Tag: Motley Fool

If you’re on the lookout for some big gains and a quarterly pay check, then Rural Funds Group (ASX: RFF) shares could be worth a closer look.

That’s the view of analysts at Bell Potter, which think the ASX 300 stock is undervalued at current levels.

What is the broker saying about this ASX 300 stock?

Firstly, if you’re not familiar with Rural Funds, it owns a diversified portfolio of Australian agricultural assets in five core sectors which are predominantly leased to corporate agricultural operators.

It seeks to generate earnings and income growth through productivity improvements and conversion of assets to higher and better use. The company has a distribution growth target of 4% per annum.

Bell Potter thinks that the ASX 300 stock is trading at a very attractive price for investors. It said:

The ~30% discount to market NAV appears excessive when we consider the material improvement in counterparty profitability indicators in recent months (with cattle, almond and macadamia nut prices all rallying off the lows) and that we are likely to see asset sales at or around the market value of the assets.

In light of this, at the end of last month it reaffirmed its buy rating with a $2.40 price target. This implies potential upside of almost 14% for investors over the next 12 months.

To put that into context, a $10,000 investment could turn into approximately $11,400 if Bell Potter is on the money with its recommendations.

But the returns shouldn’t stop there. Rural Funds historically rewards its shareholders with quarterly dividends.

Bell Potter expects this trend to continue and is forecasting total dividends per share of 11.7 cents in FY 2024, 11.7 cents again in FY 2025, and then 12.2 cents in FY 2026. Based on its current share price of $2.11, this equates to dividend yields of 5.5%, 5.5%, and 5.8%, respectively.

If this proves accurate, it would mean dividends of approximately $550 from a $10,000 investment in this ASX 300 stock.

The post Buy this ASX 300 stock for a 14% gain and 5.5% dividend yield 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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As a human who follows the news, it wouldn’t have escaped your attention that artificial intelligence (AI) has been making headlines for the past 16 months.

The difficulty is that on the ASX there aren’t that many technology shares that are directly involved in making AI.

However, the great news is that there are plenty that are involved in the supply chain.

And many experts argue that it’s far better to invest in companies that produce the “picks and shovels” anyway, because it means you don’t have to choose a winner among the AI producers.

Here are two that I can think of:

The computers producing AI have to live somewhere

NextDC Ltd (ASX: NXT) is an Australian data centre operator founded by Bevan Slattery, who is also the entrepreneur behind Megaport Ltd (ASX: MP1) and Superloop Ltd (ASX: SLC).

Artificial intelligence requires a tremendous amount of computing capacity to crunch all the necessary calculations.

And all that computing power has to be housed somewhere.

That’s where NextDC comes in, and likely explains the share price doubling since November 2022, when ChatGPT was released to the public.

Despite the steep rise in the valuation, professional investors are judging that data centre demand will skyrocket in the coming years.

This conviction is shown on broking platform CMC Invest, which shows a whopping 15 out of 17 analysts recommending NextDC as a buy.

And all those data centres have to live somewhere

Even higher up in the supply chain is industrial real estate developer Goodman Group (ASX: GMG).

While it has become widely successful on the back of renting out warehouses for online shopping, the potential of data centres has not escaped the business.

Goodman has publicly acknowledged that data centre space is a focus area for its future growth.

Just last month, chief executive Greg Goodman recognised the coming demand from AI.

“As the digital economy expands with the growth of artificial intelligence and increased computing requirements, so does our ability to provide the essential infrastructure needed to support its progress,” he said.

“Our growth in data centre capacity underscores our ability to deliver digital infrastructure, where we’re securing power on our sites and developing data centres in cities with high demand.”

Like NextDC, the Goodman share price has also climbed rapidly over the past 16 months, to the tune of a 91% gain since the start of October 2022.

The post 2 ASX shares I want to buy for the artificial intelligence (AI) revolution appeared first on The Motley Fool Australia.

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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 Goodman Group and Megaport. The Motley Fool Australia has recommended Goodman Group and Megaport. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• Liontown share price leaps 10% on fresh $550 million funding
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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 positions in and has recommended Idp Education. The Motley Fool Australia has recommended Elders, Idp Education, Nine Entertainment, and Premier Investments. 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.

Nvidia (NASDAQ: NVDA) stock looks unstoppable. Amid the company’s dominance in artificial intelligence (AI)-ready chips and the insatiable demand for the technology, its stock has risen by close to 300% over the last 12 months.

With the stock approaching $1,000 per share, investors may wonder whether a stock split is imminent. Despite the fact that such a move will not directly influence Nvidia’s valuation, investors should expect one soon. Here’s why.

Nvidia and stock splits

The history of Nvidia stock is arguably the most compelling reason for expecting a near-term split. The company has split its stock five times since 2000, one of which has occurred since AI and data centers renewed investor interest in GPUs.

That previous split occurred on July 19, 2021, when Nvidia carried out a 4-for-1 stock split. Interestingly, it closed at a pre-split price of around $744 per share that day, a level lower than today’s current price.

Still, investors should remember that these gains came quickly, as Nvidia stock is up about 85% this year and nearly 30% over the last month alone, indicating that a need for a split could have caught the company’s board off guard.

The big question surrounding the split

Moreover, the most significant question surrounding a split is likely where the company will set the split ratio. The most recent 4-for-1 split was the largest ratio in the company’s history, with the company having approved three 2-for-1 splits and one 3-for-2 split in the 2000s.

However, as mentioned before, the more recent growth has probably exceeded expectations. While future growth may not match the 126% revenue increase in fiscal 2024 (ended Jan. 31), analysts forecast 81% revenue growth in fiscal 2025 and 22% the next fiscal year, indicating the massive profit increases should continue for the foreseeable future.

That could possibly mean the stock price is not done rising. Conversely, slowing growth could soon dampen enthusiasm for the stock, and the company’s board will have to consider the massive drops in the stock price in past years. Hence, the company has to be ready for any potential price movement when it decides the split ratio.

NVDA data by YCharts

Another possible consideration

Investors may want also to consider another possible factor — inclusion as one of the 30 stocks making up the Dow Jones Industrial Average.

The S&P Dow Jones Indices, operated by S&P Global, has not telegraphed any intention to add Nvidia to the Dow 30. Also, the index already includes two semiconductor stocks, Apple and Intel.

However, Intel has struggled in recent years, increasing the chances of its removal. Also, AI’s influence over the economy could lead to more tech stocks in the index, and Nvidia’s $2.2 trillion market cap makes it a likely choice.

Furthermore, the Dow 30 is a price-weighted index. Since the nominal share price determines a stock’s weighting on the Dow, companies have often initiated stock splits to reduce their influence over the index. Should Nvidia seek a place on the Dow 30, it may alter the split ratio to increase its chances of inclusion.

Making sense of a potential stock split

Given the company’s history of stock splits, investors should expect such a move sooner rather than later. Also, since the previous split occurred less than three years ago at a lower price, the split ratio is likely the most significant question surrounding such a move.

Indeed, Nvidia’s board will need to consider the stock’s price history in deciding the ratio, both in a positive and negative sense. Also, assuming Nvidia seeks to become a Dow 30 stock, it will have to become more sensitive to its nominal share price.

Ultimately, the stock split changes nothing for Nvidia on the surface. However, given the company’s history, shareholders should anticipate a split and, possibly, increased interest in the stock from some unexpected parties. 

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

The post Is Nvidia headed for a stock split? appeared first on The Motley Fool Australia.

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Will Healy has positions in Intel. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short May 2024 $47 calls on Intel. The Motley Fool Australia has recommended Apple 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Accent Group Ltd (ASX: AX1)

According to a note out of Morgan Stanley, its analysts have upgraded this footwear retailer’s shares to an overweight rating with an improved price target of $2.45. The broker likes the company due to its belief that it is well-positioned to benefit when challenging macroeconomic conditions ease. This is due to its target demographic being younger consumers, which it notes have been impacted the most during the cost of living crisis. The broker also sees plenty of potential in the store rollouts of some of its newer brands. The Accent share price is trading at $2.05 on Wednesday.

Telstra Group Ltd (ASX: TLS)

A note out of Bell Potter reveals that its analysts have upgraded this telco giant’s shares to a buy rating with a $4.25 price target. The broker made the move on valuation grounds following a period of underperformance. It highlights that its shares are looking reasonable value trading on an FY25 PE ratio of <20x. This is lower than the average multiples of other comparable companies. The Telstra share price is fetching $3.77 today.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Morgan Stanley have also retained their overweight rating and $13.75 price target on this wine giant’s shares. This follows news that the Chinese government has made an interim draft determination to remove Australian wine import tariffs. The broker believes that the company could be shipping wine to China within two months. Though, the impact on FY 2024’s earnings would be minimal due to the timing of the change. The Treasury Wine share price is trading at $12.48 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why the Accent share price has jumped 5% and more gains are predicted
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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 Group. The Motley Fool Australia has recommended Accent Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a fairly pleasant hump day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares this Wednesday thus far. At the time of writing, the ASX 200 has risen by 0.22% and is back above 7,725 points. But let’s talk about the Macquarie Group Ltd (ASX: MQG) share price.

Macquarie shares have had an even better Wednesday than the broader market. This diversified financial stock is currently up a rosy 1.12% at a flat $200 at present. Earlier this afternoon, Macquarie even rose as high as $200.05 – a new 52-week high for the company.

This represents the latest chapter in what has been a remarkable recovery for the Macquarie share price. It was only as recently as mid-November that Macquarie shares were touching new 52-week lows of around $155 a share. That means that investors have enjoyed a pleasing 26% or so gain over the past three months.

Why is Macquarie stock at a new 52-week high?

This is a rather strange 52-week high to cover, as there has been no obvious catalysts for this company’s new high watermark. In fact, the last piece of major news out of Macquarie resulted in investors selling off the company.

Exactly one month ago, Macquarie released an operational briefing covering the third quarter of the 2024 financial year. The company warned that its net profits after tax were “substantially down” compared to the same period over the previous year. Saying that, Macquarie did note that the previous quarter in question was an “exceptional” one.

Even so, investors punished the Macquarie share price when this update was released, as we documented at the time.

Judging by today’s new 52-week high, those same investors seem to be letting bygones be bygones. It’s possible that sentiment over Macquarie shares is being pushed along by broader market sentiment. The past few weeks have seen the ASX 200 clock a series of new record highs, after all.

Perhaps Macquarie’s ongoing share buybacks are helping investors with their newly found optimism too.

Macquarie share price snapshot

Of course, today’s new 52-week high is not a new all-time high for the Macquarie share price. Macquarie’s last record high came way back in early 2022 when the company got above $211 a share for the first time ever. It hasn’t been back there since, but given the stock’s recent runup, perhaps investors don’t have too long to wait.

At the current Macquarie share price, this financial stock has a market capitalisation of $76.7 billion, with a dividend yield of 3.53%.

The post Big ASX news: Macquarie share price hits new 52-week high appeared first on The Motley Fool Australia.

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More reading

• How much passive income will I get from shares vs. property?
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• It’s not too late to buy these 2 rocketing ASX 200 stocks

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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LBT Innovations Limited (ASX: LBT) shares are catching the eye on Wednesday.

At one stage today, the ASX AI healthcare stock was up as much as 170% to 3.8 cents.

The medical technology company’s shares have given back most of these gains since then but remains up 80% to 2.5 cents.

Why is this ASX AI healthcare stock rocketing?

Investors were scrambling to buy the company’s shares today after it announced the successful completion of primary validation for the Automated Plate Assessment System (APAS) PharmaQC product.

The company’s APAS product uses artificial intelligence and machine learning software to automate the imaging, analysis, and interpretation of microbiology culture plates.

The completion of this milestone represents the final step in the product development and technology commercialisation with global healthcare giant AstraZeneca (NASDAQ: AZN).

As a result, AstraZeneca will now undertake an internal secondary validation of the system within its own manufacturing processes. Completion of AstraZeneca’s secondary validation is anticipated in the third quarter of calendar year 2024.

If that is successful, then it could be only a matter of time until the ASX AI healthcare stock is generating revenue.

‘Incredibly important’

The company’s CEO and managing director, Brent Barnes, was very pleased with the news and believes the technology is important to the industry. He said:

Evidence based automation is incredibly important in the biopharmaceutical industry. The completion of our primary validation is a valuable asset to the Company. We expect this data to build confidence in our technology and assist customers with their adoption of APAS PharmaQC.

Many customers we’ve spoken to over the past 6 months gave positive feedback on our technological approach and we are looking forward to sharing our primary validation data with them. We have set ourselves an ambitious commercialisation schedule for 2024 and expect the customer qualification pipeline to accelerate as we present our APAS PharmaQC technology at a number of key global conferences.

The post Guess which ASX AI stock rocketed 170% on an AstraZeneca update appeared first on The Motley Fool Australia.

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More reading

• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
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• At $29, I think the Woodside share price could be 20% undervalued!
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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 recommended AstraZeneca Plc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is pushing higher again. At the time of writing, the benchmark index is up 0.2% to 7,729.6 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Accent Group Ltd (ASX: AX1)

The Accent share price is up 4.5% to $2.04. Investors have been buying this footwear retailer’s shares following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has upgraded Accent’s shares to an overweight rating with an improved price target of $2.45.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 8% to $1.42. This follows news that the lithium developer has entered into a $550 million debt facility agreement. These funds will be used to ensure the Kathleen Valley Lithium Project is funded through to its first production and the ramp-up to the company’s three million tonnes per year base case.

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price was up 6% to $5.15 before being placed in a trading halt. This follows speculation that the insurance company could be a takeover target. The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK’s Ardonagh Group. An offer of $2.3 billion is thought to be on the cards.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 3% to $1.32. This morning, analysts at Citi upgraded this buy now pay later provider’s shares to a buy rating with an improved price target of $1.40. Citi has been impressed with the company’s performance and particularly its balance sheet improvements.

The post Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX All Ords stock is suspended amid takeover rumours
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• 4 ASX All Ords shares going gangbusters on Tuesday
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 PSC Insurance Group and Zip Co. The Motley Fool Australia has recommended Accent Group and PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday and is pushing higher. In afternoon trade, the benchmark index is up 0.3% to 7,737.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 9% to 20 cents. This follows the release of the lithium miner’s half-year results. Due to lithium price weakness and the suspension of its spodumene production, Core Lithium reported revenue of $134.8 million and a loss after tax of $167.6 million. The company also revealed that its CEO, Gareth Manderson, is stepping down.

Jupiter Mines Ltd (ASX: JMS)

The Jupiter Mines share price is down almost 3% to 17.5 cents. This follows the release of the scoping study evaluating the opportunity to supply high purity manganese sulphate monohydrate to the electric vehicle battery market. Management advised that the study has “yielded promising results” but the market doesn’t appear convinced.

Newmont Corporation (ASX: NEM)

The Newmont share price is down 3% to $51.33. Investors have been selling Newmont and other gold miners today after the gold price tumbled overnight. This was driven by a hotter than expected US inflation reading which has reduced the chances of a rate cut in the near future. The S&P/ASX All Ordinaries Gold index is down 2% this afternoon.

Perpetual Ltd (ASX: PPT)

The Perpetual share price is down over 2% to $24.14. This has been driven by the fund manager’s shares going ex-dividend this morning for its upcoming interim dividend. Eligible shareholders can look forward to receiving this 65 cents per share partially franked dividend next month on 8 April.

The post Why Core Lithium, Jupiter Mines, Newmont, and Perpetual shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Core Lithium shares crash 9% after posting massive half-year loss
• 5 things to watch on the ASX 200 on Wednesday
• Core Lithium share price on watch amid $167m half-year loss and CEO exit
• Here are the top 10 ASX 200 shares today
• Why are short sellers shifting into ASX blue chips and out of lithium losers?

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 Woodside Energy Group Ltd (ASX: WDS) share price has tumbled almost 24% over the past six months.

As you can see on the chart below, on 13 September shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed the day trading for $37.85 apiece.

In intraday trading today, shares are swapping hands for $28.92.

Now, the Woodside share price certainly could soar by 31% to reach $37.85 again. In fact, I believe that over the longer term, it probably will.

But I think that a 20% gain is more likely over the coming months.

Six months ago, Brent crude oil was trading for US$92 per barrel, compared to US$82 per barrel today. And while I believe the crude oil price will head higher this year, it would likely take some very unwanted escalations in the Middle East tensions to get it back above US$90 in 2024.

Still, I expect we’ll see Woodside stock trading back near the US$35 range we saw in late October when Brent crude was selling for US$87 per barrel.

Why the Woodside share price could soar by 20%

Despite ongoing concerns related to climate change, work at Woodside’s offshore Scarborough LNG project has recommenced. That offers additional long-term tailwinds for the Woodside share price.

And the company is working hard to address carbon reduction.

“Our climate strategy is integrated throughout our corporate strategy as we provide the energy our customers need today and into a lower carbon future,” CEO Meg O’Neill told investors.

She added that the company’s climate action plan is intended to “create and return value” to its shareholders while enabling Woodside to conduct its business sustainably.

Other tailwinds I see for the Woodside share price are the sizeable ongoing production cuts from OPEC+.

Despite near-record output from the United States, OPEC+ is managing to reduce global supplies.

According to the US Energy Information Administration (EIA):

As a result of OPEC+ extending crude oil production cuts, we have reduced our forecast for global oil production growth in 2024. The lower growth contributes to significant global oil inventory declines in our forecast for the second quarter of 2024 (2Q24)

And that’s likely to lead to higher energy prices, which should support the Woodside share price.

“Because of falling inventories, we now expect the Brent crude oil spot price will average $88 per barrel (b) in 2Q24,” the EIA noted. The agency expects Brent crude oil prices will average US$87 per barrel over 2024.

That forecast puts the oil price back to late October 2023 levels, when Woodside was trading for US$35 a share, some 20% above current levels.

Then there’s LNG, which comprises a large part of Woodside’s revenues.

According to the EIA, “We expect the US benchmark Henry Hub natural gas spot price to average higher in 2024 and 2025 than in 2023.”

Atop a potential 20% gain for the Woodside share price amid rising energy prices, the ASX 200 oil and gas stock also trades on a trailing dividend yield of 7.5%.

The post At $29, I think the Woodside share price could be 20% undervalued! appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• How Woodside shares can ‘thrive through the energy transition’
• Why Adairs, BHP, Deep Yellow, and Woodside shares are dropping today
• 5 things to watch on the ASX 200 on Monday
• ASX dividend royalty: Australia’s top stocks for reliable income

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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