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The Woodside Energy Group Ltd (ASX: WDS) share price was one of the strongest performers within the S&P/ASX 200 Index (ASX: XJO) in 2022, rising by around 60%.

It was an eventful year for the ASX energy share, with things largely going the company’s way. Let’s compare that large rise to the ASX 200 itself – the index dropped by around 7%, so there was a huge outperformance by the company.

Higher energy prices

After the massive disruption to oil prices at the start of COVID, the oil price steadily recovered. It was a steady climb during 2021 and then the Russian invasion of Ukraine put a rocket under energy prices as the world looked for other sources of supply away from Russia.

In the second quarter of 2022, it achieved an average realised price of $95 per barrel of oil equivalent. When revenue for the same amount of production increases, it largely adds to net profit.

Then, in the third quarter of 2022, the business reported that the average portfolio realised price rose by 7% to $102 per barrel of oil equivalent.

Investors typically like to evaluate the Woodside share price by thinking about its profitability, so it wasn’t a surprise that investors were excited by the business.

Merger

Investors may also have focused on the fact that Woodside was able to merge with BHP Group Ltd’s (ASX: BHP) petroleum business. This transformed Woodside into a “top 10 global independent energy producer by hydrocarbon production.”

Woodside explained that the merger will strengthen cash generation, improve its growth profile and unlock at least $400 million of annual pre-tax synergies.

By becoming a bigger business, Woodside will be able to help each shareholder because of scale advantages.

Bigger dividend

Woodside has revealed that its dividend policy will be based on its net profit after tax (NPAT), with a minimum dividend payout ratio of 50%.

The company also said that “additional opportunities to provide returns through special dividends and share buy-backs.”

Some investors may be attracted to the prospect of a larger dividend from the company and investing, pushing up the Woodside share price to get it.

Another big annual dividend is expected in 2023. According to Commsec, it could pay a dividend per share of $3.23. This would be a grossed-up dividend yield of 13.6%.

The post 3 key factors that helped propel the Woodside share price 60% higher in 2022 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Is the party over for these ASX 200 energy shares in 2023?
• Bigger profits risk bigger target: The Woodside share price conundrum
• The 3 best performing ASX 200 dividend shares of 2022
• Why Audio Pixels, Bowen Coking Coal, Pantoro, and Woodside shares are dropping

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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Woolworths Group Ltd (ASX: WOW) shares have dropped so much that the supermarket business is now lower than it was compared to just before COVID panic smashed the ASX share market.

The company has seen its share price drop around 15% from mid-August. It’s down around 20% since August 2021.

That’s quite a lot of volatility for an ASX share that is typically defensive and doesn’t see much change in sales over time.

After such a hefty drop for the company, is it now time to buy?

Latest business update

I think it’s a good idea for investors to pay attention to whether conditions are worsening for the business. If a sell-off occurs but the company’s performance isn’t dropping, then it could be an oversold opportunity.

The latest update was the first quarter of FY23. Woolworths said group sales increased 1.8% to $16.36 billion. Within the divisions, there was a mixed performance.

Australian food sales were down 0.5% year over year to $12.2 billion, despite a 7.3% increase in average prices. Australian businesses-to-business sales grew by 26% to $1.2 billion, New Zealand food sales dropped 8.1% to $1.8 billion and Big W sales grew by 30.1% to $1.2 billion.

So, while total sales did go up, the key division (Australian supermarkets) saw sales go slightly backwards despite inflation. Is the Woolworths share price worth a high price-to-earnings (P/E) ratio if supermarket sales are going backwards? Probably not as much.

However, the company did say that in October, year over year “sales growth trends in Australian food have improved” as it’s no longer cycling against lockdowns in NSW and Victoria.

Earnings diversification play

Last month, the business announced it was selling a significant portion of its Endeavour Group Ltd (ASX: EDV) shares (5.5% of the business) to buy 55% of Petspiration Group.

The acquisition cost of the majority stake of the PETstock owner is $586 million. It has 276 stores, online websites, a 2.4 million member program, and own-brand ranges.

There are a number of areas where Woolworths thinks it can help PETstock grow including digital and e-commerce, the supply chain, advanced analytics, and its balance sheet.

Woolworths believes this investment can achieve an internal rate of return (IRR) in the “mid-teens”.

In the 12 months to September 2022, Petspiration generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $158 million, meaning the acquisition price puts the enterprise value at 11x the EBITDA.

I think this is a smart move by the company.

Is the Woolworths share price a buy?

Woolworths is getting closer to its 52-week low. While it’s impossible to say how low the company’s share price is going to go, I believe it could be fruitful to look at the business while investor confidence is low.

As the saying goes, it’s good to be greedy when other investors are fearful. Even so, the Commsec profit projection puts the Woolworths share price at 24x FY23’s estimated earnings.

Woolworths shares would not be at the top of my own shopping list, but for investors interested in the company it seems like an opportunistic time to invest.

The post Woolworths shares have fallen to pre-pandemic levels. Time to buy? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy
• Buy these growing ASX 200 dividend shares in 2023: experts
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• Top brokers name 3 ASX shares to buy today
• Building a retirement income portfolio? Buy these unstoppable ASX dividend shares – analysts

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 post TESTING: scheduled post by GT 9 appeared first on The Motley Fool Australia.

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More reading

• Woolworths shares have fallen to pre-pandemic levels. Time to buy?
• TESTING: scheduled post by GT
• 5 things to watch on the ASX 200 on Friday
• Experts says these ASX 200 mining shares can rocket higher in 2023
• Is the party over for these ASX 200 energy shares in 2023?

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The post TESTING: scheduled post by GT appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Experts says these ASX 200 mining shares can rocket higher in 2023
• Is the party over for these ASX 200 energy shares in 2023?
• Bigger profits risk bigger target: The Woodside share price conundrum
• Here are the top 10 ASX 200 shares today

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard to record the smallest of gains. The benchmark index rose slightly to 7,063.6 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to end the week with a modest gain despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is down 0.9%, the S&P 500 has dropped 0.9%, and the Nasdaq has fallen 1.1%. This was driven by the release of US jobs data.

Oil prices recover

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices recovered overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$73.93 a barrel and the Brent crude oil price is up 1.35% to US$78.85 a barrel. Lower US stockpiles boosted prices.

Tech shares under pressure

It looks set to be a tough finish to the week for ASX 200 tech shares on Friday following a poor night on the NASDAQ index. This could spell bad news for tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO). It is also worth noting that Block Inc (ASX: SQ2) has seen its shares on the NYSE fall 2% overnight. This tech weakness was driven by the release of strong US jobs data, which supported the case for higher interest rates.

Gold price tumbles

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a tough finish to the week after the gold price fell overnight. According to CNBC, the spot gold price is down 1.1% to US$1,838 an ounce. Once again, the prospect of higher interest rates weighed on the precious metal.

Brickworks named as a buy

The Brickworks Limited (ASX: BKW) share price could be good value according to analysts at Morgans. Its analysts have retained their add rating with an improved price target of $24.50. The broker said: “[T]he stock continues to screen cheap given the current discount to inferred NTA and the pipeline of value accretive projects to be potentially realised over coming years.”

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

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More reading

• Is the party over for these ASX 200 energy shares in 2023?
• Bigger profits risk bigger target: The Woodside share price conundrum
• Here are the top 10 ASX 200 shares today
• Investing in ASX 200 shares? Here’s what to expect from the US Fed in 2023
• Why is this ASX 200 gold share rocketing 7% on Thursday?

Motley Fool contributor James Mickleboro has positions in Altium and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Brickworks, and Xero. The Motley Fool Australia has positions in and has recommended Block, Brickworks, 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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If you’re looking for some exposure to the mining sector, then read on!

Listed below are two ASX 200 mining shares to buy now according to experts. Here’s what they are saying about them:

Allkem Ltd (ASX: AKE)

The first ASX 200 mining share to consider is Allkem. It is one of the world’s largest lithium miners with projects in Argentina, Australia, and North America.

Allkem has bold production expansion plans from these projects. In fact, it is aiming to grow its production four-fold in the coming years in order to maintain a 10% share of global lithium supply over the long term.

Goldman Sachs is positive on Allkem due to the aforementioned production growth and its exposure to several lithium types. This includes moving downstream from spodumene into lithium chemicals, which it sees as a margin accretive opportunity. Goldman commented:

Of our covered Australian lithium companies, Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production

Goldman has a buy rating and $15.20 price target on Allkem’s shares. This implies potential upside of 34% for investors over the next 12 months.

South32 Ltd (ASX: S32)

Morgans is a big fan of South32 and feels it is one of the best options in the resources sector.

The broker is positive on the diversified miner due to the successful transformation of its portfolio and its positive long term outlook. It advised:

Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The broker currently has an add rating and $5.40 price target on the diversified mining company’s shares. Based on the latest South32 share price, this suggests potential upside of over 30% for investors this year.

The post Experts says these ASX 200 mining shares can rocket higher in 2023 appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in January 2023
• Why are ASX 200 lithium shares running on empty today?
• Morgans names 2 ASX 200 dividend shares to buy with 5%+ yields
• 23 ASX shares to buy in 2023 – brokers
• Should I buy ASX 200 lithium shares for my portfolio in 2023?

Motley Fool contributor James Mickleboro has positions in Allkem. 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) energy shares shot the lights out through most of 2022 as energy prices went through the roof.

Here’s how the top Aussie oil and gas stocks performed in 2022 through to market close on 11 November:

• Santos Ltd (ASX: STO) shares gained 19%
• Beach Energy Ltd (ASX: BPT) shares gained 40%
• Woodside Energy Group Ltd (ASX: WDS) shares soared 76%

On 11 November the Brent crude oil price stood at US$99 per barrel.

Since then, oil and gas prices have tumbled lower, with that same barrel of Brent crude selling for US$79 today.

As you’d expect, that’s put some selling pressure on these ASX 200 energy shares.

Since 11 November’s closing bell, Santos shares are down 8%, Beach Energy shares have dropped 13%, and the Woodside share price is down 12%.

Below you can see how the three ASX 200 energy shares have tracked over the past 12 months.

Yet with Brent crude oil prices down 38% since peaking at US$122 per barrel in early March last year, there could be more pain to come for the big oil and gas stocks in 2023.

Warm weather and COVID stymie ASX 200 energy shares

On the gas front, ASX 200 energy shares won’t receive a leg up from a warm snap in Europe and windy weather to drive turbines. The combination has slashed demand for gas-powered electric generation.

This has driven gas prices in the war-weary continent down to levels not seen since November 2021, before Russia’s invasion of Ukraine.

According to data from Bloomberg, benchmark futures for gas slid 11% overnight.

As mentioned up top, oil prices have also been retracing.

Much of that looks to be spurred by investors reanalysing the near-term demand out of China.

Until recently, China’s reopening from its multi-year zero COVID policies had been expected to see an uptick an oil demand, which would have been welcomed by the ASX 200 energy shares.

However, all has not gone as planned. The Middle Kingdom is struggling with surging infections, delaying any big lift in energy demand brought on by the grand reopening.

According to Rebecca Babin, a senior energy trader at CIBC Private Wealth Management (quoted by Bloomberg):

The disconnect between how forward-looking assets like energy equities anticipated a China recovery does not translate to immediate crude strength as there is a lot of near-term risk to demand before we see recovery take hold.

That’s not to say ASX 200 energy shares might not regain their momentum down the road.

In fact, the energy market could turn around in a matter of weeks, according to Amrita Sen, chief oil analyst at consultant Energy Aspects.

“There’s a few more weeks of softness I would think,” she said.

The post Is the party over for these ASX 200 energy shares in 2023? appeared first on The Motley Fool Australia.

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More reading

• Bigger profits risk bigger target: The Woodside share price conundrum
• Why Beach, Blackmores, Costa, and Weebit Nano shares are falling today
• The 3 best performing ASX 200 dividend shares of 2022
• 5 things to watch on the ASX 200 on Thursday
• Buy these growing ASX 200 dividend shares in 2023: experts

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Woodside Energy Group Ltd (ASX: WDS) share price has been an exceptional performer over the past 12 months.

Rebounding from COVID-19 — an existential threat to producers at the time — shares in the oil and gas giant have soared 46% compared to where they were a year ago, as shown below. A mixture of recovering demand and supply shortfall due to the Russia-Ukraine crisis breathed new life into energy prices.

Bolstered by the high prices, Woodside has relished in the chance to mint extraordinary profits. Specifically, the company bagged $3.31 billion in earnings in FY22 at an income margin of around 32%. In the lead-up to 2020, Woodside typically achieved profits in the ballpark of $1 billion.

The latest data shows Australia went toe-to-toe on LNG exports with the United States and Qatar in 2022. But could the success for Woodside be a double-edged sword?

LNG demand puts Australia centre stage

Australian LNG export estimates for last year show exactly why the Woodside share price was on fire in 2022. According to data from EnergyQuest, an Australian energy advisory firm, Aussie LNG exports increased 86% to a record 81.4 million tonnes.

The country’s total exports were estimated to be worth $92.8 billion, placing Australia near the United States and Qatar. Based on Woodside’s 2022 production guidance and last realised price, around $7.5 billion of that was possibly from Woodside alone.

For investors, the shifting away from Russian oil and gas has been a major windfall. However, the sky-high prices have also drawn the attention of government intervention.

Could the Woodside share price be at risk?

The Federal government passed legislation last month to introduce a cap on the price of gas sold in the domestic market. A temporary cap on wholesale gas is now in place at $12 per gigajoule in an attempt to quell household and manufacturing cost pressures.

Shareholders seemed to have shrugged off the price cap for now. However, the cries for a ‘windfall profits’ tax have already commenced.

This is the conundrum that the Woodside share price faces amid burgeoning profits. Already, the United Kingdom has instituted such a levy — taking a 35% slice of oil and gas profits, increasing from the previous 25%.

Though, the looming fear of potentially running into a gas shortfall as early as 2024 might keep the government at bay.

The post Bigger profits risk bigger target: The Woodside share price conundrum appeared first on The Motley Fool Australia.

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More reading

• The 3 best performing ASX 200 dividend shares of 2022
• Why Audio Pixels, Bowen Coking Coal, Pantoro, and Woodside shares are dropping
• What could gas caps mean for the Woodside share price?
• Why are ASX 200 energy shares falling today?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Mitchell Lawler 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) wobbled in and out of the green this afternoon before ultimately closing the day higher. The index was up 0.06% at 7,063.6 points at the end of Thursday’s session.

While many miners came in among the day’s top gainers, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) outperformed all other sectors, rising 0.6%.

Travel stocks led the way on the sector. Shares in Corporation Travel Management Ltd (ASX: CTD), Flight Centre Travel Group Ltd (ASX: FLT), and Webjet Limited (ASX: WEB) gained 3.7%, 3.4%, and 2.7% respectively.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) rose 0.4% with gold miners taking out the top spots after the yellow metal’s value cracked US$1,850 an ounce overnight.

Today wasn’t all green, however. The S&P/ASX 200 Energy Index (ASX: XEJ) plunged 1.3%, leaving it 3.9% lower than it was at the end of 2022.

So, with all that in mind, let’s take a look at Thursday’s 10 top-performing ASX 200 shares.

Top 10 ASX 200 shares countdown

Core Lithium Ltd (ASX: CXO) shares took out today’s top spot with a 7.77% gain, leaving it trading at $1.11 as of the market’s close.

Its surge came amid news of the maiden shipment from the company’s Finniss Lithium Project.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Core Lithium Ltd (ASX: CXO)	$1.11	7.77%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$9.89	7.03%
Imugene Limited (ASX: IMU)	$0.165	6.45%
De Grey Mining Limited (ASX: DEG)	$1.495	6.41%
Silver Lake Resources Limited (ASX: SLR)	$1.325	6%
Liontown Resources Ltd (ASX: LTR)	$1.32	5.18%
Novonix Ltd (ASX: NVX)	$1.55	4.73%
Chalice Mining Ltd (ASX: CHN)	$6.65	4.72%
Centuria Capital Group (ASX: CNI)	$1.76	4.14%
Credit Corp Group Limited (ASX: CCP)	$19.73	3.84%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 shares? Here’s what to expect from the US Fed in 2023
• Why is this ASX 200 gold share rocketing 7% on Thursday?
• Core Lithium share price higher on China shipment update
• The 3 best performing ASX 200 dividend shares of 2022
• What caused such wild swings in the Core Lithium share price in 2022?

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 positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Corporate Travel Management and 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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S&P/ASX 200 Index (ASX: XJO) shares offered a timely reminder last year on the impact of rising interest rates.

After more than a decade of easy money policies, 2022 saw global central banks – led by the United States Federal Reserve – begin to ratchet up record low rates to tame fast rising inflation.

In US markets, the hawkish pivot saw the S&P 500 Index end the year down 19.4%.

In Australia, impacted by both the Fed and the RBA hikes, the ASX 200 managed to fare better. Though the benchmark index still closed the year down 5.5%.

With that in mind, investors in ASX 200 shares would do well to keep an eye on the likely upcoming policy moves from the Fed.

What can ASX 200 investors expect from the Fed in 2023?

The Fed’s target rate kicked off 2022 in the range of 0.00% to 0.25%. It ended the year in the current range of 4.25% to 4.50%.

ASX 200 investors hoping that the world’s top central bank may hold off on further rate hikes at this level are likely to be disappointed.

According to the minutes from the Fed’s last policy meeting, released overnight Aussie time, Fed officials doubled down on their determination to bring inflation back down to their 2% target range. And the officials warned investors that rates are likely to stay high for some time yet.

The officials said (courtesy of Bloomberg) that “an unwarranted easing in financial conditions, especially if driven by a misperception by the public of the committee’s reaction function, would complicate the committee’s effort to restore price stability”.

“A big concern of their messaging here is that the market is pricing in cuts by the second half of this year,” Michael Feroli, chief US economist at JPMorgan Chase & Co said.

Indeed, ASX 200 investors should understand that any rate cuts from the Fed appear unlikely to eventuate in 2023.

Derek Tang, an economist at LH Meyer, said investors should prepare for another 0.50% rate hike from the Fed next month:

They don’t see light at the end of the tunnel yet with inflation. They’re so alert of financial easing that’s ‘unwarranted’ that the scale should tilt to staying with 50 basis points in February. That’ll drive the message home.

According to Bloomberg, 17 of 19 Fed officials forecast that the benchmark interest rate in the US will hit at least 5.1% in 2023. That’s a hawkish shift from September when the official unanimously believes rates would not exceed 5% this year.

The post Investing in ASX 200 shares? Here’s what to expect from the US Fed in 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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