Tag: Motley Fool

S&P/ASX 300 Index (ASX: XKO) lithium share Argosy Minerals Ltd (ASX: AGY) is charging higher today.

Shares in the lithium stock are up 5.5% as we head into the lunch hour, currently trading for 67 cents apiece.

Here’s what’s spurring investor interest.

What did Argosy Minerals report?

The ASX 300 lithium share is leaping higher after reporting its Rincon Lithium Project – located in Salta Province, Argentina – is successfully nearing lithium carbonate production operations.

Argosy said 98% of the total works required to develop the 2,000 tonne per annum (tpa) lithium carbonate production operation are now complete.

Commissioning works are 91% complete, with Argosy having produced battery quality 99.76% lithium carbonate product (during single-run process works).

The full ramp-up phase is imminent, scheduled during the current quarter.

Steady-state production operations are forecast to commence by end of the second quarter of 2023. That will see Argosy emerge as only the second ASX listed commercial scale lithium carbonate producer.

Commenting on the progress sending the ASX 300 lithium share sharply higher today, Argosy managing director, Jerko Zuvela said, “The company is extremely excited as we prepare to commence lithium carbonate production operations at our Rincon Lithium Project 2,000tpa operation.”

Zuvela added:

We look forward to achieving many more significant milestones in 2023 as we transform into a cashflow generator, capitalising on lucrative lithium carbonate prices via upcoming product sales revenues, leading to a significant near-term growth phase for the company.

The company noted that lithium carbonate prices recently were quoted at US$76,000 per tonne on the Benchmark Mineral Intelligence lithium carbonate CIF Asia (spot) price.

How has the ASX 300 lithium share been tracking?

The Argosy Minerals share price is up 17% so far in 2023.

Over the past 12 months the ASX 300 lithium share, as shown below, has gained an impressive 91%.

The post ASX 300 lithium share Argosy Minerals soars 6% on imminent production appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 300 shares on the move after quarterly updates
• Brokers name 3 ASX shares to buy today
• 3 ASX lithium shares forecasting maiden production in 2023
• Which ASX lithium shares are producing and which are not in 2023?
• Buy these 2 ASX mining shares with over 30% upside: brokers

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 Newcrest Mining Ltd (ASX: NCM) share price has had a good run as of late. The S&P/ASX 200 Index (ASX: XJO) gold share has leapt 30.8% since the end of September to trade at $22.29 at the time of writing.

But its surge still hasn’t seen the stock trading for higher than its true value, according to contrarian investing gurus at Allan Gray. It still commands the top spot in the Allan Gray Australia Equity Fund, with fundies still labelling it “seemingly cheap”.

Let’s take a look at why Allan Gray is among the experts bullish on the ASX 200 gold share in 2023.  

ASX 200 gold share Newcrest still trading cheap: fundie

There are positives and negatives to Newcrest shares, according to Allan Gray analyst and portfolio manager Dr Suhas Nayak. But ultimately, the fundie is optimistic on the stock.

In fact, it makes up around 9% of the fund manager’s headline offering. It bolstered its position in Newcrest prior to the stock’s recent surge and is still holding tight to its position.

Commenting on its expectations for the ASX 200 gold share, Nayak said:

Newcrest is … a very long reserve life company, very, very low on the cost curve. Based on the earnings that we think it currently makes … Newcrest is, to us, seemingly cheap.

The company released its report for the three months ended 31 December last week, detailing a 3% drop in gold production. Much of which was due to drought conditions at its Lihir mine.

Such operational issues at the mine, along with the company’s capital expenditure, has led to “push back”, Nayak said. But Newcrest isn’t the only share capable of copping such criticism. The fundie continued:

I think the entire gold sector’s being quite ill-disciplined with respect to the capital allocation.

If they could just pull back on that and do something like the energy sector is done over the last two or three years, I think that the gold sector should before very strongly in the next two, there, four years.

Allan Gray isn’t alone in holding hope for the ASX 200 gold share.

Morgans has slapped Newcrest shares with an add rating and a $25.70 price target, my Fool colleague James reports. The broker is said to like the company’s “dependable production and earnings base”.

The post Up 30% in 4 months! ASX 200 gold share Newcrest is still trading cheap: fundie appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium share Sayona Mining leaps on strong quarterly
• The Pilbara Minerals share price has rocketed! Have I left it too late to buy?
• I’d aim for $1 million buying just 5 to 10 ASX shares
• Could this ASX 200 share be an investment for explosive growth?
• 5 things to watch on the ASX 200 on Wednesday

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 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 team at Morgans has been busy running the rule over a number of S&P/ASX 200 Index (ASX: XJO) shares again this month.

Among its best ideas for February are the two ASX 200 shares listed below. Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology is an ASX 200 share to buy this month according to Morgans. Its analysts are positive on Aristocrat due to its organic growth potential, solid cash conversion, and strong balance sheet. The latter provides the company with the ability to invest in growth opportunities. The broker explained:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Morgans has an add rating and $43.00 price target on Aristocrat’s shares.

Qantas Airways Limited (ASX: QAN)

Morgans has added this ASX 200 airline share to its best ideas list in February. In fact, the broker has elevated Qantas to the position of its top travel stock pick under coverage. This is thanks to its near-term earnings momentum and attractive valuation. It commented:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

Morgans has an add rating and $4.50 price target on Qantas’ shares.

The post Morgans names 2 of the best ASX 200 shares to buy in February appeared first on The Motley Fool Australia.

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More reading

• 3 of the very best ASX 200 travel shares to buy according to Goldman Sachs
• Up 8% in 2023, is it too late to buy Qantas shares now?
• 3 of the best ASX 200 shares to buy in 2023: Bell Potter
• Top ASX growth shares to buy in 2023
• 3 reasons to buy these top ASX growth 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 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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S&P/ASX 200 Index (ASX: XJO) lithium share Sayona Mining Ltd (ASX: SYA) is up 2.88% in late morning trade.

Shares in the emerging lithium stock closed yesterday at 26 cents and are currently trading for 26.75 cents apiece.

This comes following the release of the company’s quarterly update for the three months ending 31 December.

What did Sayona Mining report?

The Sayona Mining share price is well in the green today after the ASX 200 lithium share said the restart of its flagship North American Lithium (NAL) project has accelerated towards first production.

Initial lithium production at NAL – based in Quebec, Canada – is expected late in the first quarter of 2023.

The miner said it had received all the critical equipment and required environmental approvals needed for the restart by the end of December. Progress towards the concentrator restart was reported to have reached nearly 90%.

In the new year, the ASX 200 lithium share revealed it successfully processed 400 tonnes of spodumene ore on 16 January as part of the concentrator commissioning. The company labelled this “a new milestone in the restart process at NAL”.

During the quarter, Sayona also launched a pre-feasibility study (PFS) on the potential to produce lithium carbonate at NAL.

Should that go through, Sayona will do so together with its partner Piedmont Lithium Inc (NASDAQ: PLL) The PFS results are expected in April. Sayona noted that NAL already has half of the facilities required to produce lithium carbonate, thanks to the partial construction of those facilities by the prior owners.

Atop providing updates on its range of other lithium projects, Sayona hasn’t thrown in the towel on gold.

Sayona said its 10 Pilbara gold leases are “prospective for intrusion‐related gold mineralisation, similar in style to that identified at the Hemi gold discovery”.

The miner said it will employ its experience with late‐stage intrusions, built up in the search for pegmatite  mineralisation, “to fast‐track identification of Hemi‐style targets”.

As for the balance sheet, total available funding at the end of the quarter was roughly $291 million. Sayona estimates this is sufficient to fund 3.5 quarters of operations.

How has this ASX 200 lithium share been tracking?

Sayona Mining has been on a tear in 2023. Since the closing bell on 30 December, the ASX 200 lithium share has gained a whopping 43%.

As you can see in the chart below, over the past 12 months the Sayona Mining share price has more than doubled, up 109%.

The post ASX 200 lithium share Sayona Mining leaps on strong quarterly appeared first on The Motley Fool Australia.

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More reading

• The Pilbara Minerals share price has rocketed! Have I left it too late to buy?
• I’d aim for $1 million buying just 5 to 10 ASX shares
• Could this ASX 200 share be an investment for explosive growth?
• These were the best performing ASX 200 shares in January
• 5 things to watch on the ASX 200 on Wednesday

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 Pilbara Minerals Ltd (ASX: PLS) share price is up 2.63% in lunchtime trading to $4.875.

This places it among today’s top-performing S&P/ASX 200 Index (ASX: XJO) shares, at the time of writing.

Other ASX lithium shares are also trading well this morning. Allkem Ltd (ASX: AKE) is up 3.08% and Sayona Mining Ltd (ASX: SYA) is up 2.88%.

The Pilbara Minerals share price was also among the best performers of the ASX 200 in January, surging 27%.

So, have you left it too late to buy?

What’s the latest with the Pilbara Minerals share price?

January was a great month for ASX 200 shares. The stocks went up by a collective 6.2%.

In addition to obviously improved market sentiment, the Pilbara Minerals share price surged on some company news.

As my colleague James reported, a strong quarterly update gave Pilbara shares a big boost.

Production, sales volumes, lithium prices, and unit costs were all up quarter over quarter.

Plus, the company is sitting on a stack of cash, with a $2.226 billion cash balance at the end of December. That’s up A LOT (62%) on the $1.375 billion recorded at the end of September.

This is why the company is planning on paying its maiden dividend in FY23.

Pilbara Minerals announced last year that it intended to pay 20% to 30% of its free cash flow to shareholders.

How have Pilbara shares been performing?

Pilbara has been a favourite among ASX lithium shares investors over the past 12 months. This is one reason why the stock went to a record-high price of $5.66 in the final months of 2022.

While trading at those heights, some analysts said the stock was overvalued.

Morgans said Pilbara Minerals shares were trading at a price that didn’t provide sufficient risk/reward. The broker initiated coverage with a hold rating and a 12-month share price target of $4.70.

Some disagreed. Kardinia Capital’s Kristiaan Rehder noted that Pilbara Minerals was trading on a price-to-earnings (P/E) ratio of just eight times its forecasted FY23 earnings, despite the meteoric share price rise in 2022.

Macquarie gave Pilbara Minerals an outperform rating with a 12-month share price target of $7.70. 

As is often the case with commodity stocks, the vast variety of opinions between brokers on share prices is largely based on their commodity price forecasts.

Pilbara is pretty much a lithium pure play, which means its earnings are directly linked to lithium values.

(Fun fact: Pilbara is among the world’s top 10 global lithium producers alongside two other ASX 200 lithium stocks — Allkem and Mineral Resources Limited (ASX: MIN)).

So, brokers who think lithium prices are going to go down from here are likely to be wary of lithium stocks trading at all-time highs.

Have you left it too late to buy?

After reaching that record high in late 2022, the Pilbara Minerals share price did pull back. The stock opened at $3.75 on the first trading day of 2023.

At $4.875 now, Pilbara is still trading below its record high, but it’s not far off. The question is, should you care?

Lithium prices and the ASX 200 stocks associated with this mineral are inextricably linked to the long-term trends of decarbonisation and the rise of electric vehicles (EVs).

As reported in The Australian, Wealthi economist Peter Esho estimates there are six or seven million EVs zooming around the world today. That’s expected to rise to at least 150 million by 2030.

From an Australian point of view, our federal government has promised “policy leadership” on EVs.

You need to decide if you want a piece of these trends and, if so, whether Pilbara Minerals is your best play.

The post The Pilbara Minerals share price has rocketed! Have I left it too late to buy? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium share Sayona Mining leaps on strong quarterly
• I’d aim for $1 million buying just 5 to 10 ASX shares
• Could this ASX 200 share be an investment for explosive growth?
• These were the best performing ASX 200 shares in January
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Bronwyn Allen has positions in Allkem and Macquarie Group. 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 Macquarie 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Schroders portfolio manager Ray David urges investors to avoid the biggest mistake in investing.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which ASX share would you want to hold?

Ray David: I’d say Ramsay Health Care Ltd (ASX: RHC), just because we know in four years’ time, demand for elective surgeries will be higher. 

We know that demand for healthcare is only going to grow and the government’s very supportive of that private healthcare segment of the market because effectively it’s a tax subsidy for those that can afford it against those who can’t. 

And there’s a big freehold property infrastructure property network there. If we are in a different environment where rates are lower, the value of that property only goes up. 

So Ramsay would definitely fit that category if we were looking across the ASX because it’s recession-proof, it’s got growth, it’s got high [barrier to] entry and the valuation is pretty attractive.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

RD: Our biggest headache we have is timing. Generally timing the top of a stock or the bottom, we can never get it right. 

I’ll give you an example. We shorted a company called City Chic Collective Ltd (ASX: CCX). We shorted the stock when it had a valuation over $1 billion and the market was really excited about the prospects of its online business that we saw as a commodity. 

So we end up making 50% on the short. So we covered it around about $1.90 per share, because we started to think, okay, the valuation was starting to look pretty supportive. But often as always, the market can overreact both on the upside and the downside. And as you know, City Chic started to update the market around its inventory positions and outlook, stock fell to as low as, I think it might have been, 48 cents.

So we never get the bottom on the shorts and we never get the top on the longs. But the way we think about our investment framework is, if you have a valuation framework, you stick to that framework. It’s a guide. If you remain disciplined to that process, you’ll still be able to add a fair bit of return to your clients. 

You’re never going to get the bottom of the top. And if you try and time the market, most likely you’re going to be wrong, because there’s so many psychological factors driving share prices in addition to fundamentals where stocks are going to be going much higher than what you thought as we saw in the tech boom.

Buy now, pay later is another example where a company like Zip Co Ltd (ASX: ZIP) got to north of $6 billion of market value and today it’s got a market value of less than $500 million. 

So the market can be irrational and timing’s very difficult, but the way to stay ahead of the market is for you to be rational and be disciplined and stick to your process. And our process is having a bit of valuation framework to help us make our decisions around when we enter and exit companies or stock positions.

The post Avoid my biggest mistake in investing: fund manager appeared first on The Motley Fool Australia.

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More reading

• ‘Incredibly cheap’: 2 ‘strong’ ASX shares expert would pounce on right now
• I think these 2 cheap ASX shares are buys for value investors
• The Zip share price: Has it bottomed out?
• Jun Bei Liu’s 2 ‘structural growth’ ASX shares to buy now
• Why Coronado Global, Mincor, OFX, and Zip shares are dropping 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 positions in and has recommended Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mesoblast Ltd (ASX: MSB) share price is having a very strong start to the month.

At the time of writing, the biotechnology company’s shares are up almost 13% to $1.07.

Whys is this ASX All Ords biotech share rocketing higher?

Investors have been scrambling to buy the ASX biotech’s shares following the release of a positive regulatory update.

According to the release, the allogeneic cellular medicines developer has resubmitted to the U.S. Food and Drug Administration (FDA) its Biologics License Application (BLA) for approval of remestemcel-L in the treatment of children with steroid-refractory acute graft versus host disease (SR-aGVHD).

The company notes that the resubmission contains substantial new information as required by the FDA.

This includes new long-term survival data of children enrolled in the Phase 3 trial showing durability of treatment effect through at least four years and new data showing remestemcel-L’s treatment benefit in high-risk disease activity and on survival in propensity-matched studies of children in the Phase 3 trial.

It also highlights that new data shows that the validated potency assay has low variability and can adequately demonstrate manufacturing consistency and reproducibility. The lack of consistency was a key issue that the FDA had previously brought up.

All in all, management appears hopeful that this will be enough to get remestemcel-L approved by the FDA this time around.

Mesoblast’s chief executive, Dr. Silviu Itescu, commented:

There is an urgent need for a therapy that improves the dismal survival outcome in children with SRaGVHD. Our team has worked tirelessly over the past two years to provide a comprehensive response to the FDA. We are grateful for the agency’s active dialogue and constructive feedback that will ensure a high bar is met in terms of product consistency and predictability of clinical outcomes.

Pleasingly, shareholders won’t have too long to wait for a result. The resubmission will have a review period up to six months from filing upon acceptance by FDA.

The post Guess which ASX All Ords biotech share is rocketing 13% on FDA news appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Core Lithium, Deterra Royalties, and Mesoblast shares are falling

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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The Flight Centre Travel Group Ltd (ASX: FLT) share price is rocketing higher on Wednesday, up 14.84% in early trade.

The S&P/ASX 200 Index (ASX: XJO) travel stock closed on Monday trading for $15.83. The share price shot as high as $18.18 this morning and, at the time of writing, is $17.54, up 10.8%.

The company was placed in a trading halt at its request yesterday.

Why was the Flight Centre share price halted?

As The Motley Fool reported yesterday, Flight Centre shares entered a trading halt following the company’s announcement that it will acquire United Kingdom-based luxury travel brand Scott Dunn.

Commenting on the acquisition yesterday, Flight Centre CEO Graham Turner said, “High-net-worth, time poor customers highly value the services of Scott Dunn as shown by their customers’ loyalty.”

Flight Centre will shell out $211 million for Scott Dunn, comprising of $40 million in cash and a $180 million placement. That placement comprises of some 12.3 million new shares, issued for $14.60 apiece.

Additionally, Flight Centre will conduct a $40 million share purchase plan (SPP), offering existing stockholders shares at the same placement price.

What did the travel group report today?

The Flight Centre share price is out of the trading halt and roaring higher after the company reported that the $180 million share placement is complete.

The company said demand for the institutional placement – issued at a 7.8% discount to Monday’s closing price – exceeded the supply of 12.3 million shares.

“We are very pleased with the support shown by new and existing institutional investors for the placement,” Turner said. “The acquisition of Scott Dunn will enable us to grow our leisure presence in the attractive US and UK luxury markets, complementing our existing footprint.”

Investors who held shares at Monday’s close will have the opportunity to apply for up to $30,000 worth of Flight Centre shares for $14.60 apiece or 2% discount to the volume-weighted average share price over the five trading days up to, and including, the SPP closing date. (Whichever is lower.)

Flight Centre share price snapshot

The Flight Centre share price has been a strong performer so far in 2023, up 25% since the closing bell on 30 December. Over the past 12 months, as you can see below, shares are up 3%.

The post Flight Centre share price rockets 15% as ASX 200 travel stock resumes trading appeared first on The Motley Fool Australia.

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More reading

• Flight Centre share price frozen amid $211m ‘luxury’ acquisition
• These are the 10 most shorted ASX shares
• How much profit could Flight Centre shares make in 2023?
• Here are the 10 most shorted ASX shares
• Is 2023 Flight Centre’s year to return to profit?

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 recommended Flight Centre Travel 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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Somewhat surprisingly, the S&P/ASX 200 Index (ASX: XJO) is up more than 6% over the last year, while the S&P 500 Index (INDEXSP: .INX) is down by 11% over the last 12 months.

The ASX 200 has done so well that it’s close to its all-time high.

However, I’d largely put that down to the two sectors that make up a significant part of the index – banks and resources.

With higher interest rates and a higher iron ore price, it’s good times for names like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Still plenty of opportunities out there

While ASX’s biggest industries are doing well, the share prices of (at least) three other areas still look promising.

ASX tech shares were smashed in 2022, so I think those names that have been hit heavily represent much better buying. For example, compared to their peak prices, the Xero Limited (ASX: XRO) share price, the REA Group Limited (ASX: REA) share price and the SEEK Limited (ASX: SEK) share price are all down materially.

Fintechs are also down, despite elevated earnings on the cash they hold, such as Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL).

Higher interest rates do reduce asset prices, in theory. But, they’re still the same businesses they were before. So, I think the much lower price we’re seeing with these names is giving us opportunities to invest at a cheaper price.

There are some areas within the ASX 200 that may see an earnings hit in 2023, but I believe the lower share prices make up for that, though some share prices have risen a fair bit.

Retail and building products could be interesting hunting grounds to look at. Over the next three to five years, I think ASX 200 shares like Brickworks Limited (ASX: BKW), James Hardie Industries plc (ASX: JHX), CSR Limited (ASX: CSR), Wesfarmers Ltd (ASX: WES), JB Hi-Fi Limited (ASX: JBH), Premier Investments Limited (ASX: PMV) and Metcash Ltd (ASX: MTS) could also perform well.

Ready to keep investing

I think that a number of these shares will surpass their former heights in the coming years as they grow their underlying operations.

While some industries do go through cycles, I think the lower point of the cycle is a good time to invest in retailers, building product businesses and ASX tech shares.

I’m going to be putting more money to work this year, which will hopefully accelerate my wealth-building efforts in the coming years. Buying at a lower price also means that I’m getting a higher dividend yield from my investments.

I will probably write an article about the next ASX 200 share that I buy, so keep an eye out for that.

The post The ASX 200 is still full of cheap shares despite this year’s surge and I’m ready to buy more appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2023
• ‘Attractive stock’: Fundie names one ASX share to buy, one to watch, one to avoid
• Should I buy ASX 200 tech shares in early 2023 or wait?
• How I’d invest $200 a month in ASX shares to make a $20,000 passive income for life
• Forget lithium! I’m using the Warren Buffett method to help find winning ASX shares in 2023

Motley Fool contributor Tristan Harrison has positions in Brickworks and Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Hub24, Netwealth Group, and Xero. The Motley Fool Australia has positions in and has recommended Brickworks, Hub24, Netwealth Group, Wesfarmers, and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, Metcash, Premier Investments, REA Group, Seek, and Westpac Banking. 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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Could this embattled S&P/ASX 200 Index (ASX: XJO) healthcare share be a buy right now? Fundies seemingly think so, tipping the glove manufacturer to do big things in the future.

It follows a rough couple of years for the Ansell Limited (ASX: ANN) share price. The stock tumbled 9.4% over 2021 before dumping another 10.4% last year. It currently trades at $28.17.

Comparatively, the ASX 200 gained 13% in 2021 and slipped 5.4% over 2022.

So, what has experts talking about the stock in 2023? Let’s take a look.

Is this ASX 200 healthcare share a 2023 buy?

Interestingly, while Ansell falls among healthcare shares, it could also be described as an industrial company. That’s because it mainly produces gloves and other personal protective equipment.

Perhaps unsurprisingly, then, the company’s earnings took off during the COVID-19 pandemic, driving the Ansell share price to a record high in June 2021.

And while its inflated financial year 2021 earnings didn’t stick around for financial year 2022, the market reacted positively to news its revenue reached US$1.9 billion last fiscal year, with Macquarie experts reportedly seeing “solid underlying trends”.

Indeed, many experts tip the ASX 200 healthcare share’s future to be bright. Allan Gray managing director and chief investment officer Simon Mawhinney believes it offers both defensive earnings and good value, saying:

Even though [Ansell] is somewhat exposed to economic cycles, for the most part, they are non-discretionary spends.

[I]mportantly, the share price that you pay today is low relative to earnings. We think you buy a company like Ansell for around 14 times earnings and those earnings, we think, will grow at low single digit percentages.

If you contrast that with the stock market perhaps if we’re lucky, a similar growth rate in earnings, but a good 30% or so more expensive.

The ASX 200 healthcare share also looks like a good opportunity on a technical basis, according to Fairmont Equities managing director and founder Michael Gable. He recently flagged the stock as a buy, saying via The Bull:

The share price has been trending higher since June 2022 and breached resistance at $28 in late October. The technical chart remains bullish … the stock is in a strong uptrend, with no signs of weakness.

The post Is this share the ASX 200’s best healthcare buy? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the AMP share price smashing the ASX 200 on Tuesday?
• Coles share price surges, brokers say more gains to come

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 recommended Ansell. 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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