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The AGL Energy Limited (ASX: AGL) share price has gone through a lot of pain since April 2017, dropping by over 70%. It has fallen over 60% since the start of the COVID-19 pandemic.

That’s a shocking fall considering the utilities sector is usually thought of as a defensive sector with consistent cash flow and typically solid dividends.

Shareholders have seen their shares sink in value over time.

But, with a plan now in place to decarbonise and re-energise the business, could the company be a good turnaround opportunity for contrarian investors?

Bumpy road ahead

AGL’s new CEO Damien Nicks was recently talking to The Australian about the job that the energy business faces in the years ahead. He became the chief financial officer of AGL in August 2018.

The company will reportedly need to find $20 billion of funding to achieve its decarbonisation plans, install 12GW of renewable energy generation and end coal usage.

Speaking to The Australian, Nicks said:

There are going to be bumps on the road. This is not going to necessarily be a purely smooth ride for the whole market. But for us it’s about having clarity about how we deliver. We’ve got deep plans over the next seven years to 2030. And we’ll continue to refine those plans, and then continue refining those plans out to 2035 as well.

There are going to be challenges, but we need that co-ordinated approach across the market, not just AGL. It needs to be co-ordinated and that’s what we’re driving particularly hard. And that’s where we can play that leadership role.

Earnings recovery expected for AGL shares

AGL said in its recent annual general meeting (AGM) that it’s “well positioned from FY24 to benefit from sustained higher wholesale electricity pricing as historical hedge positions progressively roll-off”.

In FY23 it’s looking to reduce its sustaining capital expenditure by more than $100 million compared to FY23. It’s also hoping for guiding underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $1.25 billion to $1.45 billion, while underlying net profit after tax (NPAT) guidance to be between $200 million to $320 million.

Using Commsec numbers, it’s projected to generate 39 cents of earnings per share (EPS). This puts the AGL share price at around 20 times FY23’s estimated earnings.

Then, EPS could jump to 91 cents in FY24 and $1.27 in FY25. This would translate into forward price/earnings (P/E) ratios of 8 and 6 respectively.

Is the AGL share price a buy?

Talking about the task ahead for the energy company and the new CEO, major investor VanEck’s Jamie Hannah said:

He has a massive job ahead. From staffing to financing to the roll out of the new initiatives and to the changes to the company and winding down of existing assets. If you wrote down all the things that they need to achieve over the next five years, it’s a somewhat overwhelming task. So he’s not going to be able to do it himself. Obviously, he just needs to set the agenda. And make sure he gets the right staff.

I don’t know how he’s going to go on something this big. But I don’t think he’s the wrong person for the role. He certainly knows the company and knows what it can achieve. So I’m more than happy to give him a fair chance at this and see how he performs.

According to analyst opinions collated by Commsec, there are six buy ratings and four hold ratings, with no sell ratings. It may well be a decent contrarian ASX share idea for brave investors.

The post ‘Massive job ahead’: Should you buy AGL shares now or wait? appeared first on The Motley Fool Australia.

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More reading

• What’s with the AGL share price on Thursday?
• Attention income investors! These 7 ASX 200 dividend shares are projecting yields of 7%+ in FY24
• Can AGL shares really deliver a 7% dividend yield in FY24?
• 2 ASX 200 dividend stocks I’m running a mile from
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why

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 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 S&P/ASX 200 Index (ASX: XJO) and ASX shares have already made a flying start to 2023. As of yesterday’s share market close, the ASX 200 has gained an impressive 7.4% over the year to date.

After 2022’s full-year loss of 5.5%, it’s certainly a pleasing change of pace to see the ASX 200 start the year with such optimism.

But 2023’s strong showing thus far doesn’t mean there aren’t still cheap shares out there to find.

One area that might be worth taking a dive into is ASX energy shares. That’s according to one ASX expert, anyway.

Looking for undervalued ASX shares in 2023? Try cooking with gas

ASX mining resources and energy shares were some of the only places to hide from the market’s poor showing last year. In fact, many had stellar years.

Just take the BHP Group Ltd (ASX: BHP) share price. BHP shares rose almost 10% last year, defying the gloom that infected the broader market. Rio Tinto Limited (ASX: RIO) shares fared even better, giving investors a share price return of more than 16%.

But that’s nothing compared to ASX coal share Whitehaven Coal Ltd (ASX: WHC). Whitehaven shares gave investors a spectacular return of 165% last year, not including dividends.

Expert investor Aaron Binsted saw the writing on the wall for these sectors. Binsted is an Australian equities portfolio manager at Lazard Asset Management. Lazard’s Select Australian Equity fund was one of the best-performing managed funds in 2022, returning 26.34% for investors last year.

According to reporting in the Australian Financial Review (AFR) this week, Lazard went in hard on resources and energy sources in 2020 and 2021, which helped to drive the fund’s stellar returns last year.

Binsted reckons, “This energy crisis has been brewing for a long time”. In 2020, he recalls saying, “If you’re not overweight energy now, you never will be. It was absolutely against the consensus of the time.”

Back in 2020, he favoured oil shares like Woodside Energy Group Ltd (ASX: WDS), but in 2023, he’s looking to gas, largely due to the “superior cashflow generation” on offer:

Most people’s long-run numbers [for LNG prices] are probably in the $US7 to $US8 mark. No one’s got that in their valuations for the equities…

We are in a world that’s short energy, while a bit over 80 per cent is coming from fossil fuels, and governments are saying, ‘give us more energy, but don’t invest in fossil fuels’. It’s very hard to make up that gap from fossil fuels at the moment…

We can only assume Binsted is still looking at Woodside shares (Woodside is also a gas producer), as well as other gas stocks such as Santos Ltd (ASX: STO), Karoon Energy Ltd (ASX: KAR) and Beach Energy Ltd (ASX: BPT).

The post Looking to energise returns with this pocket of undervalued ASX shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Why Whitehaven Coal shares could ‘continue rewarding’ ASX 200 investors in 2023: expert
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Should I buy ASX mining shares now or not?
• Own Santos shares? Here’s why the ASX 200 company’s net-zero plan is taking heat

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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ASX dividend shares can provide investors with an attractive level of passive income.

Businesses that have good dividend yields and a compelling future could be options to unlock investment cash flow.

While some companies have high yields and could achieve a lot of income very quickly, there are others that could deliver solid growth in the coming years.

So, I’ll offer up a few names as ideas for each strategy.

Instant big passive income

If I’d just won the lottery and I were looking to instantly generate a lot of passive dividend income, then carefully choosing high-yielding ASX dividend shares could be one way to go.

The higher the dividend yield, the less reliable that dividend income can be. However, if the business is trading on a very low multiple of its earnings, meaning it has a low price/earnings (P/E) ratio, then it could pay a very good dividend yield. I would only choose ideas that look like they could grow earnings in the coming years.

There are a few names, at the current prices, that I’d look to achieve a dividend yield of close to 10% or higher.

I think that Shaver Shop Group Ltd (ASX: SSG) could be an effective pick. It’s exposed to a growing beauty and personal care market, which is helped by a growing Australian population. It’s expanding its product range and increasing the number of stores across Australia and New Zealand.

The business is expected to grow its earnings each year from FY23 to FY25 according to Commsec numbers. At the current Shaver Shop share price it’s valued at under 10 times FY23’s estimated earnings with a possible FY23 grossed-up dividend yield of 12.5%.

Adairs Ltd (ASX: ADH) is another ASX retail share that’s predicted to grow its earnings and dividend each year between FY23 to FY25. The furniture and homewares business has plans to grow its store network, upsize some existing Adairs stores, expand its product ranges and increase the number of members.

Using Commsec numbers, it’s valued at under 10 times FY23’s estimated earnings with a potential grossed-up dividend yield of 9.3%.

GQG Partners Inc (ASX: GQG) is another interesting ASX dividend share for potential passive income. The business has guided that it’s going to pay 90% of its distributable earnings to investors each year.

It’s a US fund manager that is regularly attracting more fund inflows and achieving good returns on its existing funds. GQG is also looking to expand geographically, in places like Australia and Canada.

By FY25 it could be paying a dividend yield of around 10% according to estimates on Commsec.

A portfolio worth $500,000 could generate $50,000 of income if it had a 10% dividend yield.

Long-term dividend growth

I also believe that there are some very compelling ASX shares that could deliver long-term value creation while also growing the income payments to shareholders. This could help achieve strong annual passive income after a number of years of investing.

While ASX dividend shares may not achieve the strongest capital growth, the good ones could achieve good compounding growth over the long term.

Brickworks Limited (ASX: BKW) already has a record of not cutting its dividend for around 45 years. I like the impressive industrial properties that are being built on excess Brickworks land. The large exposure to Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares can also help grow Brickworks’ cash flow and the underlying value in the coming years.

Lovisa Holdings Ltd (ASX: LOV) is a retailer that sells affordable jewellery to younger shoppers. It already has a global store base, but this number could expand significantly, particularly if it’s able to grow in places like Europe, the US, China (including Hong Kong) and India. I think earnings could grow very strongly over the rest of the 2020s.

Universal Store Holdings Ltd (ASX: UNI) is an apparel retailer that’s focused on the younger demographic. I think this segment of the market may be less affected by a possible recession compared to the general retail segment. The business has plans to grow its store network and I like that it’s also looking to expand with other brands.

I believe these three businesses are just a few of the names that could help deliver passive income and good capital growth over the coming years for investors.

The post Which ASX dividend shares I’d buy now to target $50,000 of annual passive income appeared first on The Motley Fool Australia.

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More reading

• ASX income stocks: A once-in-a-decade chance to get rich?
• My top predictions for ASX All Ords shares in 2023
• 3 undervalued ASX shares that should be on your radar
• One oversold ASX 300 dividend share (with a 6% yield) to buy now
• Here are 2 excellent high yield ASX dividend shares that experts rate as buys

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, Brickworks, Lovisa, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Adairs, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa. 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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Westpac Banking Corp (ASX: WBC) shares are expected to generate much more profit in the coming years.

The ASX bank share is benefiting from the rising interest rates. The Reserve Bank of Australia (RBA) has hiked the official interest rate by 300 basis points, or 3%, from 0.1% to 3.1% since May.

Banks, including Westpac, have passed on more hikes for loans than for savings accounts, boosting their net interest margins (NIMs). In other words, it’s good news for banking profitability in FY23.

This could be why the Westpac share price has done well over the past year.

The question is, how much of an impact will this have on Westpac’s profit?

Profit projections

I think that earnings per share (EPS) is a very important profit measure. It shows how well things are going for each shareholder and each share, not just the overall number. I don’t think there’s much point in growing total profit if it involves issuing a growing number of shares, which reduces the EPS.

EPS gives context to the share price and can help us work out the price/earnings (P/E) ratio.

Using the estimates on Commsec, the ASX bank share could generate $2.09 of EPS in FY23. This puts the Westpac share price at less than 12 times FY23’s estimated earnings.

Looking at the potential dividend payment for the 2023 financial year, the ASX bank share could pay an annual dividend per share of $1.38, which translates into a grossed-up dividend yield of around 8%.

Are Westpac shares worth buying?

I think the banking sector will get an earnings boost this year thanks to the higher interest rates.

Share prices often follow earnings. In other words, if the profit goes up then the shareholder returns are likely to be decent as well.

The dividend income alone could be a solid return for 2023.

Westpac is also aiming to cut hundreds of millions of dollars in costs, which could improve profitability further over the next couple of years.

Out of the big four banks, I think I prefer Westpac shares to Commonwealth Bank of Australia (ASX: CBA) because they seem better value. As well, I like Westpac over ANZ Group Holdings Ltd (ASX: ANZ) because it isn’t going through a major takeover process.

The one thing I’m wary of, however, is that the higher interest rates could lead to bad debt pains in the future, but the low P/E ratio may already reflect that possibility.

The post How much profit could Westpac shares make in 2023? appeared first on The Motley Fool Australia.

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More reading

• 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?
• Morgans names 2 of the best ASX 100 shares to buy now

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 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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Whitehaven Coal Ltd (ASX: WHC) shares led the charge on the S&P/ASX 200 Index (ASX: XJO) in 2022.

By the time we flipped our calendar over to 2023, the ASX 200 coal share had gained a stellar 261% over the 12 months. And this in a year when the ASX 200 fell by 5.5%.

The miner was a clear beneficiary of soaring energy costs, with thermal coal prices driven to new records following Russia’s invasion of Ukraine.

This helped Whitehaven deliver a record half year, as reported in its quarterly update for the three months ending 31 December.

Among the highlights, the miner forecasts it will post all-time high half-year earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.6 billion. For some context, that compares to EBITDA of $600 million in the prior corresponding period.

You can see the remarkable performance of the Whitehaven Coal share price in the chart below.

So far, 2023 has presented a fair number of ups and downs for the big coal miner. But with more ups than downs, shares have gained 6% since the opening bell on 3 January.

With that kind of performance already in the bag, what can investors expect next?

More rewards on offer from Whitehaven Coal shares?

While thermal coal prices have retraced some 20% from their 2022 record highs, demand for high-quality Aussie coal is forecast to remain strong over the year ahead.

And eToro markets analyst Josh Gilbert believes Whitehaven Coal shares could offer investors more rewards over the next 12 months.

According to Gilbert:

For investors, Whitehaven’s growth in 2022 was sensational, with earnings soaring… Although growth will moderate over 2023, investors are likely to see another record year with market expectations for 60% earnings growth, before tailing off in 2024.

Regarding the longer term, Gilbert advised some caution, but he sounded a bullish note for Whitehaven shares in 2023.

“Whitehaven might not be a stock to marry, but it may be set to continue rewarding investors in 2023,” he said.

And don’t forget the dividends.

As my Fool colleague James Mickleboro notes, “Consensus estimates have the coal miner rewarding its shareholders with a 91 cents per share dividend in FY 2024.”

At the current share price, that represents a yield of 9.7%.

The post Why Whitehaven Coal shares could ‘continue rewarding’ ASX 200 investors in 2023: expert appeared first on The Motley Fool Australia.

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More reading

• Should I buy ASX mining shares now or not?
• Here are the top 10 ASX 200 shares today
• Why Fisher & Paykel, Pilbara Minerals, Resolute, and Whitehaven Coal are storming higher
• 3 ASX 200 shares leaping more than 5% on strong earnings updates
• Whitehaven Coal share price charges higher on record half

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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Commonwealth Bank of Australia (ASX: CBA) shares represent one of the biggest businesses in Australia, with a market capitalisation of over $180 billion according to the ASX. So, is it a good idea to buy this S&P/ASX 200 Index (ASX: XJO) stock for passive income?

On the ASX, only BHP Group Ltd (ASX: BHP) is a bigger business.

Sometimes investors may see the size of CBA and think the blue chip is safer than other options. However, size doesn’t necessarily protect shareholders from dividend cuts. An excessive valuation can also be risky, even if the business keeps performing.

Firstly, we’ll take a look at the potential dividends from the ASX 200 bank share.

Dividend projections

CBA’s earnings are expected to rise in the short term as it gets a boost from higher interest rates as the Reserve Bank of Australia (RBA) aims to take the heat out of the economy and lower inflation.

Banks are passing on the rate hikes to borrowers faster than savers, so this is pushing up the lending profitability of CBA.

According to Commsec, which uses independent third-party data, the business could generate earnings per share (EPS) of $6.07 in FY23 and $6.27 in FY24.

Those earnings could allow the ASX 200 income stock to pay an annual dividend per share of $4.47 in FY23 and $4.55 in FY24, which translates into grossed-up dividend yields of around 6% from the bank. That’s solid passive income potential.

Are CBA shares a buy for passive income?

The CBA share price has seen plenty of volatility over the past year, but it’s currently at a high point.

At the current level, the CBA share price is valued at around 18 times FY23’s estimated earnings. This seems like an inflated price/earnings (P/E) ratio compared to the other big banks like Westpac Banking Corp (ASX: WBC).

Westpac shares are valued at under 12 times FY23’s estimated earnings, according to Commsec.

However, CBA seems to always trade on a higher valuation than the other banks, so I’m not sure what would close that gap.

But, the higher P/E ratio does push down CBA’s yield on offer, making it a less appealing option.

However, with a dividend yield of around 6% and potentially rising profit, it could still be a decent investment from here. But, investors may be able to buy shares at a better CBA share price if they are patient.

After a strong run, I believe that there are plenty of other ASX dividend shares that could make more effective choices for passive income.

The post CBA shares: A decent ASX 200 passive income stock to buy? appeared first on The Motley Fool Australia.

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More reading

• 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?
• Can income investors bank on CBA growing its dividend yield by 18%?
• Up 20% in 6 months, is the Westpac share price now fully valued?
• Broker forecasts CBA share price to slide 15%

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 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a very small gain. The benchmark index rose 5.1 points to 7,457.3 points.

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

ASX 200 expected to rise

The Australian share market looks set to continue its rise on Tuesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% higher. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 1%, and the NASDAQ is up 1.7%.

Oil prices hit seven-week high

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$81.87 a barrel and the Brent crude oil price is up 0.9% to US$88.41 a barrel. Oil prices hit a seven-week high thanks to a stronger Chinese outlook.

South32 rated as a buy

Morgans has reiterated its add rating on South32 Ltd (ASX: S32) shares with an improved price target of $5.60 following the miner’s quarterly update. The broker said: “Despite the recent share price strength we still see further upside potential on offer as the upcycle in resources continues (while volatility is likely to also remain a feature). We maintain an ADD rating with a A$5.60 Target Price.”

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.1% to US$1,930.3 an ounce. The gold price rose despite the US dollar and bond yields ticking higher.

Lifestyle Communities is a strong buy

The Lifestyle Communities Ltd (ASX: LIC) share price may be nearing a 52-week high but Goldman Sachs believes it remains great value. This morning the broker has reiterated its conviction buy rating with an improved price target of $26.00. It said: “We believe inquiry rates and demand remain high for LIC’s homes. The company is likely to report a strong sales pipeline supporting the view that settlements will rise significantly.”

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

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More reading

• Here are the top 10 ASX 200 shares today
• 3 things Scott Phillips is most excited about investing in 2023
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Perpetual share price gains as $2b Pendal acquisition officially completed
• This ASX 200 healthcare share just hit a new 52-week high. Here’s why

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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Any investor smart enough to have bought Afterpay shares at their initial public offering (IPO) price of just $1 back in 2016 can attest to the potential power of ASX growth shares. 

The buy now, pay later (BNPL) stock closed its last day of trade at $66.47 on 31 January 2022, after having been acquired by US tech giant Block Inc (ASX: SQ2). With eye-popping gains of more than 6,500% in less than six years, this former darling of the S&P/ASX 200 Index (ASX: XJO) helped build serious wealth for its shareholders.

An investment of just $2,000 in the Afterpay IPO would have ballooned to a whopping $130,940 by the company’s last day of trade. And that’s assuming an investor held on until the final day of trade. For those savvy enough to sell out at the stock’s all-time high of $160.05, an initial $2,000 investment would have been worth $318,100! 

But alas, for every Afterpay, there’s been many a sorry growth-stock tale on the ASX. Like that of another BNPL player, Zip Co Ltd (ASX: ZIP), which has seen its share price dwindle from a high of more than $7 in early 2021 to around 65 cents today. So, whilst growth investing can be highly lucrative, it can also be extremely risky, especially if buying stocks based on fads without sufficient due diligence. 

On that note, we asked our Foolish contributors for their thoughts on which ASX growth shares they believe are high quality and offer significant potential upside right now. Here is what the team came up with:

6 best ASX growth shares for 2023 (smallest to largest)

Betashares Global Cybersecurity ETF (ASX: HACK), $592.43 million

Temple & Webster Group Ltd (ASX: TPW), $638.11 million

Xero Limited (ASX: XRO), $11.09 billion

IGO Ltd (ASX: IGO), $11.48 billion

WiseTech Global Ltd (ASX: WTC), $18.10 billion

Aristocrat Leisure Limited (ASX: ALL), $21.86 billion

(Market capitalisations as at market close on 23 January 2023)

Why our Foolish writers love these ASX growth shares

Betashares Global Cybersecurity ETF

What it does: The idea of this exchange-traded fund (ETF) is that it tracks an index of cybersecurity shares around the world. It owns shares in both global leaders and emerging players in the sector. It has a total of around 40 holdings.

By Tristan Harrison: 2023 could be another year of volatility and uncertainty for global stock markets, so I’m looking for investments that can grow earnings this year and beyond.

Cybercrime, sadly, is on the rise. According to the Australian Cyber Security Centre (ACSC), the number of cybercrime reports in FY22 increased by 13% year-on-year to 76,000. ACSC said the cyber security incidents it responded to were “growing in severity” as well.

This means businesses and organisations will likely continue spending more to ensure they have strong cyber defences.

According to BetaShares, the global cybersecurity market could grow from $248 billion in 2023, to $345 billion by 2026 and $479 billion by 2030. This could imply good earnings growth for the businesses within this ETF over time.

Motley Fool contributor Tristan Harrison does not own units of the Betashares Global Cybersecurity ETF.

Temple & Webster Group Ltd

What it does: Temple & Webster is an online furniture and homewares retailer, boasting 240,000 products and a subscriber base of more than a million Aussies.

By Brooke Cooper: The Temple & Webster share price has been decimated recently amid rising interest rates and 2022’s economic downturn. Trading at $5.19 at the market close on Monday, it’s currently around 37% lower than it was this time last year.

But there might be a silver lining. I believe the downturn has created a buying opportunity, and I’m not alone.

After suffering through the COVID-19 pandemic, Temple & Webster management expects the company could return to double-digit growth this financial year.

It’s also profitable and possesses a strong balance sheet – two qualities that could help it navigate any future volatility.

Finally, Goldman Sachs tips the Temple & Webster share price to rise 44.5% to $7.50 over the coming year.

Motley Fool contributor Brooke Cooper does not own shares of Temple & Webster Group Ltd.

Xero Limited

What it does: Xero provides cloud-based accounting software to tax professionals, businesses and individuals across several markets, including Australia.

By Sebastian Bowen: Like many ASX growth shares, the Xero share price was hit hard during 2022. This company started the year trading at $141.44 but ended the year a nasty 50.3% lower at $70.27.

However, I think this is a great time to consider picking up this quality tech business. Whilst Xero’s share price has tumbled, its most important metrics continue to leap higher. Over FY2022, Xero reported a healthy 29% rise in revenues, 16% subscriber growth and a 28% increase in recurring revenue.

As governments around the world continue to push taxpayers towards digital reporting, I believe Xero shares are looking compelling today.

Motley Fool contributor Sebastian Bowen does not own shares of Xero Limited.

IGO Ltd

What it does: IGO is a diversified ASX 100 metals miner with four assets, all located in Western Australia. It owns the Nova nickel-copper-cobalt mine, the Forrestania nickel mine, and the Cosmos nickel mine. It is also a 51% partner with Tianqi Lithium Corporation in the Greenbushes Lithium Mine and has 100% ownership of a downstream processing refinery that produces battery-grade lithium hydroxide.

By Bronwyn Allen: I like IGO as a growth share because it combines two of my favourite long-term investing themes: Australian mining and global decarbonisation.

Australia is a commodities powerhouse with a stellar international reputation. Why not invest in one of our economy’s strongest sectors?

I prefer diversified miners with mostly Australian-based assets, so IGO fits the bill for me. I also think lithium has a long runway for growth as the world decarbonises, and IGO is one of few ASX lithium miners already producing it.

Consider this: As reported in The Australian, Wealthi economist Peter Esho says there are 1.4 billion cars in the world running on fossil fuels compared to six or seven million electric cars (EVs). The number of EVs is expected to rise to at least 150 million by 2030. The fact that IGO is not only mining lithium but processing it into battery-grade hydroxide means it’s getting two bites of the EV cherry.

Motley Fool contributor Bronwyn Allen does not own shares of IGO Ltd.

WiseTech Global Ltd

What it does: Global supply chains are complex and hard to manage. Any inefficiencies along a chain can result in large financial consequences, as was demonstrated during the pandemic. WiseTech provides all-encompassing, cloud-based logistics software that optimises the journey from origin to destination.

By Mitchell Lawler: WiseTech has delivered exceptional revenue growth over the years – growing from $102.8 million in 2016 to $632.2 million in 2022. I believe the expansion is far from over.

According to WiseTech, 10 of the top 25 global freight forwarders have either rolled out or are in the process of rolling out its software. To me, this suggests there is still plenty of room for the company’s customer base to expand.

WiseTech currently holds an enviable balance sheet among ASX growth shares. At the end of June 2022, the company maintained $484.3 million in cash and zero debt. This positions it attractively if headwinds do materialise and also provides low-risk optionality for future growth.

While the current price-to-earnings (P/E) ratio of 90 times eararistonings is lofty by most standards, the scalability and free cash flow generation on offer make me think it might actually be a fair price to pay in the long run.

Motley Fool contributor Mitchell Lawler does not own shares of WiseTech Global Ltd.

Aristocrat Leisure Limited

What it does: Aristocrat Leisure is a leading gaming technology company. It owns a portfolio of world-class poker machines and mobile games. The company has also recently expanded into the rapidly growing real money gaming market.

By James Mickleboro: I believe Aristocrat is one of the highest quality growth shares on the Australian share market. You only need to look at its track record to see why. Over the last 10 years, the company’s shares have generated an average total return of 27% per annum.

While past performance is no guarantee of future returns, I believe the company’s positive growth outlook and attractive valuation mean its shares could provide investors with further strong returns over the next decade.

Citi is forecasting earnings per share growth of 25.5% in FY 2023. In light of this, it will come as no surprise to learn that the broker recently reiterated its buy rating and $41.20 price target on Aristocrat’s shares. Aristocrat shares were trading at $33.25 at the close on Monday.

Motley Fool contributor James Mickleboro does not own shares of Aristocrat Leisure Limited.

The post Top ASX growth shares to buy in 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 excellent ASX 200 growth shares with major upside potential: analysts
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• I’d aim for $1 million buying just a few ASX shares
• My top predictions for ASX lithium shares in 2023

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Block, Temple & Webster Group, WiseTech Global, Xero, and Zip Co. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, Block, WiseTech Global, and Xero. The Motley Fool Australia has recommended 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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Are you looking for some exchange traded funds (ETFs) to buy? If you are, then you may want to take a look at the three ETFs listed below.

Here’s what you need to know about these highly rated ETFs:

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

The first ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This popular ETF gives investors access to a global video game market that is estimated to comprise almost 3 billion active gamers and growing. This huge market bodes well for the companies held by the fund, which include sector giants such as Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two.

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

Another ETF to consider is the Vanguard All-World ex-U.S. Shares Index ETF. As its name implies, this ETF provides investors with access to approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States. Vanguard notes that this means Australian investors can expand their portfolio to include many sectors that are not well represented in Australia. Among the ETF’s diverse holdings you’ll find the likes of Astra Zeneca, HSBC Holdings, LVMH Moet Hennessy Louis Vuitton, Royal Bank of Canada, Samsung, Taiwan Semiconductor, and Tencent.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

A final ETF for investors to consider is the Vanguard Australian US Total Market Shares Index ETF. This ETF could be a great option for investors that want exposure to the United States stock market. Vanguard notes that as the world’s largest economy, the U.S offers access to a mix of sectors that are under-represented in the Australian market. Technology accounts for around a third of the ETF and includes names such as Amazon, Apple, Alphabet (Google), and Microsoft. In addition, other sectors that are well represented include consumer discretionary (Home Depot, Costco), industrials (Caterpillar) and Health Care (Pfizer, Johnson & Johnson).

The post 3 highly rated ETFs for ASX investors to buy right now appeared first on The Motley Fool Australia.

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More reading

• Tech rebound! Here are 2 ASX ETFs to buy before it’s too late
• 2 excellent ETFs for ASX investors in January
• Are these the best ETFs for ASX investors to buy 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 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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Looking for ASX 200 growth shares to buy? Listed below are three that are rated as buys by experts.

Here’s why they could be top options for investors right now:

NextDC Ltd (ASX: NXT)

The first ASX 200 growth share that has been tipped as a buy is NextDC. It is a leading data centre operator with a growing portfolio of world class centres across Australia. The company is also looking at expanding into the Asian market in the near future, which could provide it with significant long term growth opportunities. Morgans is very positive on the company’s outlook and is expecting another strong result in FY 2023 thanks to “structural demand for cloud and colocation [which] remains incredibly strong.”

The broker has an add rating and $13.30 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

ResMed could be another ASX 200 growth share to buy. It is a medical device company with a focus on the sleep disorder treatment market. ResMed has been growing at a strong rate over the last decade thanks to the quality of its products and its large and growing market opportunity. The latter is estimated to comprise almost one billion people with sleep apnoea globally and a little under half a billion people suffering from chronic obstructive pulmonary disease (COPD). And with the majority of these people undiagnosed, ResMed has a long runway for growth.

Macquarie is bullish on ResMed and has an outperform rating and $37.75 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX 200 growth share that has been named as a buy is Xero. It is a provider of a cloud-based accounting solution used by millions of small businesses globally. From these subscribers, the company is generating significant recurring revenue. However, this revenue could still grow materially in the future. With 3.3 million subscribers and a total addressable market of 100 million according to Goldman Sachs, Xero has a huge growth runway over the next decade or two.

It is for this reason that Goldman Sachs has a buy rating and $115.00 price target on its shares.

The post 3 excellent ASX 200 growth shares with major upside: analysts appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• My top predictions for ASX All Ords shares in 2023
• How I’d invest $40k in ASX shares and aim for $1 million

Motley Fool contributor James Mickleboro has positions in Nextdc and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. 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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