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The Zip Co Ltd (ASX: ZIP) share price is climbing today, providing investors with some much-needed relief amid its steep sell-off year to date.

The ASX BNPL share is currently trading for 64 cents each, 4.92% higher than yesterday’s closing price.

Zip’s share price is outperforming the financial sector today. The S&P/ASX 200 Financials Index (ASX: XFJ) is the second-worst-performing sector at the time of writing, up 0.47%.

Meantime, Zip’s BNPL peers aren’t enjoying similar lifts. The Block Inc. (ASX: SQ2) share price is down 0.3% while Sezzle Inc. (ASX: SZL) shares are faring a little better, up 1%.

So why are Zip’s shares rallying on Tuesday? Let’s investigate.

Shares rise on potential interest rate pivot

Some investors believe the next rate hike by the US Federal Reserve will not be as severe as previous increases, as reported by The Australian Financial Review.

The consensus is the Fed will increase interest rates by 0.75 percentage points at its next meeting this week.

There are also clues that its anticipated December interest rate hike could be in the range of a 0.50 percentage point increase. This would provide relief to growth stocks such as Zip, as well as the broader market.

Market movements may be showing clues

This is the observation of Morgan Stanley strategist Michael Wilson. Excerpts of Wilson’s research note on the matter appeared in an article published by Bloomberg on Monday.

Wilson pointed toward the recent rally in US equities over the past fortnight as a sign the Fed’s fiscal tightening could be starting to wane, with the S&P 500 (INDEXSP: .INX) gaining 5.28% over this period.

“This kind of price action isn’t unusual toward the end of the cycle particularly as the Fed moves closer to the end of its tightening campaign, something we think is approaching,” Wilson said.

Wilson also pointed toward the inversion of the yield curves of 10-year and three-month treasury bonds as a sign that they “all support a Fed pivot sooner rather than later”.

Back home in Australia, the market placed a bet that there’s a 22 per cent chance the RBA will raise interest rates to 3.1% later today, but some analysts believe it could be as low as 2.85%.

Zip share price snapshot

The Zip share price is down a painful 85% year to date. That’s a far cry from the S&P/ASX 200 Index (ASX: XJO) which is down around 7% over the same period.

The company’s market capitalisation is around $455 million.

The post Why is the Zip share price up 5% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 energy shares are leading the market higher on Tuesday
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter today?
• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years

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 ZIPCOLTD FPO. 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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The S&P/ASX 200 Index (ASX: XJO) is climbing once more on Tuesday, reaching its highest point since mid-September. Interestingly, S&P/ASX 200 Energy Index (ASX: XEJ) shares are among those leading its gains despite an overnight fall in oil prices.

The energy sector is currently up 1.61% compared to the broader ASX 200’s 0.9% rise.

Meanwhile, shares in many of the market’s favourite ASX 200 energy giants are taking off. Here’s how they’re trading right now:

• The Beach Energy Ltd (ASX: BPT) share price is up 2.96% right now to $1.637
• Santos Ltd (ASX: STO) stock has gained 1.95% to trade at $7.85
• Shares in Woodside Energy Group Ltd (ASX: WDS) have lifted 1.83% to $36.64
• Karoon Energy Ltd (ASX: KAR) shares have gained 2.36% to reach $2.17

So, what might be going on with energy shares today? Let’s take a look.

ASX 200 energy shares outperform despite oil woes

Tuesday has shaped up to be a good day for ASX 200 energy shares despite falling oil prices.

The Brent crude oil price fell 1% to US$94.83 a barrel as most of Australia slept, while the US Nymex crude oil price dropped 1.6% to US$86.53 a barrel.  

The black liquid’s value slumped amid news United States upped its oil output to a new post-pandemic high in August, reaching nearly 12 million barrels a day.

Meanwhile, US President Joe Biden has called on oil producers to increase their production in an effort to tackle energy prices, Reuters reports.

Oil prices may have also been dragged down by news of falling factory activities in China.

The purchase manager index (PMI) of the nation’s manufacturing industry fell 0.9% in October to 49.2% amid COVID-19-induced lockdowns. A figure under 50% indicates activities are contracting. This could reduce Chinese demand for oil.

Fortunately, the headlines apparently haven’t dinted ASX 200 energy shares. The sector is continuing on its upwards trajectory.

Today’s gain sees it nearly 39% higher than it was at the start of 2022. It has also risen 33% since this time last year.

The post These ASX 200 energy shares are leading the market higher on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why is the Zip share price up 5% on Tuesday?
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter today?
• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years

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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October turned out to be a wonderful month for ASX shares and the S&P/ASX 200 Index (ASX: XJO). The ASX 200 managed to clock a healthy gain of 6% over the month just gone.

So any ASX exchange-traded fund (ETF) that tracks the ASX 200 would have given investors a similar gain.

But ASX 200 ETFs like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) weren’t even close to the best-performing ETFs on the ASX last month. Want to know what the winner was?

FUEL-up the best-performing ASX ETF last month

The winner among ASX ETFs last month was none other than the BetaShares Global Energy Companies ETF (ASX: FUEL).

This ETF from BetaShares is not your typical ETF. It is not an index fund, as the most popular ETFs out there are. Rather, it is a sector-specific fund.

The Global Energy ETF does track shares, though. In this case, it is a basket of global companies involved in the exploration, extraction, production, storage, refining, transporting and sale of energy commodities like oil and gas.

It contains mainly US companies (57.1% at the latest count), but also has companies hailing from Canada, Europe, the United Kingdom, Brazil, and China in its portfolio.

Some of its current top holdings include famous names like Shell, Exxon Mobil, BP, and ConocoPhillips.

So the Global Energy ETF started October at a unit price of $5.61. But yesterday, this ETF closed at $6.56 a unit. That translates into a gain of 16.93% for October, almost triple that of the ASX 200.

These kinds of gains can only be put down to the underlying performance of the shares within this ETF to start with.

For example, Exxon Mobil stock, the ETF’s second-largest holding, rose a whopping 26.92% over October. Shell was up more than 6%, while ConocoPhillips rose 23.2%.

With gains like that among the Global Energy ETF’s portfolio, it’s perhaps no wonder it had such a cracking month.

The post Guess which was the best-performing ASX ETF in October appeared first on The Motley Fool Australia.

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More reading

• Why are Origin shares burning 4% brighter today?
• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years
• How did the AMP share price perform in October?
• These were the worst-performing ASX 200 shares in October

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 BP. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s ironic how Australia is often happily referred to as “the lucky country”.

One reason it is described as such is due to the nation’s abundance of natural resources. You can visibly see it on the ASX, where mining companies dominate in numbers and market capitalisation.

But the expression originally comes from intellectual Donald Horne, who was referring to Australia as “the lucky country” as a pejorative term.

Horne’s point was that Australia’s great wealth and power all came about through pure luck, rather than through any ingenuity of the people, political system or economics.

Regardless, our country is blessed with some treasures that foreigners would absolutely love to get their hands on.

And that means companies that are getting that stuff out of the ground and selling it overseas will do pretty well.

Running with that thematic, BW Equities equity salesperson Tim Bleakley named two ASX shares that investors should buy:

Rare find for rare earths

Many investors know about Lynas Rare Earths Ltd (ASX: LYC) already, but Bleakley feels it is a ripe buy at the moment.

After all, the share price has dropped in excess of 27% since early April.

“The company delivered a strong fiscal year 2022 result,” Bleakley told The Bull.

“We like the company’s outlook.”

In a time of high geopolitical tensions, Lynas’ products are in hot demand. It is one of just a handful of businesses producing rare earths outside of China.

“Lynas has one of the biggest high-grade rare earth deposits in the world,” said Bleakley.

“Given the scale of its resource, it has the capacity to increase supplies to meet future demand. Rare earths are a key mineral used in electric vehicles.”

Lithium is not the only game in town

While shares for lithium producers have risen phenomenally in recent years, there are also other elements that modern batteries require.

Graphite is one that is used heavily in batteries for electric cars, which is where Syrah Resources Ltd (ASX: SYR) comes in.

“Syrah is the biggest graphite producer listed on the ASX,” said Bleakley.

“Graphite is a critical mineral for the transition to electric vehicles, so strong demand should persist for many years. The company’s outlook is bright.”

The Syrah share price has rocketed more than 48% just in the past month, for good reason.

“Syrah was recently selected for a US Department of Energy grant for up to US$220 million,” Bleakley said.

“The grant will support the financing for a potential expansion of the Vidalia active anode material facility in the US state of Louisiana.”

Syrah shares are up almost 26% year to date.

The post 2 ASX companies producing minerals the whole world wants: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Champion Iron, Lynas, Newcrest, and Sayona shares are storming higher
• Lynas share price jumps despite 44% revenue fall
• Is the Lynas share price a buy ahead of tomorrow’s update?
• Why $6.5b Argo Investments is backing these ASX 200 lithium 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 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 Origin Energy Ltd (ASX: ORG) share price is powering up for a second consecutive day following the release of the company’s quarterly update on Monday.

Its Tuesday gains come amid news analysts have upgraded their outlook on the company’s stock and reports that state and federal governments are still considering ways to dampen surging domestic gas prices.

At the time of writing, the Origin share price is $5.795, 4.04% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1% while the S&P/ASX 200 Utilities Index (ASX: XUJ) is currently outperforming all other sectors, posting a 2.14% surge.

 Let’s take a closer look at what’s been going on with Origin lately.

What’s going right for the Origin share price today?

The Origin share price is off and racing once more today, following yesterday’s near-3% lift.

That gain came on the back of the company’s earnings for the September quarter. Speaking on the release, CEO Frank Calabria said:

Market conditions have improved following the incredibly challenging June quarter during which we experienced significant power supply challenges and elevated wholesale prices across the [National Energy Market].

Australia Pacific LNG’s revenue stayed relatively steady quarter-on-quarter at around $2.77 billion despite wet weather and planned maintenance.

Perhaps in response to the company’s latest release, investment group CLSA has upped its outlook for the Origin share price. It has slapped the stock with an accumulate rating, The Australian reports.

The company also provided an outlook for its LNG trading business. It has hedged around 70% of volumes and expects the business’ financial year 2025 earnings before interest, tax, depreciation, and amortisation (EBITDA) to come in between $350 million and $550 million.

Finally, it announced its 20%-owned Octopus has become the United Kingdom’s second-largest domestic energy supplier by customer accounts. The milestone was surpassed after it inherited 2.5 million customer accounts following the collapse of former competitor Bulb.  

All this came amid continued talks of potential government-enforced price caps and export curbs on gas. Such moves have been heralded by some as a way to drive down the domestic price of the energy commodity.

Industry representatives of energy users and producers are at odds about the effectiveness of such measures, The Guardian reports.

The post Why are Origin shares burning 4% brighter today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years
• How did the AMP share price perform in October?
• These were the worst-performing ASX 200 shares in October
• 5 things to watch on the ASX 200 on Tuesday

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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The BrainChip Holdings Ltd (ASX: BRN) share price had a month to forget in October.

During the period, the semiconductor company’s shares lost a quarter of their value.

This meant that the BrainChip share price was down a whopping 72% from its January high.

Why did the BrainChip share price crash in October?

The majority of the weakness in the BrainChip share price came at the end of the month after the company released its quarterly update.

That update revealed arguably the lowest cash receipts seen by a $1.5 billion listed Australian company with an active sales and marketing team.

For the three months ended 30 September, BrainChip reported cash receipts of just $118,000. That’s a touch over $39,000 a month, which is significantly less than some microcaps are generating.

In addition, the company continues to burn through its cash balance. BrainChip recorded an operating cash outflow of $3.8 million for the third quarter, bringing its year to date operating cash outflow to $11.8 million. This left it with a cash balance of $24.6 million.

Competition concerns

Given the abject sales performance, the market appears concerned that BrainChip’s technology is either being overhyped or overlooked in favour of competing technology from larger rivals.

In respect to rival technology, global giants Nvidia and Qualcomm, among others, are targeting the same ‘edge’ market with their Jetson and Snapdragon products. In respect to Nvidia, the tech giant recently commented:

At GTC 2022, NVIDIA announced the Jetson Orin Nano series of system-on-modules (SOMs). They deliver up to 80X the AI performance of NVIDIA Jetson Nano and set the new standard for entry-level edge AI and robotics applications.

It is also worth noting that in FY 2022, Nvidia spent US$5.3 billion on research and development. How BrainChip could ever compete with that, is anyone’s guess.

And given its huge budget, Nvidia (and also its rivals) could easily have just acquired BrainChip if they felt that its technology was truly game-changing, a threat to their businesses, and about to disrupt the market.

In light of the above, it’s no wonder that BrainChip gets labeled a meme stock by many.

The post Why did the BrainChip share price lose a quarter of its value in October? appeared first on The Motley Fool Australia.

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More reading

• These were the worst-performing ASX 200 shares in October
• Why Brainchip, Bubs, EML, and Fortescue shares are falling today
• Here were the 3 most heavily traded ASX 200 shares on Friday
• Why Brainchip, Calix, Fortescue, and ResMed shares are sinking
• Why are ASX 200 tech shares getting bashed around 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 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.

Earnings disappointments tend to bring not only stock selling but also longer-term doubts about a stock. And investors learned from Alphabet‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) recent third-quarter earnings report that even mega caps are not immune from such negative sentiment.

Nonetheless, doubts about stocks like Alphabet should serve as a reminder to look at a company more closely. Do the concerns about Alphabet mean investors should close positions or buy shares at the new, lower price? 

Alphabet’s third-quarter earnings

Admittedly, this earnings report is one both shareholders and the company will want to forget. Third-quarter revenue of $69.1 billion fell slightly short of the $70.6 billion forecast by analysts. Also, the $13.9 billion net income, or $1.06 per share, came in well below the $1.25 per share consensus.

Additionally, both YouTube and the Google Network experienced a revenue decline of around 2% over the last 12 months. Amid these swoons, overall ad revenue rose by 3%, and company revenue increased by 6% over the same period.

Still, this lags behind the 41% yearly revenue growth reported in the third quarter of 2021. Not surprisingly, the stock price dropped following the news. The latest decline means the stock has fallen by about 30% over the last 12 months.

What to make of the report

Alphabet described the business climate as “uncertain” on the earnings call and, indeed, no investor should characterize the results as good news.

However, the situation also calls for some perspective. First, ad-market competitors such as Meta Platforms have experienced the same sluggishness in the ad market. This confirms the uncertainty Alphabet mentioned on the earnings call.

Moreover, Alphabet recognized years ago that it needed to develop sources of revenue outside of advertising. To that end, it bought numerous companies in various parts of tech. This includes Calico and Verily Life Sciences in the biotech fields, autonomous car company Waymo, artificial intelligence company DeepMind, and numerous others.

Admittedly, investors may be frustrated that the company does not generally release financials for these segments. One might also think the diversification away from advertising has moved too slowly. In the third quarter of 2015, advertising claimed 90% of Alphabet’s revenue. By the third quarter of 2022, it had only fallen to 79%.

Still, one of the few non-ad segments it reports, Google Cloud, made up 10% of company revenue in Q3. Additionally, Google Cloud revenue grew 38% year over year, so that portion will likely continue to increase.

Don’t forget a key fundamental

Investors also need to remember Alphabet’s ace in the hole: liquidity. At the end of Q3, the company reported more than $116 billion in cash, cash equivalents, and marketable securities.

That has fallen from about $140 billion at the end of last year. Still, it leaves the company with considerable resources to find new revenue resources without having to incur rising borrowing costs.

Also, Alphabet has generated $44 billion in free cash flow in the first nine months of the year. That slightly decreased from the $48 billion in the first three quarters of 2021. Nonetheless, it leaves Alphabet in a strong cash position that can ensure the company’s future.

The state of Alphabet

The third-quarter earnings report does little to change Alphabet’s value proposition. Admittedly, headwinds in the digital ad market have finally caught up with Google. However, the slowing growth likely speaks to the economic cycle more than Alphabet. That leaves room for recovery as conditions improve.

Moreover, the success of Google Cloud has reduced Alphabet’s dependence on ads. Alphabet’s tech businesses, massive liquidity position, and free cash flow could further diversify revenue sources over time. Thus, investors probably want to look at this report as a buying opportunity for the communications stock rather than a cause for panic.

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

The post Why Alphabet’s earnings disappointment is no reason to panic appeared first on The Motley Fool Australia.

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More reading

• Better cloud computing stock: IBM vs. Alphabet
• Look for stocks with this balance sheet trait to outperform in the coming recovery
• Alphabet’s ad business slows to a trickle. Time to sell?
• Why are ASX 200 tech shares getting bashed around today?
• Why are Bitcoin, Ethereum, and Dogecoin leaping higher today?

Suzanne Frey, an executive at Alphabet, 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. Will Healy 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 Alphabet (A shares), Alphabet (C shares), and Meta Platforms, Inc. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Meta Platforms, Inc. 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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The Wesfarmers Ltd (ASX: WES) share price grew by 6.4% last month, marking a pleasing turnaround compared to many of the other months this year. That return compares to a 6% rise for the S&P/ASX 200 Index (ASX: XJO).

So, Wesfarmers managed to outperform the wider ASX share market last month, if only by a little bit. But, every bit of return counts, in my opinion.

What happened to boost the Wesfarmers share price?

Aside from the Reserve Bank of Australia (RBA) deciding to go with a slower interest rate increase in October, one of the most interesting things that happened relating to Wesfarmers was its annual general meeting (AGM).

Management pointed to how the business has been financially focused for decades, ensuring that it has remained disciplined through a range of economic conditions and minimised the danger of “empire building or paying too much for an asset” that it would have liked to own.

The business is expecting the challenges of strong inflation, rising interest rates, continuing skills shortages and supply chain bottlenecks “will likely continue for some time”.

Wesfarmers pointed out that it’s building climate resilience in its businesses, achieving a further reduction in emissions and making “good progress” towards its net-zero targets.

As an example, 50% of the entire Bunnings network is powered by renewable electricity, from a combination of its own solar panel generation and renewable energy contracts. All of its retail divisions are committed to sourcing 100% of electricity needs from renewable sources by 2025.

The investment in rooftop solar reduces its exposure to “expensive and volatile” energy costs, and reduces its operating costs. This can help the Wesfarmers share price if it boosts profitability.

Business progress

Wesfarmers noted that it has a few priorities, including developing a market-leading data and digital ecosystem, better connecting its retail brands with customers. This is aimed at improving the in-store experience and also supporting the growth and profitability of retail businesses over time.

It has launched the OneDigital division, which will include its subscription service, OnePass, its group asset called OneData, and the e-commerce marketplace called Catch.

It’s also making progress on achieving value from its investments in new platforms for growth, including decarbonisation (with the Mt Holland lithium project), and the growing demand in health and wellness (with its new Wesfarmers Health division, which includes Priceline). This sets up Wesfarmers “to benefit from these long-term megatrends”.

Each year, the production from the lithium hydroxide project will be equivalent to powering one million battery electric vehicles, resulting in an annual saving of around 1.8 million tonnes of emissions.

Bunnings continues to expand its commercial offering, with the acquisition of Beaumont Tiles and rollout of Tool Kit Depot.

I think all of these growth areas can help the Wesfarmers share price in the long term.

The company noted that elevated supply chain costs, rising wages and the higher cost of utilities, together with a lower Australian dollar, will impact its businesses in FY23.

In terms of a trading update, the company said retail trading conditions have remained “robust”, and management has been “pleased”.

Australian consumer demand continues to be supported by “low unemployment and high levels of accumulated household savings”. However, the impact of rising interest rates and inflation are “starting to affect consumer behaviour”, and households are starting to become more price sensitive.

Bunnings sales have been impacted by prolonged wet weather, but sales growth remains “resilient”.

Combined sales growth for Kmart and Target in FY23 to date continues to be “pleasing, with strong trading results even when adjusted for the impact of lockdowns”. Kmart is reportedly growing its market share profitably.

Officeworks sales are “broadly in line” with the prior year.

The post Up 6% in October, is this factor why the Wesfarmers share price performed? appeared first on The Motley Fool Australia.

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• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?
• Why I think the Wesfarmers share price is a buy after this week’s AGM
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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 positions in and has recommended 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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Iron ore prices, dividend yields, and the BHP Group Ltd (ASX: BHP) share price have been the talk of the town lately. And, as ASX dividend fans will know, the three are markedly connected.  

BHP relies on iron ore for much of its income. More than half of the S&P/ASX 200 Index (ASX: XJO) giant’s record financial year 2022 earnings before interest, tax, depreciation, and amortisation (EBITDA) came from its iron ore operations.

Such earnings, in turn, saw it post a $2.55 final dividend, bringing its full-year payout to $4.63. That leaves its stock trading with a 12.2% trailing dividend yield at its current share price – $37.775.

And one expert appears to believe now is a good time to get in on the ASX 200’s largest company. Keep reading to find out what the fundie likes about the materials giant.

Why is this expert optimistic about BHP shares?

Bearish outlooks on the future of the iron ore price could be making would-be investors wary of BHP shares.

But Wheelhouse Partners managing director and portfolio manager Alastair MacLeod still likes the company for one reason: Dividends. The fundie said, via Livewire:

I think from an income perspective, it’s a buy … but it’s a very cyclical business.

In a very cyclical industry, if you look forward three or four years, I think the expected dividend moves more towards $2 a share in Aussie, which is still about a 5% yield.

So, from an income perspective, I think over the next couple of years, I think it’s a buy because it’s a market-leading position and that yield I think compensates for the cyclicality or the risk to earnings.

However, Plato Investment Management managing director Dr Don Hamson reportedly disagrees, marking the stock a hold amid faltering iron ore prices.

The two experts are far from alone in offering differing opinions on the future of BHP shares.

Bennelong Kardinia Absolute Return Fund portfolio manager Kristiaan Rehder recently told my colleague Bernd the fund is optimistic about demand for BHP’s production amid a potential reawakening of the Chinese economy.

Meanwhile, Liberum Capital is said to have slapped the stock with a sell rating.

Finally, Goldman Sachs tips the BHP share price to lift to $42.50, hitting it with a buy rating. The top broker also expects the company’s dividend yield to come in at 6.6% in financial year 2023.

The post ‘It’s a buy’: Why are BHP shares in the good books of this expert? appeared first on The Motley Fool Australia.

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More reading

• Could ASX 200 iron ore shares be heading for more pain?
• The BHP share price went backwards in October. Time to pounce?
• Why is the BHP share price getting hammered on Friday?
• Batten down the hatches as RBA may hit households with ‘supersized’ interest rate hike on Melbourne Cup day
• If the government has this right, the BHP share price could come under some serious pressure

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 positions in and has recommended Goldman Sachs. 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 All Ordinaries Index (ASX: XAO) has bounced back from a soft start and is pushing higher in early afternoon trade.

However, a number of ASX All Ords shares are performing materially better on Melbourne Cup Day. Here’s why these three shares are off to the races today:

EML Payments Ltd (ASX: EML)

The EML share price has bounced back from a heavy decline on Monday and is up 38% to 56 cents. Investors were selling the payments company’s shares yesterday after the company revealed that regulatory action was being taken against the UK operations of its Prepaid Financial Services business.

Janison Education Group Ltd (ASX: JAN)

The Janison share price was up as much as 7.5% to 50 cents this morning before giving back some gains. The education technology company’s shares are currently up over 3% to 48 cents at the time of writing. That’s despite there being no news out of Janison.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has surged over 13% higher to 58.5 cents. Once again, this is despite there being no news out of the ecommerce company today.

Why are these ASX All Ords shares storming higher?

One potential reason for the strong gains being recorded by these ASX All Ords shares is news that Readytech Holdings Ltd (ASX: RDY) has received a takeover offer this morning.

The enterprise technology company is the latest in a growing list of beaten down tech shares that private equity and larger peers have been running the rule over following heavy declines this year.

So, with EML, Janison, and Redbubble all down materially since the start of the year, some investors may be snapping up their shares today on the belief that they could be next in line to receive an offer.

Time will tell if that is the case.

The post Here are 3 ASX All Ords shares that are off to the races today appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Bubs, EML, and Fortescue shares are falling today
• EML shares plummet 30% as regulatory update takes its pound of flesh
• Down more than 80% in 2022, are these ASX All Ords shares now screaming bargains?
• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Why Bapcor, BrainChip, Evolution Mining, and Redbubble shares are sinking

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 EML Payments, Janison Education Group Limited, REDBUBBLE FPO, and Readytech Holdings Ltd. The Motley Fool Australia has positions in and has recommended EML Payments and Janison Education Group Limited. The Motley Fool Australia has recommended Readytech 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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