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When share markets go downward, I think it’s a good time to look at ASX dividend shares. Not only are valuations cheaper, but the dividend yields also get a boost.

It’s true that what interest rate investors can get from a term deposit has increased, but the dividend yields from shares are now looking even more attractive.

I wouldn’t buy a business just because it has a high dividend yield. I’m looking for businesses that can hopefully grow profit over the long term, particularly ones with plans for growth.

These are two of the high-yielding shares I think could make good buys this month.

Rio Tinto Limited (ASX: RIO)

This business is one of the ASX’s largest miners. It’s involved with a number of different commodities including iron ore, aluminium, copper, diamonds, titanium dioxide and borates. It is also building a lithium project in South America as the business looks to build its exposure to decarbonisation resources.

Iron ore has been the key profit generator for the ASX dividend share. However, the iron ore price has been falling in recent weeks and months. There have been concerns that Chinese demand for iron ore will reduce, due to an unstable property sector and COVID-19 lockdowns, leading to a subdued iron ore price.

Since 8 June, the Rio Tinto share price has fallen by over 20%. I think it’s times of commodity weakness that make the best time to buy shares in mining stocks. However, China (and its demand for iron) will essentially decide how Rio Tinto’s iron ore earnings perform in the coming years.

I like the way this ASX dividend share is increasing its exposure to copper and I’m optimistic about the lithium play as well.

According to CommSec, the FY23 grossed-up dividend yield could be 12.2%.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX with a market capitalisation of over $4 billion according to the ASX.

It offers investors a number of different investment strategies including global shares, dividend income, emerging markets, and US shares.

This business continues to experience net inflows of investor money, despite all of the volatility in the share markets. In the three months to September 2022, it experienced net inflows of US$0.8 billion. It finished the quarter with US$79.2 billion of funds under management (FUM).

The vast majority of its net revenue comes from management fees (which are a percentage of assets managed), rather than performance fees. This means its revenue can be more consistent.

This ASX dividend share aims to pay out 90% of its distributable earnings to investors.

According to CommSec, GQG is predicted to pay a dividend yield of 8.25% in FY23.

The post I think right now is the time to buy these 2 ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Why Atlantic Lithium, Coronado Global, Lake Resources, and Rio Tinto are charging higher
• Why is the Rio Tinto share price pushing higher today?
• Which ASX 200 mining shares managed to dig up gains in October?
• Could ASX 200 iron ore shares be heading for more pain?
• Why CBA is much more upbeat on Rio Tinto shares than the government

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Lynas Rare Earths Ltd (ASX: LYC) share price has been among the more inspiring ASX success stories over the last few years, despite no dividends having been paid by the company.

The stock has gained more than 250% over the last three years amid soaring demand for rare earths. Right now, it’s trading for $8.68.

Like lithium and copper, which are perhaps better known, rare earths are an essential component of modern technology and, in turn, the green energy transition.

As demand for rare earths has taken off, so have the company’s earnings.

It posted $601 million of earnings before interest, tax, depreciation, and amortisation (EBITDA) and a $540 million after-tax profit for financial year 2022 – up 156% and 244% respectively year-on-year. It also closed the year with $965.6 million of cash and cash equivalents.

Why, then, is Lynas not offering those invested in its shares a dividend? And could payouts be on the cards in the future? Let’s take a look.

Could dividends be on the horizon for Lynas shares?

As the figures above suggest, Lynas appears financially able to offer shareholders a dividend.

The miner’s earnings per share (EPS) lifted to 59.95 cents last financial year. Even paying out 30 cents of that would see the stock with a healthy 3.46% dividend yield.

But I don’t think investors should be holding their breath for dividends in the very near future, for two reasons.

First, while the company is profitable in 2022, that’s a relatively new development.

It has only posted a profit for two consecutive financial years, having lost nearly $19.4 million in financial year 2020. It’s also worth noting that Lynas’ revenue slumped 44% in the September quarter.

Thus, it might be waiting until it has more stable earnings before it begins to offer dividends.

Perhaps a more compelling reason I’m sceptical about forthcoming dividends, however, is Lynas’ growth strategy.

The Lynas 2025 growth plan aims to grow the company alongside the market, diversify its industrial footprint, and increase its product range.

After announcing the plan in 2019, the company declared its accelerating and increasing its efforts in August as it revealed a $500 million expansion project at Mt Weld â€“ fully funded from cash flow.

Speaking on the company’s recent full-year earnings, CEO and managing director Amanda Lacaze said:

Further investment in capacity increases at each stage of production will ensure that Lynas is well positioned to continue to grow with the market as a supplier of choice to 2025 and beyond.

With such a focus on growth, it makes sense Lynas might forego offering dividends to those invested in its shares.

However, nothing is certain on the ASX. The company could very well be gearing up to offer a dividend as we speak.

The post Could Lynas shares pay a dividend in the future? appeared first on The Motley Fool Australia.

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More reading

• What’s boosting the Lynas share price on Wednesday?
• Which ASX 200 mining shares managed to dig up gains in October?
• Could the Lynas share price have another 15% upside from here?
• 2 ASX companies producing minerals the whole world wants: expert
• Here are the top 10 ASX 200 shares today

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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Looking for dividend shares to buy? Listed below are two ASX dividend shares that experts rate as buys.

Here’s why they are bullish on these dividend shares:

Accent Group Ltd (ASX: AX1)

Footwear focused retailer Accent could be an ASX dividend share to buy.

Its shares have been crushed over the last 12 months after the company materially underperformed in FY 2022. While this is disappointing, the team at Morgans sees it as a buying opportunity. Particularly given its belief that the company could return to form this year.

It highlights that management is focused on selling at full price again, which it expects to support a recovery in its gross profit margin. In addition, Morgans was pleased with the company’s decision to moderate its store rollout in favour of a more selective expansion strategy focused on return on investment.

Morgans has an add rating with a $2.00 price target. As for dividends, the broker is forecasting fully franked dividends of 9 cents per share in FY 2023 and 11 cents per share in FY 2024. Based on the current Accent share price of $1.51, this will mean yields of 6% and 7.3%, respectively.

Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long Wale REIT could be another ASX dividend share to buy this month. It is a leading property company with a focus on high quality real estate assets.

As its name implies, these properties are leased to corporate and government tenants on long term leases. In fact, at the last count, its weighted average lease expiry (WALE) stood at 12 years.

Citi is a fan of the company and has a buy rating and $4.70 price target on its shares. Its analysts believe Charter Hall Long Wale REIT’s shares are great value after recent weakness. This is particularly the case given its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

In respect dividends, the broker is forecasting dividends per share of 28 cents in FY 2023 and 29.2 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.33, this will mean yields of 6.5% and 6.7%, respectively.

The post Analysts say these ASX dividend shares with 6%+ yields are buys appeared first on The Motley Fool Australia.

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More reading

• Why I’d grab today’s cheap ASX shares before it’s too late
• Brokers name 2 ASX dividend shares to buy with big yields
• Here are the top 10 ASX 200 shares today
• Set for life: 5 ASX dividend shares I’d invest in if I ever had a million-dollar windfall
• 2 ASX dividend shares with big yields I’d buy for income

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 Accent 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 A2 Milk Company Ltd (ASX: A2M) share price will be one to watch on Thursday.

That’s because this morning the infant formula company made a very positive announcement relating to its US operations.

Why is the A2 Milk share price on watch?

The A2 Milk share price could defy the market selloff today after the company announced that it will soon be selling its infant formula in the massive US market.

According to the release, the United States Food and Drug Administration (FDA) has exercised its discretion to allow A2 Milk to import infant milk formula products into the United States.

A2 Milk applied to the FDA on 26 May but had its application deferred in August. Since then, the company continued to engage with the FDA to meet its requirements and to reconsider A2 Milk’s application.

It has now done enough to convince the FDA to approve its application and has been given the thumbs up to import, sell, and distribute a2 Platinum infant formula products (Stages 1 and 2) from New Zealand into the US through to 6 January 2023. The company is also able to supply Stage 3 toddler products, which does not require enforcement discretion.

What’s different?

The release notes that the product that will be supplied to the United States has the same formulation as a2 Platinum but has different scoops, mixing instructions, and labelling requirements to meet the FDA requirements. This product is not currently available in inventory and needs to be manufactured as soon as possible.

A2 Milk previously indicated to the FDA that if approval was obtained by 30 September 2022, it had the capacity through Synlait Milk Limited (ASX: SM1) to manufacture 9 million cans of a2 Platinum (equivalent to 211 million 8oz bottles) by 30 June 2023 if required during the supply shortage period, subject to customer demand.

However, management highlights that while the United States is a significant opportunity, it is difficult to predict the infant formula sales potential as it is a highly competitive market to enter.

Accordingly, the company believes sales will be significantly below indicated manufacturing capacity and is provisionally forecasting sales of 1 million cans to the United States during the second half of FY 2023.

Furthermore, management expects gross margins to be lower than average, distribution costs to be higher due to potential air freight and rework costs, and incremental marketing and trade investment to enter the category. This makes its earnings impact unclear at this stage.

Management commentary

A2 Milk Company’s managing director and CEO, David Bortolussi, said:

We are pleased to be able to assist parents and caregivers in the US by providing access to significant volumes of high quality, a2 Platinum infant and toddler milk formula manufactured in New Zealand during this challenging period. Our a2 Platinum product meets the FDA’s food safety and nutritional requirements and is made with a2 Milk, which has digestive and other potential health benefits that have underpinned the success of our brand in other markets.

a2MC is well positioned to support this initiative being one of the leading premium international infant milk formula brands with annual sales exceeding 30 million cans. We have scalable production capacity in New Zealand with Synlait plus existing a2MC US sales, marketing and supply chain capability that can be leveraged.

We are increasing our supply to respond to this situation, while importantly ensuring that we continue to meet the needs of our other IMF consumers and trade partners in China and other markets. If the US requires further support over an extended period, we have the proven ability to scale up significantly.

The post A2 Milk share price on watch following US FDA approval appeared first on The Motley Fool Australia.

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More reading

• A2 Milk share price climbs amid legal stoush
• Why is the A2 Milk share price underperforming on Tuesday?
• Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling
• Why is the A2 Milk share price having a better end to the week than the index?
• Why is the A2 Milk share price falling today?

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 A2 Milk. 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 Westpac Banking Corp (ASX: WBC) share price had a stellar month in October.

Westpac shares soared 16.8% from $20.64 at market close on 30 September to $24.11 at the end of October.

Let’s take a look at what weighed on the Westpac share price in October.

How did the month play out?

Westpac was not the only bank to rise in October. National Australia Bank Ltd (ASX: NAB) shares leapt 12.5% during the month, while Commonwealth Bank of Australia (ASX: CBA) shares jumped 15.4% and Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares lifted 12.1%.

ASX bank shares including Westpac appeared to perform well amid strong market sentiment in the financial sector. Interest rate rises also may have had an impact on the Westpac share price. The Reserve Bank of Australia lifted the official cash rate by 25 basis points to 2.6% in October. This benefits banks because interest rate rises improve margins on loans.

In news on 24 October, Westpac advised its net profit and cash earnings in the second half of 2022 will take a $1.3 billion hit. This includes a loss of $1.1 billion on the Westpac Life Insurance Limited sale. However, Westpac is still tipped to report a $5.4 billion profit in 2022.

Also in October, Westpac revealed it is in “preliminary discussions” with Tyro Payments Ltd (ASX: TYR) to acquire 100% of its share capital. However, the bank clarified “there is no certainty that any transaction will result”. Westpac shares pushed 2.35% higher on 18 October, the day of the announcement.

Looking ahead, Citi analysts have recently shed light on Westpac’s potential takeover of Tyro. Citi is positive on the transaction, but believes it may be hard to pull off. Citi said:

The potential transaction would strengthen WBC’s small business proposition, and move it ahead of CBA in card-present segment share. Consequently, WBC’s existing scale in merchant acquiring would allow for likely synergies, but we think such a transaction would still prove difficult to execute.

TYR’s major shareholder is linked to another interested consortium, while its [Tyro’s] exclusive arrangement with current and referred BEN [Bendigo and Adelaide Bank] customers presents another unknown.

Citi has a buy rating on the Westpac share price with a $30 price target. Citi is also tipping a $1.60 per share fully-franked dividend in the 2023 financial year.

The Reserve Bank of Australia (RBA) hiked interest rates by a further 0.25% on Tuesday, taking the official cash rate to 2.85%. The RBA “expects to increase rates further over the period ahead”.

Westpac is due to report its full-year 2022 results on Monday 7 November.

Westpac share price snapshot

The Westpac share price has lost nearly 6% in the past year, while it has soared nearly 15% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has descended 5% in the last year.

Westpac has a market capitalisation of about $85.7 billion based on the current share price.

The post The Westpac share price soared 17% in October, what’s next? appeared first on The Motley Fool Australia.

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More reading

• Up 14% in a month, why the ANZ share price can keep delivering: Citi
• 5 things to watch on the ASX 200 on Tuesday
• Here’s how the NAB share price has fared in October
• Buy Westpac shares now for EPS and dividend growth: experts
• These ASX dividend shares have big yields

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Tyro Payments. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Tyro Payments and 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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The Woodside Energy Group Ltd (ASX: WDS) share price had another strong month in October, adding to a strong year for the ASX oil share.

While Woodside can’t control certain factors, like what happens with energy prices or what goes on in Europe, it can do its best to boost its production and sell as much as it can at the high energy price that we’re seeing at the moment.

It may have been the company’s quarterly update that helped the Woodside share price deliver a return of 13.6% compared to the S&P/ASX 200 Index (ASX: XJO) which only rose by 6%.

Let’s take a look at what the business reported for the three months to 30 September 2022.

Woodside’s quarterly update

This was the first full quarter that the business had reported that included the earnings of the BHP Group Ltd (ASX: BHP) petroleum business. Due to the size of that business, it had a pleasing effect of boosting the performance of Woodside.

Woodside reported that its sales revenue was up by 70% from the second quarter of 2022 to US$5.9 billion. Sales volume was up 59% from the second quarter to 57.1 million barrels of oil equivalent (MMboe). Production was up 52% from the second quarter to 51.2 MMboe.

The business said that it achieved a portfolio average realised price of US$102 per barrel of oil equivalent.

Based on its strong performance, it decided to increase its 2022 production guidance from 153 MMboe to 157 MMboe. This was an increase from the prior guidance of between 145 MMboe to 153 MMboe. Producing more during these times of high energy prices could be helpful for the Woodside share price.

It also told investors about the progress that it is making on its major projects.

It has commenced fabrication of subsea flowlines for the Scarborough and Pluto train 2 projects in Western Australia, which combined are now 21% complete.

Woodside also said that it has commenced the subsea installation campaign for the Sangomar field development offshore Senegal, which is now 70% complete.

However, the business did also announce a reduction in capital expenditure. It was previously expecting that in 2022 it would spend between US$4.3 billion to US$4.8 billion on capital expenditure. But now, it’s expecting to spend between US$4 billion to US$4.3 billion.

It also said that it was increasing its exploration expenditure from a range of US$400 million to US$500 million, to a range of US$500 million to US$600 million.

CEO comments

The Woodside CEO Meg O’Neill commented on the green progress that the business is making:

We announced plans for the Hydrogen Refueller @H2Perth, a self-contained hydrogen production, storage and refuelling station, which would assist in stimulating the hydrogen economy in Western Australia.

We also awarded a contract in October for electrolysers for the proposed H2OK hydrogen project, a significant milestone towards our targeted final investment decision in 2023. Front-end engineering design activities for H2OK are well advanced.

Woodside share price snapshot

While we’re only two days into November, I think it’s worth pointing out that the Woodside share price has risen by another 3.5% since the start of the month.

The post The Woodside share price doubled the return of the ASX 200 in October appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares hitting new heights today
• Why is the Woodside share price storming higher on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• Why did Santos and Woodside shares outperform the ASX 200 today
• These ASX 200 energy shares are leading the market higher on Tuesday

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

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The Woolworths Group Ltd (ASX: WOW) share price will be on watch today.

This follows the release of the retail giant’s first quarter update.

Woolworths share price on watch following soft Q1 update

For the quarter ended 2 October, Woolworths reported a 1.8% increase in group sales to $16,363 million. This growth was underpinned by its Big W and Australian B2B businesses, which offset softer sales from the Australian Food business and its New Zealand equivalent.

In respect to the key Australian Food business, its sales were down 0.5% over the prior corresponding period to $12,204 million. This was due to sales weakness in the online channel, which fell 10.8% to $1,239 million. Store-originated sales from Woolworths supermarkets rose a modest 0.5% to $10,608 million and its Metro Food store sales grew 10.8% to $284 million.

Overall, Australian Food comparable sales dropped 1.1% over the prior corresponding period, well short of Goldman Sachs’ forecast of 3% growth. That’s despite inflation driving average prices 7.3% higher compared to the first quarter of FY 2022.

Management commentary

Woolworths CEO, Brad Banducci, commented:

In our Food businesses, sales were below the prior year as we cycled strong growth driven by COVID-related restrictions in F21 and F22. Australian Food sales decreased by 0.5% and New Zealand Food sales were down 2.5% compared to the prior year. On a three-year compound annual growth basis, sales in Australian Food were up 5.3% and up 4.7% in New Zealand Food.

In Australian B2B, Q1 sales increased by 26.0% compared to the prior year primarily due to strong growth from PFD. BIG W sales were up 30.1% (3-yr CAGR: +8.9%) cycling lockdown-related temporary store closures in the prior year.

eCommerce sales in Australian Food (-10.8%) and BIG W (-51.8%) were lower than the prior year as customer mobility increased. However, on a three-year CAGR, sales growth remained strong, increasing by 43.5% and 43.7% respectively. eCommerce penetration in Australian Food was 10.2%, 6.2 pts above Q1 F20 and 9.4% in BIG W, 5.3 pts above F20. New Zealand eCommerce sales grew at 5.9% (3-yr CAGR: +23.3%) with penetration of 14.2%, up 5.5 pts on F20.

Outlook

Banducci advised that sales trends have improved in October in the Australian Food business and there are signs of stabilisation in the New Zealand Food trading environment. However, the latter’s earnings are being impacted by the combination of lower sales and materially higher wage inflation.

Nevertheless, the CEO appears cautiously optimistic on the remainder of the first half. He concludes:

There are 51 days until Christmas and we are very focused on delivering a much-needed inspirational and affordable festive season for our customers. Ongoing supply chain volatility and the possibility of another wet summer will be key challenges to navigate but we are seeing strong early sell through of seasonal lines and we remain cautiously optimistic for the period ahead.

The post Woolworths share price on watch following soft Q1 update appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares to cash in on ‘a very good Christmas’: expert
• 5 things to watch on the ASX 200 on Thursday
• How has the Woolworths share price fared in October?
• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?
• Woolworths share price dumps 3% as forecasts ‘remain challenging’

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 Santa rally will once again make an appearance on share markets, according to many experts.

This is the historical pattern of ASX shares rising heading into December and the end of the calendar year.

The logic for that to repeat in 2022 seems to be that the market can see brighter days after a tough year. After steep interest rate rises, optimism abounds that inflation will be sufficiently slayed for the central banks to take a chill pill in 2023.

But it’s not just about buying up ASX shares indiscriminately.

It helps if the business itself has drivers that will boost its performance. There is no outperformance if a stock is just relying on the overall tide to rise again.

As such, Tribeca portfolio manager Jun Bei Liu had an idea.

“I do like to look at things when they get sold off quite a bit,” she told Switzer TV Investing.

“And one of the interesting sectors is… the supermarkets. They have been sold off a lot.”

Share prices at ‘attractive levels’

Indeed, both the Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) share prices have sunk about 15% since mid-August.

For Liu, “a large supermarket to be down this much” opens up a nice buying opportunity.

“Clearly they are COVID beneficiaries, we know. But the share price is actually coming down to reasonably attractive levels,” she said.

“For Coles, it’s under 20 times — something like 18 times earnings.”

Regardless of interest rate rises biting Australian households, Liu feels like grocery spend will be spectacular heading into summer.

“These supermarkets will have a very good Christmas, because it’s the first Christmas that we can actually celebrate without any form of restrictions.”

“Supermarkets… look pretty attractive at this point.”

Moreover, Liu feels like the stock market generally is on the cusp of a bull run.

“I think we’re getting very very close to that bottom of the market now,” she said.

“Remember, share markets are always forward-looking. And we’re probably, looking at the economic data, [getting] to the worst by early next year.”

To add to the attraction, Woolworths hands out a 2.75% dividend yield while Coles pays 3.8%.

The post 2 ASX shares to cash in on ‘a very good Christmas’: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Dividends beasts: 3 ASX shares that kept the funds growing even during COVID
• These are the ASX 200 dividend shares to buy: analysts
• How has the Woolworths share price fared in October?
• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?

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 positions in and has recommended COLESGROUP DEF SET. 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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Pilbara Minerals Ltd (ASX: PLS) has long been a favourite share amongst certain parts of the investor community. As the S&P/ASX 200 Index (ASX: XJO)’s leading lithium share for years, it draws a lot of attention especially when lithium is hot news.

We saw a surge in interest back in 2017 when investors first started getting excited about the potential of lithium. But that surge pales in comparison to what has happened over 2021 and 2022.

It’s rather hard to picture, but believe it or not, it was only a little more than two years ago that Pilbara had a 30-cent share. Yesterday, it closed at $5.10. This is a company that is up more than 1,000% in two years. It’s also up more than 140% since June of this year.

So clearly, we have a hot stock on our hands here.

Hot stock Pilbara comes out on top

But we don’t just have share price gains to prove that Pilbara is one of the hottest shares on the ASX 200. We also have trading volume data.

Most days, we take a look at the most-traded ASX 200 shares each session. This keeps track of how many individual shares are bought and sold on any given day. Pilbara Minerals is, more often than not, in the top three most-traded ASX 200 shares on any given day. It’s often the most-traded ASX 200 share on the market.

We have seen this in action just this week. On Monday, Pilbara was the third most traded share of the day when we checked. On Tuesday, it was in first place, and on Wednesday it came in second.

Many different factors can influence trading volume. But Pilbara’s consistent presence tells us that this company is a hot ASX stock. It’s likely to be held by many investors and bought and sold often within portfolios. We also typically see big moves with Pilbara shares on any given day. It’s not uncommon to see the company move by 3% or more at least once a week.

So all this points to Pilbara being one of, if not the, hottest stock on the ASX 200 right now.

The post Is Pilbara Minerals the hottest stock on the ASX 200 right now? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Wednesday
• Why Amcor, Australian Strategic Materials, Goodman, and Pilbara Minerals are dropping
• Which ASX 200 mining shares managed to dig up gains in October?
• These were the best ASX lithium shares to buy in October
• Here are the 3 most traded ASX 200 shares on Tuesday

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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Are we there yet?

Like children on a long road trip, investors have been asking this question constantly throughout an exceptionally turbulent 2022.

While no one — not even the most knowledgeable professional — has the ability to accurately know what will happen in the near future, many experts are urging investors that now is the time to buy.

Tribeca portfolio manager Jun Bei Liu said this week that she would be an aggressive buyer even if US inflation numbers disappoint and the market steps down again.

“I think we’re getting very very close to that bottom of the market now,” Liu told Switzer TV Investing.

“Remember share markets are always forward-looking. And we’re probably, looking at the economic data, [getting] to the worst by early next year.”

Liu mentioned three ASX shares that she herself has been buying in the past week:

A growth leader going for cheap

Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its share price halve this year.

But Liu reckons it might be nearing the end of its slide.

“A lot of growth leaders are looking cheap… like Domino’s,” she said.

“Yes, there’s potentially another downgrade to come, because Europe is doing pretty tough. But it is a structural growth business.”

The pizza giant also pays out a dividend yield of 2.5%, which also soothes the current valuation uncertainty.

20% discount? Yes, please

The Medibank Private Ltd (ASX: MPL) share price has tumbled 17% over the past couple of weeks after the insurer suffered a highly publicised data breach.

But that’s not scaring off Liu.

“Yes, there potentially will be class actions… but for 20% of the market valuation to be wiped out, this does represent some shorter-term opportunity.”

Before the security incident, the health insurance giant piqued the interest of many investors, including institutional.

“Remember, this company was rumoured to be taken out not very long ago,” said Liu.

“It always had corporate interest and the company’s sitting on a really strong balance sheet.”

The dividend yield is currently sitting at 4.7%, which makes it that much more attractive.

“This company’s got a solid balance sheet, a good brand, in a stable business and has stable market share,” Liu said.

“And for the market cap to be down 2%, definitely worth a look.”

Far cheaper than US cousins

Liu also likes the outlook for data centre operator NextDC Ltd (ASX: NXT).

“We actually think they are very close to winning more contracts. And if they do, the share price will run away.”

Existing shareholders hope she is right, as the stock has lost 31.7% so far this year.

Liu sees similar businesses in the US going through mergers and acquisitions, valued at a far higher level than what NextDC is.

“[NextDC] is a standout buy,” she said.

“There’s a lot of bad news [priced] in the market, and the valuation will only have to head higher.”

The post ‘Close to bottom’: Expert names 3 bargain ASX shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Domino’s share price sinks 5% on AGM update
• Here are the 3 most traded ASX 200 shares on Wednesday
• Could the Medibank share price be on the road to recovery?
• Why did the IAG share price just hit a new 52-week high?

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 recommended Dominos Pizza Enterprises 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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