Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) was well and truly back on form in October. The benchmark index roared 6% higher during the month.

As impressive as this was, some ASX 200 shares managed to deliver even stronger gains! Here’s why these were the best performers on the index last month:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price was the best performer on the ASX 200 in October with a 24% gain. This appears to have been driven by a promising update from its US parent which revealed improving sales trends globally. Despite this strong gain, the pizza chain operator’s shares are still down almost 50% in 2022.

Hub24 Ltd (ASX: HUB)

The Hub24 share price wasn’t far behind with a gain of 21.5% last month. Investors were buying this investment platform provider’s shares following the release of a strong quarterly update. According to the release, Hub24 recorded platform net inflows of $3 billion for the three months. This took its total funds under administration to $52.4 billion. This was driven by continued growth in the number of advisers on its platform.

Perseus Mining Limited (ASX: PRU)

The Perseus Mining share price was a strong performer and rose 20.1% in October. This followed the release of a strong quarterly update late in the month. That update revealed production that was well ahead of the market’s expectations. In light of this strong start, analysts at Macquarie suspect that the miner could outperform its production guidance.

Challenger Ltd (ASX: CGF)

The Challenger share price was just a touch behind with a gain of 20% last month. Investors were buying this annuities company’s shares after it released its quarterly update and announced an agreement to divest its banking operations. In respect to its update, Challenger’s Life sales were up an impressive 33% during the first quarter to $2.8 billion. Whereas for the latter, the company has agreed to sell its Australian bank to Heartland Group Holdings Ltd (ASX: HGH) for $36 million.

The post These were the best-performing ASX 200 shares in October appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• If you invested $5,000 in each of these ASX shares 10 years ago, you’d be a millionaire today
• Bell Potter names 9 ‘champion’ ASX 200 shares to buy for the next five years
• Brokers name 3 ASX shares to buy today
• 5 ASX shares to buy for the Christmas rally: expert

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 Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Challenger Limited and 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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The Core Lithium Ltd (ASX: CXO) share price put in another stellar performance in October, though it was not without its share of volatility.

On 29 September, the S&P/ASX 200 Index (ASX: XJO) lithium stock closed trading for $1.11.

Yesterday, shares ended the day, and the month, trading for $1.39. That puts the Core Lithium share price up a whopping 25.2% in October.

Now, in case you’re wondering, the ASX was open on 30 September. But Core Lithium shares were in a trading halt on the final day of September at the company’s request. This came as the miner announced it was launching a fully underwritten $100 million institutional share placement to “pursue new and aggressive exploration programs”.

The new shares in the placement are being issued for $1.03 per share. That was almost 7% below the Core Lithium share price on the day of the announcement, and some 26% below October’s closing price.

What happened with the ASX lithium miner last month?

As you’d expect, the Core Lithium share price fell on 3 October, losing 4.5% on the first trading day following its capital raise announcement.

But things turned around quickly from there.

Core Lithium, and indeed most ASX lithium shares, received some heady tailwinds early in October following the release of the Australian government’s Department of Industry, Science and Resources quarterly Resources and Energy Report.

Australia, as you may be aware, leads the world in lithium exports. And the report painted a rosy outlook for the year ahead, stating, “Notably, lithium exports are now forecast to rise by over 180% to $13.8 billion in 2022-23.”

That’s up from $4.9 billion in 2021-2022, and up from $1.1 billion of lithium export earnings in 2020-21.

You can see how that may have piqued ASX investor interest.

What else impacted the Core Lithium share price in October?

Atop continuing high demand and near-record prices for lithium, a metal critical for most EV batteries, the Core Lithium share price got a big boost when it officially transitioned to a lithium producer this month, joining only three other Aussie miners with that distinction.

On 10 October, Core Lithium announced its Finniss Lithium mine had officially opened. This marks the first lithium mine in the Northern Territory, and the only Aussie mine producing lithium outside of Western Australia.

The miner suffered what looked to be a setback on 27 October, when it announced its lithium spodumene concentrate offtake agreement with global EV giant Tesla, Inc (NASDAQ: TSLA) was off the cards. Shares closed down 4.5% on the day.

Not that CEO Gareth Manderson sounded overly concerned, stating:

An increasing lithium price environment indicate[s] that Core Lithium is well positioned to capitalise on the high demand and current shortage of available battery grade lithium spodumene concentrate.

And the Core Lithium share price rebounded strongly just two trading days later, on 31 October, after the miner released its quarterly activities report.

During the quarter just gone by, Core Lithium appointed Manderson as CEO. And the miner ended the three months with a strong balance sheet, reporting $95.5 million in cash and equivalents as at 30 September.

How has the Core Lithium share price performed this year?

Longer-term shareholders will have little to complain about.

So far in 2022, the Core Lithium share price is up 120%. That compares to a year-to-date loss of 10% posted by the ASX 200.

The post The Core Lithium share price surged 25% in October. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Monday
• Why are ASX lithium shares pulverising most of the market on Monday?
• Could this news be helping the Sayona share price light up today?
• Why is the Core Lithium share price outperforming today?
• 2 Elon Musk quotes from Tesla’s earnings call that investors should see

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 positions in and has recommended Tesla. 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.

On the What Bitcoin Did podcast, ARK Invest chief executive officer Cathie Wood shed some light on Bitcoin (CRYPTO: BTC). Maybe the most intriguing, but not most important, part of the interview was that she finally disclosed for the first time when she originally bought Bitcoin. Back in 2015, Wood purchased $100,000 of Bitcoin when its price was hovering around $250. That investment is worth about $7.5 million today. 

Wood’s faith in Bitcoin has only grown since 2015. When her firm started researching the world’s first cryptocurrency, she said they quickly realized Bitcoin had the potential to be “one of the most profound innovations of our time”.

Gold, the dollar, and Bitcoin

During the initial research into Bitcoin, Wood and her team worked with one of the world’s most prominent economists with expertise in monetary policy Art Laffer. Laffer served under President Ronald Reagan on the Economic Policy Advisory Board and has been active in economic policy on the national and international stage ever since. 

Wood said that it was Laffer’s analysis of Bitcoin that led her to make her first purchase. She said that Laffer was in awe of the dynamics behind Bitcoin. As she put it, Laffer said that he had been looking for a currency like Bitcoin “since we went off the gold exchange standard”.

Before the US abandoned the gold standard in 1973, the value of the dollar was fixed relative to the price of gold. It’s considered by many that the gold standard mitigated the issuance of money and, subsequently, quelled inflation because the amount of physical gold held by a government acted as a limit to the creation of new money.

After the gold standard was dropped, there was little to dissuade the government from printing more money or manipulating monetary policy. When a government can control the money supply, it can finance any agenda or project regardless of how popular it may or may not be. This is simplified to maintain brevity but theoretically, all it has to do is print more money and it can come up with the funding. Today, the dollar lacks traits of intrinsic value that it had when it was on the gold standard and it is almost constantly inflated to finance government budgets.

As the government takes on more costs, it subsequently increases its debt burden. To get a better idea, we can take a look at the US national debt, which has increased more than 6,500% since 1973. Some debt is considered healthy, but a balance sheet with an exorbitant amount of liabilities compared to assets can spell trouble for economies when those debts eventually need to be paid. 

Like gold, but better

Laffer wasn’t a huge fan of the current monetary standard and once he discovered that Bitcoin had many characteristics superior to gold, he was sold on its potential. Bitcoin one-upped gold. Unlike gold, Bitcoin is private, digital, easily divisible, and rules-based. 

Let’s unpack that one by one because Wood believes that each of these characteristics makes Bitcoin even more valuable than gold. Firstly, Bitcoin runs on a blockchain, which means that all transactions are encrypted and have pseudonyms. Transactions on its blockchain cannot be altered and they can only be halted if the user doesn’t have sufficient funds. 

Second, Bitcoin is digital. This makes it much more portable than gold and even the dollar. Bitcoin holders only need a digital wallet on their phone or computer to hold or transfer value. If you lose your phone, the funds are protected and you can access funds by entering your unique password on another device. In addition, digital money serves an integral role in the age of the internet that gold or the dollar falls short of.

Bitcoin is also easily divisible. Even though its price sits at around $20,000 today, users can send and receive fractions of Bitcoin with just the press of a button. No need to carry spare change, find larger or smaller bills in your wallet, or carry around gold bullions (although of course almost no one does that). 

Lastly, Bitcoin runs on specific rules. There is a limited supply that cannot be inflated or manipulated. That means no government can meddle in how it operates or even block transactions. 

Most importantly, it does all of this without any centralized authority overseeing it. Instead of one person or agency running it, computers, referred to as nodes, around the world run the Bitcoin blockchain to ensure that it remains decentralized and operates without any interference.

Bitcoin’s potential

When considering all of this, Wood needed no further convincing. She made her original purchase and continues to hold on to that original investment. But since 2015, much has changed. Bitcoin hit a high of nearly $70,000 in November 2021 and its ascension to prominence has even led to publicly traded companies like Tesla holding some on their balance sheet as an alternative to cash, further legitimatizing it as a viable asset. 

It’s been nothing short of an astronomical rise. Yet, Wood believes Bitcoin has more in store. In her and Laffer’s opinion, Bitcoin could have a value roughly equal to that of the entire U.S. monetary base. During their research in 2015 when they originally posited this, that figure was about $4.25 trillion. If Bitcoin’s market cap reached that mark, it would mean one Bitcoin would be worth nearly $215,000 — a far cry from its current $20,000 price. 

So what’s Wood’s best advice? Have patience. She said that by investing with a time horizon over 10 years and ignoring price fluctuations, “you’re going to win.”

RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.

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

The post Why one of the smartest investors bought Bitcoin and thinks you should too appeared first on The Motley Fool Australia.

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More reading

• The Bitcoin price may be decoupling from US stocks. Is this why?
• Why are Bitcoin, Ethereum, and Dogecoin leaping higher today?
• The Bitcoin price just popped back above US$20,000. Is the crypto bull run back on?
• Why Ethereum, Bitcoin, and Cardano are rocketing higher today
• What to make of last night’s budget

RJ Fulton has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Tesla. The Motley Fool Australia has positions in and has recommended Bitcoin The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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Are you looking for ASX 200 dividend shares to buy? If you are, then check out the two listed below that have been named as buys by experts.

Here’s why they rate them highly right now:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first ASX 200 dividend share that could be a buy is ANZ Bank. It is of course largest financial institutions in the region and one of the big four banks.

Analysts at Citi are very positive on the bank. Last week the broker retained its buy rating with an improved price target of $29.25.

Citi was pleased with ANZ’s FY 2022 results and has boosted its earnings and dividend estimates to reflect higher net interest margins.

In respect to dividends, the broker is now forecasting fully franked dividends of $1.66 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current ANZ share price of $25.56, this will mean yields of 6.5% and 6.9%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that has been named as a buy is Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager.

The team at Goldman Sachs is positive on the company and currently has a buy rating and $4.50 price target on its shares.

Its analysts “believe the potential headwinds are factored into the share price and see SGP as attractively valued.” This is particularly the case given its recently refreshed corporate strategy and the sale of its low returning Retirement division.

As for dividends, the broker is forecasting dividends per share of 27.6 cents in FY 2023 and 28.3 cents in FY 2024. Based on the current Stockland share price of $3.60, this will mean yields of 7.7% and 7.9%, respectively.

The post Experts name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Here’s how the NAB share price has fared in October
• The ANZ share price has had a strong run, rising 10% in October
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Goldman Sachs gives its verdict on the ANZ share price

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.

This year has been tough for everyone, with stock prices plummeting and inflation making it harder to pay the bills. But many people worry that we haven’t seen the worst of it and that a recession could be looming.

While the US economy shrank in the first half of the year, we’re not officially in a recession just yet. The National Bureau of Economic Research is responsible for making that call and its economists have not declared a recession so far.

But that could change in 2023. Is a recession on the horizon? And what can you do to prepare? Here’s what you need to know.

1. Recessions can be tough to predict

Nobody — even the experts — can predict exactly how the economy will perform. This is especially true when the economy is giving somewhat mixed signals.

Plummeting real estate prices, for example, could suggest that a recession is more likely. However, one key hallmark of a recession is high unemployment and with the job market stronger than ever — and many industries still experiencing a labor shortage — some economists are hesitant to declare a recession just yet.

Some experts believe that the Fed’s interest rate policies could affect the potential of a recession. The Fed has already hiked interest rates several times this year in an effort to slow inflation, but higher interest rates are also more likely to slow the economy and lead to a recession.

The good news is that if we do face a recession, most experts believe it will be mild. In fact, around 70% of economists believe it’s unlikely we’ll see a sharp rise in unemployment over the next year, according to a poll from Reuters.

2. It shouldn’t change your investing strategy

Stock market downturns and recessions often go hand-in-hand, and many investors are concerned about how a recession could affect their portfolios. However, regardless of what happens with the economy, it shouldn’t change your investing mindset.

Investing in the stock market is a long-term strategy, and short-term ups and downs shouldn’t affect your decisions. Even if stock prices continue to fall in the coming months, the best way to keep your money safe is to hold your investments until the market recovers.

Trying to time the market and sell your stocks at just the right moment is incredibly risky, and you could easily lose more than you gain. But if you simply hold your stocks for the long term, your investments should eventually rebound and you won’t have lost anything.

3. There are ways to protect your portfolio — even in a recession

Whether we ultimately experience a recession or not, there are ways to keep your money as safe as possible. Holding your investments for the long term is the best way to protect your investments, but there are a few other factors to consider, too.

• Avoid investing any money you might need in the foreseeable future: If stock prices fall sharply and then you realize you need to withdraw your savings, you could end up selling your investments at a steep loss. If you’re investing for certain goals — like saving for a house — make sure you’re prepared to leave your money in the market for at least a few years before you invest.
• Beef up your emergency fund, if you haven’t done so already: If you don’t have any emergency savings and you lose your job or face an unexpected expense, you could be forced to tap your investments — and lock in those losses.
• Invest in high-quality companies: Market downturns can be a more affordable time to buy because many stocks are on sale right now. However, not all companies will be able to recover from a recession. Before you buy, do your research to ensure you’re only investing in strong companies with the potential for long-term growth.

Some experts believe a recession is becoming more likely, but nobody knows for certain what will happen. By investing in strong companies and holding those stocks for the long term, though, it’s far more likely you’ll make it through any recession.

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

The post Is a recession coming in 2023? 3 things to know appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in November 2022
• 5 things to watch on the ASX 200 on Tuesday
• Fundie reveals 3 ‘top notch’ ASX shares to buy right now
• Are Woodside shares the ‘most loved’ among the ASX energy giants?
• Brokers name 2 ASX dividend shares to buy with big yields

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.

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

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Is your ASX share portfolio lacking form? Perhaps you’re hoping to firm up your investment odds with some new additions to the field in November?

We asked our Foolish contributors to assess the current conditions and let us know which ASX shares they reckon are front runners to finish in the money long term.

Here is what the team came up with:

8 best ASX shares for November 2022 (smallest to largest)

• Airtasker Ltd (ASX: ART), $148.30 million
• Jumbo Interactive Ltd (ASX: JIN), $858.85 million
• Treasury Wine Estates Ltd (ASX: TWE), $9.35 billion
• Northern Star Resources Ltd (ASX: NST), $10.13 billion
• Xero Limited (ASX: XRO), $11.72 billion
• Pilbara Minerals Ltd (ASX: PLS), $15.21 billion
• Goodman Group (ASX: GMG), $31.97 billion
• Telstra Corporation Ltd (ASX: TLS), $44.48 billion

(Market capitalisations as of 31 October 2022)

Why our Foolish writers love these ASX shares

Airtasker Ltd

What it does: Airtasker describes itself as an online marketplace for local services, connecting people and businesses that need work done with people who want to work. Examples of work include furniture assembly, handyperson tasks, marketing, home cleaning and many more.

By Tristan Harrison: I’m impressed by the growth that this company is achieving. In the fourth quarter of FY22 (Q4), the gross marketplace volume (GMV) increased 38.3% year over year to $54.4 million and revenue jumped 30.6% to $9 million.

I’m optimistic about Airtasker’s growth potential due to its international segment. United Kingdom GMV increased 114.7% year over year, while in the United States, posted tasks grew 49% quarter over quarter in Q4.

I think one of the best things about Airtasker is its gross profit margin of more than 90%. Most new revenue can be reinvested for growth.

Trading at 33 cents at yesterday’s close and down around 61% in 2022, I think Airtasker shares look cheap for the long term.

Motley Fool contributor Tristan Harrison does not own shares in Airtasker Ltd.

Jumbo Interactive Ltd

What it does: Jumbo Interactive is a leading provider of online lottery services across three distinct divisions: lottery retailing, software-as-a-service (SaaS), and managed services. More than 3 million active players across Australasia, the United Kingdom, and Canada use the company’s lottery software offerings.

By Mitchell Lawler: This small-cap has held a spot in my own personal portfolio for more than five years. In my opinion, the company’s fundamentals have only improved during that time, making the investment case more compelling than ever.

There are three main reasons why I’d consider Jumbo Interactive a top ASX share to buy right now: defensive balance sheet, reasonable valuation, and attractive market conditions.

At the end of FY22, Jumbo held $68.93 million in cash equivalents and zero debt. This is a healthy balance sheet that can weather the storm. Additionally, larger jackpots – such as the recent record-breaking $160 million Powerball – normally mean more ticket sales.

Jumbo shares are now trading at around a 27 times price-to-earnings (P/E) ratio. Reasonable for a company that grew its earnings by 15% in the last year.

Motley Fool contributor Mitchell Lawler owns shares in Jumbo Interactive Ltd.

Treasury Wine Estates Ltd

What it does: Treasury Wine is a global wine company with an international portfolio of wine brands and viticultural assets. Its brands include 19 Crimes, Beringer, Lindemans, Wolf Blass, and the jewel in the crown, Penfolds.

By James Mickleboro: It has been a turbulent few years for this wine giant. After being effectively kicked out of the lucrative China market, the company has been forced to reallocate its premium wines to new markets.

The good news is that this has been a success and with the help of its strong-performing Treasury Americas business, Treasury Wine delivered strong earnings growth in FY 2022.

Looking ahead, Goldman Sachs is expecting more of the same and is forecasting approximately 16% net profit FY 2022-25 compound annual growth rate (CAGR). The broker also sees plenty of upside for its shares and has a buy rating and $14.70 price target on them.

Motley Fool contributor James MIckleboro does not own shares in Treasury Wine Estates Ltd.

Northern Star Resources Ltd

What it does: Northern Star is an S&P/ASX 200 Index (ASX: XJO) gold miner. The company counts among Australia’s largest gold producers and has gold mines located in the geopolitically stable locations of Australia and North America.

By Bernd Struben: Northern Star has been a leading performer among the ASX 200 gold miners in 2022.

In FY22, total revenue ramped up by 35% to $3.74 billion. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) leapt 31% to $1.52 billion. And the company paid out full-year dividends of 21.5 cents per share for a current dividend yield of 2.4%, fully franked.

In August, Northern Star announced an on-market share buyback of $300 million, the first in its history. The miner’s share price is up 17% over the past month, though it remains down 7% in 2022, hit by a falling gold price amid rising global interest rates.

But as rates normalise, I believe there could be some sizeable potential share price gains on offer ahead.

Motley Fool contributor Bernd Struben does not own shares in Northern Star Resources Ltd.

Xero Limited

What it does: Xero provides accounting software for small businesses. It’s a market leader across New Zealand, Australia, and the United Kingdom, boasting 3.3 million subscribers at last count.

By Brooke Cooper: The Xero share price has tanked alongside other ASX tech shares this year. It’s currently more than 44% lower than it was at the start of 2022.

Though, the company’s revenue, average revenue per user, and EBITDA improved over the 12 months ended March.

Those improvements didn’t translate into after-tax profits or free cash flow, however, as the company reinvested capital towards its future growth.

Goldman Sachs previously touted the “stickiness” of the company’s product. The broker rates the stock a buy, slapping it with a $111 price target. Trading at a share price of $78.07 at market close on Monday, that represents a potential 42% upside.

Motley Fool contributor Brooke Cooper does not own shares in Xero Limited.

Pilbara Minerals Ltd

What it does: Pilbara Minerals is an ASX lithium company engaged in exploring and mining lithium in Western Australia.

By Matthew Farley: Pilbara Minerals benefits from two tailwinds that I will believe will propel its share price higher in the future. The first is that Wilsons analysts believe that lithium will exceed the US$36,000 consensus price over the long term, thanks to the global energy transition to electric vehicles and lithium-ion batteries.

In a similar vein, the second tailwind involves $20 billion that was recently earmarked in the Federal Budget to help fight climate change.

Saxo Markets strategist Jessica Amir said that part of these funds would be used to provide “cheaper infrastructure loans for investment into renewable energy”. She added that Pilbara Minerals would be one of the companies “on watch” due to this development.

Motley Fool contributor Matthew Farley does not own shares in Pilbara Minerals Ltd.

Goodman Group

What it does: Goodman Group is the largest real estate investment trust (REIT) on the ASX. It’s an integrated global business specialising in industrial property. It’s been listed since 1995 and is still founder-led by Greg Goodman. It’s grown to become one of the largest companies in the ASX 200 with a market cap of almost $32 billion. The group manages 410 properties worth $73 billion.

By Bronwyn Allen: It’s rare to see a quintessential ASX blue-chip and sector leader like Goodman Group trading the way it is today.

The Goodman share price is down by about 35% in 2022 to $17.00 per share at yesterday’s market close. That’s only a tad higher than its 52-week low of $15.57 (its 52-week high is $26.96).

Why is it down so much? Because real estate is the second worst-performing sector on the ASX this year. Not really a surprise with interest rates going up. But remember, rates affect residential property and industrial property differently. For the long-term investor, I sense a prime ‘buy the dip’ opportunity.

Two top brokers see a potential 40% to 50% upside on Goodman shares. Goldman Sachs has a buy rating with a 12-month price target of $25.40. Citi also has a buy rating and a $23.50 price target.

Macquarie names Goodman among 10 ASX 100 shares likely to outperform in a bear market rally. 

Motley Fool contributor Bronwyn Allen does not own shares in Goodman Group.

Telstra Corporation Ltd

What it does: A business that needs little introduction, Telstra is Australia’s dominant telecommunications company. It provides a variety of mobile, internet and communications services across the country.

By Sebastian Bowen: I believe Telstra continues to move from strength to strength. The company has embarked on an ambitious restructuring plan which I think has the potential to unlock some significant value for shareholders.

Investors have already shown they are willing to give some of the telco’s assets, such as the mobile towers, a pleasing pricing premium. I see no reason why this can’t continue.

Further, Telstra delivered its first dividend increase in years in 2022, giving it a healthy fully-franked yield of more than 4% on recent pricing. As such, I think Telstra is a solid option to consider as we enter the penultimate month of the year.

Motley Fool contributor Sebastian Bowen owns shares in Telstra Corporation Ltd.

The post Top ASX shares to buy in November 2022 appeared first on The Motley Fool Australia.

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• Here are the 3 most traded ASX 200 shares on Monday
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• Could this news be helping the Sayona share price light up today?
• How is the Telstra dividend yield looking by historical standards?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited and Xero. The Motley Fool Australia has recommended Jumbo Interactive Limited and Treasury Wine Estates 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 1.15% to 6,863.5 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Melbourne Cup Day. This follows a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points or 0.1% lower. In late trade in the United States, the Dow Jones is down 0.45%, the S&P 500 is down 0.8%, and the NASDAQ has tumbled 1.1% lower.

RBA meeting

The Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. The market is currently pricing in a 0.25% rise by the central bank. However, economists at Westpac Banking Group (ASX: WBC) believe a 0.5% hike is coming at today’s meeting. Chief economist Bill Evans said: “The September quarter inflation report has come as such a major surprise that we think the Reserve Bank Board will decide to raise the cash rate by 50bps at the next Board meeting on November 1.”

Oil prices fall

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.8% to US$86.28 a barrel and the Brent crude oil price has fallen 1% to US$94.85 a barrel. Chinese demand fears weighed on prices.

Brickworks goes ex-dividend

The Brickworks Limited (ASX: BKW) share price is likely to tumble into the red on Tuesday. That’s because this morning the building products company’s shares are due to trade ex-dividend for its latest dividend. Last month the company released its full year results and declared a fully franked 41 cents per share final dividend. This equates to 1.9% dividend yield at the last close price.

Gold price falls

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.5% to US$1,636.6 an ounce. Traders have been selling gold ahead of the US Federal Reserve’s meeting this week.

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

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• Are Woodside shares the ‘most loved’ among the ASX energy giants?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Monday
• Wheat woes: Why the Graincorp share price is charging 8% to the upside today
• Why are ASX lithium shares pulverising most of the market on Monday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Forager Funds Management portfolio manager Alex Shevelev names the three ASX shares he would pick up at the moment.

Investment style

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

Alex Shevelev: Forager funds, we’re a nimble, contrarian and valuation-focused investor and we mostly look at small stocks. I work on the Australian Fund, and I’ve got colleagues that do the same for international stocks, the Forager International Shares Fund. 

We try to get an analytical edge in the things that we’re doing and we try to get a psychological edge. On the analytical side, we try to do work to better understand the future cash flows of a business and where there’s potential for those cash flows to be missed by other investors. Then on the psychological side, that’s where we can be buying while others are selling for reasons that are different to the fundamentals — that could be market, sector or stock distress. And there’s been a fair amount of that this year.

MF: There seems to be some debate among investors as to whether Forager is value or growth orientated.

AS: We don’t see those as mutually exclusive groups.

Growth has always been part of value. And I think you’ve seen in our portfolio, [there are] quite a lot of businesses that may have been traditionally regarded as growing businesses. But we think those businesses present a lot of value and that’s why we own them.

MF: Fair enough. Especially this year, when they’ve been discounted so much.

AS: That’s right.

MF: How do you see the market at the moment? Where do you see it heading?

AS: Because it’s been a very difficult time over the last couple of years, especially for smaller industrial companies in Australia, it actually is a pretty good setup for the next couple of years.

There are a lot of businesses that have come down quite dramatically in price to levels that are very, very attractive. There are a handful of stocks that we feel are some of the best in our portfolio and some of the better opportunities out there.

Hottest ASX shares

MF: That leads to the next question — what are the three best stock buys right now?

AS: Last time we spoke, we were talking about RPMGlobal Holdings Ltd (ASX: RUL) and it’s still one of our largest positions. 

It’s a mining technology business. It has very low churn with its revenue. It does a lot of very important tasks for mining companies. Some of their products are actually industry standards like, for the maintenance of equipment, for example.

The last couple of years, they’ve overachieved in terms of revenue growth — they’ve done a very good job selling more subscription software. This year, they’ll actually start to see that come through to profit. 

The company’s given guidance for the current financial year of profits tripling. And that’s quite conservative guidance by a management team who we regard as top notch. And that guidance actually assumes that the new revenue additions, which are an important metric for RPM, will be below last year. But the business looks to be tracking better than that.

We, in fact, got an AGM update just this morning that confirms that the business is doing a good job continuing to sign on its subscription revenue. And all of that is trading at about 17 times earnings next year. That earnings stream is high quality and will continue to grow over time. 

Now, it’s been an interesting space, as well, for corporate attention. Two of their larger competitors have recently been taken out. Those two transactions imply for RPM… more than double the current share price. This is a business that can garner a lot of attention from potential bidders over time.

MF: And your second pick?

AS: The next one’s Tourism Holdings Limited (NZX: THL) and Apollo Tourism & Leisure Ltd (ASX: ATL). These businesses are actually merging and we have owned both of them and continue to own both of them. 

These businesses are engaged in the production, the rental and the selling of RVs. This whole space has been decimated by COVID, but both actually came through very well because, instead of raising equity when things got difficult and international tourism stopped, they actually sold the fleet that they had on their books and continued operating. 

Now tourism is coming back. Domestic tourism has been very strong for a while. International tourism is starting to come back. Both companies have seen the benefit of that. So, both have upgraded their earnings expectations for the current year recently. Apollo is actually talking about numbers that are higher than pre-COVID, on the strength of higher yields in Australia and their sales of recreational vehicles to consumers in their retail business.

When these businesses come together, which should be in December, this merged entity has a lot of synergies. So, over the last few days, they’ve confirmed that those synergies are due to be worth NZ$27 to NZ$31 million dollars, which is significant. That’s NZ$10 million more than was first anticipated when the deal was put together late last year. So, by the time we get to FY2025 in a couple of years, all the synergies will have come through, the international tourism factor should be back, and the business should be trading on seven to eight times earnings by that point, be much larger and more liquid. And THL, previously only listed in New Zealand, will actually also be listed in Australia.

MF: I see that Apollo’s share price has really spiked up in the last month or so? 

AS: The merger had to get clearance from both New Zealand and Australian competition regulators — that has come through reasonably recently.

There’s also been an improvement in the number of THL shares that Apollo shareholders will get through this process because the Apollo business has been performing particularly well. And generally, the THL share price, in anticipation of all the synergies and the strength of the combined entity, has also been rising during this period. 

MF: Your third ASX share to buy?

AS: ReadyTech Holdings Ltd (ASX: RDY) is the third one. It’s a bit of a rarity in the tech space: it’s a consistently profitable business.

It’s been operating in education, employment and government software. They do some very important tasks for the respective verticals that they operate in. And given the difficulty of actually replacing this software, revenue churn is very low. So, once they win a client that client usually stays with them for quite a long time. 

The company has talked about growing organically into [the] 2026 financial year, which is some years away, at a rate of 15% plus, a very significant organic growth rate.

The business can increase pricing, that’s a part of that. They can sell more to their existing customers. And they’ve also been winning new customers with the high-quality products that they have for those three spaces. 

They’ve made some really interesting acquisitions in the government space recently, which gives them a bit of a push into the local government space. Then the business has been quite acquisitive historically. So there is the ability to acquire smaller businesses into the existing verticals and potentially push into new software verticals as well. 

All of that for, again, a high teens multiple, approximately 17 times earnings next year.

MF: I see that, for a tech stock, its share price has been pretty resilient this year. It’s only down like 10% or 15%.

AS: That’s right. Mostly that is because this business has remained profitable over that period and has been underpinned by some solid free cash flow.

The post Fundie reveals 3 ‘top notch’ ASX shares to buy right now appeared first on The Motley Fool Australia.

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• Goldman Sachs names 2 quality ASX tech shares to buy right now
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Motley Fool contributor Tony Yoo has positions in RPMGlobal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal Holdings and Readytech Holdings Ltd. The Motley Fool Australia has recommended RPMGlobal Holdings and 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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Woodside Energy Group Ltd (ASX: WDS) shares have been rising over the past month. They are up by 12%. Santos Ltd (ASX: STO) shares have also gone up, rising by 7%.

Both of these numbers have outperformed the S&P/ASX 200 Index (ASX: XJO), which has only just risen by 6.25%.

It could be interesting to look at which ASX shares are getting more attention from investors.

JP Morgan Index

Reporting by The Australian said that Australian fund managers are being “decidedly downbeat” with their market commentary, levels of cash and defensive holdings, according to JP Morgan analyst Jason Steed.

When looking at JP Morgan’s ‘Love Index’, it was reported that the consumer staples sector was the “favoured defensive refuge”.

According to the reporting, Santos “remains the clear preference” over Woodside, and is the “most-loved” company in the love index.

The communications industry was the largest ‘overweight’ sector, while financials was the most under-held.

Steed wrote:

Holdings in staples climbed again and are now at the highest level since mid-2019. In contrast, managers pulled back sharply on their energy holdings, with the average holding back to a level last seen in October.

Retail remains by far the largest cohort of shareholders in the major banks.

According to Steed’s research, retail investors may own around $200 billion of the S&P/ASX 200 Index (ASX: XJO) bank shares.

How are Woodside and Santos shares performing?

Both businesses recently reported their quarterly updates.

Santos said that it had delivered US$5.9 billion of year to date sales, and third quarter sales of US$2.15 billion.

Free cash flow of over US$1 billion in the quarter reduced the company’s gearing to 20.8% at the end of September.

Santos production was 26.1 million barrels of oil equivalent (MMboe), which was up 2% from the second quarter of 2022. Year to date production was 77.6 MMboe in 2022, up 12% from 2021.

For Woodside, it was the first full quarter of operations since the merger with the BHP Group Ltd (ASX: BHP) petroleum business.

It achieved production of 51.2 MMboe, up 52% from the second quarter of 2022.

Woodside managed to achieve quarterly revenue of US$5.86 billion, up 70% from the second quarter.

Since the beginning of the year, Woodside shares are up 58% while Santos shares have only risen by 16%.

Are Woodside shares a buy?

The broker Macquarie has a price target of $33.10 on Woodside shares, with a neutral rating. It likes Woodside’s opportunity when it comes to LNG.

But, Macquarie is much more confident about the prospects of investment returns from Santos. It has an outperform rating on Santos, with a price target of $10 (implying a 30% rise) thanks to Santos generating strong free cash flow.

The post Are Woodside shares the ‘most loved’ among the ASX energy giants? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• ‘Some market trends are now entrenched’: Why this expert tips greatness for Santos shares
• 5 things to watch on the ASX 200 on Friday
• Why did Santos and Woodside shares beat the ASX 200 today?
• Batten down the hatches as RBA may hit households with ‘supersized’ interest rate hike on Melbourne Cup day

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

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If you’re looking for dividend shares to buy, then the two listed below could be worth checking out.

Both have been named as buys by brokers and tipped to provide big yields. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been tipped as a buy is footwear retailer Accent.

The team at Morgans is positive on the company and has an add rating and $2.00 price target on its shares. The broker likes Accent due to its attractive valuation and belief that the company is well-placed to bounce back from a very difficult time in FY 2022.

Its analysts said:

AX1’s renewed focus on selling at full price will, in our view, support a recovery in the gross profit margin in FY23 back towards historical averages. We welcome AX1’s moderation of the pace of its store rollout in favour of a more selective expansion strategy focused on return on investment. We see AX1 as undervalued at the current share price.

As for dividends, Morgans 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 $1.48, this will mean yields of 6.1% and 7.4%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that has been tipped as a buy is this health and wellness focused real estate investment trust.

Analysts at Goldman Sachs are very positive on the company and have a conviction buy rating and $2.14 price target on its shares. Goldman likes Healthco Healthcare and Wellness due to its strong balance sheet and its exposure to government-backed sub-sectors.

The broker said:

[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.

In respect to dividends, Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.41, this will mean yields of 5.3% for investors.

The post Brokers name 2 ASX dividend shares to buy with big yields appeared first on The Motley Fool Australia.

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