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The Wesfarmers Ltd (ASX: WES) share price could be in for a big day after the company posted its earnings for the first half of financial year 2023 this morning.

Stock in the conglomerate behind Bunnings, Kmart, and Officeworks last traded at $48.70.

Wesfarmers share price on watch as dividend boosted

• $22.56 billion of revenue – a 27% improvement on that of the prior comparable period (pcp)
• $1.38 billion of net profit after tax (NPAT) – a 14.1% increase
• $2.16 billion of earnings before interest and tax (EBIT) – up 13.4%
• Basic earnings per share (EPS) came to $1.223 – a 14% jump
• 88 cent per share interim dividend declared – up 10% on last year’s
• Ended the period with a $4.72 billion net debt position

What else happened last half?

Looking at the company’s headline businesses, Bunnings saw revenue lift 6.3% to $9.79 billion last half while its EBIT increased 1.5% to $1.28 billion.

Meanwhile, Kmart Group (which includes Target) posted $5.71 billion of revenue – a 24.1% increase – while its EBIT more than doubled to $475 million.

At Officeworks, revenue jumped 4.5% and EBIT increased 3.7% to $1.65 billion and $85 million respectively.

Much of the group’s notable revenue jump came from Wesfarmers Health. It was acquired in March 2022 and brought it $2.78 billion in revenue and $27 million in earnings last half.

Over at Wesfarmers Chemicals, Energy and Fertilisers (WesCEF), revenue jumped 30.2% to $1.4 billion while EBIT lifted 48.6% to $324 million. The company’s industrial and safety business, meanwhile, posted a 4.5% jump in revenue, coming in at $978 million, while EBIT increased 14.6% to $47 million.

However, sales at Catch softened, leading the business to report a $108 million loss. That included $33 million of restructuring costs.

Finally, first ore was mined and stockpiled at the company’s Mt Holland lithium project in December.

What did management say?

Wesfarmers managing director Rob Scott commented on the news likely to drive the company’s share price today, saying:

The retail businesses benefitted from their well-established value credentials and omnichannel offer as customer shopping behaviours began to normalise, and WesCEF’s continued strong operating performance enabled it to capitalise on favourable commodity price conditions.

Growth across the retail businesses also reflected the impact of COVID-related lockdowns in the prior corresponding period.

The disappointing financial performance in Catch reflected operational and execution challenges in addition to the broader decline in online retail demand during the period.

What’s next?

Looking forward, the company believes its retail businesses are well-positioned to meet changing customer demand and mitigate rising costs amid surging inflation and higher interest rates.

Its retail trading results for the first five weeks of 2023 were broadly in line with the first half’s growth, supported by strong growth in areas most impacted by COVID-19 disruptions in early 2022. Meanwhile, WesCEF is tipped to keep benefiting from strong commodity prices in the second half.

Wesfarmers expects its full-year capital expenditure to come in between $1 billion and $1.2 billion.

Wesfarmers share price snapshot

The Wesfarmers share price has performed in line with the S&P/ASX 200 Index (ASX: XJO) so far this year.

Both the stock and the index have gained 7% year to date.

However, Wesfarmers shares have fallen 11% over the last 12 months. Meanwhile, the ASX 200 has lifted 3%.

The post Wesfarmers share price in focus as revenue jumps 27% appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are the ASX shares reporting on Wednesday
• Banking on term deposits to retire rich? I’d buy ASX 200 dividend shares instead
• Should I buy Wesfarmers shares before the company reports this week?
• 3 of the best ASX 200 shares to buy now: broker
• 5 ASX 200 shares I would buy if I was starting from scratch: expert

Motley Fool contributor Brooke Cooper 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 positions in and has recommended Wesfarmers. 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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S&P/ASX 200 Index (ASX: XJO) lithium stocks remain strong performers in 2023, with a few exceptions.

Here’s how the big lithium companies have been tracking since the opening bell on 3 January:

• Core Lithium Ltd (ASX: CXO) shares are flat
• Allkem Ltd (ASX: AKE) shares are up 13%
• Pilbara Minerals Ltd (ASX: PLS) shares have gained 34%
• IGO Ltd (ASX: IGO) shares are up 9%
• Mineral Resources Ltd (ASX: MIN) shares have gained 16%

By comparison, the ASX 200 is up 7% over the same period.

That’s certainly a very healthy performance for investors holding an even-weighted basket of these ASX 200 lithium stocks.

But could a new rally be on the cards to rival the mammoth gains posted by the miners in 2021?

Could this advancement spur a new rally for ASX 200 lithium stocks?

The advancement in question relates to lithium-metal batteries, as opposed to the lithium-ion batteries currently used in most EVs.

Rather than storing lithium ions in electrode materials within the battery, lithium-metal batteries have a layer of lithium at one of the electrodes. This makes them lighter and, potentially, superior designs.

Oh, and they also won’t catch fire.

But, as Popular Mechanics reports, lithium-metal batteries are prone to short circuit. That’s caused by dendrites, microscopic cracks in the ceramic electrolyte.

Which has left scientists puzzled. Until now.

In a discovery that could change the makeup of batteries, and spur fresh demand for ASX 200 lithium stocks, researchers at Stanford University and the SLAC National Accelerator Laboratory uncovered why dendrites form in lithium-metal batteries.

Apparently, these occur from any indentation or impurities within the batteries, which cause nanoscopic cracks in the ceramic solid electrolyte, resulting in short circuits.

According to lead co-author William Chueh (as quoted by Popular Mechanics):

Just modest indentation, bending or twisting of the batteries can cause nanoscopic fissures in the materials to open and lithium to intrude into the solid electrolyte causing it to short circuit. Even dust or other impurities introduced in manufacturing can generate enough stress to cause failure.

What’s next?

ASX 200 lithium stocks aren’t likely to benefit from the latest advancement overnight.

But the researchers have now turned their attention to strengthening the electrolyte during manufacturing. They’re also investigating ways to coat the ceramic barrier, enabling it to repair any dendrites when those occur.

If the next phase of the research bears fruit, ASX 200 lithium stocks may be dominating financial news headlines once more.

The post Could this new advancement reignite ASX 200 lithium stocks? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is short interest in Core Lithium shares growing?
• Here are the 10 most shorted ASX shares
• Get an income boost with these ASX dividend shares: broker
• 2 highly-rated ASX growth shares to buy according to experts

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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The ASX earnings season is beginning to kick it up a notch. Today, some of the most renowned companies on the Australian share market are set to reveal their latest financial results.

Wondering which names are set to report? Here’s a quick summary to prime you for success today.

ASX shares slated to report today

Ranked in order of market capitalisation (largest to smallest)

Commonwealth Bank of Australia (ASX: CBA), $184.5 billion

Fortescue Metals Group Ltd (ASX: FMG), $68.3 billion

Wesfarmers Ltd (ASX: WES), $55.2 billion

Cochlear Limited (ASX: COH), $13.8 billion

Treasury Wine Estates Ltd (ASX: TWE), $10.3 billion

Vicinity Centres (ASX: VCX), $9.1 billion

Seven Group Holdings Ltd (ASX: SVW), $8.5 billion

Pro Medicus Limited (ASX: PME), $6.8 billion

Fletcher Building Ltd (ASX: FBU), $3.6 billion

Netwealth Group Ltd (ASX: NWL), $3.2 billion

Corporate Travel Management Ltd (ASX: CTD), $2.5 billion

GUD Holdings Limited (ASX: GUD), $1.2 billion

Pact Group Holdings Ltd (ASX: PGH), $351.2 million

Redbubble Ltd (ASX: RBL), $130.5 million

To view the complete agenda for the reporting season, check out our calendar here.

What can we expect to see today?

Without a shadow of a doubt, CBA and Fortescue Metals will be two ASX shares attracting a large portion of the attention today. Both giants are releasing their first-half results to the market, and investors will be keen to gather some insights into the guidance for the future.

For CBA, it will be a question of whether the bank is anticipating further tailwinds from interest rate rises or not. Alternatively, the elevated rates could begin to act as a headwind due to increased bad debts. What it might look like over the next six to 12 months will be a critical data point for CBA shareholders today.

Heading into today, analysts were largely expecting cash profit of $5.2 billion and dividends per share (DPS) of $2.10 for Australia’s largest bank. Though, Goldman Sachs has been more bullish — ascribing a DPS estimate of $2.12.

Turning to Wesfarmers, investors will be keen to get a sense of how the retail parts of this ASX share performed. As we’ve seen so far this season, retail companies have been hit and miss in terms of their financial performance.

Given Wesfarmers’ size — encapsulating brands such as Bunnings, Kmart, Target, and Officeworks — the report should shed some light on the strength of the consumer. Bloomberg data estimates earnings could come in at around $1.2 billion for the first half.

Don’t forget to check back in throughout the day to get the latest results coverage for these ASX shares.

The post Earnings preview: Here are the ASX shares reporting on Wednesday appeared first on The Motley Fool Australia.

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More reading

• CBA share price on watch amid strong profit growth and $1b buy-back
• 5 things to watch on the ASX 200 on Wednesday
• Banking on term deposits to retire rich? I’d buy ASX 200 dividend shares instead
• Here’s the iron ore price forecast for 2023: CBA
• Better buy: Fortescue vs BHP shares

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Netwealth Group, Pro Medicus, and Redbubble. The Motley Fool Australia has positions in and has recommended Netwealth Group, Pro Medicus, and Wesfarmers. The Motley Fool Australia has recommended Cochlear, Corporate Travel Management, and Treasury Wine Estates. 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 Commonwealth Bank of Australia (ASX: CBA) share price will be on watch on Wednesday.

This follows the release of the banking giant’s half year results this morning.

CBA share price on watch amid strong growth

• Operating income up 12% to $13,593 million
• Cash net profit up 9% to $5,153 million
• Net interest margin lifted 18 basis points to 2.10%
• Interim dividend increased 20% to $2.10 per share
• CET1 ratio of 11.4%
• Buy-back increased by $1 billion

What happened during the half?

For the six months ended 31 December, Australia’s largest bank reported a 12% jump in operating income to $13,593 million. This was driven by volume growth in core products, a recovery in its net interest margin, partly offset by a decrease in other operating income.

CBA’s net interest margin increased 18 basis points year over year to 2.10%. This reflects higher earnings on deposits, replicated products, and equity hedges in a rising rate environment, partly offset by increased competition.

Operating expenses were well controlled during the half and increased 5% to $5,773 million. This increase reflects wage and supplier inflation and higher information technology costs and remediation, which were partly offset by productivity initiatives.

On the bottom line, CBA’s cash net profit after tax came in 9% higher year over year at $5,153 million. This was driven by its strong operational performance, a rising rate environment, and higher loan loss provisioning.

This allowed the CBA board to increase its interim dividend by 20% to a fully franked $2.10 per share. This represents a 69% payout ratio and reflects the bank’s continued capital and balance sheet strength.

One slight negative was the bank’s loan impairment expense, which increased by $586 million. Management blamed ongoing inflationary pressures, rising interest rates, supply chain disruptions, and house price weakness.

Management commentary

CBA’s CEO, Matt Comyn, was pleased with the bank’s performance. He commented:

We continue to invest in our technology and businesses to improve our customers’ lived experience and solve their unmet needs. This focus is a key driver of strong organic growth across all of our businesses

Higher interim cash profits were a result of volume growth and the recovery in our margins as cash rates rise from historic lows. The result was further supported by sound portfolio credit quality.

Our continued balance sheet strength and capital position creates flexibility to support our customers and manage potential economic headwinds, while delivering predictable and sustainable returns to shareholders. As a result, a higher interim dividend of $2.10 per share, fully franked, has been determined. We continue our long-term approach to capital management by announcing an intention to increase our on-market share buy-back by an additional $1 billion.

How does this compare to expectations?

The good news for the CBA share price today is that this result appears to be largely in line with expectations.

For example, Goldman Sachs was expecting cash earnings of $5,108 million and an interim dividend of $2.12 per share.

Outlook

CEO Matt Comyn appears cautiously optimistic on the future. While highlighting that the cost of living is putting “significant strain” on Australian households, he notes that consumer spending remains resilient and the “fundamentals of the economy remain solid.”

Commenting on the bank’s outlook, he added:

We expect business credit growth to moderate and global economic growth to slow during 2023. However, we remain optimistic that a soft landing for the Australian economy can be achieved and positive on the medium-term outlook for Australia. The Bank remains well provisioned and capitalised to continue to support Australian households and businesses.

The post CBA share price on watch amid strong profit growth and $1b buy-back appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Is a bigger CBA dividend on the cards this week?
• The CBA share price is trading near all-time highs. Should you cash in?
• With no savings at 35, I’d buy this ASX 200 dividend stock to start earning monthly passive income
• I’m listening to Warren Buffett and buying ASX shares at deep discounts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Although the Australian share market is closing in on a record high, not all shares are faring so well.

Two ASX shares that have fallen heavily over the last 12 months are listed below. Here’s why experts say they could be buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Despite a recent rebound, this pizza chain operator’s shares have lost 31% of their value over the last 12 months. Investors have been selling this ASX share due to concerns over the impact of inflationary pressures on both consumers and its margins.

Analysts at Morgans appear to believe that this is a temporary headwind that will soon ease. In light of this, the broker believes now is the time to make an investment in a quality business. Morgans commented:

Cost inflation and adverse FX movements present significant challenges to earnings at present, as evidenced by EBIT margins, which fell from 13.4% in FY21 to 11.5% in FY22. […] We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.

Morgans has an add rating and $90.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price was sold off on Tuesday following the release of the online furniture and homewares retailer’s half year results. This means its shares are now down over 50% since this time last year. The de-rating of tech shares and softening revenue are behind this decline.

Goldman Sachs remains positive and sees this weakness as a buying opportunity for patient investors. It commented:

We think the negative share price reaction (-27%) is overdone, in response to a weaker than expected trading update for the first five weeks of the year which we view as largely reflecting the lapping of omicron rather than a deterioration in underlying trends. We view the balance towards profitability as a sensible shift given near term uncertainty; that said we expect the business to pivot back to active customer growth in FY24 which should drive market share gains.

The broker has a conviction buy rating and $6.50 price target on Temple & Webster’s shares.

The post Buy these beaten down ASX shares now: experts appeared first on The Motley Fool Australia.

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More reading

• Why Ansell, Breville, Star, and Temple & Webster shares are falling
• Dash for trash fades as earnings cliff looms for ASX shares, with the market shooting first and asking questions later
• Temple & Webster share price sinks 13% on half year results
• Looking for growth? 3 ASX shares experts rate as buys
• Expect big things from these ASX growth shares: analysts

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Temple & Webster 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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Although the world is preoccupied with inflation and interest rates, the ASX reporting season is chugging along in earnest.

Fortunately, Morgans equity strategy analyst Andrew Tang has been keeping an eye on the action.

In his “best calls to action” column this week, Tang has helpfully picked out four ASX shares that investors should jump on right now on the basis of their financial reporting this month:

‘Business performing well’

Liquor retail and hospitality provider Endeavour Group Ltd (ASX: EDV) understandably struggled during COVID-19 lockdowns and restrictions. 

But, according to Tang, the latest update showed it was “getting back to normal”.

“Endeavour’s 1H23 result was comfortably ahead of expectations with retail margin performance the key standout,” Tang said on the Morgans blog.

“Both segments delivered earnings and margins ahead of our expectations. Group ROFE [return on funds employed] increased 80 basis points to 12.2%.”

The Endeavour share price has already rocketed 14% year-to-date. But Morgans was so impressed with the February report that it has upgraded its rating to “add”.

“The result highlighted management’s ability to control costs despite inflationary pressures,” said Tang.

“While the regulatory environment remains uncertain, on balance, we think the risks lie to the upside with the underlying business performing well.”

‘Both potential price upside and reasonable yield’

Freight rail operator Aurizon Holdings Ltd (ASX: AZJ) has opposite fortunes, with the share price dropping more than 10% over the past few days.

Tang reported that its results were not flattering.

“1H23 earnings (EBITDA -7% on pcp, earnings per share -34%), cashflow, and dividend per share (-33% on pcp) were below expectations, and FY23 EBITDA guidance was downgraded 4%.”

But the lower share price now means “attractive valuation metrics” and a chance of a rebound “as the market digests the one-offs affecting FY23”. 

“We think there is both potential price upside and reasonable yield at the current share price — more attractive looking into FY25F.”

‘Sufficient upside’ to buy

Electronics retailer JB Hi-Fi Limited (ASX: JBH)’s reporting had no surprises, as it largely revealed what was to come in a preannouncement in January.

But with the share price now down slightly since late last month, Tang reiterates the add rating from his team.

Tang reported that Beach Energy Ltd (ASX: BPT) released a “soft” first-half result due to “cost increases and production declines”. 

“Guidance for FY23 has been downgraded with production reduced by 7% and field operating costs up by 12%.”

But the Morgans team still has a buy rating on the oil and gas producer.

“We still see sufficient upside,” he said.

“FY24 production guidance [is] to be provided at the full year result.”

The Beach Energy share price is 4% lower than it was a year ago.

The post Stop mucking about and buy these 4 ASX shares right now: Morgans appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Are JB Hi-Fi shares now at a bargain price?
• Credit and drinks: Experts name 2 ASX shares to buy for a 2023 economic slowdown
• 5 things to watch on the ASX 200 on Tuesday
• 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 recommended Aurizon and JB Hi-Fi. 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 Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark rose 0.2% to 7,430.9 points.

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

ASX 200 expected to rise

The Australian share market looks set to edge higher on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is up 0.1%, and the Nasdaq is 0.4% higher. This follows the release of a hotter than expected US inflation reading.

Oil prices drop

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 1.3% to US$79.08 a barrel and the Brent crude oil price has fallen 1.15% to US$85.63 a barrel. Supply concerns are weighing on prices following the release of US reserves.

Computershare delivers huge earnings growth

The Computershare Limited (ASX: CPU) share price will be one to watch on Wednesday. This follows the release of the share registry company’s half year results after the market close yesterday. Computershare reported a 33.5% increase in management revenue to $1.6 billion and a massive 95.2% jump in management earnings per share to 45.1 cents per share.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$1,862 an ounce. This follows a hotter than expected inflation reading.

Commonwealth Bank half year results

The Commonwealth Bank of Australia (ASX: CBA) share price will be in focus today when the banking giant releases its half year results. According to a note out of Goldman Sachs, its analysts expect cash earnings from continuing operations to increase 7.6% TO $5,108 million. This is slightly lower than the consensus estimate of $5,165 million. An interim dividend of $2.12 per share is expected by Goldman.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Woodside share price turns red following production update
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Are whales dipping in and out of this ASX 200 travel share?
• Why is the Santos share price lifting on Tuesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Looking for exchange traded funds (ETFs) for your portfolio?

If you are, then two highly rated ETFs that could be worth considering are listed below:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF for investors to look at is the BetaShares Global Energy Companies ETF.

This ETF provides investors with an easy way to gain exposure to the energy sector. Which could be a good thing given how oil prices are at relatively high levels and OPEC appears intent to keep them that way.

This bodes well for the companies held by the fund. These include giants such as BP, Chevron, ConocoPhillips, ExxonMobil, Halliburton, Kinder Morgan, Phillips 66, Royal Dutch Shell, and Total.

BetaShares notes that these companies are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF.

As you might have guessed from its name, this ETF gives investors easy access to a portfolio of the largest companies involved in video game development, hardware, and esports.

VanEck notes that this is an industry benefiting from an estimated 2.7 billion+ gamers globally, which is more than active Apple phones and Netflix subscriptions combined. And according to Statista, revenue in the video games category was projected to reach US$208.60 billion in 2022 and then grow almost 8% per annum through to US$304.70 billion by 2027.

This is likely to be good news for many of the companies included in the fund. This includes graphics processing unit developer Nvidia and gaming giants Electronic Arts, Nintendo, Roblox, Take-Two, and Tencent.

The post 2 high quality ETFs for ASX investors in February appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF. 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’re want a strong portfolio, then having a few blue chips in there could give you a great foundation to build from.

But which blue chip ASX 200 shares could be in the buy zone? Here are three from different sides of the market to consider:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that could be a buy is Goodman Group. It is a leading integrated commercial and industrial property company. Thanks to its successful strategy of developing high quality industrial properties in strategic locations, Goodman has been a standout performer over the last decade. The good news is that it has been tipped to continue its growth in the future.

Citi is a fan and has a buy rating and $21.10 price target on its shares. Its analysts continue to “favour industrial exposure, and remain attracted to GMG’s best-in-class balance sheet.”

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a buy is Cochlear. It is one of the world’s leading hearing solutions companies. Thanks to its portfolio of world class products, which have been developed through its significant annual investment in research and development, Cochlear appears well-placed for long term growth. Particularly given its strong position in a market benefiting from ageing populations.

Morgans is bullish on Cochlear and has an add rating and $236.70 price target on its shares. It believes the Nucleus 8 launch will be a key driver of near term growth.

Rio Tinto Limited (ASX: RIO)

A final ASX 200 blue chip share that has been rated as a buy is Rio Tinto. It is of course one of the world’s largest miners and the owner of a collection of world class operations across different commodities and geographies.

Goldman Sachs is positive on the miner due to its “compelling valuation” and production growth expectations. Goldman currently has a buy rating and $132.00 price target on Rio Tinto’s shares.

The post Why experts say these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

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More reading

• Here’s the iron ore price forecast for 2023: CBA
• Own Rio Tinto shares? Here’s what the market is expecting from its FY 2022 results
• This ASX 200 share is one of my top ideas to rake it in on a recovery
• How I’d generate a $50,000 retirement income from Rio Tinto shares
• Buy and hold these ASX 200 shares: experts

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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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 another subdued showing on Tuesday, the BHP Group Ltd (ASX: BHP) share price has now pulled back over 11% from its recent demerger-adjusted record high.

In light of this, now could be a good time to look to see what brokers are saying about the mining giant.

What are brokers saying about the BHP share price?

While there aren’t many buy ratings on the Big Australian’s shares, a couple see some value at the current level.

One of those is Macquarie, which is the only broker I’m aware of with a buy rating on its shares.

According to the note, the broker has an outperform rating and $52.00 price target on them. Based on the current BHP share price of $47.72, this implies potential upside of 9% for investors over the next 12 months.

In addition, the broker is forecasting a fully franked dividend of approximately $3.00 per share in FY 2023. This equates to a 6.3% yield, boosting the total potential return to over 15%.

Elsewhere, the team at Goldman Sachs is sitting on the fence with the miner and has a neutral rating and $49.00 price target on its shares. This suggests modest upside of 2.7% from current levels.

Finally, at the other end of the scale you have analysts at UBS, which have a sell rating and lowly $39.00 price target. This implies downside risk of approximately 18% from where the BHP share price currently trades.

Which broker makes the right call may largely depend on where commodity prices go from here. If China’s reopening supports demand and high prices, then the bulls could be onto a winner here.

If it doesn’t, it could be the bears that celebrate. Time will tell what happens.

The post What are experts saying about the BHP share price? appeared first on The Motley Fool Australia.

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More reading

• Here’s the iron ore price forecast for 2023: CBA
• Better buy: Fortescue vs BHP shares
• ASX 200 shares: How to invest $10,000 to get $910 per year in passive income
• Own BHP shares? Here’s what the market expects from its half year results
• Why Morgans just added these ASX 200 shares to its best ideas list

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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