Tag: Motley Fool

It has been a wild morning for the Zip Co Ltd (ASX: ZIP) share price following the release of the company’s quarterly update.

In early trade, the buy now pay later (BNPL) provider’s shares were up as much as 11% to 92.5 cents.

Whereas the Zip share price is now down 6.5% to 78 cents.

Zip share price bouncing around on record quarter

• Record quarterly transaction volume up 22% quarter on quarter to $2.7 billion
• Transaction numbers up 15% quarter on quarter to a record of 22.6 million
• Record quarterly revenue up 12% quarter on quarter to $188 million
• Revenue margin of 6.9%
• Cash transaction margin of 2.6%
• US business delivered positive operating earnings in November and December
• Credit loss rates down to 1.1% of total transaction value
• Active customer numbers flat at 7.4 million

What happened during the quarter?

For the three months ended 31 December, Zip reported a 16% quarter on quarter increase in revenue to $183.9 million. This reflects a 28% increase in US revenue to $85.7 million, a 7% lift in ANZ revenue to $88.6 million, and a 13% rise in Rest of the World revenue to $9.6 million.

This revenue growth was underpinned by a 23% increase in transaction volume and a 15% lift in transactions, which offset flat active customer numbers.

However, the big news, which is likely what gave the Zip share price its huge early boost this morning, is that the company’s US operations delivered positive cash EBTDA in November and December. Pleasingly, this isn’t expected to be a one-off during the holiday period. Management believes that the business is on track to exit FY 2023 cash EBTDA positive on a sustainable basis.

And with Zip ending the period with available cash and liquidity of $78.5 million, management appears confident that this will be sufficient to support the company through to cash EBTDA profitability.

Management commentary

Zip co-founder, global CEO, and managing director, Larry Diamond, was very pleased with the quarter. He commented:

We are very pleased to deliver another strong quarter of record volumes despite the challenging external environment and adjustments to our risk settings. During the quarter Zip continued to make great progress on the strategy to deliver sustainable growth, right-size our global cost base and accelerate our path to profitability.

The underlying business remains strong, and we are pleased with the benefits and reduction in cash burn from the ongoing simplification of the business footprint and focus on core products and core markets.

In the current environment of heightened inflation and cost of living pressures, Zip continues to provide a simple, fair and easy to use product that customers can use everywhere and every day, creating a world where people can live fearlessly today, knowing they’re in control of tomorrow.”

The post Zip share price on the move amid record quarter and US profitability appeared first on The Motley Fool Australia.

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More reading

• Why Boss Energy, Pilbara Minerals, Sezzle, and Zip shares are charging higher
• Why is the Zip share price rocketing 18% higher today?
• Should I buy the dip on Zip shares right now?
• Why Arafura, Data#3, Leo Lithium, and Zip shares are charging higher today
• Will Zip deliver a profit in 2023?

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 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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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, Eley Griffiths portfolio manager Nick Guidera warns investors which factors to look out for in 2023.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Nick Guidera: The Eley Griffiths Group Emerging Companies Fund invests in the smaller end of the Australian & New Zealand equities market — listed companies that are at an earlier stage of their lifecycle or growth journey. Typically these stocks are outside S&P/ASX 200 Index (ASX: XJO).

The fund typically consists of 35 to 55 stocks with an average market capitalisation as at 31 October 2022 of around $700 million.

The fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index (ASX: XSOA) over a rolling five-year period.

Eley Griffiths is a style-agnostic manager, meaning we can invest in both growth and value stocks, which is important through the cycle. We also look to invest across sectors, including resource and energy stocks, which are a large proportion of the S&P/ASX small ordinaries accumulation index.

We have an experienced and incredibly capable investment team that spends time researching and modelling small and emerging companies to identify the next successful listed company that is early in its life cycle. The team has traversed many market cycles, and is acutely aware of the factors that impact the smaller end of the Australian equities market — liquidity, volatility. 

This fund is appropriate for investors with “high” and “very high” risk and return profiles. This means an investor in the fund is typically prepared to accept high risk in the pursuit of capital growth with a medium to long investment timeframe. No returns are guaranteed. 

Investors should refer to the target market determination and product disclosure statement for further information or making an investment decision — these are available on our website. 

MF: Where do you think the market is heading?

NG: Markets are at a very interesting juncture right now. After dominating most of 2022, we expect the macro — central banks, economic data releases, bond yields, currencies — to continue to dictate the equity market direction in the months to come. 

This means we are likely to see continued volatility, selective outperformance from stocks and sectors with solid fundamentals that are insulated from the macro, and a requirement as investors to continue to be nimble and open-minded to the ever-changing market backdrop. 

For context, central banks globally appear closer to the end of the tightening cycle than the beginning with the pace and size of interest rate hikes set to slow significantly into 2023.     

The impact of tightening policy is being felt in economies all over the world with economic surveys pointing to a slowdown in demand for new orders, higher mortgage rates slowing housing markets, and in the US, consumers beginning to slow their retail spending. Locally, the consumer continues to be robust according to some recent company releases from Australian retailers — but the future does contain some uncertainty. 

China is showing signs of reopening its economy at a rapid pace, and loosening monetary policy to stimulate growth, at a time when almost every other bank is still maintaining higher rates. At a time when growth globally is seemingly harder to come by, the potential growth opportunity of this reopening may be tempting for many.

A recession in the US and Europe is now consensus among global economists. However, the timing and the severity is questionable.

Despite the economic challenges that persist, inflation remains elevated, albeit declining, and labour markets remain tight — unemployment low. Both these factors suggest central bankers will continue to need to raise rates in the coming months and maintain these tighter policy settings for longer.

Small-cap investors had a tough 2022, with the index down more than 20%; as such, valuations have been reset in some sectors.

Reporting season, which is due to kick off in February, will give further insights to investors as to whether the earnings expectations for smaller companies need to be revised down for 2023.

The outlook for earnings and the macro backdrop will ultimately dictate the direction of the market in 2023.

The post Two factors to decide if your ASX shares will make money in 2023: fund manager appeared first on The Motley Fool Australia.

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More reading

• Kogan share price sinks on record half-year loss
• Telstra shares: ‘Some healthy options that are underappreciated’
• 3 ASX shares to buy in the hottest sector for 2023: Firetrail
• Everything you need to know about Wednesday’s Australian inflation data release
• Stocked up on $1,000 of Santos shares 10 years ago? If so, here’s how much dividend income you’ve earned

​​DISCLAIMER: This presentation has been prepared and issued by Eley Griffiths Group Pty Limited (ABN 66 102 271 812, AFSL 224 818) (EGG) as the investment manager of the Eley Griffiths Group Small Companies Fund and Eley Griffiths Group Emerging Companies Fund (Fund). The Trust Company (RE Services) Limited ABN 45 003 278 830, AFSL 235 150 (Perpetual) is the Responsible entity and issuer of units in the Fund. It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS), prior to making any investment decisions. The PDS and target market determination (TMD) can be obtained for free by visiting our website https://www.eleygriffithsgroup.com/invest/.  If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. 

Neither EGG, nor any company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Neither EGG nor Perpetual give any representation or warranty as to the reliability or accuracy of the information contained in this presentation. Any opinions, forecasts,  estimates or projections reflect judgments of EGG as at the date of this document and are subject to change without notice. Rates of return cannot be guaranteed and any forecasts, estimates or projections as to future returns should not be relied on, as they are based on assumptions which may or may not ultimately be correct. Actual returns could differ significantly from any forecasts, estimates or projections provided. Past performance is not a reliable indicator of future performance.

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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The Kogan.com Ltd (ASX: KGN) share price is sinking on Tuesday.

In morning trade, the ecommerce company’s shares are down 6% to $4.07.

This follows the release of Kogan’s half year update this morning.

Kogan share price drops on half year update

• Gross sales down 32.5% to $471.1 million
• Gross profit down 42% to $62.9 million
• Record loss before interest and tax of $31.3 million
• Active customers down 18.4% to 3,323,000

What happened during the half?

For the six months ended 31 December, Kogan reported a 32.5% decline in gross sales to $471.1 million.

This reflects a 35.7% decline in Kogan Marketplace sales, a 41% reduction in Exclusive Brands sales, a 49.2% fall in third-party brands sales, and a 9.1% drop in Mighty Ape sales.

Things were even worse for its earnings, with gross profit falling 42% to $62.9 million and its loss before interest and tax increasing to $31.3 million. Management advised that this was driven by its soft top line performance along with significant discounting to clear through the bulk of excess inventory.

One small positive is that Kogan’s inventory position is improving. It finished the period with inventory in-warehouse 39% lower than at the end of June. Management notes that it has now cleared through the bulk of its excess inventory. As a result, it is expecting margins to improve in the second half.

Management commentary

Kogan’s under-fire founder and CEO, Ruslan Kogan, didn’t comment on the company’s abject performance during the half. However, he revealed that he remains positive on the future despite the current economic environment. He said:

The impacts of inflation and interest rates have begun to affect the lives of Australians and New Zealanders. We’ve been growing Kogan.com for more than 16 years now, so we’ve been through many cycles and we know that when customers are watching their costs carefully, ecommerce becomes even more important. Since Kogan.com launched out of a garage in 2006, we’ve been obsessed with making the most in-demand products and services more affordable. We are proud to be making that possible for our millions of customers and the growing base of loyal Kogan First Subscribers.

As you can see above, the Kogan share price is now X over the last 12 months.

The post Kogan share price sinks on record half-year loss appeared first on The Motley Fool Australia.

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• 4 ASX All Ordinaries shares surging over 10% on Monday

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 Kogan.com. The Motley Fool Australia has positions in and has recommended Kogan.com. 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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Telstra Group Ltd (ASX: TLS) shares have started 2023 in a reasonably positive fashion.

Since the start of the year, the telco giant’s shares have risen 2.5%.

The good news, though, is that one leading broker believes that this is only the start of greater gains.

Telstra shares tipped to rise

According to a note out of Morgans this morning, its analysts have reiterated their add rating and $4.60 price target.

Based on the current Telstra share price of $4.08, this suggests that its shares could rise almost 13% over the next 12 months.

In addition, Morgans continues to forecast a 16.5 cents per share fully franked dividend in FY 2023. This equates to a 4% dividend yield, boosting the total potential return to approximately 17%.

‘Some healthy options that are underappreciated’

Morgans has been looking at Telstra’s healthcare business, Telstra Health, and believes it has “some healthy options that are underappreciated.” It commented:

Telstra Health combines MedicalDirector (medical practice management software), PowerHealth (hospital management software) and Telstra’s existing e-Health businesses. It helps healthcare providers and governments digitally connect the health, aged care and social service systems by enabling the seamless flow of information across the continuum of care.

Telstra Health resembles Enterprise Resource Planning / accounting firms like TNE, OCL and XRO. It provides the core business software and processes. This means long-duration (sticky) customers but also means sales cycles and software implementations can take years to complete. Peers trade on high multiples reflecting impressive delivery and characteristics of defensiveness and growth.

The broker notes that the business currently generates $250 million of sticky revenue and is aiming to double this by FY 2025. If successful, it believes it could add $50 million in earnings by then. It adds:

Telstra Health generates ~$250m revenue now and is targeting $500m by FY25, which requires a 26% revenue CAGR. Today it’s broadly cash flow breakeven. Based on peer benchmarking and some broad assumptions we think Telstra Health could generate ~$50m of EBIT by FY25.

All going to plan Telstra Health could be worth ~$1.5bn /11cps for TLS shareholders on our estimates. While not material, we think it is underappreciated.

The post Telstra shares: ‘Some healthy options that are underappreciated’ appeared first on The Motley Fool Australia.

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More reading

• ‘Fierce competitor’: Expert names 2 big brand ASX shares ready to take off in 2023
• How much profit could Telstra shares make in 2023?
• Telstra share price is ‘undervalued’ right now: broker
• Telstra shares: Here are the dividend forecasts for 2023 and 2024
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 positions in and has recommended 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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Sure, 2022 might be the year when interest rates rose at a breakneck pace. But 2023 is when consumers and businesses will really feel the pinch.

That’s because any changes in central bank rates take a while to cascade into the real world, then even longer for that to have an impact on household budgets and company earnings.

The team at Firetrail reckons ASX-listed businesses will have to deal with a double-whammy this year.

“As we enter 2023, businesses continue to grapple with inflationary cost pressures, but now have the accompanying issue of a slowing demand environment,” read its memo to clients this week.

“As the lagged impact of central bank rate tightening filters through the economy and conditions get tougher, only the best businesses will navigate effectively.”

Weak companies will “be under pressure”, warned the Firetrail analysts.

“For 2023, consensus is expecting 10% growth in earnings per share for the S&P/ASX 200 Index (ASX: XJO) ex-resources,” read the memo.

“In talking to companies and doing our own analysis, we believe that will prove too optimistic.”

Yes, this is a pretty pessimistic assessment of the state of play. But fortunately, the Firetrail team reckons it has successfully looked past “the short-term noise” to identify “significant medium-term upside”. 

Let’s go overweight on health

One sector that they’re bullish on is healthcare.

In fact, the Firetrail Australian High Conviction Fund is now “substantially overweight” in that industry through three particular ASX shares:

• CSL Limited (ASX: CSL)
• Resmed CDI (ASX: RMD)
• Ramsay Health Care Ltd (ASX: RHC)

“The defensive nature of healthcare is an attractive feature supporting all three companies,” read the memo.

“However, our high conviction in these names is derived from our bottom-up work.”

Resmed scored a huge win about 18 months ago when major competitor Koninklijke Philips NV (AMS: PHIA) was forced to recall its CPAP machines due to safety issues.

Unfortunately, the company was not able to take full advantage in 2022.

“ResMed has been hamstrung due to a global semiconductor shortage. The chip shortage has prevented ResMed from being able to supply the soaring demand of customers,” read the Firetrail memo.

“As chip shortages ease, which is happening right now, we believe 2023 calendar year earnings will beat expectations.”

‘The ultimate defensive’

In 2022, CSL saw a recovery in plasma collection rates, but the effects of that have not yet made it to the balance sheet.

“Plasma collections flow through to earnings with a lag, which suggests 2023/24 will be strong years for earnings.”

The Firetrail team called CSL shares “the ultimate defensive”. 

“The cost of collecting plasma tends to run counter to the economic cycle. Tougher economic conditions lead to an increase in donors, typically at lower cost.”

Private hospital operator Ramsay hasn’t yet fully returned to pre-COVID activity levels, but the Firetrail team is banking on a 2023 comeback.

“Ramsay will likely deliver above-trend growth in 2023/24 as the surgery backlog is addressed,” read the memo.

“Nursing shortages and wage negotiations are placing pressure on Ramsay’s expenses line. However, the recent contract negotiation with BUPA illustrates that Ramsay is now flexing its muscles to offset these higher costs.”

The Firetrail analysts conceded all three healthcare stocks are trading on price to financial year 2023 earnings ratios of greater than 30. 

But the team is forecasting that 2025 earnings will be 35% to 40% higher for the trio.

“On a three-year view, the healthcare stocks provide growth, relative earnings certainty, and valuation upside. An attractive trifecta in a tough environment.”

The post 3 ASX shares to buy in the hottest sector for 2023: Firetrail appeared first on The Motley Fool Australia.

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More reading

• Stocked up on $1,000 of Santos shares 10 years ago? If so, here’s how much dividend income you’ve earned
• 5 things to watch on the ASX 200 on Tuesday
• 3 excellent ASX 200 growth shares with major upside potential: analysts
• Here are the top 10 ASX 200 shares today
• 3 things Scott Phillips is most excited about investing in 2023

Motley Fool contributor Tony Yoo has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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 S&P/ASX 200 Index (ASX: XJO) has returned to form in 2023.

Since the start of the year, the benchmark index has risen almost 6%.

Investors have been piling back into the market amid optimism that inflation is cooling.

In light of this, tomorrow’s inflation data release could have a big impact on the performance of the ASX 200 index.

What is expected from Wednesday’s inflation reading?

According to the latest weekly economic report from Westpac Banking Corp (ASX: WBC), its team is expecting Australian fourth quarter inflation to be the peak. It explained:

Westpac is forecasting 1.5% rise in the December quarter boosting the annual pace 0.1ppt to 7.4% which is our forecast peak in the annual pace of inflation for the current cycle.

This will be a slower increase than what was seen in the third quarter of 2022, which the bank believes will prove to be the biggest quarterly increase in this cycle. It adds:

The reasons behind the step down from 1.8%qtr print in Q3 are the ongoing moderation in pace of price increases for food, clothing& footwear, new dwellings and household contents & services.

Where is inflation heading in 2023?

The good news is that the bank believes that inflation will then cool materially over 2023.

So much so, it expects headline inflation to be as low as 3.7% at the end of the year.

We are forecasting the annual pace of headline inflation to ease back to 3.7%yr by end 2023.

What does this mean for interest rates?

Unfortunately, Westpac doesn’t believe the pain is over for borrowers.

It expects the Reserve Bank of Australia to take the cash rate from 3.1% currently to a peak of 3.85% by the middle of the year. This is likely to mean a series of hikes in the coming months.

The post Everything you need to know about Wednesday’s Australian inflation data release appeared first on The Motley Fool Australia.

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• How much profit could Westpac shares make in 2023?
• This could crash the earnings season party for ASX 200 bank shares: Macquarie
• What could we expect for ASX 200 bank shares this earnings season?
• 2 high-dividend shares to buy today for early retirement
• Are NAB shares a good investment ahead of earnings season?

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 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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The last decade has likely disappointed those invested in Santos Ltd (ASX: STO) shares.

If one were to have poured $1,000 into the S&P/ASX 200 Index (ASX: XJO) energy stock in January 2013, they likely would have walked away with 94 shares and $8 change, having paid $10.55 apiece.

Today, that parcel would be worth just $691.84. The Santos share price closed Monday’s session at $7.36 – 30.2% lower than it was 10 years ago.

For comparison, the ASX 200 has gained around 54% in that time.

But have the oil and gas giant’s dividends made up for its stock’s poor performance? Let’s take a look.

How much have Santos shares paid in dividends since 2013?

Here are all the dividends those invested in Santos shares have received over the last decade:

Santos dividends’ pay date	Type	Dividend amount
September 2022	Interim	10.9 cents
March 2022	Final	11.8 cents
September 2021	Interim	7.7 cents
March 2021	Final	6.3 cents
September 2020	Interim	2.9 cents
March 2020	Final	7.6 cents
September 2019	Interim	8.9 cents
March 2019	Final	8.6 cents
September 2018	Interim	4.8 cents
March 2016	Final	5 cents
September 2015	Interim	15 cents
March 2015	Final	15 cents
September 2014	Interim	20 cents
March 2014	Final	15 cents
September 2013	Interim	15 cents
March 2013	Final	15 cents
Total:		$1.695

As the chart above shows, the last decade has been a wild ride for Santos dividends.

The company paid out as much as 20 cents per share between 2013 and 2015, after which a change in its dividend framework saw it paying out at least 40% of its underlying net profits, subject to business conditions. The energy giant then forewent offering dividends for much of 2016, 2017, and 2018 as it worked to reduce debt.

Ultimately, those invested in Santos shares have received a total of approximately $1.695 per security over the last decade. That leaves our figurative investor having realised $159.33 of passive income over the life of their holding.

Meaning, even considering dividends, those who invested in Santos shares in January 2013 are still 14.2% in the red.

Though, it’s worth mentioning most of Santos’ dividends in that time have been fully franked, potentially allowing investors to realise additional benefits at tax time.

Right now, Santos shares are trading with a 3.09% dividend yield.

The post Stocked up on $1,000 of Santos shares 10 years ago? If so, here’s how much dividend income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• Broker names 2 high yield ASX 200 dividend shares to buy now
• Looking to energise returns with this pocket of undervalued ASX shares in 2023
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 3 things Scott Phillips is most excited about investing in 2023

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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There is no doubt 2022 was a turbulent year with war, inflation, and interest rate rises.

Unfortunately, many experts are expecting more volatility to follow this year, with the Russia-Ukraine conflict dragging on and inflation still raging.

In such uncertain times, it might be worth retreating from the smaller, riskier plays and relying on the old favourites that Australian consumers might stick with through a downturn.

Catapult Wealth portfolio manager Tim Haselum this week named two ASX shares to buy that precisely fit that bill.

‘We like its outlook’

As the leading telecommunications company in Telstra Group Ltd (ASX: TLS), its shares should be more pleasurable to own.

But it has been a bane in many investors’ portfolios for decades now.

Sure, it pays out a reasonable 3.3% dividend yield, but its capital growth has been anaemic, even for the most patient long-term investor.

Over the past five years, the Telstra share price has only grown 11.7%.

Haselum, though, feels like the telco giant has turned a corner and is worth picking up right now.

“Asset sales have reduced debt,” Haselum told The Bull.

“It increased its dividend and forecast earnings growth should be met.”

The portfolio manager labelled Telstra “a fierce competitor”.

“The company has forecasted total income of between $23 billion and $25 billion in fiscal year 2023,” he said.

“We like its outlook.”

Many of Haselum’s peers agree with him. According to CMC Markets, eight out of the 11 analysts that cover the stock currently rate it as a buy.

Pounce on this one when it dips

Regardless of whether the unemployment rate is rising or if the economy is slipping into recession, people have to eat.

That’s why during turbulent times, many may find supermarket giant Woolworths Group Ltd (ASX: WOW) a comforting investment.

In addition to a handy 2.64% dividend yield, the Woolworths share price has gained almost 50% over the past five years — through COVID-19 and the inflation surge. 

Haselum reckons it is at a particularly interesting time to buy in right now.

“Several disruptions and abnormal costs during the past two years appear to be ending,” he said.

“We expect COVID-19 costs to continue falling.”

The supermarket chain has “a strong balance sheet“, he added. 

“The shares also appeal for their defensive qualities. Any price weakness represents a buying opportunity, in our view.”

Other professionals are somewhat divided on Woolworths shares. Nine out of 16 analysts surveyed on CMC Markets rate the stock as a buy, while five think it a hold, and two are even suggesting a strong sell.

The post ‘Fierce competitor’: Expert names 2 big brand ASX shares ready to take off in 2023 appeared first on The Motley Fool Australia.

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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 positions in and has recommended 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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If you’re looking for dividend shares to buy for your income portfolio, then it could be worth checking out the two named below.

These two ASX 200 dividend shares have been rated as buys by analysts at Morgans. Here’s what they are saying about them right now:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that has been tipped as a buy by Morgans is insurance giant QBE.

The broker is very positive on the company’s outlook. It expects “QBE’s earnings profile to improve strongly over the next few years” thanks to strong rate increases and further cost-out benefits.

Morgans also highlights the company’s robust balance sheet and believes its shares are “relatively inexpensive.”

As for dividends, the broker expects QBE to pay a 76 cents per share dividend in FY 2023 and then an 85 cents per share dividend in FY 2024. Based on the latest QBE share price of $13.49, this equates to yields of 5.6% and 6.3%, respectively.

Morgans currently has an add rating and $15.05 price target on its shares.

Santos Ltd (ASX: STO)

Another ASX 200 dividend share that could be a buy is Santos.

It is a leading energy producer with a collection of high quality operations across several regions.

Morgans believes the company could be a top option in the current environment. This is thanks to its “growth profile and diversified earnings base,” which the broker believes leaves Santos “well placed to outperform against a backdrop of a broader sector recovery.”

In addition, Morgans highlights the company’s strong cash flow generation and believes Santos “is positioned to flex its cash dividends and buybacks.”

It expects this to lead to fully franked dividends of 28 US cents (40 Australian cents) per share in FY 2023 and 30 US cents (42.7 Australian cents) per share in FY 2024. Based on the current Santos share price of $7.36, this will mean yields of 5.4% and 5.8%, respectively.

Morgans has an add rating and $8.75 price target on its shares.

The post Broker names 2 high yield ASX 200 dividend shares to buy now 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 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 technology space has been hit heavily amid higher interest rates. But I think there are some leading ASX exchange-traded funds (ETFs) that could be exciting opportunities for a tech rebound.

When something falls by 50% from $100 to $50, it only needs to get back to $75 to generate a 50% return from that low starting valuation of $50.

I don’t think interest rates are going to go back below 2% for the foreseeable future, perhaps for the rest of the decade. But, technology valuations now seem much more reasonable, so I think some of the beaten-up tech ETFs could perform well over the next year or two.

Betashares Cloud Computing ETF (ASX: CLDD)

The Betashares Cloud Computing ETF unit price has fallen around 45% since November 2021. The idea of this ETF is to give investors exposure to the cloud computing trend. Betashares explains:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world’s digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

A growing number of different services can now be provided online, giving the ASX ETF growing diversification. Looking at the biggest holdings, these are some of the largest positions: Coupa Software, Sinch, Five9, Workiva, Workday, Shopify and SPS Commerce.

With the collective valuations of the companies involved now much lower, I think this group of businesses could rebound nicely if investor pessimism starts fading when interest rates stop rising.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is another one that has fallen heavily – it’s down around 30% since November 2021.

I think this ETF is invested in some of the highest-quality businesses in the world, they are global leaders in what they do. I’m talking about names like Apple, Microsoft, Alphabet, Amazon.com, Nvidia, PepsiCo, Costco, Cisco Systems, Intuitive Surgical and Moderna.

Interest rates have soared in the US to try to bring inflation under control in the country. An economic downturn may be on the cards. But, I don’t think the outlook will always look this pessimistic, particularly when thinking about the long-term. I think this ASX ETF has an attractive future ahead.

When share prices drop heavily, there may be an important negative influencing event going on in the world. But that’s when I think investors should become more optimistic about investing and making long-term returns. Be greedy when others are fearful, as the saying goes.

There won’t be many times when the Betashares Nasdaq 100 ETF drops by 30%, so I think this could be a good time to invest and then be patient after that.

The post 2 ASX ETFs I’d buy for a tech rebound in 2023 appeared first on The Motley Fool Australia.

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• 3 wonderful ETFs for ASX investors to buy next week
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Cisco Systems, Costco Wholesale, Five9, Intuitive Surgical, Microsoft, Nvidia, Shopify, Workday, and Workiva. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna and has recommended the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Nvidia, and Workday. 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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