Tag: Motley Fool

In case you’ve not realised, interest rates are now 275 basis points higher than where they were seven months ago.

This hefty rise in mortgage repayments will really start to bite in the coming months. Australian consumers will start closing their wallets and there will be less revenue for businesses.

So with the economy well and truly in a slowing part of the cycle, it’s vital to be selective about the ASX shares you buy right now.

One way to minimise damage during slowdowns and recessions is to pick businesses that provide essential goods and services.

Here are a couple of expert suggestions:

‘A quality and well managed business’

When you talk staples, they don’t come much more essential than food.

Elders Ltd (ASX: ELD) is an agribusiness that provides goods and services to farmers around the nation.

Seneca investment advisor Arthur Garipoli was impressed with the company’s recent updates.

“The Australian agribusiness posted a strong fiscal year 2022 result,” Garipoli told The Bull.

“Underlying earnings before interest and tax were $232.1 million, up 39% on the corresponding period.”

However, the Elders share price has struggled in recent times. It plunged 23% in one day earlier this month.

Garipoli is not worried for the long term though.

“Severe rainfall in several rural regions has been weighing on the share price,” he said.

“However, we believe Elders is a quality and well managed business that should continue to outperform.”

‘Strong position and generating growth’

Nanosonics Ltd (ASX: NAN) is not a name synonymous with staple products, but it manufactures a critical medical product that many people would have been an unknowing beneficiary of.

The company makes disinfectors for ultrasound scanning probes.

Morgans investment advisor Jabin Hallihan rates the stock a buy.

“More than 25 million patients a year are protected from the risk of ultrasound probe cross-contamination by Nanosonic’s Trophon technology,” he said.

“The company is in a strong position and is generating growth.”

The healthcare industry is a sector known to enjoy resilient demand through tougher economic periods. And ultrasound scans are a very common diagnostic procedure in modern times.

Hallihan reckons Nanosonics is headed in the right direction financially.

“Total revenue of $52.6 million in the first four months to October 31, 2022 was up 42% on the prior corresponding period,” he said.

“A positive trading update suggests consensus forecasts will be comfortably achieved.”

The post Buy now: Experts name 2 ASX 200 companies essential to Aussie life appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Skin in the game: The ASX share in my portfolio I’m most excited about
• Here are the top 10 ASX 200 shares today
• Why Nanosonics, Nick Scali, NRW, and Tyro shares are charging higher
• Don’t miss out on these top ASX dividend shares: analysts

Motley Fool contributor Tony Yoo 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 Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Elders 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 team at Morgans has recently named a number of its best ideas for investors.

Among those ideas are a couple of dividend shares that income investors may want to look closely at.

Here’s what the broker is saying about these ASX dividend shares:

Dexus Industria REIT (ASX: DXI)

Morgans is tipping this industrial and office property company as a dividend share to buy.

The broker is a fan of the company and believes that it is well-placed for growth in the current environment thanks to strong demand in the industrial market. It stated:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

The broker currently has an add rating and $3.25 price target on the company’s shares. As for dividends, it is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.88, this will mean yields of 5.7% and 5.85%, respectively.

Santos Ltd (ASX: STO)

Another ASX dividend share that Morgans rates as a buy is Santos.

It is a leading energy producer and, thanks to its recent merger with Oil Search, the owner of a collection of high quality operations that are aiming to deliver production of 103-106 million barrels of oil equivalent this calendar year.

Morgans likes the company due to its production growth potential and diversified earnings base. It commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

Morgans has an add rating and $9.00 price target on its shares. As for dividends, it is forecasting dividends per share of 22.8 cents in FY 2022 and 24.2 cents in FY 2023. Based on the current Santos share price of $7.25, this will mean yields of 3.1% and 3.35%, respectively.

The post 2 of the best ASX dividend shares to buy: Morgans appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Santos shares can kick inflation to the kerb: expert
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday

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.

As 2022 starts to close, it’s only natural for investors to start peeking toward 2023. So far in 2022, the indexes have fared pretty miserably, with the Nasdaq-100 down 29% and the S&P 500 down 17%. Which one will have a better 2023?

Let’s look at these indexes and their makeups and find out which is more likely to have a better 2023 ahead.

The indexes are highly concentrated on the top

At the top, the indexes have a lot of overlap.

Company	Makeup of S&P 500
Apple	6.86%
Microsoft	5.43%
Alphabet*	3.34%
Amazon	2.53%
Berkshire Hathaway	1.67%

Data source: Slickcharts. Data as of Nov. 19. *Note: Both Alphabet class shares combined.

Company	Makeup of Nasdaq-100
Apple	13.63%
Microsoft	10.15%
Alphabet*	6.74%
Amazon	5.44%
Tesla	3.20%

Data source: Slickcharts. Data as of Nov. 19. *Note: Both Alphabet class shares combined.

As you can see, Apple, Microsoft, Amazon, and Alphabet make up a considerable chunk of these indexes. In the S&P 500, they account for 19.83%. It’s basically double for the Nasdaq-100, with that group making up 39.16% of the index. It’s pretty straightforward: How these companies do will significantly steer how the overall index does.

While these three are tech-focused, they compete in different markets. Both Apple and Amazon are a good measure of the pulse of the consumer, as their sales are highly affected by consumer sentiment. If inflation cools, and consumers don’t need to worry about rising grocery prices or housing costs, they may treat themselves to the latest device.

Alphabet and Microsoft are business-focused, but for different reasons. Alphabet’s primary revenue stream is advertising, and many clients have pulled back their spending levels in 2022 due to the uncertain business environment. If the outlook improves, expect this revenue to return. Microsoft’s cloud business and Office product suite indicate how willing businesses are to spend on their infrastructure, but Microsoft’s consumer product division also indicates how individuals are doing. 

If the consumer gets stronger and business outlook improves, these four will boom. If that’s the case, then the Nasdaq-100 will likely have a better year because it is concentrated in companies that will benefit the most. But if 2023 brings an economic recession, the S&P 500’s diversity will help it to outperform the Nasdaq-100.

The companies outside the top five are very different

For the S&P 500, when you move out of the top five, the companies become much more diverse.

Company	Makeup of S&P 500
Tesla	1.47%
United Health Group	1.45%
ExxonMobil	1.42%
Johnson & Johnson	1.39%
Nvidia	1.18%

Data source: Slickcharts. Data as of Nov. 19.

Now, there are industrials, healthcare, and energy sectors represented, giving the index some much-needed balance. Looking at the top 20 reveals even more diversity, with financials, energy, and healthcare rounding the index out.

This is far from the case for the Nasdaq-100.

Company	Makeup of Nasdaq-100
Nvidia	3.09%
PepsiCo	2.32%
Costco Wholesale	2.16%
Meta Platforms	2.14%
Broadcom	1.94%

Data source: Slickcharts. Data as of November 19. Note: Both Alphabet class shares combined.

Besides Pepsi and Costco, these companies are more in the tech sector. But, unlike the S&P 500, it doesn’t get much better outside the top 10, with most of the top 20 consisting of chipmakers, communication companies, and software businesses. Now, this probably isn’t a surprise because the media often refers to this index as the “tech-heavy Nasdaq.”

Still, tech businesses don’t do well if the economy is struggling.

Does that mean you should write the Nasdaq-100 off? Absolutely not. Tech stocks tend to do very well in the recovery phases of a recession. Plus, the stock market is forward-looking, and stocks usually tend to do better during a recession than leading up to one.

That last tidbit of information should keep investors in the market, especially now with a recession, or at least an economic slowdown, imminent. However, if you’re trying to decide which index to buy, you need to utilize the 2023 outlook. If you think 2023 will be a repeat of 2022, then the S&P 500 is the better choice. On the other hand, if you believe the economy will begin to recover and the Federal Reserve eases its interest rate hikes, then the Nasdaq-100 is the place to be.

One last point: There’s nothing wrong with owning both indexes if you don’t know what 2023 will bring. Personally, I think this is an intelligent strategy, as it gives investors the upside of recovery and the safety of a balanced investment.

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

The post Will the Nasdaq or S&P 500 have a better 2023? appeared first on The Motley Fool Australia.

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More reading

• What Warren Buffett can teach us about handling bear markets
• 2 reasons to buy Amazon before 2023 and 1 reason to sell
• 74% of Warren Buffet’s portfolio is in these 5 stocks. Could this help guide which ASX shares to buy?
• Is Amazon stock really a cheap buy? Here’s what the charts say
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200

Keithen Drury has positions in Alphabet (C shares), Amazon, Costco Wholesale, Nvidia, and Tesla. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, 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. 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), Costco Wholesale, Meta Platforms, Inc., Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom Ltd, Johnson & Johnson, and UnitedHealth Group and 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, Berkshire Hathaway (B shares), Meta Platforms, Inc., and Nvidia. 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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At a barbecue — or indeed on stock advice websites — investors hear all about the triumphant 10-baggers.

But we all know every portfolio has ASX shares that have broken the hearts of owners. It’s just no one talks about them.

It is perfectly understandable to be reluctant to trust a business again after it has burnt you or other investors badly. It’s just human nature.

However, investors need to remember that ASX shares have no memory. A stock doesn’t care that it was once $10 but now $2. 

The only thing that matters when considering equities to buy is what the future prospect of the business is at that point in time. History means nothing.

So if you take on this rational mindset, there is one technology stock that’s been an absolute dog the past couple of years that you may consider buying now:

‘We expect the share price to improve’

Appen Ltd (ASX: APX) used to be a darling of growth investors but has caused nothing but grey hairs since the COVID-19 pandemic hit.

The stock has lost an eye-watering 93% of its value since August 2020, and 75% year to date.

“The share price of this artificial intelligence data provider has fallen from $40.08 on August 17, 2020 to trade at $2.65 on November 24, 2022,” Red Leaf Securities chief John Athanasiou told The Bull.

However, Athanasiou feels like it’s time to now forgive Appen for past sins.

“We expect the share price to improve as money flows back to the domestic technology sector,” he said.

“The company expects fiscal year 2022 revenue to range between US$375 million and US$395 million.”

Discounted for a takeover?

The really exciting prospect for Athanasiou, though, is seeing other listed Australian tech companies like ELMO Software Ltd (ASX: ELO) and Nitro Software Ltd (ASX: NTO) receive tempting takeover bids from private investors.

“There’s been corporate activity in the domestic technology sector, as a weaker Australian dollar makes companies more attractive to international private equity firms,” he said.

“Appen, at this price, could be a target.”

Appen’s major clients are big US tech firms and after a torrid year, they themselves could be looking forward to better conditions next year.

And this could also provide a tailwind for Appen, reported The Motley Fool’s Bernd Struben last week.

The post It’s about time you buy this ASX tech share that’s beaten down 75% this year: expert appeared first on The Motley Fool Australia.

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More reading

• Down 75% in 2022, is it time for investors to give up the ghost on this ASX 300 tech share?
• Why is the Appen share price storming higher today?
• Could this imply light at the end of the tunnel for Appen shares?
• Appen share price sinks to another multi-year low despite new recruits
• 5 big ASX announcements making news this week

Motley Fool contributor Tony Yoo 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 Appen Ltd and Elmo Software. 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Bell Direct market analyst Grady Wulff names the two ASX shares that are ripe to buy now.

Investment style

The Motley Fool: How would you describe your services to a potential client?

Grady Wulff: I’m Grady Wulff, the market analyst at Bell Direct, which is an investment platform for buying and selling shares listed on the ASX. Our goal is to make the lives of all Australians better by making their investment journey nice and easy, and intuitive. My role is to source information, identify different market trends, produce timely market updates, create analysis pieces to help our clients save time and stay informed on what’s happening on the markets.

MF: At Bell Direct, when you’re helping clients invest in Australian shares, what’s the investment philosophy you take?

GW: It really depends on the investment goal of our clients. So we’re very intuitive and very tailored to the client’s investment goals. So whether they’re a trader, whether they’re investors, whether they are looking for high yields or just growth stocks, value stocks. We’ve got the strategy builder on our platform, which helps you identify different sectors and different stocks that will meet your investment needs.

MF: You used to be a finance journalist, but now you’re on the investment side of the fence. How did that come about?

GW: I actually started in sports journalism, then I moved into news journalism, and then I got headhunted to go into finance journalism in Perth with a very retail focus at [finance app] Grafa. That was tailored towards new investors and retail investors who are just starting out their journeys. 

Then I got headhunted to come to Bell Direct. So very, very lucky, and I feel like I’ve learned so much since hitting the ground running in Sydney, but I’m very lucky to be here, and I love it so much.

Hottest ASX shares

MF: What are the two best stock buys right now?

GW: I’m going by Bell Potter research, given it’s in-house. For me, having looked through them, Nufarm Ltd (ASX: NUF) is a really strong stock for me moving forward. Bell Potter maintains a buy rating on it with a price target that’s been raised to $7.15. Shares in the company are up 21% year to date. 

The reason that the house has a buy rating on it is because of the strong FY22 results that were released. The company had pretty strong headwinds in the way of deregistrations in Europe and dry conditions across the Mediterranean and North America in the second half particularly, but we expect those headwinds to be mitigated in FY23 and drive normalised demand in the US and Europe.

The company also has really strong continued growth and revenue for the Omega3 products. I think it’s through the canola. So they’re doing really well, and they’ve got a really positive year-end outlook. So we are really, really bullish on this one. They’ve got strong cash flow, revenue’s going up, operating EBIT went up 24%. So yeah, we’re really bullish on Nufarm at the moment.

MF: Great. What’s your second pick?

GW: My second one’s Best & Less Group Holdings Ltd (ASX: BST). I love this stock. 

We’ve seen retail stocks recently being beaten down this year amid rising interest rates, and obviously consumers are a lot more conscious about what they’re spending their money on.

But this positions Best & Less to really capitalise and benefit from the change in consumer behaviour from luxury shopping back in the pandemic, when we had all that money when we were sitting at home doing nothing, and we had so much money to spend, to now being more value shoppers — buying things that are less discretionary, have less replacement cycle and more sustainable products.

So Best & Less is really, really positioned well to capitalise from this.

They’re also looking to open 11 new stores in FY23, so they’re on the expansion front. They have healthy inventory positions, strong margins compared to peers, and the pricing power that they have is really strong because they’re a stock developer as well. 

So yeah, Best & Less, I think, is one that we are very bullish on at Bell Potter, with a buy rating and a price target of $2.60. One to watch in 2023.

MF: It’s interesting to get your insights about Best & Less because it’s one retail stock that we don’t hear that much about.

GW: Exactly. I actually love looking at it.

The post The world is shifting into the sweet spot for these 2 ASX shares: analyst appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Bear market not done yet says Goldman Sachs, while Morgan Stanley predicts dividends will be the driver of returns in 2023
• Why Best & Less, Cettire, Life360, and Paradigm shares are sinking today
• 3 ASX 200 shares that hiked their dividends by more than 100% this year
• 3 ASX 200 shares that announced supersized dividends this week

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

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.4% to 7,229.1 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Tuesday despite a disappointing start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% higher. In late trade in the United States, the Dow Jones is down 1.3%, the S&P 500 is down 1.5%, and the NASDAQ has tumbled 1.5% lower. Global markets have been spooked by COVID protests in China.

New Hope shares rated as a sell

The New Hope Corporation Limited (ASX: NHC) share price is overvalued according to analysts at Goldman Sachs. This morning the broker has reiterated its sell rating and $3.90 price target on the coal miner’s shares. The broker expects “Indonesian and Chinese coal production and demand destruction” to weigh on thermal coal price in 2023.

Oil prices mixed

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.5% to US$77.37 a barrel and the Brent crude oil price has fallen 0.25% to US$83.43 a barrel. Oil prices recovered from heavy intraday declines amid speculation OPEC could cut its output.

Annual general meetings

A couple of ASX 200 shares will be holding their annual general meetings today and could provide the market with trading updates at their events. These are rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and private hospital operator Ramsay Health Care Limited (ASX: RHC).

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.85% to US$1,739.2 an ounce. A rising US dollar appears to have weighed on the precious metal.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why Santos shares can kick inflation to the kerb: expert
• 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
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?

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 Ramsay Health Care 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 good news for income investors is that the ASX 200 index is home to plenty of companies that pay dividends to their shareholders.

Two that could be top options for income investors to buy right now are listed below. Here’s what analysts at Morgans are saying about these ASX 200 dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles.

It is one of the big two supermarket operators with over 800 supermarkets. In addition, it has over 900 liquor retail stores and over 700 Coles express stores. Though, the latter are in the process of being sold.

Coles isn’t resting on its laurels, though. As well as growing its network further, the company is aiming to make its operations more efficient through cost cutting and its focus on automation with Ocado.

Morgans is a fan of the company and has an add rating with a $19.50 price target on its shares. It is also forecasting fully franked dividends per share of 64 cents in FY 2022 and 66 cents in FY 2023.

Based on the current Coles share price of $17.09, this implies yields of 3.75% and 3.9%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that has been tipped as a buy is Wesfarmers.

It is the conglomerate behind a collection of businesses including retailers Bunnings, Kmart, Priceline, and Officeworks, as well as industrial businesses Coregas and Covalent Lithium. It was also previously the owner of Coles.

Thanks to the strength of this portfolio and its high quality management team, Wesfarmers has been able to reward its shareholders with a stream of dividends for well over a decade.

The good news is that Morgans is tipping this to continue in the coming years. Its analysts have pencilled in fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $48.52, this will mean yields of 3.75% and 3.9%, respectively.

Morgans currently has an add rating and $55.60 price target on its shares.

The post Broker says these top ASX 200 dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Are Wesfarmers shares a buy for portfolio diversification?
• Battle of the dividends: Do Woolworths shares pay more than Coles?
• Almost ready to retire? How to generate $70k per year of passive income from ASX dividend shares
• Almost ready to retire? Here’s why I’d buy Coles shares for dividends
• Could buying Wesfarmers shares give you $10,000 in annual dividend income by retirement?

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 COLESGROUP DEF SET and Wesfarmers 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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If you have room for some new portfolio additions in December, then it could be worth considering the two ASX growth shares listed below.

Here’s what you need to know about these buy-rated shares:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to the popularity of its affordable offering, its focus on younger consumers, and its bold global expansion plans. In respect to the latter, the company has been expanding its footprint materially in recent years and shows no sign of stopping. In fact, it just revealed that it has added 47 net new stores so far in FY 2023, bringing its total to 676 stores across 26 countries. Management also advised that Lovisa’s first stores in Italy, Mexico, and Hungary are due to open in the coming weeks.

Macquarie currently has an outperform rating and $27.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX growth share that could be in the buy zone for investors in December is ResMed. It is a medical device company with a focus on sleep treatment solutions. For many, many years, ResMed has been growing its revenue and earnings at a strong rate. This has been underpinned by the quality of its products and the growing prevalence of sleep disorders. In respect to the latter, management estimates that there are almost one billion people with sleep apnoea globally (with only ~20% diagnosed). In addition, it estimates that approximately half a billion people suffer from chronic obstructive pulmonary disease (COPD). Thanks to its leadership position in the market, this gives ResMed a long runway for growth over the 2020s and beyond.

Morgans is a fan of ResMed and currently has an add rating and $37.00 price target on its shares.

The post Analysts name 2 excellent ASX growth shares to buy in December appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• 4 ASX shares to buy in the sectors set to explode in 2023: expert
• ‘Dominant player’: Expert urges buying ASX shares in 2 near-monopolies

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 Lovisa Holdings Ltd and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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 Sayona Mining Ltd (ASX: SYA) share price had a rough day today, finishing nearly 5% in the red.

Sayona Mining shares dropped 4.76% to close at 20 cents. For comparison, the S&P/ASX 200 Resources Index (ASX: XJR) descended 1.14% today.

Let’s take a look at what may have weighed on the Sayona Mining share price today.

The big picture

Sayona shares fell today, but they were not alone among ASX lithium shares. For example, the Liontown Resources Ltd (ASX: LTR) share price plummeted 7.5% today, while Core Lithium Ltd (ASX: CXO) shares fell 3.37%. Piedmont Lithium Inc (ASX: PLL) shares lost 4.14% today.

ASX lithium shares followed in the footsteps of their US counterparts on Friday. Shares in lithium giant Albemarle Corporation (NYSE: ALB) dropped 3.91%, while Livent Corp (NYSE: LTHM) shares sank 8.81% on the New York Stock Exchange.

Lithium shares may be struggling amid concern that demand for the battery-making material in China could fall, potentially impacting the global lithium price. Protests over COVID-19 lockdowns broke out in that country on the weekend.

The electric vehicle (EV) battery industry in China may have an oversupply of EV batteries by 2025, according to a report in the South China Post on Sunday. The article stated EV battery makers in mainland China were forecast to exceed electric car maker demand in China threefold in 2025.

The lithium carbonate price in China dropped 0.53% to 562,500 yuan on Friday. This followed a 1.74% drop in the lithium carbonate price last Thursday.

What’s happened with Sayona Mining recently?

Meanwhile, Sayona recently highlighted that its North American Lithium (NAL) operation restart was gaining momentum. Procurement is 98% complete, and construction is ramping up. Sayona advised the operation was on track to produce lithium by the first quarter of 2023.

Commenting on the news, Sayona managing director Brett Lynch said:

NAL is progressing rapidly towards next year’s restart, and our recent move to expand NAL’s potential resource and mine production capacity will only further enhance its long‐term productivity.

Sayona share price snapshot

The Sayona Mining share price has soared 42.8% in the past 12 months and 53.8% year to date.

For perspective, the Resources Index has jumped nearly 20% in the past year.

Sayona has a market capitalisation of $1.7 billion based on the current share price.

The post Why did the Sayona Mining share price have a tough run today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Bank of Queensland, Bubs, City Chic, and Liontown shares are sinking
• Why is the Core Lithium share price in the red today?
• Why are ASX lithium shares getting slammed again on Monday?
• Why is the Liontown share price sinking 9% 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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The BrainChip Holdings Ltd (ASX: BRN) share price kicked off the week deep in the red on Monday.

Shares in the artificial intelligence (AI) start-up were down 5.44%, swapping hands for 69.5 cents apiece at the close of trade.

Other ASX tech shares closed lower, too, including Life360 Inc (ASX: 360), which slid 1.91% today, and Block Inc CDI (ASX: SQ2), which lost 2.70% in afternoon trade.

At a broader level, the S&P/ASX 200 Index (ASX: XJO) was also not off to a great start to the week, down 0.42% at the close.

So why did BrainChip shares — and much of the broader market — have such a lousy day? Let’s investigate.

What’s going on with the BrainChip share price?

What might be surprising is the absence of announcements from BrainChip to support a dive in its share price this afternoon.

However, there appears to be a sense of trepidation in the United States’ equities market that might be bleeding over into ASX tech shares.

The Nasdaq Composite Index (NASDAQ: .IXIC) has lost 0.27% since 18 November. The slip comes as the market holds its breath in anticipation of the Federal Reserve releasing a handful of economic reports later this week.

The reports will include the US personal consumption expenditures price index for October, and monthly employment figures for November, among others.

This week may see a watershed moment for equities

The release of these reports may help confirm some experts’ feelings that the US economy is cooling down. It was reported earlier this month that the US consumer price index (CPI) beat analyst forecasts, rising just 0.4% from September, which should be a bullish signal by all accounts.

However, the situation is not black and white. Although inflation appears to be falling, a softer labour market and reduced personal consumption could indicate that the US is heading toward or is already in, a recession. This would likely lead to a steeper sell-off in the equities market in the near future.

The flip side is that if these reports show that the US economy is still overheated, it may prompt the Fed to continue with an anticipated fifth consecutive 0.75% rate hike. This would put further pressure on stocks and keep worsening the odds of it performing a soft landing of the economy.

BrainChip investors could therefore be waiting on the sidelines to witness the release of these reports, as well as see if the Fed will continue with its aggressive monetary policy or change to a more dovish tune.

BrainChip share price snapshot

The BrainChip share price is up 2.21% year to date. It has performed better than the broader market this year, with the ASX 200 down 2.89% over the same period.

The company’s market capitalisation is around $1.2 billion.

The post Why did the BrainChip share price slide 5% on Monday? appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why did the BrainChip share price leap 7% today?
• Here are the top 10 ASX 200 shares 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 positions in and has recommended Block, Inc. and Life360, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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