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A major ASX 200 company has just been selected as preferred partner for a green hydrogen project, and it’s not Fortescue Metals Group Limited (ASX: FMG).

Woodside Energy Group Ltd (ASX: WDS) has been chosen to move forward to the development stage on this multi-billion dollar project.

Fortescue shares are flat at the time of writing and fetching $19.04. Woodside shares are down 2% today and currently trading at $36.21. For perspective, the S&P/ASX 200 (ASX: XJO) is currently down 0.01%.

Fortescue misses out to Woodside

Meridian Energy Ltd (NZE: MEL), with the support of the Ngāi Tahu people, has chosen Woodside for the development stage of the Southern Green Hydrogen project in New Zealand.

A final investment decision on the project will be made after the development stage. The green hydrogen plant is set to cost about $4.5 billion dollars.

Fortescue, through its subsidiary Fortescue Future Industries (FFI), was on the shortlist of development partners for the project, Stuff NZ reported in February.

Fortescue has a plan to achieve carbon neutrality by 2030, and sees green hydrogen as a key to this goal.

However, Woodside has been chosen after a competitive bidding process. Commenting on the news, Woodside CEO Meg O’Neill said:

We are pleased to have been selected as the preferred partner for the proposed SGH project. Woodside brings the technical skill and operations experience to develop this project at pace to meet customer demand for hydrogen, which we expect to grow in the energy transition.

We look forward to working with Meridian and Mitsui to potentially offer this important customer solution both domestically and globally.

Mitsui & Co., Ltd (TYO: 8031) is also in talks to join the project to develop the market for ammonia offtake. Mitsui has the largest share of ammonia imports into Japan.

Woodside, Meridian and Mitsui will look to commence front-end engineering design for the project, subject to commercial arrangements.

Share price snapshot

The Woodside share price has soared 70% in the past year, while Fortescue shares have climbed 8%.

For perspective, the ASX 200 has lost 0.23% in the last year.

The post Did Fortescue just lose out on this multi-billion dollar green hydrogen project? appeared first on The Motley Fool Australia.

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More reading

• Woodside share price tumbles 5% on FY23 guidance
• Up 30% in a month, why the Fortescue share price could have further to run: fundie
• Why is the Woodside share price tanking today?
• Where will Fortescue shares be in 5 years?
• Would this side of Woodside put you off buying its shares?

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 Lake Resources N.L. (ASX: LKE) share price is trading lower on Tuesday afternoon.

At the time of writing, the lithium developer’s shares are down 2% to 92 cents.

This means the Lake Resources share price has now fallen almost 13% since this time last week.

Why is the Lake Resources share price falling?

The weakness in the Lake Resources share price on Tuesday could have been driven by a flurry of tweets from a short seller prior to the company’s annual general meeting this morning.

Research firm J Capital is currently shorting the lithium share partly on the belief that Lake’s DLE technology isn’t going to work as planned and will “still use large amounts of water and produce toxic waste.”

Its analysts also recently alleged that an announcement regarding potential funding from the UK Export Finance (UKEF) was not all it seemed. The research firm commented:

We made a Freedom of Information Act (FOIA) application to the UK government to verify Lake Resources’ (Lake) claim that it has “confirmed” funding from UK Export Finance (UKEF). These documents seem to reveal that Lake has made statements that are incorrect about the expression of interest (EOI) from UKEF. UKEF says that Lake is just at the start of the application process.

Last night, J Capital posed a series of questions for Lake to answer at the annual general meeting.

The majority related to doubts over the DLE demonstration plant’s performance, the UKEF funding, and proposed offtake agreements with Hanwa and Ford. In respect to the latter, its analysts highlight that Hanwa and Ford no longer feature in presentations. They also don’t feature in today’s annual general meeting presentation.

No response

Lake’s chair, Stuart Crown, didn’t acknowledge J Capital’s tweets in his annual general meeting address. He just focused on the future and reiterated his belief that the future is bright for Lake. Crow commented:

The year ahead, whilst challenging, I suspect will be the company’s most formative year yet as we move toward financing and construction phase of the Kachi project and continued development of other projects. I look to the coming year with great anticipation and pride as a founding shareholder as your company strives to become one of the world’s significant suppliers of high purity lithium products.

The post Why is the Lake Resources share price heading down stream today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Core Lithium share price in the red today?
• Why are ASX lithium shares getting slammed again on Monday?
• Here are the 10 most shorted ASX shares
• Why has the Lake Resources share price tumbled 11% in 10 days?
• 5 ASX lithium shares to buy: brokers

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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S&P/ASX 200 Index (ASX: XJO) lithium shares have taken a beating over the past week.

Here’s how the big lithium stocks have tracked since last Wednesday’s opening bell:

• Core Lithium Ltd (ASX: CXO) shares are down 12.6%
• Allkem Ltd (ASX: AKE) shares are down 10.5%
• Pilbara Minerals Ltd (ASX: PLS) shares are down 9.6%
• IGO Ltd (ASX: IGO) shares are down 11.5%

That sees the ASX 200 lithium shares trailing far behind the benchmark index, which has slipped a more modest 0.3% over the week.

So, what’s going on?

Is China responsible for pressuring ASX 200 lithium shares?

There are three broad reasons analysts are pointing to China for dampening the outlook for lithium prices and hence pressuring ASX 200 lithium shares.

First, Chinese authorities are continuing to enforce the nation’s COVID zero policies. And with new infections in China soaring to record levels, investors are concerned a new wave of lockdowns could slow economic growth in the world’s most populous nation.

Second, a growing number of Chinese citizens are fed up with what are now years of restrictions on their movements. And in recent days, unprecedented protests have erupted across a number of cities.

With China counting as the world’s largest EV manufacturer and a voracious consumer of lithium, this has dimmed the shorter-term outlook for lithium demand and seen investors selling some of their ASX 200 lithium shares.

Commenting on that impact, Colin Hamilton, managing director for commodities research at BMO Capital Markets, said (quoted by Bloomberg):

The Covid situation in China continues to weigh on metal markets, with record cases again announced over the weekend, together with the widely reported protests. We expect the renewed lockdowns to hurt market confidence into year-end, and thus delay some raw materials purchases over the coming month.

The third headwind blowing from the Middle Kingdom

The third headwind blowing from China and pressuring ASX 200 lithium shares is a slowdown in the nation’s EV sales.

EV sales in 2022 have to date almost doubled the number sold in 2021. But that trend looks to be reversing.

According to Bloomberg data, EV registrations in October were down more than 20% month on month.

The pullback is likely related to the winding back of Chinese government subsidies for EVs, which are meant to be phased out this year. And this comes amid news that Chinese battery manufacturers may have “overproduced” in recent months, meaning a temporary reversal of the supply and demand dynamics.

Susan Zou, Shanghai-based analyst at Rystad Energy, said (quoted by Bloomberg):

It’s likely for lithium prices to face some small correction until early next year. Battery makers need to destock while EV manufacturers are about to meet their annual targets. Meanwhile, they face elevated costs for raw materials and traditionally weaker consumption in the first quarter of the year.

All this is not to say that lithium prices, or the ASX 200 lithium shares, are likely to crash.

According to analysts at Morgan Stanley:

We see the near-term lithium market remaining tight, supporting lithium prices. However, we note that there is likely to be some price pullback when underlying demand for EVs starts to weaken sequentially, and industry players may become more cautious about placing orders and building inventory.

How have ASX 200 lithium shares tracked over a year?

Investors who bought into any of the ASX 200 lithium shares we mentioned above a year ago will still be sitting on some outsized gains, despite the recent sell-off.

Since this time last year, the Allkem share price is up 40%; IGO shares have gained 43%; the Pilbara share price has leapt 82% higher; and Core Lithium shares are up 145%.

The post Is China responsible for decimating your ASX 200 lithium shares? appeared first on The Motley Fool Australia.

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More reading

• 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?
• Why are ASX lithium shares getting slammed again on Monday?
• Pilbara Minerals share price higher on ‘game changer’ project with Calix

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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It’s no secret that inflation has been one of, if not the, biggest concern for ASX investors in 2022. Rising prices have dominated headlines all through this year. Not to mention rising interest rates.

Inflation was once famously described by the legendary investor Warren Buffett as a “gigantic corporate tapeworm”, taking its pound of flesh from all companies in the economy.

In our brave new world of high inflation, conventional wisdom has led investors towards consumer staples shares, such as Woolworths Group Ltd (ASX: WOW), as an inflation hedge. The theory goes that companies like Woolies sell us life essentials. Even though prices are rising, we all need to eat, drink, and keep our houses running.

As such, we’ll all keep shopping at Woolworths and other consumer staples businesses, and pay the rising costs of those essentials. That’s how the theory goes anyway.

We’ve seen more than a few brokers and ASX experts double down on this logic in recent times too. Earlier this month, my Fool colleague looked at broker Citi’s buy rating on Woolworths shares.

This broker reckons Woolies can climb to $39.50 a share over the next 12 months, thanks in large part to “a return to predictable spending patterns”.

But another ASX expert reckons this optimism is misplaced.

Is Woolworths an overrated share when it comes to inflation?

Blake Henricks of Firetrail Investments recently spoke to Livewire about inflation and sectors he’s avoiding because of it. Interestingly, Henricks named supermarkets which, of course, is dominated by Woolies.

Here’s some of what he had to say on why this sector doesn’t quite shape up as an inflation beater:

Supermarkets is a great defensive sector to invest in that benefits from inflation. And if you run a simple model you say, ‘Well, as inflation comes through, the basket goes up. If you hold gross margin percentages flat, gross profit dollars grow and therefore this great earnings growth happens with inflation.’

But the reality is margins are determined by competition and competitive dynamics. And that competitive framework isn’t really changing at the moment. 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 there you go, Woolworth is not the inflation slayer that some might initially assume, at least according to this ASX expert.

Only time will tell which ASX experts have made the right call here.

In the meantime, the current Woolworths share price of $35.12 (at the time of writing) gives this ASX 200 consumer sales share a market capitalisation of $42.56 billion, and a dividend yield of 2.62%.

The post Looking to buy Woolworths shares as an inflation hedge? Read this first appeared first on The Motley Fool Australia.

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More reading

• Battle of the dividends: Do Woolworths shares pay more than Coles?
• Almost ready to retire? Here’s why I’d buy Coles shares for dividends
• Use the ASX 200 market correction to retire early. Here’s how
• If you bought $15,000 worth of Woolworths shares this year, here’s how much dividend income you’d have
• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive

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 Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is soaring on Tuesday despite the S&P/ASX 200 Index (ASX: XJO) healthcare stock posting seemingly dire first-half earnings.

Though, its results for the six months ended 30 September are in line with previous forecasts.

The Fisher & Paykel share price opened 5.7% higher at $20.30 this morning before peaking at $21.78 – marking a 13.4% gain.

It has since slumped slightly to trade at $21.57 at the time of writing, 12.34% higher than its previous close.

What’s going on with this ASX 200 healthcare stock today?

Here are the highlights from Fisher & Paykel’s first-half earnings report. All figures have been converted from New Zealand Dollars at today’s exchange rate (NZ$1 to AUD$0.93).

• $88.85 million of net profit after tax (NPAT) – a 57% drop on that of the prior comparable period (pcp)
• $639.86 million of operating revenue – marking a 23% drop
• Basic earnings per share (EPS) fell to around 15 cents
• 17.5 New Zealand cent interim dividend declared (around 16 Aussie cents) ­– a 3% increase on that of the pcp

The respiratory care device company took a notable hit over the first half of financial year 2023 as it cycled COVID-19-driven demand in the pcp. Looking longer-term, however, its results appear more positive.

While its revenue fell on that of the pcp, it increased 21% on that of the comparable pre-pandemic period.

Fisher & Paykel’s hospital operating revenue also slumped 35% to $406.47 million last half, while that of its new applications consumables – products used in non-invasive ventilation, Optiflow nasal high flow, and surgical applications – fell 23%. It was a better story for its homecare segment’s operating revenue, which lifted 10%.

The company’s research and development expenses accounted for 12% of its revenue, or around $78 million.

What else happened in the first half?

The first half was tough on both Fisher & Paykel’s earnings and its share price. The stock slumped 27.5% over the six-month period.

Beyond that, the company struggled with higher freight costs and manufacturing inefficiencies. The latter was hampered by demand fluctuations and higher absenteeism.

On a more positive note, it announced its intent to acquire a 105-hectare site for an additional campus in Karaka, Auckland. It hopes to receive regulatory approval on the purchase next year.

What did management say?

Fisher & Paykel Managing director and CEO Lewis Gradon commented on the news driving the ASX 200 stock higher today, saying:

Consistent with what we signalled in August, first half revenue was down on the prior corresponding period as we lapped significant COVID-19-driven demand. Compared to pre-pandemic levels, this represents solid growth.

Customer stock levels of hospital consumables continued to reflect purchases of considerable amounts during our prior half, in preparation for an Omicron hospitalisation wave which proved less severe than originally anticipated.

While we believe the number of hospitals which continue to be overstocked is declining, ultimately, these stocking dynamics are short term, and the fundamentals of our sales strategy remain the same.

It has been pleasing to see a strong reception for our new Evora Full mask, which we began selling into the United States in April.

What’s next?

The ASX 200 healthcare stock has declined to provide full-year guidance today.

It cited uncertainties relating to COVID-19 hospitalisations, the severity of the Northern Hemisphere flu season, a surge in respiratory syncytial virus hospitalisations in some regions, and hospital staffing challenges.

Though, Fisher & Paykel expects its revenue to be higher in the second half. The company is also targeting operating expense growth of around 8% for the full year.

“We remain committed to sustainable, profitable growth,” Gradon said, continuing:

Our confidence in the future is unchanged, evidenced by the significant level of investment in new product development, our global sales force, and our infrastructure.

Fisher & Paykel share price underperforms ASX 200 in 2022

The ASX 200 healthcare stock has struggled to keep up with the market this year.

Today’s gain included, the Fisher & Paykel share price has fallen 31% year to date. It’s also 32% lower than it was this time last year.

For comparison, the ASX 200 has dumped 5% in 2022 and is trading flat over the last 12 months.

The post Profit down 57%, share price up 12%. What’s with this ASX 200 healthcare stock today? appeared first on The Motley Fool Australia.

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More reading

• Bought $1,000 of ANZ shares 10 years ago? Here’s how much dividend income you’ve received
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Up 30% in a month, why the Evolution Mining share price can keep climbing: expert

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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As an ASX 200 bank share, Westpac Banking Corp (ASX: WBC) has always been a go-to investment for investors seeking dividend income.

Westpac shares have historically been some of the most generous dividend payers on the ASX. But this bank has had a patchy history when it comes to shareholder payouts in recent years.

Back in 2018, investors were enjoying annual dividend payments worth $1.88 per share. But 2020 saw this slow to a trickle, with the bank only doling out 31 cents per share that year.

The road to recovery from COVID has been fairly slow with Westpac too. Last year saw the bank pay out $1.18 in dividend income per share, certainly an improvement from 2020, but hardly a return to the glory days.

But what about 2022? What kind of dividend income would an investor receive from Westpac shares this year?

How are Westpac shares’ dividend chops looking?

Well, let’s find out. So we’ll assume that an investor bought $20,000 worth of Westpac shares at the start of this year. The ASX bank closed up 2021 at a share price of $21.35, so we’ll use that price as our reference point.

So $20,000 would have gotten our investor 936 Westpac shares at this price, with some extra left over.

Westpac’s first dividend for 2022 came in June. This was a payment worth 61 cents per share, fully franked.

That was a pleasing rise on last year’s interim dividend of 58 cents per share.

So our 936 Westpac shares would have resulted in a payment of $570.96 for this interim dividend. And that’s all the dividend income you would have received this year so far.

But let’s talk about the bank’s final dividend for 2022. Westpac is scheduled to fork out a final dividend of 64 cents per share, also fully franked, on 20 December. Again, this is a decent rise over last year’s final dividend of 60 cents per share.

So on 20 December, our investor can look forward to booking another $599.04 in dividend income.

This means that overall, our investor will be up for a total of $1,170 in dividend income for 2022 from our initial $20,000 investment, once 2022 has wrapped up.

That would equate to a yield of 5.85% on our originally invested cash. If we factor in Westpac’s full franking credits, this would gross up to 8.36%.

At the current Westpac share price of $23.85 (at the time of writing), this ASX 200 bank has a trailing dividend yield of 5.25%.

The post If you bought $20,000 worth of Westpac shares this year, here’s how much dividend income you’d have appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• These ASX dividend shares have 4%+ forecast yields
• Here’s the Westpac dividend forecast through to 2025
• Morgans names the best ASX 200 dividend shares to buy
• Are ASX 200 bank shares a buying opportunity hiding in plain sight?

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 recommended Westpac Banking Corporation. 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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Recent developments in the AGL Energy Limited (ASX: AGL) share price could be leading investors to wonder if the company deserves a spot in their portfolios.

The question arises amid a huge recovery in the company’s share price, starting on 21 October. Shares opened for $6.62 on the day and currently trade for $7.95 apiece — a 20.1% gain.

AGL’s shares walked largely in step with peers in the S&P/ASX 200 Utilities Index (ASX: XUJ) over the same period, with the index recording a stunning 27.8% increase.

So to see where AGL’s shares might be headed in future, and to answer if they could be a buy at their current price levels, let’s recap some recent company announcements as well as some expert analysis.

Cannon-Brookes gets four directors installed on AGL board

Kicking things off is the changes made to AGL’s board of directors.

Billionaire AGL major shareholder Mike Cannon-Brookes was successful in getting his four board nominees installed. This was put into effect on 15 November at the company’s AGM.

The new directors include Mark Twidell, Dr Kerry Schott, Christine Holman, and John Pollaers.

As a result, the company ratified a new strategic direction.

AGL unleashes rapid decarbonisation plans

AGL will have a much greater focus on using renewable energy moving forward. This includes shutting down its Loy Yang power station in FY35, 10 years earlier than previously forecast.

Among other measures, the company also aims to use five gigawatts of renewables by 2030 and 12 gigawatts of renewables by 2036.

Recent reporting in The Australian suggested the strategy shift comes amid claims AGL is lagging behind its key rival Origin Energy Ltd (ASX: ORG) in its decarbonisation efforts.

Those comments came from global fund manager Brookfield Asset Management.

What did Brookfield say?

A Brookfield spokesperson made the following comments.

AGL has a large fleet of coal-fired generation which obviously needs to transition at some point over time.

It has arguably — up until recently at least — been further behind in its own internal plans on when that transition would occur. Whereas Origin has been a bit more front foot with that and has a detailed strategic transition plan and has given notice on Eraring for retirement.

AGL has been pulling other levers in its business to help get its carbon emissions under control — as well as being part of a possible pivot to become a green energy supplier in the market.

Last week, AGL said it would close down its Torrens Island B power station in South Australia on 30 June 2026.

My colleague James notes that the plant’s closure is not anticipated to affect AGL’s earnings for FY23 and that it also has a feasibility study in the works to investigate the opening of a hydrogen plant on the island.

Analysts make bullish predictions for the AGL share price

Finally, in October, analysts and brokers reached a consensus that the AGL shares could represent good value moving forward.

Morgans investment advisor Jabin Hallihan gave the share a buy recommendation with a price target of $8.81. That’s a possible upside of 10.88% at the time of writing.

Hallihan praised the early closure of Loy Yang as well as AGL’s “positive near-term earnings”.

Meanwhile, Credit Suisse analysts gave a slightly more conservative price target of $8.20 a share for a 3.2% potential upside.

The post Are AGL shares a good investment right now? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the AGL share price falling on Thursday?
• How much dividend income would $20,000 worth of AGL shares have netted you in 2022?
• Here are the top 10 ASX 200 shares today
• 5 of the craziest things making news on the ASX this week

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 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.

Apple‘s (NASDAQ: AAPL) incredible financial strength has allowed it to weather the current bear market better than many other tech stocks. Yet its shares are still down about 17% year to date. The tech titan, in turn, has lost a staggering $500 billion in market value.

Could this be an opportunity for investors to buy Apple’s stock at a bargain price?

The bull case for Apple’s stock 

A couple of years ago, Warren Buffett called Apple “probably the best business I know in the world.” That’s high praise from the legendary investor.

Incredibly, Apple has only grown stronger since then. The technology leader generated a staggering $99.8 billion in net income and $111.4 billion in free cash flow over the trailing 12 months. That’s up from $57.4 billion and $73.4 billion, respectively, in 2020.

This breathtaking financial performance is derived from a relatively simple business model. Apple makes and sells its popular iPhones, Macs, iPads, and wearable devices. It then sells an array of services to its massive base of users.

Together, these devices and services form a vast ecosystem that tends to be quite sticky. Once a person buys an Apple product, they tend to remain a loyal customer. This is why investors are increasingly viewing Apple as a utility-like business — one with dependable, recurring revenue and reliable cash flow. Like the best utility stocks, Apple is rewarding its shareholders with a steadily rising dividend stream and bountiful stock buybacks, both of which help to bolster its share price.

AAPL data by YCharts

Moreover, Apple’s robust cash flow generation and fortress-like balance sheet — which contained over $169 billion in cash and investments as of Sept. 24 — allow it not just to survive but thrive during difficult economic environments. Apple also tends to outperform its less financially sound rivals during these times. Many investors have thus come to view Apple’s stock as a safe haven during the current market downturn, which is one of the reasons why it has performed better than many other tech stocks this year. The defensive nature of its business should continue to serve Apple well in the coming years.

Apple’s stock is reasonably priced

Apple’s shares can currently be had for less than 22 times analysts’ earnings estimates for the year ahead. That’s slightly less expensive than the forward price-to-earnings (P/E) ratio of the Nasdaq-100 index, which stands at about 22.5. Apple is arguably the best business in that index. But rather than paying a premium for quality, as is typically required, you can buy Apple’s stock at a slight discount today.

The tech giant may have a lower projected growth rate than some of the Nasdaq-100 index’s more rapidly expanding constituents, but Apple is still expected to increase its earnings per share by roughly 9% annually over the next half-decade. Its P/E ratio thus seems quite reasonable, particularly when considering its powerful competitive advantages and unrivaled financial fortitude.

Risks for investors to consider

Individuals and businesses spent heavily on laptops and other mobile devices during the early stages of the pandemic, as the work-from-home trend gained steam. But those purchases pulled forward some sales that would otherwise be taking place today, and the personal computer (PC) industry is now experiencing a sharp pullback in demand.

PC shipments fell 15% year over year in the third quarter, according to research firm IDC. The phone industry is experiencing a similar dynamic, with smartphone sales down 9.7% in the same period. These trends could dampen Apple’s results if they persist.

That said, Apple was able to generate higher Mac and iPhone sales in the third quarter despite the downturn, due in part to its unmatched customer loyalty. Mac sales jumped 25% to $11.5 billion, while its iPhone revenue rose 10% to a whopping $42.6 billion.

Yet even if demand for its devices remains strong, Apple could find it difficult to produce enough of its products in the coming quarters. China continues to respond to new COVID-19 outbreaks by instituting strict lockdowns. With some of its most important manufacturing sites in China, Apple may face supply shortages for key products like the iPhone. These challenges should, however, abate when the pandemic eventually subsides.

So, is Apple’s stock a buy?

With its popular products continuing to sell well, and its utility-like cash flows helping to bolster its already awe-inspiring financial strength, Apple could be the bastion you’re seeking in the current economic storm. With near-term risks likely already reflected in its discounted share price, Apple’s stock is a solid buy today for long-term investors. 

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

The post Down 17%, is Apple stock a buy now appeared first on The Motley Fool Australia.

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Joe Tenebruso 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 Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Are you looking for some dividend shares to add to your income portfolio?

If you are, then the two listed below could be top options.

Both have been named as buys and tipped to provide attractive yields in the coming years. Here’s what you need to know about them:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a leading property company that invests in high quality real estate assets that are leased mainly to corporate and government tenants. And, as you might have guessed from its name, these are on long term leases.

The team at Citi is positive on the company. It has put a buy rating and $4.70 price target on its shares. Citi likes the Charter Hall Long WALE REIT due to its attractive valuation, big yield, and low risk income stream. The broker explained

The inorganic growth story remains challenged but at current price, we see relative value given the -36% discount to NTA, >7% yield (much higher than triple net peers), c. 50% of the rents indexed to CPI and a low risk income stream with c. 12 year WALE and 99.9% occupancy.

The broker expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.42, this will mean yields of 6.3% and 6.6%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share to consider buying is insurance giant QBE.

Despite the release of a disappointing catastrophe update last week, the team at Morgans is sticking with the company and has reiterated its add rating and $14.89 price target on its shares.

Morgans believes that QBE has done relatively well given the very volatile year for weather and that investors should focus more on its longer term outlook. The latter is looking positive thanks to premium increases, rising rates, and cost reductions. It commented:

We believe tailwinds such as rising bond yields, premium rate increases and cost out will drive an improved earnings profile for QBE over the next few years. The stock also remains inexpensive trading on ~10x FY23F earnings.

In respect to dividends, the broker is forecasting a 42.6 cents per share dividend in FY 2022 and then a 90.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.95, this equates to yields of 3.3% and 7%, respectively.

The post Experts name the ASX dividend shares for income investors to buy now appeared first on The Motley Fool Australia.

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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 Microba Pty Ltd (ASX: MAP) share price is having a stunning day.

In morning trade, the precision microbiome company’s shares were up as much as 91% to 42 cents.

The Microba share price has pulled back since then but remains up 45% at 32 cents at the time of writing.

Why is this ASX healthcare share smashing the market?

Investors have been scrambling to buy this healthcare share after it announced a major deal with Sonic Healthcare Limited (ASX: SHL).

According to the release, Sonic has agreed to invest $17.8 million to acquire a 19.99% shareholding in Microba at 26 cents per share. In addition, the healthcare giant is seeking to acquire options for an additional 5% equity position, subject to shareholder approval. Exercise of these options would result in a further investment of $7.5 million in Microba.

Why is Sonic investing in Microba?

The release notes that Sonic and Microba have agreed initial terms of a strategic alliance to exclusively deliver Microba’s microbiome testing technology into Germany, the United Kingdom, and Belgium, along with non-exclusive distribution into Sonic’s broader network including Australia, Switzerland, the United States and New Zealand.

Microba’s “world-leading technology” is used for measuring the human gut microbiome, supporting the discovery and development of novel therapeutics for major chronic diseases and delivering gut microbiome testing services globally.

Sonic Healthcare’s CEO, Dr Colin Goldschmidt, commented:

Sonic Healthcare prides itself on delivering accurate, reliable medical diagnostics services using leading laboratory and informatics technologies. Our partnership with Microba exemplifies our commitment to invest in cutting edge developments in laboratory medicine.

We see microbiome testing becoming a key part of pathology over coming years and are excited about the potential of this partnership and the opportunities that Microba’s technology will provide for Sonic’s global operations, our referring clinicians, and our patients.

The post Guess which ASX healthcare share is rocketing 90% on a new deal with Sonic? appeared first on The Motley Fool Australia.

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