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The Core Lithium Ltd (ASX: CXO) share price has joined today’s broader market rebound and is back in the green.

In early afternoon trade, the ASX lithium stock is up 1.15% at $1.325 per share, likely buoyed by the latest inflation report from the ABS.

Yet the stock has a lot more ground to make up than that.

The Core Lithium share price remains down 30% over the past 12 trading days, since closing at $1.87 per share on 14 November.

So, what’s going on?

Why is the ASX 200 lithium darling under pressure?

The Core Lithium share price has been battered recently amid investor concerns that lithium prices are due for a correction.

Indeed, the price of the battery critical mineral hit record prices earlier in November and has edged lower since.

A lot of the pressure stems from China.

China is the world’s top producer of EVs and has a massive appetite for lithium

However, the nation’s soaring COVID cases, the government’s zero-COVID policies, and the recent spate of protests against ongoing lockdowns have given investors in lithium stocks the jitters, throwing up headwinds for the Core Lithium share price.

Atop the virus issues, news also hit the wires that Chinese battery manufacturers have “overproduced” with forecasts that they’ll exceed Chinese EV makers’ demand by threefold by 2025.

Then there’s the slowdown in Chinese EV sales. While 2022 saw a huge lift in EV sales, new EV registrations fell 20% in October compared to September. This comes as the Chinese government prepares to axe subsidies for EVs next year.

The Core Lithium share price also could be getting hit as a number of big-name brokers and fund managers reduce their exposure to lithium stocks more broadly, with some issuing sell recommendations for Core Lithium shares specifically.

Both Credit Suisse and Goldman Sachs recently released fairly bearish near-term outlooks for lithium.

And Morgan Stanley reported its institutional desk could be looking at selling lithium shares. “Given the incredible performance in lithium, our insto desk is looking for selling, and the catalyst may come from the Chinese protests,” the broker said.

Joining the selling camp is Jarden Securities. Jarden, as The Australian reported this morning, has just slapped a ‘sell’ rating on Core Lithium.

Core Lithium share price snapshot

Despite the rough patch over the past 12 trading days, the Core Lithium share price remains up an impressive 131% over the past 12 months. That compares to a flat full-year performance posted by the ASX 200.

The post Why has the Core Lithium share price crashed 30% in 12 days? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is China responsible for decimating your ASX 200 lithium shares?
• Why did the Sayona Mining share price have a tough run today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Core Lithium share price in the red today?

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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ASX technology shares have had a horror year, with the S&P ASX All Technology Index (ASX: XTX) down by more than 30% in 2022. This compares to the S&P/ASX 200 Index (ASX: XJO) which is down 4.1%.

However, the tech index did manage to record a small rise of 2.4% over the month of November.

As always, there were outliers. This month they were led by NextDC Ltd (ASX: NXT) shares, up 12.9%.

This is according to data provided by S&P Global Market Intelligence, canvassing ASX 200 tech shares with a minimum market capitalisation of $100 million over the month of November.

Here’s why NextDC shares and the other two top performers bounced this month.

Why these ASX 200 tech shares led the way in November

NextDC Ltd (ASX: NXT)

The data centre operator got a bounce following its annual general meeting on 18 November. As my Fool colleague James reported, NextDC revealed its sales pipeline had hit a record size. It expects this to convert into material new contracts over the next six to 12 months.

Goldman Sachs has a conviction buy rating on NextDC and a $14.30 share price target. The broker said:

NXT noted continued strong growth in enterprise, network and partner pipelines driving healthy margin, with revenue growth assisted through price escalation & power pass-through.

At the time of writing, the NextDC share price is $9.83, down 0.7% today.

TechnologyOne Ltd (ASX: TNE)

November’s next best-performing ASX 200 tech share is TechnologyOne with a 9.64% share price bump. This was largely due to its full-year FY22 results announcement on 22 November. During the 12 months ending 30 September, TechnologyOne achieved record profit and revenue for the thirteenth consecutive year. As we reported, TechnologyOne achieved an 18% increase in revenue to $369.4 million. It got a 15% boost to profit before tax at $112.3 million, which was at the top end of its guidance. The company also announced a supersized dividend.

Morgans analyst Nick Harris recommends buying any dip in the TechnologyOne share price. Harris said:

TechnologyOne is one of the highest quality stocks on the ASX and we continue to rate the outlook. We would see any weakness as a buying opportunity.

At the time of writing, the TechnologyOne share price is flat at $13.53.

BrainChip Holdings Ltd (ASX: BRN)

The third best-performing ASX 200 tech share in November is BrainChip. The artificial intelligence (AI) start-up did not release any price-sensitive news in November, so its 9.23% share price rise is hard to explain. It’s possible that investors were buying the dip after the BrainChip share price lost a quarter of its value in October. It also lifted when United States inflation data came in better than expected this month.

My colleague James gives investors five reasons to avoid BrainChip shares at all costs. He says:

I’ve been warning investors off BrainChip shares for a while now. If you stayed away, then you’ve managed to save yourself from watching your wealth go up in smoke as the semiconductor company’s shares dropped from a high of $2.34 to 62 cents today.

At the time of writing, the BrainChip share price is up 3.1% to 73 cents.

ASX 200 tech shares up 9.5% since October

The tide seemed to turn for the All Tech Index in early October, with a 9.5% increase since then, according to Google Finance data.

It’s been a bad year for ASX tech investors, mostly due to rising interest rates. This has caused concern because Australian tech companies are mostly young in their development and therefore have higher debt.

The post Best of a bad bunch: The 3 best-performing ASX 200 tech shares in November appeared first on The Motley Fool Australia.

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More reading

• Why did the BrainChip share price slide 5% on Monday?
• 3 ASX 200 shares that announced supersized dividends in November
• 3 ASX 200 shares on the coveted Goldman Sachs conviction list
• Here are the top 10 ASX 200 shares today
• 5 of the craziest things making news on the ASX this week

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended TechnologyOne Limited. 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 Telstra Group Ltd (ASX: TLS) share price made only a modest gain in November.

Shares of the telco giant opened for $3.90 each on 1 November and currently trade for $3.955 apiece, marking a 1.4% gain at the time of writing.

The S&P/ASX 200 Telecommunication Services Index (ASX: XTJ) performed slightly better over the same period, gaining 1.76%.

Broader still, the S&P/ASX 200 Index (ASX: XJO) more than tripled Telstra’s gains in November, moving 6.1% higher at the time of writing.

So let’s recap Telstra’s events for the month to see if we can piece together the reason for its lukewarm performance.

What happened for Telstra in November?

Most recently, the Telstra share price received some positive coverage in a report released by a global asset manager. Telstra made it into Janus Henderson’s 36th edition of its global dividend index, which noted the share’s substantial dividend increase in the third quarter of this year.

My Fool colleague Monica noted that Telstra’s dividend increased by 50% during the quarter to 7.5 cents per share, fully franked. That was up from 5 cents per share in FY2021.

During November, Telstra also received praise from various brokers and fund managers.

Perpetual Asset Management said that Telstra’s defensive revenue attributes made it an “appealing proposition”. Meantime, Morgans gave the share and add rating with a price target of $4.60. That was an upside of 16.16% at the time.

Morgans also noted its belief the market has not yet priced in Telstra’s InfraCo assets and this could unlock further value for investors moving forward.

ACMA criticises Telstra’s credit management processes

Despite the generally bullish sentiment that surrounded the Telstra share in November, some events transpired which could have dampened investor optimism.

The Australian Communications and Media Authority (ACMA) said Telstra must address its credit management processes or potentially face harsh penalties. As part of an ACMA investigation, Telstra admitted it mistakenly took action against some of its customers who were under payment arrangements due to financial hardship. This is a breach of ACMA’s compliance standards.

While Telstra emerged from ACMA’s investigation relatively unscathed, it was not so lucky with defending a court case against the Australian Competition and Consumer Commission (ACCC).

Telstra gets fined $15 million

The ACCC said that Telstra, along with TPG Telecom Ltd (ASX: TPG) and Optus, misled consumers about their fibre-to-the-node plans. It said the telcos did not have “adequate systems, processes and policies” to notify their customers if the advertised speeds of those plans could not be reached. This was something the telcos agreed to do.

Telstra was penalised $15 million for their infringements, while TPG was fined $5 million and Optus $13.5 million.

Finally, Telstra announced the churn of one of its key leaders on 14 November. Telstra’s now former group executive for transformation, communications and people Alex Badenoch left the company after serving an “instrumental” role in Telstra’s T22 strategy and navigating the COVID-19 pandemic.

The post Why did Telstra have a mediocre performance in November? appeared first on The Motley Fool Australia.

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More reading

• Is a stock market crash coming for us in 2023?
• ASX 200 lifts on lower-than-forecast inflation data
• Woolworths shares: To buy or not to buy?
• Almost ready to retire? I’d buy ASX dividend shares now to capitalise on a stock market recovery
• Why is the Rio Tinto share price marching higher again today?

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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 market may be pushing higher today but its decent gain is nothing compared to those being recorded by the ASX mining shares listed below.

Here’s why these shares are smashing the market today:

GreenX Metals Ltd (ASX: GRX)

The GreenX Metals share price is up 38% to 49.5 cents. This is despite there being no news out of the mineral exploration company today. However, it is worth noting that yesterday the company revealed that the hearing for the international arbitration claims against the Republic of Poland has now completed. GreenX Metals is seeking damages of up to $1.3 billion. These have been claimed in relation to the assessed value of GreenX’s lost profits and damages from both the Jan Karski and Debiensko projects.

Stavely Minerals Ltd (ASX: SVY)

The Stavely Minerals share price is up almost 22% to 22.5 cents. Investors have been buying this mineral exploration company’s shares since the release of a drilling update on Tuesday. That update revealed that a significant new porphyry target has been established immediately south-east of the Cayley Lode deposit following a recent review of data and drill core. Stavely Minerals is now planning to drill a wide-spaced panel of six diamond drill-holes to extend the Cayley Lode down-plunge. This is with the objective of confirming further high-grade copper-gold mineralisation hosted by the causative porphyry.

Southern Cross Gold Ltd (ASX: SXG)

The Southern Cross Gold share price is up 21% to 85.2 cents on no news. In fact, there hasn’t been any news out of this gold explorer for over a week. However, that previous announcement revealed that the company has raised $16 million to fund the exploration of the Sunday Creek project in Victoria. This follows the recent “spectacularly wide intersection of gold-antimony mineralisation grading.” Investors appear excited about what may lay ahead for Southern Cross Gold.

The post 3 ASX mining shares leaping over 20% on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Is Apple a must-own US stock in 2023?
• Is a stock market crash coming for us in 2023?
• ASX 200 lifts on lower-than-forecast inflation data
• Woolworths shares: To buy or not to buy?
• Positive view on Macquarie shares ‘would seem obvious’: fundie

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Every so often, a company comes along and has so much success that many investors end up retiring millionaires by simply going along for the ride. Apple (NASDAQ: AAPL) is one of those companies. The tech giant has seen success matched by very few in history, and it has been rightfully earned. After all, it has world-class products, top-tier brand loyalty, and a bank account that other companies can only dream of having.

Past results are great, but a company’s future outlook should be driving investing decisions. And although it’s the largest public company in the world with a market cap of over $2.4 trillion — more than Amazon, Berkshire Hathaway, and Tesla combined — there’s still room for noticeable growth for Apple.

Here’s why it’s a must-own for 2023.

Apple is just getting started in the finance industry

Apple first began its journey into the financial services space in 2014 with the announcement of Apple Pay, which allowed people to pay from their iPhones. However, this move was seen as more about convenience than Apple making its way into the space. Then came 2019 and the announcement of the Apple Card — a sign Apple was clearly taking a step in that direction.

With the Apple Card, Apple relied on Goldman Sachs to approve applications and fund the loans, which is why when they announced Apple Pay Later — their move into the buy now, pay later space — it was no longer a mystery whether Apple was serious about becoming a player in the financial services industry. Apple Pay Later is the first time Apple is underwriting and funding loans by itself.

Apple has an advantage that no other financial institution can duplicate: Its iPhone is in more than 100 million hands in the US. Between the iPhone’s world-class technology and the convenience it can provide, the company’s play into the financial services space is bound to test even the most formidable of financial technology (fintech) competitors.

The iPhone still reigns supreme

The iPhone is arguably the greatest consumer product ever made; it has quite literally changed the world. Apple reportedly spent over $150 million developing the original iPhone, and to say they’ve reaped the returns on their investments would be the understatement of the century. In its 2022 fiscal year, Apple brought in $394.3 billion in revenue — roughly $28.5 billion more than it did in 2021. The iPhone accounted for more than half of that, bringing in $205.4 billion.

The fact that the iPhone managed to increase its sales in a year defined by inflation not seen in decades is very telling of its power. In fact, this year was the first time ever that more people in the US used an iPhone than an Android phone. That’s a remarkable milestone when you consider the iPhone’s market share growth and much higher price point.

As long as the iPhone is padding Apple’s bottom line, there’s no reason to believe it won’t continue to be one of the biggest cash cows you’ll see from any business in any industry.

Apple is ramping up its research and development

Apple has historically spent a smaller portion of its revenue on research and development (R&D) than its other Big Tech competitors like Alphabet and Amazon. In 2020, here’s how much the three companies spent on R&D and the percentage that was of their net sales:

• Alphabet: $27.6 billion (15%)
• Amazon: $42.7 billion (11%)
• Apple: $18.8 billion (7%)

In 2021, Apple’s R&D budget increased to $21.9 billion, and in 2022, it jumped up to $26.2 billion — a company record. Although this still represents a relatively low percentage of Apple’s revenue, it’s a sign the company isn’t getting complacent and is putting more emphasis on taking advantage of potential growth opportunities.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Apple a must-own US stock in 2023? appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy Amazon stock right now
• Down 17%, is Apple stock a buy now
• Should you back up the truck and load up on Amazon stock?
• Will the Nasdaq or S&P 500 have a better 2023?
• What Warren Buffett can teach us about handling bear markets

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Stefon Walters has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Goldman Sachs. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Is a stock market crash coming for us in 2023?

It’s no secret that 2022 has been a rough-and-tumble year for ASX shares and the share market. As we sit on the cusp of December, the S&P/ASX 200 Index (ASX: XJO) remains down by 4.34% year to date in 2022 thus far, with many swings and roundabouts along the way.

Much of these market gyrations have been caused by central banks and inflation. As inflation around the world rose to decades-high levels in some cases, central banks like our own Reserve Bank of Australia (RBA) have been aggressively jacking up interest rates this year.

Rising rates are hugely detrimental to share markets, seeing as they reduce the appeal of having money in ‘risky‘ assets like shares. That’s partly why we have seen such temperamental markets this year.

But could this be just a warning of what’s to come in 2023? Could we really see a stock market crash next year?

That’s a prospect that will probably terrify at least some investors out there. Stock market crashes can be scary, brutal events, and wealth-destroying ones at that if approached in the wrong way.

And it’s one that Deutsche Bank is predicting will turn out to be accurate.

Investment bank predicts stock market crash for 2023?

According to reporting from the ABC this week, Deutsche Bank is warning that central banks’ efforts to reduce inflation will “come at a significant global cost”. The investment bank warns that “it will not be possible to [reduce inflation] without at least moderate economic downturns in the US and Europe, and significant increases in unemployment”.

The bank predicts that a stock market crash is almost certain to accompany these downturns:

We see major stock markets plunging 25 per cent from levels somewhat above today’s when the US recession hits, but then recovering fully by year-end 2023, assuming the recession lasts only several quarters.

A stock market crash is conventionally defined as a drop in a share market of 20% or greater, usually in a short space of time. So this seems to be what Deutsche Bank is predicting for 2023.

So should we all sell out now and run for the hills?

Well, a few points. Firstly, no one knows what the markets will do tomorrow, let alone next month or next year. Not you, I, Warren Buffett or Deutsche Bank.

So while it’s possible Deutsche Bank’s predictions come true, it’s also possible that they are wildly off. Predictions of a market crash are always a dime a dozen in the world of investing, and occur regularly, despite what the share market is doing. Very few turn out to be piercingly accurate.

Buffett loves a bargain, so should you

But even if there is a share market pullback or crash next year, it could be a red-hot opportunity for savvy investors. Stock market crashes can be scary, confidence-sapping, and traumatic. But they also represent a rare opportunity to pick up some of the best shares on the market at a bargain basement price.

When there is widespread fear in the markets, investors tend to throw everything out the window, not just the worst-hit poor performers. That’s why investors like Warren Buffett love a crash. It gives them the chance to make some life-changing investments.

Remember the stock market crash of 2020? That saw BHP Group Ltd (ASX: BHP) drop to under $27 a share. Today, it’s over $45.

Commonwealth Bank of Australia (ASX: CBA) got down to $57 or so in March 2020. Now it’s back over $108 a share today.

So remember that if there is indeed a crash next year. It could be the best thing that has ever happened to your portfolio, if you let it.

The post Is a stock market crash coming for us in 2023? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lifts on lower-than-forecast inflation data
• Woolworths shares: To buy or not to buy?
• Almost ready to retire? I’d buy ASX dividend shares now to capitalise on a stock market recovery
• Why is the Rio Tinto share price marching higher again today?
• Why did the CBA share price jump to a 52-week high in November?

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 S&P/ASX 200 Index (ASX: XJO) is back in positive territory in early afternoon trade.

The benchmark index was 0.4% lower this morning but has reversed that trend and is currently up 0.2% to 7,270 points.

The ASX 200 looks to have received this boost following the latest inflation data just released by the Australian Bureau of Statistics (ABS).

Why is the ASX 200 lifting on the ABS report?

Inflation in Australia remains high.

Indeed, the ABS reported that the monthly Consumer Price Index (CPI) indicator increased by 6.9% in the year to October 2022.

But the ASX 200 is rallying as this came in lower than the prior month, indicating that the series of interest rate increases from the Reserve Bank of Australia (RBA) may be having an impact.

Should inflation begin to slow significantly, investors can expect fewer rate rises from the central bank. And a more dovish RBA spells good news for equities.

Commenting on the latest data, Michelle Marquardt, ABS head of prices statistics, said:

This month’s annual movement of 6.9% is lower than the 7.3% movement in September, however CPI inflation remains high… High levels of building construction activity and ongoing shortages of labour and materials contributed to the rise in new dwellings.

The ABS reported that the biggest contributors to inflation in October were new dwellings (+20.4%), automotive fuel (+11.8%) and fruit and vegetables (+9.4%).

ASX tech shares rallying

ASX tech shares have seen some of the biggest reversals since the intraday release of the ABS inflation data.

Tech shares are particularly vulnerable to higher interest rates, as many of these companies are priced with future earnings in mind. And when interest rates ratchet higher, so too does the present cost of investing in those future earnings.

While the ASX 200 leapt from a 0.4% loss to a 0.2% gain on the inflation report, the S&P/ASX All Technology Index (ASX: XTX) went from a 0.9% loss to a 0.3% gain.

The post ASX 200 lifts on lower-than-forecast inflation data appeared first on The Motley Fool Australia.

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More reading

• Is a stock market crash coming for us in 2023?
• Woolworths shares: To buy or not to buy?
• Almost ready to retire? I’d buy ASX dividend shares now to capitalise on a stock market recovery
• Why is the Rio Tinto share price marching higher again today?
• Why this ASX 200 dividend share could be an income gold mine hiding in plain sight

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 Woolworths Group Ltd (ASX: WOW) share price has been a rather disappointing ASX 200 share over 2022 thus far. Woolworths shares have spent the year losing value. At the start of 2022, this supermarket giant was going for almost $38.50 a share.

But today, Woolies shares are asking just $34.52 at the time of writing, down a nasty 1.43% for the day thus far. That puts Woolies’ year-to-date losses at a painful 10.35%. That’s well over the broader S&P/ASX 200 Index (ASX: XJO)’s loss of 4.34%.

This might be a bit of a letdown for many investors. After all, Woolworths, as an ASX 200 consumer staples share, is supposed to be an inflation-resistant investment. Not to mention one that holds up well during times of economic uncertainty – a scenario that accurately describes this calendar year.

Woolworths shares: Inflation killer or not?

A possible explanation for this disappointing performance comes from Firetrail Investments’ Blake Henricks. As we covered yesterday, Henricks believes Woolworths’ reputation as an inflation hedge is overcooked. Here’s some of what he said:

It’s very stable, it’s very good, but our view is that supermarkets aren’t going to be huge winners from inflation. To date, that’s been proven to be true because they’ve struggled to pass through some of those costs and we haven’t seen big earnings upgrades.

And the multiples are fairly extended because people are gravitating towards those defensive sectors. So if there’s one I’d call out, it’d be supermarkets as a controversial loser from inflation.

So are Woolworths shares worth buying today in light of this rather poor performance over 2022?

Well, one broker still thinks so. As my Fool colleague James went through earlier this month, ASX broker Goldman Sachs is so bullish on Woolworths shares that it gave the grocer a conviction buy rating. It also slapped a 12-month share price target of $41.70 on the company. That implies a potential upside of almost 21% from today’s pricing.

Goldman acknowledges that Woolies had a soft quarter last month. But it still remains confident that the company has “a clear growth pathway to deliver ~3% sales and ~9% [net profit after tax growth]” until at least FY2025.

So a mixed review for Woolies shares today from these two ASX experts. Only time will tell who ends up being right.

In the meantime, the current Woolworths share price gives this ASX 200 blue chip share a dividend yield of 2.66%.

The post Woolworths shares: To buy or not to buy? appeared first on The Motley Fool Australia.

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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 Macquarie Group Ltd (ASX: MQG) share price is up slightly at $178.44 in lunchtime trading, 0.25% above yesterday’s closing price. Over the year to date, Macquarie shares are down 16%.

Not to worry, says this fund manager. He reckons Macquarie is an “obvious” pick for investors due to the high quality of its business. Plus he thinks the Macquarie share price will outperform in the medium term.

Green energy infrastructure to boost Macquarie share price

Australian Eagle Asset Management chief investment officer Sean Sequeira said Macquarie is a quality business that the fund has held since 2013.

He writes on Livewire:

The positive view on the company would seem obvious…

In terms of the Australian Eagle process, we try to determine, not just the quality of the company, but the changes that are evidently taking place that may drive an improvement in earnings growth and/or quality of those earnings.

Sequeira said this is the second time Australian Eagle has taken a position in Macquarie shares. Last time they held Macquarie, they sold it in 2007 before the global financial crisis struck.

At its highest point in 2007, the Macquarie share price was trading at about $95. This followed a phenomenal 460% increase since listing on the ASX in 1999.

Then in 2013, Australian Eagle bought back in when Macquarie sold its Sydney Airport holdings “to recycle this investment into less capital-intensive but higher-returning assets”.

The fund liked this pivot by Macquarie management, saying:

This redeployment of capital confirmed management’s willingness and ability to meaningfully adjust the company’s portfolio into higher returning exposures.

The change in corporate focus and subsequent improving Return on Equity (RoE) metrics provided us with the improvement in quality that we needed to see for the stock to command a position in our portfolio.

Fund has higher conviction in Macquarie shares today

Sequeira said the fund has a higher conviction and investment in Macquarie shares this time around.

A big factor giving them confidence in Macquarie shares was the 2.3 billion pound acquisition of the United Kingdom’s Green Investment Bank Limited in 2017.

At the time, Green Investment Bank was a leading investor in green infrastructure in the UK and Europe.

Sequeira said the acquisition was “likely to support an acceleration in earnings growth”.

Today, he reckons Macquarie is “the market leader in infrastructure projects for both financial advice and as a fund manager”.

Macquarie FUM could grow by 20%

Sequeira points to Macquarie’s 1H FY23 results announced last month. The numbers showed $30 billion in committed funds management equity waiting to be spent.

Sequeira said:

This means Macquarie’s Real Asset FUM has the potential to grow by 20 per cent as deals are consummated.

This is further evidence that the structural nature of energy transition infrastructure spending supported by international government policy is expected to support a stronger medium term earnings growth profile.

He believes these tailwinds should result in medium-term outperformance for the Macquarie share price.

The post Positive view on Macquarie shares ‘would seem obvious’: fundie appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Macquarie Group Limited. 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 Macquarie Group Limited. 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 down 0.92% at lunchtime on Wednesday, at $36.49 per share.

It marks a partial recovery from its low of $35.71 this morning, a 3% drop on yesterday’s closing price.

Unless there’s an afternoon reversal in the selling trend, today will mark the fifth consecutive day of losses for the S&P/ASX 200 Index (ASX: XJO) oil and gas stock darling. All told, that’s left the Woodside down almost 6% since the closing bell on Tuesday, 22 November.

So, what’s going on?

What are ASX 200 investors considering?

The Woodside share price has been hit on two fronts over the past week.

First, there’s the oil price.

Tuesday last week was the last time the Woodside share price closed in the green. At the time, Brent crude oil was trading for US$88.36 per barrel.

But oil prices have come under pressure over the week. Today that same barrel of oil is worth US$83.03, down 6%.

The fall has been largely driven by concerns that the spike in COVID infections in China, combined with the nation’s strict COVID zero lockdown policies, will see a fall in energy demand from the world’s most populous nation.

The second headwind hitting the Woodside share price over the past week looks to be the release of the company’s FY23 guidance yesterday. This marks the first full year of production since its petroleum transaction with BHP Group Ltd (ASX: BHP).

Woodside forecast production of 180-190 million barrels of oil equivalent (MMboe) for the full financial year, which came in lower than consensus expectations.

And as my Fool colleague James Mickleboro pointed out:

Woodside recently delivered third quarter production of 51.2 MMboe, which annualises to 204.8 MMboe. So, investors could be a touch underwhelmed with FY 2023’s production guidance

Woodside share price snapshot

Despite the past five days of selling, the Woodside share price remains up an impressive 68% over the past 12 months. That compares to a flat full-year performance by the ASX 200.

The post The Woodside share price has dropped for 5 days in a row. What’s going on? 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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