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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 1.2% to 7,002.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Invictus Energy Ltd (ASX: IVZ)

The Invictus Energy share price is down 6.5% to 29 cents. Investors have been selling this energy exploration company’s shares following the release of an update on drilling activities at the Mukuyu-1 well in Zimbabwe. Management revealed that its wireline logging operations have been hit by issues retrieving its cable. It has become lodged against the wellbore and multiple attempts to free the cable were unsuccessful.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down over 2% to $1.79. This morning, Goldman Sachs retained its neutral rating but slashed its price target on the casino operator’s shares by a massive 34% to $1.90. Goldman said: “The NSW government’s proposed casino tax reforms pose a significant earnings risk for SGR’s Sydney casino.”

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 4.5% to $9.30. Investors have been selling Whitehaven Coal and other coal miners today despite there being no news out of them. However, the energy sector has come under pressure today amid concerns over demand from China.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 3.5% to $35.49. This has been driven by a pullback in oil prices overnight. This appears to have been driven by concerns over surging COVID-19 cases in China, which has offset optimism that easing restrictions could boost demand.

The post Why Invictus Energy, Star, Whitehaven Coal, and Woodside shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price on the back foot today?
• Should I pounce on Woodside shares now – or keep waiting?
• 5 things to watch on the ASX 200 on Thursday
• Why Dreadnought, Pointsbet, Rio Tinto, and Woodside shares are pushing higher
• 5 things to watch on the ASX 200 on Wednesday

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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It has been a year to forget for the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price in 2022.

Since the start of the year, as you can see below, the pizza chain operator’s shares have lost almost 50% of their value.

This has been caused by rising interest rates putting pressure on the valuation of growth shares and the negative impact of inflation on Domino’s operations.

And while this is undoubtedly disappointing for its shareholders, I see it as a buying opportunity for the rest of us. So much so, I recently added this ASX 200 stock to my portfolio.

Why Domino’s could be an ASX 200 stock to buy

I think Domino’s is an ASX 200 stock to buy for 2023 due to its positive long-term outlook.

Although 2022 has been difficult, the headwinds the company is facing are transitory and already appear to be easing.

For example, during its most recent quarterly update, management revealed that its same-stores sales returned to growth in October and were up 1.6%.

Management also reiterated its medium-term goal of 3% to 6% same-store sales growth and 8% to 10% new store openings. The latter supports its aim of doubling its store network, before acquisitions, to 7,250 stores over the next decade.

In my opinion, this makes the almost 50% decline in the Domino’s share price this year an incredible buying opportunity for investors that are looking to make a long-term investment.

After all, over the next 10 years, if Domino’s can double its store network, deliver on its sales growth targets, and improve its margins (from FY 2022 levels) through scale benefits, it is possible that its earnings could triple over the period.

And that’s before acquisitions. Management is also always on the lookout for earnings accretive additions that could bolster its growth. In fact, it recently completed the acquisition of Domino’s Malaysia and Singapore and snapped up the remainder of its German joint venture.

And while there are risks to consider, such as inflation getting out of control or acquisition integration issues, I feel confident that the risk/reward on offer with this ASX 200 stock is compelling and makes it a buy.

The post Why I just bought this ASX 200 stock for 2023 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Top ASX growth shares to buy for a stock market rebound
• 2 cheap ASX dividend shares to buy now: brokers
• 3 ASX 200 shares in the spotlight for 2023 as consumer sentiment ‘bounces’
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. 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 Domino’s Pizza Enterprises. 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 is in the red today.

Woodside shares are down 2.74% and are currently fetching $35.83. For perspective, the
S&P/ASX 200 Index (ASX: XJO) is falling 0.86% today.

Let’s take a look at what is weighing on the Woodside share price today.

What’s going on?

Woodside is not the only ASX energy share sliding today. The Santos Ltd (ASX: STO) share price is down 3.12%, while Beach Energy Ltd (ASX: BPT) is slipping 2.29%. The S&P/ASX 200 Energy Index (ASX: XEJ) is descending 3.12% today.

Woodside is an oil and gas producing giant. The brent crude oil price has dropped 1.27% to US$83.26 a barrel, according to Bloomberg Energy. WTI crude oil has also fallen 0.51% to US$78.56 a barrel.

Chinese demand concerns, a potential US Federal Reserve rate hike and lower trading volumes appear to be weighing on the minds of investors. Commenting on the oil price, UBS analyst Giovanni Staunovo said in quotes cited by Reuters:

My sense is the general risk-off mood has weighed on the oil prices, in a market with thin liquidity.

Meanwhile, the natural gas price has tumbled a massive 10.85% to US$4.71 per MMBtu.

Woodside is estimating that it will produce 180 to 190 million barrels of oil equivalent (MMboe) in 2023. This includes:

• 83 to 85 MMboe of liquefied natural gas
• 40 to 42 MMboe of pipeline gas
• 50 to 55 MMboe of crude and condensate oil
• 7 to 8 MMboe of natural gas liquids.

Woodside share price snapshot

The Woodside share price has surged 61% in the last year.

For perspective, the ASX 200 has shed 6.45% in the last year.

The post Why is the Woodside share price on the back foot today? appeared first on The Motley Fool Australia.

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More reading

• Should I pounce on Woodside shares now – or keep waiting?
• Why Dreadnought, Pointsbet, Rio Tinto, and Woodside shares are pushing higher
• 5 things to watch on the ASX 200 on Wednesday
• What can ASX 200 investors learn from Warren Buffett’s big moves in 2022?
• 5 things to watch on the ASX 200 on Friday

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

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The ASX share market has the potential to produce good returns over the long term. If an investor chooses right, the picks could help someone become a millionaire.

In the grand scheme of things, investing $300 a month may not seem like that much. But some brokers now offer very cheap brokerage, which makes investing with less than $1,000 more appealing.

How long will it take to become a millionaire?

That’s the million-dollar question, isn’t it?

It depends on the rate of return of the ASX share portfolio. But, compounding helps lessen how much people need to invest. Historically, the share market has returned an average of around 10% per annum.

Using the Moneysmart calculator, investing $300 per month would turn into over $1 million in less than 36 years if the portfolio returned 10% per annum. That means a 20-year-old could be a millionaire before they’re 60.

With how much the share market has been hurt over 2022, this lower valuation starting point could mean slightly better returns. By choosing good investments, I think it could be reasonably possible to achieve returns of 12% per annum, but that’s just a guess.

Investing $300 per month, returning 12% per year, could turn into $1 million after less than 32 years.

Obviously investing more per month over the decades and/or the investments generating a better return would mean that millionaire status came quicker.

But which ASX shares could make good long-term investments?

3 ASX shares for long-term investing

Brickworks Limited (ASX: BKW)

A building products business may not sound like the most exciting choice, and I’m not suggesting Brickworks because of its brickmaking abilities, though it’s very good at it. It’s the leader in Australia and the north east of the United States. It will soon be supplying bricks to the United Kingdom as well.

But it’s the other sides of the business that I like. It owns a large chunk of Washington H Soul Pattinson and Co Ltd (ASX: SOL), a century-old investment business. This is steadily adding value and growing dividend cash flow for Brickworks.

Brickworks also owns half of a growing industrial property trust. This trust is building big (and advanced) warehouses on excess land that Brickworks no longer needs. It’s unlocking the value of that land, making big development profits, and creating a strong stream of rental profit.

I think both the Soul Pattinson shares and property assets can drive value for the ASX share for many years to come.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that aims to invest in US businesses with strong competitive advantages (which can be called an ‘economic moat’). Morningstar analysts believe that the competitive advantages will endure for a minimum of a decade and likely for two decades.

Businesses are only added to the portfolio if they are at a good price compared to the Morningstar ‘fair value’ price.

In my opinion, it means this ETF is designed to essentially always have a portfolio of high-quality, attractively-priced investments. It currently has around 50 names in the portfolio.

Past performance is not a reliable indicator of future performance, but over the past five years to the end of November 2022, it had returned an average of 14.7% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ASX share is also an ETF. It offers a way for investors to get more concentrated exposure to some of the world’s leading businesses. These include Microsoft, Apple, Amazon, Alphabet, Nvidia, Costco, Cisco Systems, Adobe and so on. It has 100 positions in total.

The great thing about this portfolio is that it holds many of the world’s leading companies from their respective industries. There are also names like Advanced Micro Devices, Intuitive Surgical, PayPal and Moderna in the portfolio as well.

I’m not sure which names will be there in 10 or 20 years, but I think that 100 of the largest businesses on the NASDAQ, as a group, can keep doing well in the long term. While the future may not be the same as the past, the BetaShares Nasdaq 100 ETF had returned an average of 13.3% over the three years to 30 November 2022.

The post $300 a month in these 3 ASX shares could make you a millionaire by retirement appeared first on The Motley Fool Australia.

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More reading

• No savings at 45? I’d use the Warren Buffett method to build retirement wealth
• 25% of my retirement portfolio is in these 5 ASX shares: Here’s why I believe they’re winners for 2023 and beyond
• 3 quality ETFs for ASX investors to buy next year
• 3 excellent ETFs for ASX investors to buy in January
• 10 ASX shares I think are buys for 2023

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, 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 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 Adobe, Advanced Micro Devices, Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Brickworks, Cisco Systems, Costco Wholesale, Intuitive Surgical, Microsoft, Nvidia, PayPal, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna and has recommended the following options: long January 2024 $420 calls on Adobe, long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Adobe, Alphabet, Amazon.com, Apple, Nvidia, PayPal, and VanEck Morningstar Wide Moat 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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Plenty of ASX tech shares have been smashed in 2022 as the impact of higher interest rates hit valuations.

For example, just look at the Xero Limited (ASX: XRO) share price which is down over 50%.

Just because a share price has fallen doesn’t mean that a company’s prospects have dimmed, it’s just that investors aren’t as willing to pay as much for that potential future.

But, even with lower prices, investors should still keep their investment criteria in mind.

How are we supposed to judge which ASX tech shares are worth investing in?

A leading fund manager from Wilson Asset Management has outlined some of the things that investors could look out for.

How WAM identifies ASX tech share opportunities

With everything that’s going on, fund manager Tobias Yao says that WAM continues to be “very selective” about tech and is drawn to defensive business models and the growth profiles of some of these companies. The valuation has come back “quite a bit”.

For WAM to be interested in that ASX tech share name, it has to tick three boxes:

• Delivering at a minimum of 10% to 15% of organic revenue growth
• Net cash balance sheet
• Strong operating leverage, while trading at a reasonable earnings multiple

Yao also said that WAM likes to look for founder-led businesses because of the stronger focus on costs.

If a business is growing at a double-digit rate, then this can help quickly grow its scale, which may enable a good compounding effect on profit over time.

‘Net cash’ means that a business has more cash on its balance sheet than debt. This could make it a safer investment proposition.

Operating leverage means that when revenue goes up, its profit is able to grow at a faster pace.

The fund manager concluded:

We believe these companies are the ones the market will gravitate towards when they look for growth. In-fact we’re already seeing some signs of this. In-fact we’re already seeing signs of this with private equity players and strategic buyers in the small cap tech space.

Examples

While the fund management team didn’t outline all of their ASX tech share positions, the monthly fund update for November 2022 revealed some of the positions including Life360 Inc (ASX: 360), REA Group Limited (ASX: REA) and Hub24 Ltd (ASX: HUB).

The post Look for these 3 factors in ASX tech shares for good returns: fund manager appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• Forget Core Lithium shares! Experts say these cheap ASX 200 shares could be better buys
• Top brokers name 3 ASX shares to buy next week
• Here are 3 ASX growth shares analysts rate as buys in 2023

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 Hub24, Life360, and Xero. The Motley Fool Australia has positions in and has recommended Hub24 and Xero. The Motley Fool Australia has recommended REA 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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The countdown is now on for the new year as we soon wave goodbye to 2022. Another 12 months of abrupt twists and turns, and violent ups and downs for the stock market is almost at a close.

Few — if anyone — could have predicted the market-jolting events that transpired this year. Russia waging war on Ukraine, inflation reaching multi-decade highs across the developed world, interest rates rising at a record pace, geopolitical rumblings from China, and the passing of Her Majesty Queen Elizabeth II.

These events poured fuel on the fire of uncertainty burning away in the minds of investors in 2022. As a result, it’s proven a difficult year with the S&P/ASX 200 Index (ASX: XJO) retracing 6.8% from where it started the calendar period, as pictured above.

Next year will likely be just as unpredictable, but here are my four key predictions for 2023…

What I’m expecting for the stock market in 2023

Before we get stuck into it, I want to make it clear that these are merely my thoughts on what could happen. No one holds a crystal ball and, truthfully, I have a strong displeasure for making short-term predictions — the world likes to make fools of fortune tellers.

So take these predictions with a grain of salt.

Interest rates will steady

In my opinion, the most important piece of data for next year will be inflation. It has dominated the headlines this year and it will take centre stage again throughout 2023.

The latest data from the Australian Bureau of Statistics has household inflation at 7.3%. Meanwhile, the Reserve Bank of Australia is targeting 2% to 3%. To me, this would suggest further increases from the 3.1% rate early in the year.

Westpac and ANZ currently hold the highest rate forecasts at 3.85% in May 2023. I tend to agree with these estimates. However, I believe interest rates will hold steady at this level with most mortgages rolling off of their ultra-low fixed rates by June.

Companies will prioritise cost cuts

I suspect 2023 will the year of cost cuts. This isn’t exactly a bold prediction considering we’ve been seeing plenty of large companies already make substantial layoffs. Though, with interest rates staying high — stifling consumer demand — companies are likely to look inward to maintain profits.

But don’t take my word for it. Go google ‘cost cuts 2023’ and you’ll find some big-name companies anticipating the need for reduced expenses.

In terms of the stock market, listed businesses that are saddled up with lots of debt are going to be prone to the most drastic cuts. There is a chance investors will reward companies that were ahead of the curve — those that were running lean prior to the weaker environment.

Going private

2022 has seen its fair share of mergers and acquisitions. Although, private takeovers might be the flavour of 2023. I say this for three main reasons:

• Less focus on the share price, and more focus on operations during a potentially challenging time
• Private equity could be a source of cheap funding
• They remove the burden of reporting and ASX listing rules during a time when the usual benefit of a public listing (liquidity and easy access to capital) isn’t as prevalent

I wouldn’t be surprised to see some large ASX-listed shares opt for the quieter route if the market continues to struggle over the next 12 months.

Sideways grinding share market in 2023

Speaking of a struggling share market… my final prediction is that we’ll see markets trade sideways for most of 2023. I’d be fine with being proven wrong if it’s to the upside though!

But, in all seriousness, a sideways market can be a phenomenal opportunity to build positions in your highest conviction stocks. An investor’s superpower is to think in timeframes longer than the average person.

My ultimate prediction is that anyone who dollar-cost averages into a diversified portfolio throughout 2023 will be glad they did in the long run.

The post What’s next? My stock market predictions for 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• How I’d invest $200 a month in ASX dividend shares to target a $14,000 passive income for life
• Guess which ASX 200 share is trading ex-dividend tomorrow
• 5 things to watch on the ASX 200 on Wednesday
• The ASX 200 share than turned a $5,000 investment into $2,400 of passive income in 2022

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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3 % to 7,086.4 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 has fallen 0.7% and the NASDAQ has tumbled 1%.

Oil prices drop

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped on Wednesday night. According to Bloomberg, the WTI crude oil price is down 1.15% to US$78.60 a barrel and the Brent crude oil price is down 1.7% to US$82.87 a barrel. Oil prices fell on Chinese demand concerns.

Lithium miners fall again

It could be another red day for lithium miners such as Mineral Resources Ltd (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS). On Wall Street, US-listed lithium miners SQM and Albemarle are trading lower in late trade. Concerns over electric vehicle demand and lithium prices appear to be behind this.

Star rated neutral

The Star Entertainment Group Ltd (ASX: SGR) share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating but slashed its price target by 34% to $1.90. Goldman said: “The NSW government’s proposed casino tax reforms pose a significant earnings risk for SGR’s Sydney casino.”

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price softened overnight. According to CNBC, the spot gold price is down 0.5% to US$1,813.2 an ounce. A stronger US dollar put pressure on the precious metal.

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

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More reading

• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• How I’d invest $200 a month in ASX dividend shares to target a $14,000 passive income for life
• Why are ASX 200 gold shares having such a top run today?
• What can ASX lithium share investors learn from Tesla discounting its cars?
• Guess which ASX 200 share is trading ex-dividend tomorrow

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 Novonix Ltd (ASX: NVX) share price tumbled to another 52-week low today.

Novonix shares fell 10.58% to $1.1.395 each on the market today. For perspective, the
S&P/ASX 200 (ASX: XJO) slipped 0.3% while the S&P/ASX All Technology Index dropped 1.24%.

Let’s take a look at what could be impacting the Novonix share price.

What’s going on?

Novonix is a battery materials technology company. ASX tech shares struggled after the Nasdaq Composite fell 1.38% in the US overnight.

Bond yields lifted higher, impacting growth shares including technology, CNBC reported. Truist Wealth co-chief investment officer Keith Lerner told the publication:

It’s basically the continuation of high yields depressing growth, with redistribution into other sectors that are smaller, but not big enough to change the headline index.

Novonix makes graphite anode materials for the lithium-ion battery supply chain. ASX lithium shares also struggled today. The Sayona Mining Ltd (ASX: SYA) share price sunk nearly 11% while Pilbara Minerals Ltd (ASX: PLS) shares fell nearly 4%.

It seems concerns about further interest rate rises and inflation could also be weighing on investor sentiment. Japan’s inflation lifted at its fastest pace since 1981 in November, Bloomberg reported.

Novonix reported a $71 million loss in the 2022 financial year. Higher interest rates also mean debt costs more.

In recent company news, Novonix recently downgraded its graphite anode materials production from the Riverside facility in the US. It is now expecting to produce 3,000 tonnes per annum (tpa) starting in 2024. As my Foolish colleague James reported, this is a significant drop from the company’s plan to produce 10,000 tpa of synthetic graphite in 2023.

Share price snapshot

The Novonix share price has fallen 84% in the last year.

For perspective, the ASX 200 has lost 4.5% in a year.

The post Why did the Novonix share price sink to a new 52-week low today? appeared first on The Motley Fool Australia.

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More reading

• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• What can ASX lithium share investors learn from Tesla discounting its cars?
• Here are the 10 most shorted ASX shares
• 5 ASX lithium stocks to buy in 2023: brokers
• Is Core Lithium the next Pilbara Minerals?

Motley Fool contributor Monica O’Shea 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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After a really rough year, investors may wonder which ASX shares could be good performers in 2023.

2022 has seen plenty of volatility amid strong inflation and rising interest rates. But, just because conditions are difficult doesn’t mean there aren’t opportunities to be found. In fact, the lower share prices could mean there are better-priced opportunities.

The Australian Financial Review (AFR) asked for some recommendations from a number of fund managers that pick stocks for free for the Future Generation listed investment companies (LICs) of Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Investment Co Ltd (ASX: FGG).

Here are three of the ASX shares that were chosen.

Seek Ltd (ASX: SEK)

Seek is the operator of a large employment website in Australia. It also has a presence in a number of other countries including Singapore, Brazil, Mexico, the Philippines and Vietnam.

According to the newspaper, Kyle Macintyre, investment director at Firetrail Investments, chose Seek as an opportunity after weakness in the Seek share price. It’s down 40% in 2022 to date. Growth in Seek’s Asian businesses is one of the things that Firetrail is attracted to.

The fund manager noted that the labour market may be weaker, hurting advertisement volumes and revenue. However, Macintyre pointed out that Seek is the market leader and, therefore, it has “underappreciated pricing power which can offset any potential slowdown in job ad volumes, allowing Seek to grow earnings despite the tougher macroeconomic environment”.

Ramsay Health Care Ltd (ASX: RHC)

Private hospital operator Ramsay Health Care is one of the world’s leading businesses in the sector, with a large presence in Australia, the United Kingdom and Europe. It was close to being taken over recently, but remains listed on the ASX.

The Ramsay share price is down more than 20% from April 2022. The AFR reported that Jun Bei Liu from Tribeca Investment Partners chose Ramsay thinking the ASX share can recover. While it does have a higher level of debt, this will seem “more reasonable” as hospital admissions “normalise” and COVID impacts subside. Jun Bei Liu said:

Ramsay is now very well positioned for a rapid recovery in earnings given the backlog of patients waiting for surgery in Australia, the Nordics and especially the UK. We are confident this will support elevated surgical volumes for an extended period.

RPMGlobal Holdings Ltd (ASX: RUL)

This ASX share may be the smallest of the three names by far, but it could have plenty of potential according to James Sioud, a portfolio manager from Regal Funds Management.

The RPMGlobal share price has dropped around 20% in the year to date.

But, good commodity prices could enable ASX mining shares to spend more on their tech budgets. The fund manager also said that the company’s position is boosted by “solid pricing power and switching costs”. The AFR quoted Sioud, who explained:

Whilst the mining industry has adopted cloud-based software much slower than other industries, we believe this transition is inevitable. RPMGlobal has spent the last decade preparing for this structural shift, spending almost $200 million building or acquiring software products, all of which are now cloud-enabled.

Foolish takeaway

It will be interesting to see how these three ASX shares perform and whether they are able to beat the market because of the reasons these fund managers have outlined.

The post 3 ASX shares tipped for market-beating returns in 2023: experts appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are 2 of the best ASX growth shares to buy in December: Morgans
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
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Motley Fool contributor Tristan Harrison has positions in Future Generation Global Investment Company and Future Generation Investment Company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal. The Motley Fool Australia has recommended RPMGlobal and Seek. 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) are on course to start the week with a small decline. In afternoon trade, the benchmark index is down 0.3% to 7,086.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Block Inc (ASX: SQ2)

The Block share price is down 2% to $88.73. This follows a poor night of trade for the payments company’s shares on the NYSE on Tuesday night. Investors were selling Block and other tech shares on Wall Street amid concerns over rising interest rates.

Life360 Inc (ASX: 360)

The Life360 share price is down 6% to $4.77. Tech shares have come under pressure on Wednesday following the aforementioned weakness on Wall Street. Loss making tech shares have been hit hardest. This has led to the S&P/ASX All Technology Index falling by almost 1% this afternoon.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $3.66. Investors have been selling lithium miners again on Wednesday following a very poor night for their peers on Wall Street. The likes of Albemarle and SQM fell over 5% overnight, with Livent Corp not far behind with a 4% decline. Investors appear concerned over the outlook for lithium prices amid falling demand for electric vehicles.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down 11% to $2.07. This also appears to have been driven by concerns over falling electric vehicle demand. Syrah is looking to supply the lithium battery industry with graphite from its operations in Africa and North America.

The post Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• What can ASX lithium share investors learn from Tesla discounting its cars?
• 5 things to watch on the ASX 200 on Wednesday
• 5 ASX lithium stocks to buy in 2023: brokers
• Here are 3 ASX growth shares analysts rate as buys in 2023
• Is Core Lithium the next Pilbara Minerals?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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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