred exposure to an improving uranium market.” 

The stock has risen a spectacular 149% over the past 12 months, which is an even steeper climb than the global uranium price.

“The shares have performed strongly in the past year, and we expect this favourable momentum to continue.”

The analysts at Blackwattle are also bullish on Paladin, as they said in a memo to clients earlier this year.

“The market for uranium remains in a significant deficit and is expected to remain that way for the rest of the decade.

“This places restart projects like Paladin in a great position to capitalise on the high prices that are needed to incentivise additional supply to enter the market.”

The support is unanimous in the professional community.

Broking platform CMC Invest currently shows all eight analysts covering Paladin stock rating it as a strong buy.

The post Uranium is set to boom, and this is the ‘premium’ ASX stock to buy appeared first on The Motley Fool Australia.

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More reading

• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls
• ‘We have reached a bottom’: 5 ASX uranium shares leaping higher this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

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If you have room in your income portfolio for some new additions, then it could be worth checking out the ASX 200 dividend stocks listed below.

Here’s why analysts think they are in the buy zone right now:

Bapcor Ltd (ASX: BAP)

The team at Macquarie thinks income investors should consider buying this auto parts retailer’s shares.

The broker currently has an outperform rating and $6.90 price target on its shares. This suggests potential upside of approximately 11% for investors from current levels.

Macquarie was pleased with Bapcor’s performance during the first half, noting that its result was largely in line with its expectations.

Looking ahead, the broker is forecasting the company to pay fully franked dividends of 18.4 cents per share in FY 2024 and then 21.1 cents per share in FY 2025. Based on the current Bapcor share price of $6.23, this implies yields of 3% and 3.4%, respectively.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend stock that could be a good option for income investors is Rio Tinto.

It is one of the largest miners in the world and the owner of a high-quality portfolio of operations across multiple commodities. In addition, it is working to reduce its carbon footprint, partnering to develop new technologies to decarbonise steel and aluminium production, and creating new products from waste.

The team at Goldman Sachs is feeling very positive on the miner and recently put a buy rating and $138.30 price target on its shares. This implies potential upside of approximately 13.5% for investors.

As for dividends, the broker is expected fully franked dividends per share of US$4.39 (A$6.72) in FY 2024 and then US$4.61 (A$7.06) in FY 2025. Based on the latest Rio Tinto share price of $121.62, this will mean yields of approximately 5.5% and 5.8%, respectively.

The post Brokers say these ASX 200 dividend stocks are buys appeared first on The Motley Fool Australia.

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More reading

• What is the current lithium price?
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• Is the worst of the selling now over for ASX iron ore shares?
• Buy these top ASX dividend shares with 5%+ yields
• $2.1 million! Who are the highest paid ASX 200 directors?

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Bapcor. 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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Can lightning hit twice in the same spot?

The old cliche suggests it doesn’t, but scientifically lightning certainly can and does strike twice in the same place.

If you’re on the scientists’ side, it might be time to consider buying Santos Ltd (ASX: STO).

Curious? Read on.

The ASX 200 marriage that never was

Late last year, the oil and gas giant explored whether it would merge with its larger S&P/ASX 200 Index (ASX: XJO) rival Woodside Energy Group Ltd (ASX: WDS).

The Santos share price had been stagnant for the past half-decade, and this deal was meant to be the light at the end of the tunnel for its long-suffering shareholders.

The price-to-earnings (P/E) ratio sits at half of Woodside’s.

Unfortunately, last month the merger talks were terminated. Neither side has publicly revealed the reasons the deal fell over.

The Santos share price immediately sank 8% when that news came.

Then just to rub salt into the wound, the shares plunged again after its 2023 full year result failed to impress investors.

Both underlying net profit after tax (NPAT) and free cash flow from operations headed 42% for the year.

Ouch.

Could the romance be rekindled?

Despite these events, Shaw and Partners senior investment advisor Jed Richards right now thinks Santos is the far stronger buy than Woodside.

“The future growth prospects pipeline is far stronger for Santos than Woodside Energy, in my view,” Richards told The Bull.

And he reckons the Woodside marriage story is not over yet.

“Santos has positioned itself well over the past few years to be an attractive addition for Woodside.

“Although the last round of negotiations hasn’t resulted in a merger, I expect this strategy will be addressed again in the future.”

It seems Richards is not the only professional keen on Santos right now.

According to broking platform CMC Invest, 13 out of 17 analysts currently rate the energy stock as a buy.

The post The ASX 200 stock that could get second time lucky appeared first on The Motley Fool Australia.

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More reading

• How these ASX 200 energy shares could unexpectedly burn brighter
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• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

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.

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Are Star Entertainment Group Ltd (ASX: SGR) shares about to depart from the Australian stock market? There are certainly some rumours swirling around that they might be.

We’ve seen a few developments in the mergers and acquisitions space on the ASX over 2024 so far. It looks like Virgin Money UK plc (ASX: VUK) might leave the ASX boards later this year after a generous takeover offer earlier this month.

It was a similar story with Prospa Group Ltd (ASX: PGL) shares last month. And there have been some huge moves with the Appen Ltd (ASX: APX) share price this year after an announced and subsequently withdrawn takeover bid from US stock Innodata Inc.

Star Entertainment shares have been a volatile investment to have held in recent times. Long-term investors have been punished for owning this casino operator, with the Star share price down almost 86% from its 2021 peak of around $3.80 a share. Today, those same shares are worth just 53 cents each after dropping as low as 42 cents in December last year.

Star has evidently yet to recover from years of regulatory scrutiny over its ability to lawfully operate its casino assets. It was only last month that the NSW Independent Casino Commission (NICC) revealed that it would hold a second inquiry into Star’s suitability as a casino operator.

And just last week, the company revealed that its CEO Robbie Cooke would be leaving Star after just 16 months in the job.

Are Star Entertainment shares primed for a takeover bid?

So perhaps this makes Star a prime target for a takeover. After all, it was the legendary Warren Buffett who once said “The best thing that happens to us is when a great company gets into temporary trouble. … We want to buy them when they’re on the operating table”.

Some ASX experts even suggest this is likely.

According to reporting in The Australian, ASX brokers believe that following Star’s abrupt CEO exit last week, a sale of the company to a private equity buyer is “the most likely outcome” of Star’s recent woes.

Of course, this is just rumours and speculation at this point. But objectively, there’s a strong possibility that Star’s embattled investors might be open to an exit strategy after the horrid few years they’ve collectively endured.

Only time will tell if this speculation leads to any developments. But it is sure shaping up to be an interesting space to keep an eye on.

The post Could Star Entertainment shares be next in line to catch a takeover bid? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• My top high-risk, high-reward ASX shares to buy in March
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

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 Appen. 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.

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Are you looking for some ASX shares to add to your retirement portfolio?

If you are, then the shares listed below could be top options for a retirement portfolio that analysts are bullish on. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

Rural Funds could be an ASX retirement share to buy. It is an agriculture-focused real estate property trust with a high-quality portfolio of assets including vineyards and orchards.

It could be a good option due to its long-term tenancy agreements (weighted average lease expiry of 12.8 years) and its built-in rental increases. Combined, they provide great visibility on its future earnings.

Bell Potter is a fan of the company and has a buy rating and $2.40 price target on its shares.

As for dividends, it is forecasting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.10, this will mean yields of 5.6%.

Telstra Group Ltd (ASX: TLS)

Another ASX retirement share to look at is Australia’s largest telco, Telstra.

When looking for retirement portfolio additions, you arguably want companies with defensive qualities. Well, Telstra has them in spades. It also has an above-average forecast dividend yield, which is tipped to grow.

For example, Goldman Sachs is forecasting fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $3.75, this will mean yields of 4.8% and 5.1%, respectively.

Goldman also sees plenty of upside for its shares with its buy rating and $4.55 price target.

Transurban Group (ASX: TCL)

Another ASX retirement share to consider is Transurban.

It owns a portfolio of toll roads in Australia and North America, as well as a significant project pipeline that should support its long-term growth.

Given that these roads are always in need, particularly given population growth and urbanisation, Transurban also has defensive qualities that could make it attractive for a retirement portfolio.

Citi appears to believe this is the case. The broker currently has a buy rating and $15.60 price target on its shares.

As for income, its analysts are forecasting dividend yields of 4.85% and 5% for FY 2024 and FY 2025, respectively.

The post 3 high-quality ASX retirement shares to buy this week appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 shares could rise 20% to 50%
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• Top ASX shares to buy instead of a term deposit in March 2024
• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• Popular ASX All Ords shares with ex-dividend dates next week

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 positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Telstra Group. 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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When one steps back from the excitement, it’s hard not to think of the current ASX share market as a greedy one. After all, the S&P/ASX 200 Index (ASX: XJO) has appreciated by over 15% since the beginning of November last year and hit several new all-time highs in the process.

It’s normal for the markets to occasionally hit new highs of course. But it is not normal for the ASX 200 to gain over 15% in just five months or so. In fact, it’s unusual to see that kind of rise over an entire year.

Unfortunately, analysts at Macquarie believe that these gains are unlikely to last. As reported in the Australian Financial Review (AFR), Macquarie strategists Matthew Brooks and Sophie Bolton have built a new FOMO (fear of missing out) Meter, which is designed to gauge investor sentiment on the US markets, and whether it is being overly influenced by emotional whims. That would be fear or greed.

This Meter is reportedly constructed using seven different indicators, including the VIX volatility index and measuring how many stocks on the S&P 500 Index are above their 200-day moving averages.

Their verdict of the current market is sobering: “We continue to believe that sentiment needs to cool a little and that investors should wait for a correction before rotating more to risk”.

They go on to point out that this might mean that US returns from shares will be “below average” and that ASX shares could deliver a “slightly negative return”.

Defensive ASX shares for a greedy market

Brooks and Bolton have a potential solution for this conundrum: focus on defensive ASX shares. Pointing out that sectors like tech stocks and consumer discretionary shares tend to rise and fall alongside investor sentiment, the analysts instead recommend investors look to more defensive plays while the market is still hot.

They have four shares in mind for this endeavour. The analysts name packaging and logistics company Brambles Ltd (ASX: BXB), grocer Coles Group Ltd (ASX: COL), healthcare stock ResMed Inc (ASX: RMD) and real estate investment trust (REIT) Goodman Group (ASX: GMG).

Brooks and Bolton point out that these four stocks reported positive earnings during the recent reporting season, and all currently enjoy outperform ratings from Macquarie.

They also suggest that investors might want to take a look at Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS), Endeavour Group Ltd (ASX: EDV) and Orora Ltd (ASX: ORA) as more “adventurous” defensive ASX shares.

So an interesting insight from these Macquarie analysts. It will be interesting to see if these FOMO Meter predictions are indicative of what happens next on the share market. As with all investing forecasts, they will only be obvious in hindsight

The post 4 defensive ASX shares to own in a greedy market: Macquarie appeared first on The Motley Fool Australia.

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More reading

• Buy Coles and this ASX 300 dividend share
• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX today
• $2.1 million! Who are the highest paid ASX 200 directors?
• 2 things I’m waiting for before buying Coles shares

Motley Fool contributor Sebastian Bowen has positions in Endeavour Group and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, ResMed, and Telstra Group. The Motley Fool Australia has recommended Goodman Group and Orora. 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 so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

ALS Ltd (ASX: ALQ)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $13.70 price target on this testing services company’s shares. This follows news that ALS is acquiring the remaining 51% in the Nuvisan business that it does not already own for nil cost. It notes that ALS previously had a call option to acquire the remaining stake for 13x the adjusted EBITDA. In addition, the broker notes points out that ALS now expects its earnings to be at the low end of its guidance range in FY 2024. Nevertheless, it remains positive. The ALS share price is trading at $12.86 today.

Sims Ltd (ASX: SGM)

A note out of UBS reveals that its analysts have upgraded this scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker is feeling more positive thanks to improving scrap metal prices. And with its shares trading at a discount to book value despite these improvements, the broker feels now is the time to invest. It has also upgraded its earnings estimates to reflect higher margin assumptions. The Sims share price is fetching $12.21 this afternoon.

Webjet Ltd (ASX: WEB)

Another note out of UBS reveals that its analysts have retained their buy rating on this online travel agent’s shares with an improved price target of $10.00. This follows the release of an update on the WebBeds business last week. The broker believes that the company is well-positioned to accelerate its growth through the use of big data and artificial intelligence. In fact, UBS believes the company can grow quicker than the market is currently pricing in. The Webjet share price is trading at $8.94 on Monday.

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

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More reading

• Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher
• Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today
• Top brokers name 3 ASX shares to buy next week
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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 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.

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According to the pundits of yesteryear, S&P/ASX 200 Index (ASX: XJO) energy shares focused solely on renewables should be leading the charge by now.

And coal stocks like New Hope Corp Ltd (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) should have been relegated to the history books.

The reality, however, is playing out quite differently.

Although significant progress has been made in the transition to solar, wind and hydro power, the truth is that global demand for the reliable baseload power provided by fossil fuels is resilient.

Here’s what’s happening.

ASX 200 energy shares lengthy lifeline

The bulk of the booming demand for coal that could unexpectedly see these two ASX 200 energy shares burn brighter over the medium term comes from China, India and Indonesia.

All three countries brought new coal-fired power plants online over the past year. And all three are still constructing more.

That’s particularly important because together the three nations have a staggering population of some 3.2 billion people. Or some 123 times the population of Australia.

Indeed, coal consumption in China, which mines and burns half the world’s coal, hit a record high in 2022 before soaring 5.6% in 2023 to post another all-time high.

According to the International Energy Agency (IEA), global coal output reached new all-time highs in 2023 as well. And coal continues to provide more than 30% of the world’s electricity needs.

This has helped stabilise thermal coal prices at around US$130 per tonne, up from US$116 per tonne in late February this year.

While far below the record levels of US$440 per tonne reached in September 2022, that’s still well above the costs New Hope and Whitehaven pay to dig up and ship their coal. And it’s higher than any time between 2011 and 2020.

Commenting on the booming demand from Asia that could offer ASX 200 energy shares sustained support, New Hope’s CEO Rob Bishop said (courtesy of Bloomberg), “You look at Asia, the demand and the build out of coal-fired power plants, particularly in India – coal’s not going anywhere anytime soon.”

And like oil and gas, Bishop said coal remains vital in the long-running global transition to low-emissions energy.

“We see that the world needs more operators to mine coal and support the transition over many decades to come,” he said.

As for ASX oil and gas stocks

It’s a similar story for ASX 200 energy shares drilling for oil and gas, like Woodside Petroleum Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

According to data released by China’s National Bureau of Statistics last week (quoted by Bloomberg), Chinese oil consumption increased 9.1% year on year in 2023. And gas consumption was up 7.2%.

The post How these ASX 200 energy shares could unexpectedly burn brighter appeared first on The Motley Fool Australia.

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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.

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