Tag: Motley Fool

ASX lithium shares are falling harder than the benchmark index and materials sector today.

Lithium shares trading lower this afternoon include:

• Piedmont Lithium Inc (ASX: PLL), down 2.87%
• Core Lithium Ltd (ASX: CXO), down 0.76%
• Sayona Mining Ltd (ASX: SYA), down 1.09%
• Pilbara Minerals Ltd (ASX: PLS), down 0.33%
• Liontown Resources Ltd (ASX: LTR), down 2.96%
• Lake Resources N.L. (ASX: LKE), down 2.5%
• Allkem Ltd (ASX: AKE), down 1.14%

For perspective, the S&P/ASX 200 (ASX: XJO) is 0.08% in the red.

What’s happening?

ASX lithium shares are broadly underperforming the materials index today. The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.19% at the time of writing.

On US markets, multiple lithium giants fell overnight. The Livent Corp (NYSE: LTHM) share price tumbled 6.18%, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares fell 4.72%. The Albemarle Corporation (NYSE: ALB) share price also shed 6.7%.

Speculation on lithium demand from China could be impacting sentiment in the lithium sector.

News emerged that Tesla Inc (NASDAQ: TSLA) could cut electric vehicle (EV) output from its Shanghai plant by more than 20% in December, Bloomberg reported.

But late on Monday in the US, a Tesla spokesperson described the report as “false news”, Reuters reported.

Last week, the South China Morning Post reported EV battery production will exceed domestic electric car makers’ demand threefold by 2025. EV battery makers are set to lift capacity by six times between this year and 2025, according to the report.

ASX lithium shares that have signed lithium supply agreements with Tesla include Liontown Resources and Piedmont Lithium.

Core Lithium negotiated with Tesla on an offtake agreement earlier this year. However, the date for concluding the term sheet passed in late October without any final agreement. Core Lithium CEO Gareth Manderson said at the time:

I want to thank Tesla for the time taken to negotiate with Core and look forward to maintaining an open and ongoing dialogue.

The post Why are ASX 200 lithium shares taking a lashing today? appeared first on The Motley Fool Australia.

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More reading

• Is Core Lithium the hottest stock on the ASX 200 right now?
• The Sayona Mining share price went backwards in November. What now?
• Can ASX 200 lithium shares come charging back in December?
• Why Arafura, Mayne Pharma, Pilbara Minerals, and Tyro shares are dropping today
• Here are the 3 most heavily traded ASX 200 shares on Monday

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen just short. At the time of writing, the benchmark index is down slightly to 7,321.1 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 5% to $1.80. Investors have been selling Beach Energy and other energy producers on Tuesday after oil prices tumbled overnight. Traders were selling oil amid concerns that the US Federal Reserve will cause a recession with its interest rate hikes.

Block Inc (ASX: SQ2)

The Block share price is down 4.5% to $95.11. This follows a similarly sharp decline by the payments giant’s NYSE listed shares overnight. Investors were selling tech shares on Wall Street amid concerns that interest rates will now rise more than expected.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 3% to $9.23. This has been driven by the release of the fund manager’s latest funds under management (FUM) update. That update revealed that Magellan recorded a further $2.5 billion fund outflow during the month of November. Magellan’s FUM is now down approximately 57% since this time last year.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 5.5% to 64.7 cents. Investors have been selling this gold miner’s shares after the price of the precious metal fell overnight. This was driven by higher interest rate expectations. It isn’t just St Barbara dropping today. The S&P/ASX All Ordinaries Gold index is down 1.9% this afternoon.

The post Why Beach, Block, Magellan, and St Barbara shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Magellan share price tumbles on $2.5b fund haemorrhage in November
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Guess which gold share is being booted out of the ASX 200
• Warrego Energy share price leaps 12% as takeover battle continues

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. 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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So, my day job is picking stocks.

I run three different services here at The Motley Fool, each with some incredibly smart, dedicated people.

Together, our job is to find ASX- (and US-) listed companies that we hope can, over the long term, deliver on the stated goal of each service.

But it’s not all I do.

And it’s probably not even the most value I add, for our members or our readers.

Most of the value I hope I add actually comes in the soft stuff.

Huh?

See, I’ve written before that research has shown two things:

1. Most managed funds underperform the market; and, more worryingly

2. Most fund investors underperform the average fund.

That’s pretty damning.

But I’m going to add a third, unproven, statement:

3. Most people don’t invest, at all, or give up early.

See, when I’m picking stocks, I’m trying to find the cream of the crop.

I’m trying to do better than the market.

But that’s just the cherry on top.

That’s the extra 1% or 2%, per annum, that I’m trying to find for our members.

But the cake itself?

That’s the 9% or so, per annum, that investors can get just from earning the average market return (speaking historically, at least).

Literally all you needed to do was buy an exceedingly low-fee index-tracking ETF and go fishing (or shopping, or clubbing, or golfing, or gardening. You get the idea.)

And yet.

And yet, most people don’t.

Which is a crying bloody shame.

How much of a shame?

Well I’ve told you before that over the 30 years to June 2022, you could have turned $10,000 into $130,000 (before fees and taxes) just by investing in an ASX index fund.

That much!

Seriously, it was there for the taking.

A 13x return.

Was it guaranteed? Nope. Nothing in life is, let alone investing returns.

But that return wasn’t meaningfully different to the decades before it, so I’d argue it was pretty likely, give or take 1% or so, per annum.

Hell, even if your return was half of that, you’d have ended up with $70,000.

We can argue about specific returns, but that’d be missing the forest for the trees, don’t you reckon?

And if you think it riles me up, you’re right.

I hate the fact the doom-and-gloomers dissuade people from investing.

I hate the fact that the conmen and shysters give investing a bad name.

I hate the fact that market volatility scares people away from investing.

And I hate the fact our evolution makes it hard to save and invest, because we don’t naturally think in terms of compound returns.

Don’t believe me?

Okay, here’s a question: What’s the difference in total return between 9% per annum and 10% per annum, over 40 years?

50% more!

Yep. 1% per year is 50% difference over 40 years.

And between 8% and 10% per annum?

More. Than. Double.

Let’s try a different one.

The difference between 10 years and 20 years at 9% per annum?

136%

And 30 years?

Not double.

Not triple.

You’ll have 5.5 times as much money as you did after 10 years.

And that’s why this is such an important topic.

And why it can be so frustrating.

Historically, there has been extraordinary wealth created by those who simply invested.

And even more by those who invested, then invested again. And again. Adding money regularly, like clockwork.

You didn’t have to be smarter than the other guy.

You didn’t need any special insights.

You didn’t even need to pick stocks.

You just had to invest, then leave well enough alone.

Literally, that was it.

Will the future be the same?

Again, I can’t – morally or legally – make you any promises or offer you any guarantees.

But I see no reason it won’t be.

But – as I said above – even if those future returns are half of what they were in the past, investing will be astonishingly worthwhile.

And if they’re similar to the past? Even more so.

And so, as Lara Bingle might ask, where the bloody hell are you?

Why aren’t you investing?

And if you are, why aren’t you investing more?

Yes, that’s a rhetorical question. There are lots of reasons.

I can’t lower your bills (actually, I can help: #getabetterrate!).

I can’t offer you a pay rise.

And some people just won’t be able to find the extra cash to invest.

But if you can?

I think you really, really should.

Because I think your future self will thank you.

And that’s the most value I can offer, today.

I hope our stock picks can add value to your investing.

But the two more powerful forces are:

1. Starting earlier; and

2. Saving and investing more.

And they’re up to you.

Today’s the day.

What are you waiting for?

Fool on!

The post What really cheeses me off appeared first on The Motley Fool Australia.

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More reading

• What’s in store for the Woolworths share price in December?
• Why is the Xero share price being trashed on Tuesday?
• ‘I want to explain’: Why did the Bank of Queensland share price pop then drop on Tuesday?
• Why I think these are 3 of the safest high-yield dividend shares on the ASX right now
• Fortescue share price dips despite green hydrogen milestone ‘worth celebrating’

Motley Fool contributor Scott Phillips 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’s been a rather wild and woolly year for the Woolworths Group Ltd (ASX: WOW) share price in 2022 so far. Year to date, Woolworths shares remain down a painful 9.88% at the current pricing. The supermarket giant started the year at $38.47 a share but is going for just $34.68 each today.

During 2022, the Woolworths share price has been as high as $39.50 and as low as $31.67, with plenty of swings along the way, as you can see here:

This shaky performance from Woolies might come as a surprise. After all, 2022 was supposed to be a year dominated by concerns over inflation and rising interest rates. And as a consumer staples giant, Woolies has a reputation as an inflation-resistant investment.

And yet, it has vastly underperformed the broader market. While Woolworths is down by 9.88% this year, the S&P/ASX 200 Index (ASX: XJO) has only lost 3.7% over the same period.

But perhaps Woolworths is set for a Santa rally. After all, the Christmas period is traditionally a strong one for supermarkets like Woolworths. And the grocer has just banked a very pleasing November. So could Woolies shares be worth buying in December?

Will you get your Woolies worth with Woolworths shares this Christmas?

Well, one ASX broker certainly thinks so. As my Fool colleague James recently covered, ASX broker Goldman Sachs is excited about Woolworths shares right now. The broker gave the grocer a coveted ‘conviction buy’ rating, complete with a 12-month share price target of $41.70.

If realised, that would give investors an upside of more than 20% from the current share price.

Goldman cites Woolworths’ strong market position and digital leadership for its bullish views, predicting it can lift Woolworths’ market share going forward.

Goldman is also pencilling in large dividend rises over the next couple of years. It has a forecast of $1.02 in dividends per share for FY2023, rising to $1.13 per share for FY2024.

No doubt that will be a very welcome view for Woolworths shareholders today.

At the current Woolworths share price, this ASX 200 supermarket share has a price-to-earnings (P/E) ratio of 27.4, with a dividend yield of 2.65%.

The post What’s in store for the Woolworths share price in December? appeared first on The Motley Fool Australia.

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More reading

• Is Core Lithium the hottest stock on the ASX 200 right now?
• The Sayona Mining share price went backwards in November. What now?
• 2 ASX 200 directors buying and selling their company shares in the past week
• Up 30% in a month, is it time to cash in some chips on Fortescue shares?
• ‘Highest quality companies’: Expert names 2 ASX shares to buy now

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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The Xero Limited (ASX: XRO) share price is taking a beating today.

In early afternoon trade shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider are down 2.2% to $73.13 per share.

That’s a big improvement from this morning though, when the Xero stock was down 4.9%.

So what’s going on with the ASX tech share?

What are ASX 200 investors considering on Tuesday?

To be fair, it’s not just the Xero share price that’s deep in the red today.

Logistics software provider WiseTech Global Ltd (ASX: WTC), as one example, is down 1% at this same time.

While the ASX 200 is down 0.1%, the information and technology sector is trailing the market, as witnessed by the 1.1% decline in the S&P/ASX 200 Information Technology Index (ASX: XIJ).

With no price-sensitive news hitting the markets, the Xero share price and the wider IT sector look to be under pressure following steep overnight losses on the Nasdaq Composite (NASDAQ: .IXIC).

With investors again fretting about the next tightening move from the US Federal Reserve, the tech-heavy index plunged 1.9% by the closing bell.

Is the Xero share price a buy now?

Xero stock is down a painful 50% in 2022 as the company got slammed by fast-rising interest rates.

But at $73.07 per share, does Xero represent a buying opportunity?

According to Goldman Sachs, the answer is yes.

Across its range of IT services, Xero currently has 3.3 million global subscribers.

But labelling Xero shares as a “compelling global growth story”, Goldman points out the company has a total addressable market of some 45 million subscribers.

Goldman has a buy rating on the company with a target of $115.00 for the Xero share price. While that’s well below the $146.22 per share Xero was trading for back on 4 January, it represents a 57% increase from the current price.

The post Why is the Xero share price being trashed on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Buy Xero and this ASX growth share for 2023: analysts
• Top brokers name 3 ASX shares to buy next week
• Morgans names 2 of the best ASX 200 shares to buy in December
• Here are the top 10 ASX 200 shares today
• Why Appen, Evolution Mining, Rio Tinto, and Xero shares are racing higher

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended 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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The Bank of Queensland Ltd (ASX: BOQ) share price outperformed for much of Tuesday before slipping into the red amid the company’s annual general meeting (AGM).

And the major topic of conversation? The surprise exit of the bank’s former CEO and managing director George Frazis. The company announced its board determined Frazis would walk last week.

In a speech published to the ASX, chair Patrick Allaway admitted the leadership change “would have come as a surprise to many”, continuing:

I want to explain the board’s decision directly to you.

The Bank of Queensland share price reached a high of $7.24 today, making a 0.82% gain. Unfortunately, that didn’t last.

Right now, the Bank of Queensland share price is $7.17, 0.14% lower than yesterday’s close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.11% at the time of writing. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 0.31%.

Let’s take a closer look at the latest from the ASX 200 regional bank.

Ousting CEO in Bank of Queensland’s ‘best interest‘

The Bank of Queensland share price is holding this afternoon. It comes amid news the company’s recently ousted CEO was made aware of its board’s desire for a leadership overhaul. Allaway commented in today’s ASX release:

While we respect and acknowledge the contribution that George Frazis has made over his three years with BOQ, the board reached a conclusion that we need a different capability and leadership style to build a simpler and more resilient bank.

Our expectations, in respect of this, were made clear to George over a period of time.

We recognise the immediate departure of a CEO and the associated uncertainty is not ideal, but we felt a longer transition would not be in the best interest of BOQ.

He said it would have been “sub-optimal and destabilising” if Frazis was to stay in the top job amid the search for his successor “knowing he did not have the ongoing support of the board”.

The move was a bid for broader stability, said Allaway. It’s hoped it will allow senior executives to focus on the bank’s plan, support the wider team, and prioritise customers and shareholders.

Allaway stepped up to the role of executive chair and Karen Penrose to lead independent director as the bank works to find a new CEO. Allaway said:

I recognise the increased time commitment required to undertake an executive chair role, and accordingly I have taken leave of absence from the Dexus Property Group (ASX: DXS) and Allianz boards during this interim period.

Chair addresses Bank of Queensland share price disappointment

Allaway also addressed investors’ likely disappointment in the Bank of Queensland share price’s performance. The stock has fallen 13% year to date and 5% over the last 12 months.

The new chair said:

We are trading at a discount to book value and a relatively low price to earnings multiple. In our view, the value of our quality book and the material investment being made in our transformation is not currently reflected in the share price.

The completion of our transformation will require a medium term, rather than short term, view of benefits and we thank our shareholders for their support over this time horizon.

The chair also recognised the importance of dividends to those invested in Bank of Queensland shares. He said management “will balance that against the resilience and strength of the bank, capital requirements for balance sheet growth, and ongoing investments for transformation.”

The post ‘I want to explain’: Why did the Bank of Queensland share price pop then drop on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• The 3 best-performing ASX 200 bank shares in November revealed
• Are Bank of Queensland shares a buy following the CEO’s shock ousting?
• Why Bank of Queensland, Bubs, City Chic, and Liontown shares are sinking
• Why is the Bank of Queensland share price sinking over 6% today?
• The Bank of Queensland upsized dividend is being paid out today. Here’s the lowdown

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

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There are a number of ASX dividend shares that could offer solid dividends in the short term, though not all of them have high dividend yields.

I also think that it’s likely that names like Telstra Group Ltd (ASX: TLS) and New Hope Corporation Limited (ASX: NHC) are going to pay pleasing dividends in at least six months.

Telstra was almost an inclusion in this article, but I just wrote about its 5-year outlook in a separate article, so I decided to go for something else.

Dividends are certainly not a guaranteed return like a term deposit. But, the below three ASX dividend shares could continue to pay good payouts in the period ahead.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral provider in Australia and New Zealand. Funerals are one of those things that people could be likely to keep paying for, even in a downturn. I think the funeral industry is very defensive. It’s one of the two certain things in life, as the saying goes (tax being the other).

But, it’s also a growth industry. The ASX dividend share can benefit from inflation if it’s able to increase the average revenue per funeral, which increased by 2% in FY22 to $6,038. Funeral volumes are also rebounding after COVID-19. FY22 funeral growth was 8.9% year over year.

Death volumes are expected to increase by an average of 2.9% per annum from 2020 to 2031, according to the ABS. The company is also growing its market share in Australia.

In the first quarter of FY23, total funeral volumes were up 23% and the average revenue per funeral was up 9%, leading to operating earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by 40% to $13 million.

According to Commsec, the Propel share price is valued at 25 times FY23’s estimated earnings with a projected grossed-up dividend yield of 4.3%.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has a number of quality businesses in its portfolio including Bunnings and Kmart. I think both of those important retailers are well placed to provide customers with the products they want at affordable prices, enabling the company to retain and perhaps grow market share.

The ASX dividend share also has an impressive chemicals, energy and fertiliser business called WesCEF which is producing strong profit in the current inflation environment. In the future, it could make good money from the lithium project called Mt Holland.

Wesfarmers’ recent acquisition called Australian Pharmaceutical Industries (API) gives the company exposure to the healthcare sector, which is quite defensive.

Commsec numbers suggest that the FY23 Wesfarmers dividend could grow by 3.3% to $1.86 per share. This would be a grossed-up dividend yield of 5.5%.

Coles Group Ltd (ASX: COL)

Coles is one of the largest supermarket businesses in Australia. But, it also has the Coles Express service station business and the liquor businesses First Choice Liquor, Liquorland and Vintage Cellars.

The ASX dividend share has seen a lot of volatility since the start of COVID-19. Coles is currently seeing elevated inflation of food prices. This can be a boost for revenue and earnings if margins stay the same or improve. But, Coles is also dealing with cost inflation for wages, rent and the supply chain.

We all need to eat food, so I think that supermarket earnings are more resilient than what some investors may give it credit for.

Commsec numbers suggest that Coles could pay an annual dividend per share of 65 cents, translating into a grossed-up dividend yield of 5.5%.

The post Why I think these are 3 of the safest high-yield dividend shares on the ASX right now appeared first on The Motley Fool Australia.

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More reading

• Will the Coles share price deliver for investors this Christmas?
• Should Wesfarmers shares be under your Christmas tree in December?
• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• Wondering how the Coles share price fared over November? Here’s how
• Is this a red flag for Wesfarmers shares?

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 positions in and has recommended Coles Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Propel Funeral Partners. 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 Fortescue Metals Group Ltd (ASX: FMG) share price is down 0.38% in lunchtime trading, fetching $20.95 per share.

It’s a bit of a tough day across the market, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 0.22% at this same time.

The iron ore miner likely attracted the attention of ESG-focused investors today after announcing it has opened Western Australia’s first green hydrogen refuelling station. But that hasn’t kept the Fortescue share price from dipping into the red.

Fortescue share price dips despite green hydrogen milestone

The green hydrogen refuelling station is located at ATCO Australia’s Clean Energy Innovation Hub in Perth. It was officially opened by Western Australia premier Mark McGowan and minister for hydrogen industry Alannah MacTiernan.

If you’re wondering why it’s labelled ‘green hydrogen’, that’s because the hydrogen is produced using renewable electricity through electrolysis. The station is intended for hydrogen fuel cell vehicles, with commercially available combustion hydrogen vehicles still likely a number of years off.

Fortescue reported that the H2 Refueller can refuel a Toyota Mirai with green hydrogen in less than five minutes and support up to 500 kilometres of emissions-free travel.

Commenting on the milestone, Fortescue CEO Andrew Forrest said:

Green hydrogen is a practical, implementable solution that we all need to help combat global warming and our mission at Fortescue is to make this renewable alternative to fossil fuels available at a global scale and at competitive cost. 

Forrest noted that this represents just the first small step, yet it’s one “worth celebrating”.

“We are very proud of this project which is the embryonic start of a huge new industry across the globe. While this may be a small drop in the ocean, it is nonetheless worth celebrating,” he said.

ATCO Australia country chair Patrick Creaghan added, “The milestone showcases a real testament of industry and government partnering to kickstart a hydrogen economy.”

How has Fortescue been tracking?

The Fortescue share price is up 21% over the past 12 months. That far outpaces the 1% gains posted by the S&P/ASX 200 Index (ASX: XJO) over the full year.

The post Fortescue share price dips despite green hydrogen milestone ‘worth celebrating’ appeared first on The Motley Fool Australia.

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More reading

• I’d aim for a million by buying just a few ASX shares
• Up 30% in a month, is it time to cash in some chips on Fortescue shares?
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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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The BHP Group Ltd (ASX: BHP) share price had a top run in November, but can its dream run continue?

BHP shares soared 21.84% last month from $37.36 a share to $45.52 a share. At the time of writing, the BHP share price is holding its own for a 0.36% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.21% in the red in lunchtime trading.

Let’s check what might be in store for the BHP share price.

BHP share price gains

BHP is a major ASX iron ore producer. Higher iron ore prices in November appeared to boost the BHP share price.

The iron ore price soared 27% during the month from US$81 per tonne at the start of November to US$103 a tonne at the end. Iron ore contributed 53.4% of BHP’s underlying EBITDA in the 2022 financial year.

Also in November, BHP submitted an improved acquisition offer for OZ Minerals Limited (ASX: OZL) for a cash price of $28.25 a share. The OZ Minerals board advised it intends to recommend BHP’s proposal.

Commenting on the deal, BHP CEO Mike Henry said at the time:

BHP’s proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

What’s ahead?

Broker outlook on the BHP share price is mixed. For example, Morgans retained an add rating and placed a $47 price target on BHP’s shares in November. Morgans also predicted a fully franked dividend of $2.96 a share for BHP in FY 2023. Analysts said:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers.

On the flip side, analysts at Goldman Sachs downgraded BHP’s share price to neutral with a price target of $42.90. Goldman was concerned about BHP’s valuation and production growth versus its peers in the sector.

Meantime, Bell Direct market analyst Grady Wulff recently named BHP as a stock he would want to hold if the “market closed tomorrow for four years”. He told Motley Fool:

I think for us it’s BHP because it’s diversifying into the battery metal space as we’ve just recently seen through its acquisition of OZ Minerals for $9.6 billion. 

This is really important to note, because to date, they’re obviously one of the biggest miners in the world, but they hadn’t diversified into the way forward, which is decarbonisation, greener future, greener energy — and now they’ve got that under their belt. 

Looking at the iron ore price, Citi appears optimistic on iron ore in the short term amid China’s COVID policy shift. Analysts said:

Policy tailwinds are likely to remain in favour of the bulls in the short term. A perceived U-turn in China’s Covid policy and the country’s efforts to shore up the beleaguered property sector drove an iron ore price rally during November.

We expect further improvement in reopening sentiment. However, we maintain our view that the physical fundamentals will remain weak in the near term.

BHP share price snapshot

The BHP share price has surged 32% in the last year, while it has soared more than 26% year to date.

For perspective, the ASX 200 has slipped around 0.5% in the last year.

BHP has a market capitalisation of more than $236 billion based on the current share price.

The post Up 20% in a month, can the BHP share price continue it’s run in December? appeared first on The Motley Fool Australia.

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• Why has the BHP share price bolted out the gates on Monday?
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• The iron ore price just posted its biggest-ever monthly gain. What’s going on?
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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 Coles Group Ltd (ASX: COL) share price had a relatively strong month in November.

During the period, the supermarket giant’s shares rose 3.8%.

While this was softer than the 6.1% gain recorded by the S&P/ASX 200 Index (ASX: XJO), it is worth noting that the materials sector played a key role in that gain.

When judged against the performance of the S&P/ASX 200 Cons Staples index, you’ll see that the Coles share price actually outperformed ever so slightly during the month.

Can the Coles share price keep rising in December?

While the Coles share price has started the new month in a subdued fashion, one leading broker believes it could be onwards and upwards from here.

According to a recent note out of Morgans, its analysts have put an add rating and $19.50 price target on the company’s shares.

So, with Coles’ shares currently fetching $16.90, this implies potential upside of 15.4% for investors over the next 12 months.

Why is Morgans bullish?

Morgans has been pleased with Coles’ performance in FY 2023, noting that its first quarter sales were ahead of expectations. It commented:

Coles Group’s 1Q23 sales trading update reflected the cycling of COVID lockdowns in the pcp with growth overall that was slightly above our expectations. LFL sales growth: Supermarkets +2.1% (vs MorgansF -1.2%); Liquor -4.1% (vs MorgansF -3.5%); and Express (c-store) +9.0% (vs MorgansF +8.5%).

It was also pleased to see that management said “sales, volumes and transactions strengthened through 1Q23 and has continued into 2Q23.”

Looking further ahead, the broker believes that Coles is well-placed to benefit from consumers looking for value options as the cost of living increases. It explained:

[W]e continue to see COL as offering good value with the company’s solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

All in all, this could make the Coles share price one to watch carefully in December.

The post Will the Coles share price deliver for investors this Christmas? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• Wondering how the Coles share price fared over November? Here’s how
• Boost your retirement income with these ASX dividend shares: analysts
• Broker says these top ASX 200 dividend shares are buys
• Battle of the dividends: Do Woolworths shares pay more than Coles?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles 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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