Tag: The Motley Fool Australia

The S&P/ASX All Ords Index (ASX: XAO) may have closed 1% lower yesterday, but it’s up 2.1% for the year so far.

If you’re looking for new stocks to add to your portfolio, Andrew Tang, an equities strategist at the brokerage firm Morgans, has you covered.

Tang has outlined his four best ideas for investors looking for new ASX All Ords shares this month.

Which 4 ASX All Ords shares should you buy in May?

These are brand-new picks for the broker and leverage two trends in the Australian economy.

As Tang explains:

Reviewing our coverage of residential developers, real estate credit providers and building materials businesses, the consistent theme is that Australia is on the cusp of a significant building boom, with record immigration levels and population growth exacerbating an already chronic housing undersupply issue.

The latest population data from the Australian Bureau of Statistics shows the Australian population grew by 659,800 people, or 2.5%, over the 12 months to 30 September.

Net overseas migration, at 548,800 people, accounted for the bulk of this increase. Natural increase — that’s births minus deaths — accounted for 111,000 new people.

The total population as of 30 September was 26,821,557.

That’s a lot of people to house and feed, which leads us to Tang’s four top ASX All Ords share picks for May.

Broker Morgans says buy now…

Maas Group Holdings Ltd (ASX: MGH)

This company is an ASX All Ords small-cap share in the industrials market sector.

Tang says:

Although the residential division remains impacted by an uncertain interest rate environment, the investment thesis for MGH remains mostly unchanged, in that ‘infrastructure spend in the regions drives job creation and residential housing demand’.

MGH’s vertically integrated model allows the business to capture margin through the whole supply chain and control costs, where possible.

The Maas Group share price closed at $4.31, down 1.6% yesterday but up 10.5% year to date.

Qualitas Ltd (ASX: QAL)

This company is an ASX All Ords small-cap share in the real estate sector.

Tang says:

Industry fundamentals and operational excellence sees continued growth in 1H24, with FUM growth of 41% (yoy) and Fee Earning FUM increasing 25% (yoy), leaving ~$2.1bn of dry powder to underpin future earnings growth in a sector that is experiencing increased demand, all while banks continue to retreat from the space.

The Qualitas share price was trading 2.13% higher at $2.40 at yesterday’s close and up 2.56% in the year to date.

Cedar Woods Properties Limited (ASX: CWP)

Fellow real estate sector stock Cedar Properties is also an ASX All Ords small-cap.

Tang explains his second ASX property stock pick:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings.

On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

The Cedar Woods share price closed yesterday at $4.60, down 1.71%, and is 7.8% lower in the year to date.

Coles Group Ltd (ASX: COL)

A household name, Coles is an ASX All Ords large-cap share in the consumer staples sector.

Tang says:

In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL.

While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

The Coles share price was $16.28, down 0.18% at the close yesterday and up 1.11% in the year to date.

The post Looking for ASX All Ords shares to buy? Top broker reveals 4 best ideas this month appeared first on The Motley Fool Australia.

More reading

• Buy Rio Tinto and these ASX 200 dividend stocks for a passive income boost
• 3 safe ASX dividend shares to own for the next 10 years
• Bell Potter names more of the best ASX 200 stocks to buy
• Top brokers name 3 ASX shares to buy next week
• 5 ASX dividend shares to buy next week

Motley Fool contributor Bronwyn Allen 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 Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. The Motley Fool Australia has recommended A2 Milk, Aub Group, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock Integrated Research Limited (ASX: IRI) blew investors’ minds with a 53.75% share price gain on Thursday to close the session at 62 cents.

The share price explosion followed the release of the company’s FY24 trading update.

Integrated Research provides performance management and analytics for IT infrastructure, payments, and communications companies.

Not only did the company report a 93% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) over the 10 months ending 30 April, it also upgraded its full-year guidance.

Let’s take a look at the details.

ASX tech stock skyrockets on major financial boost

For the 10 months ending 30 April, Integrated Research reported $59.1 million in total contract value (TCV), up 8% on the previous corresponding period (pcp).

Between February and April, the company secured $8.4 million in new business, including six new customers, mainly in the Americas.

The renewal portfolio continues to perform well with 98% net revenue retention. Unaudited revenue for the period is $61.4 million, an increase of 11% on the pcp.

The company said it had contained cost increases to help deliver a massive 93% boost to EBITDA at $13.9 million.

Full-year 2024 results to ‘materially exceed’ last year

Integrated Research is now guiding FY24 TCV of $75 million to $84 million. This compares to $68.5 million for FY23.

The company expects revenue in the range of $76 million to $85 million. This compares to $69.8 million for FY23.

It anticipates EBITDA of between $18 million to $25 million. This is well above the $12.1 million EBITDA reported for FY23.

Commenting on the market update, CEO John Ruthven said:

We are pleased with our YTD performance and field execution, particularly in securing several key new Collaborate customer wins.

The changes we have made to our sales leadership team and go-to-market approach over the last 12-18 months are starting to bear fruit.

As we progress through May and June, we anticipate a strong finish to the financial year.

ASX tech stock share price snapshot

The Integrated Research share price has risen 70.8% in the year to date. This is a stunning outperformance on the S&P/ASX 200 Information Technology Index (ASX: XIJ), which is up 22.7%

Over the past 12 months, the ASX tech stock has soared 53.75% while the index lifted 43.7%.

That annual gain is equal to today’s stunning one-day increase for the Integrated Research share price.

The company now has a market capitalisation of $69.84 million.

The post ASX tech stock up 54% on positive trading update appeared first on The Motley Fool Australia.

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More reading

• These 2 ASX 200 stocks just received broker upgrades!
• Here’s where the ASX 200 will finish the year: AMP
• Buy Rio Tinto and these ASX 200 dividend stocks for a passive income boost
• This ASX 200 stock hasn’t cut its dividend for 121 years
• Woodside share price smashes benchmark as government demands ‘more gas!’

Motley Fool contributor Bronwyn Allen 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.

Brokers have upgraded these two S&P/ASX 200 Index (ASX: XJO) stocks after recent positive updates from both businesses.

Sometimes a business announcement is positive for a company and can make the current share price cheap. A decline of the share price can also open up value in the minds of some investors.

Let’s look at which two ASX 200 stocks have just been upgraded.

Perpetual Ltd (ASX: PPT)

The broker Bell Potter has put a buy rating on Perpetual shares after the business announced the sale of its wealth management and corporate trust businesses via a scheme of arrangement for A$2.175 billion in cash.

In Bell Potter analysts’ eyes, the sale was a “positive”, according to reporting by The Australian, with the broker saying the decline was “short-signed”.

The expectations for this sale were reportedly between $1.5 billion and $1.9 billion. Bell Potter said:

More to the point, we had assumed that our top of range $1.9bn sale, would incur a $480m tax liability, which may not be the case.

The newspaper reported Bell Potter’s analysis showed the ASX 200 stock’s deal was a demerger rather than a straightforward sale. The Australian reported:

…a new head company was being created and the asset management unit would be demerged and returned to shareholders who would receive the KKR sale proceeds minus the transaction costs and repaid debt.
Bell Potter said questions on tax and transaction costs missed the point.

Goodman Group (ASX: GMG)

Macquarie’s price target on Goodman shares has hiked by 4.4% to $36.37.

A price target is where a broker thinks the share price will be trading in 12 months from now. Therefore, Macquarie suggests Goodman shares could rise by more than 8% in the next year.

Why the positivity? Goodman just released its FY24 third-quarter update.

The ASX 200 stock reported, as at 31 March 2024, it had $12.9 billion of development work in progress (WIP) across 82 projects. Data centres under construction currently represent approximately 40% of WIP. In the latest quarter, it completed $0.8 billion of developments, with 96% of year-to-date completions committed. The business now has a $80.5 billion total property portfolio.

Goodman’s rental performance continues to be strong, with 4.9% like-for-like net property income growth on properties in its partnerships.

The good performance enabled the business to increase its FY24 operating earnings per security (EPS) growth to 13%.

The post These 2 ASX 200 stocks just received broker upgrades! appeared first on The Motley Fool Australia.

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More reading

• 2 magnificent ASX dividend shares I’ll be buying more of in May
• Why this ASX 200 stock is making front-page news across the country
• Why Judo Capital, NAB, Paladin Energy, and Perpetual shares are falling today
• Goodman share price hits record high on second FY24 guidance upgrade
• 5 things to watch on the ASX 200 on Wednesday

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

The S&P/ASX 200 Index (ASX: XJO) is experiencing a sell-off today, down 0.99% to 7,726.9 points at the time of writing.

This is a sizeable 2.3% fall from the benchmark index’s all-time high set on 2 April at 7,910.5 points.

AMP has published its predictions for where the ASX 200 will be by the year’s end, as well as its tips on how other asset classes, such as cash, bonds and property, will perform over the rest of 2024.

But first, let’s recap what the ASX 200 has done so far this year…

The ASX 200 began the year with a rally…

The ASX 200 started the year with a bit of weakness over the first few weeks following an outstanding Santa Rally that saw it move 11.95% higher between 31 October and 31 December.

But that new year nervousness gave way to positivity from about mid-January, and the ASX 200 moved pretty steadily towards its April peak.

The fire in its belly during those few months was optimism that there would be several interest rate cuts in the United States, possibly beginning in the first half of 2024, due to falling inflation.

The expectation in Australia was for a cut in the later part of the second half of the year.

But things have changed.

US inflation surprised on the upside last month, which threw a bucket of cold water on the idea of rate cuts any time soon.

Australia’s March inflation rate followed the same pattern, which has also cast doubt over whether there will be a rate cut here in 2024 at all.

In fact, some economists suggest there might even be a hike!

In a new blog, AMP chief economist Dr Shane Oliver says Australia is still at risk of a recession, and there is volatility ahead for the ASX 200.

How will the ASX 200 finish the year?

AMP expects the ASX 200 to return 9% this year and to rise to about 7,900 points by the year’s end.

That’s just shy of its April high and indicates more volatility ahead and a rougher road for the economy.

Dr Oliver points out that ASX 200 valuations were stretched following the Santa Rally, and uncertainty about the economy and the prospect for rate cuts means share price gains are likely to be constrained.

Dr Oliver said:

Easing inflation pressures, central banks moving to cut rates and prospects for stronger growth in 2025 should make for good investment returns this year.

However, with a high risk of recession, delays to rate cuts and significant geopolitical risks, the remainder of the year is likely to be far rougher and more constrained than the first three months were.

What about cash, bonds and commercial property?

In terms of other assets besides ASX 200 shares, Dr Oliver predicts:

Bonds are likely to provide returns around running yield or a bit more, as inflation slows, and central banks cut rates.

Unlisted commercial property returns are likely to be negative again due to the lagged impact of high bond yields & working from home.

Cash and bank deposits are expected to provide returns of over 4%, reflecting the back up in interest rates.

What will happen to house prices and the currency?

Dr Oliver said Australian home prices are likely to see “more constrained gains in the year ahead as the supply shortfall remains, but still high interest rates constrain demand and unemployment rises”.

He added:

The delay in rate cuts and talk of rate hikes risks renewed falls in property prices as its likely to cause buyers to hold back and distressed listings to rise.

Dr Oliver said the Australian dollar is likely to rise to US 70 cents over the next 12 months as the overvalued American dollar falls.

He adds that, “… in the near term the risks for the $A are on the downside as the Fed delays rate cuts and given the still high risk of an escalating conflict in the Middle East”.

What’s going on in the Australian economy?

Dr Oliver said a recession is “probably the main threat” for the Australian economy today.

While the rate of inflation is still falling, retail sales came in lower than expected in March. In fact, in per capita terms, we have now seen seven straight quarters of declining sales, despite strong population growth. This indicates a serious tightening of the belts among Australians.

Dr Oliver also said the ABS Household Spending Indicator slowed to 2.1% year over year in March.

The trade surplus fell again in March due to lower commodity prices and stronger imports.

“Trade looks likely to be a big detractor from March quarter GDP growth, possibly by as much as 1 percentage point,” Dr Oliver said.

AMP’s take on the housing crisis

Building approvals rose less than expected in March, with the housing shortage worsening. Home values rose 0.6% in April — the 15th consecutive month for growth, largely due to the undersupply.

Dr Oliver commented:

So far this year approvals are running around an annual pace of just 154,000 dwellings, which is well below underlying demand for housing of around 250,000 dwellings a year on the back of record immigration levels and well below the objective of Australian governments to build 240,000 dwellings a year.

The post Here’s where the ASX 200 will finish the year: AMP appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Bronwyn Allen 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.

Passive income investors have a lot of options on the Australian share market.

So much so, it can be hard to decide which ASX 200 dividend stocks to buy.

But never fear, listed below are four options that are rated highly by brokers. They are as follows:

APA Group (ASX: APA)

Analysts at Macquarie think that APA could be an ASX 200 dividend stock to buy. It is an energy infrastructure company that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

As for dividends, the broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.69, this equates to 6.4% and 6.6% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

The team at Morgans think that this supermarket giant would be a great option for passive income investors.

It is expecting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.33, this implies yields of approximately 4% and 4.2%, respectively.

The broker currently has an add rating and $18.95 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs’ analysts think that mining giant Rio Tinto could be a top ASX 200 dividend stock to buy right now.

Particularly given its generous dividend yield. The broker is forecasting fully franked dividends per share of US$4.29 (A$6.52) in FY 2024 and then US$4.55 (A$6.91) in FY 2025. Based on the latest Rio Tinto share price of $130.51, this will mean yields of approximately 5% and 5.3%, respectively.

The broker has a buy rating and $138.90 price target on the miner’s shares.

Transurban Group (ASX: TCL)

Transurban could be another ASX 200 dividend stock to buy according to analysts at Citi. It is a toll road giant with a growing number of important roads across both Australia and North America.

Citi’s analysts are expecting some good yields from its shares in the coming years. The broker is forecasting dividends per share of 63.6 cents in FY 2024 and 65.1 cents in FY 2025. Based on the current Transurban share price of $12.90, this will mean yields of 4.9% and 5%, respectively.

Citi has a buy rating and $15.50 price target on its shares.

The post Buy Rio Tinto and these ASX 200 dividend stocks for a passive income boost appeared first on The Motley Fool Australia.

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More reading

• 3 safe ASX dividend shares to own for the next 10 years
• Brokers say these high yield ASX 300 dividend shares are top buys
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• Top brokers name 3 ASX shares to buy next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you told most investors that there was an ASX 200 stock on the share market that hasn’t cut its dividend in 121 years, they’d probably want to know a little more.

After all, a company’s dividend history is arguably an effective barometer of how financially successful it is and how it has delivered for shareholders over long periods of time.

Management teams can talk about future growth, exciting opportunities, a stock market that isn’t seeing true value, or how their company’s shares are on the precipice of exploding all they want. But seeing cash move from a company to its shareholders over many years instils confidence like nothing else. It’s the corporate equivalent of putting one’s money where one’s mouth is.

An ASX 200 stock that happens to be able to boast of a 121-year streak of delivering absolute dividend stability is Washington H. Soul Pattinson and Co Ltd (ASX: SOL). So I guess you might want to hear some more about this white whale.

An ASX 200 stock with a 121-year history

Washington H. Soul Pattinson and Co, or Soul Patts for short, is an ASX 200 stock that functions as an investing house. It managed a huge portfolio of diverse assets on behalf of its shareholders.

This company’s portfolio has changed considerably over time. It used to be locked up in large stakes of a very exclusive set of other ASX shares. It still has this ‘Strategic Portfolio’, with substantial stakes in TPG Telecom Ltd (ASX: TPG), Brickworks Ltd (ASX: BKW), New Hope Corporation Ltd (ASX: NHC) and more.

But Soul Patts also owns a large and diversified portfolio of ASX 200 blue chip stocks. This includes everything from Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) to CSL Ltd (ASX: WOW) and Macquarie Group Ltd (ASX: MQG).

This ‘Large Caps’ portfolio is part of Soul Patts, thanks to its acquisition of its old owner, Milton Corporation, a few years ago.

In addition to these share-based investments, this ASX 200 stock also has other investments, including property, unlisted stock, private credit and venture capital.

What about the dividends?

But let’s get down to the dividend talk.

Soul Patts has been around since the 19th century, but was first listed on the ASX in 1903. Since then, this ASX 200 stock has paid out a consistent dividend every single year. The interim dividend that investors will enjoy on 11 May later this month will mark the 121st year this streak has continued.

What’s more, Soul Patts has also increased its annual dividend every year since 2000. That’s a feat no other ASX 200 stock, or any stock on the ASX for that matter, can boast of.

So it’s clear that Soul Pattinson’s diversified approach is successful, literally paying dividends for more than a century. Let’s see if it can keep it up over the next 121 years.

The post This ASX 200 stock hasn’t cut its dividend for 121 years appeared first on The Motley Fool Australia.

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More reading

• Morgans names more of the best ASX 200 shares to buy in May
• Is it too late to buy surging ASX copper shares like Sandfire?
• How important is copper for the future of BHP shares?
• Buy BHP and these ASX dividend shares in May
• Buying the dip: Managers spend millions on Soul Patts shares

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Woodside Energy Group Ltd (ASX: WDS) share price is charging ahead today, even as the S&P/ASX 200 Index (ASX: XJO) sinks deep into the red.

In afternoon trade on Thursday, the ASX 200 is down 0.8%.

The Woodside share price, on the other hand, is surging 1.4% at the time of writing to $28.26 a share.

Indeed, it’s a good day for all the big ASX 200 oil and gas stocks. Santos Ltd (ASX: STO) shares are up 0.7% to $7.68, while Beach Energy Ltd (ASX: BPT) shares are leaping 2.0% to $1.62 apiece.

While the Brent crude oil price is up 0.5% overnight to US$83.91 per barrel, I suspect much of today’s outperformance comes thanks to the federal government’s future gas plan.

Woodside share price catching tailwinds

The Woodside share price, along with competitors Santos and Beach Energy, could enjoy sustained tailwinds from the government’s long-term views on the need for Australian-produced gas.

This morning, Federal Resources Minister Madeleine King said (quoted by The Australian Financial Review):

We will need affordable gas to support energy reliability for households and businesses as we move to a more renewable grid. We need gas to support Australian manufacturing and Australian industry, and tens of thousands of Australian jobs in the manufacturing sector.

King noted that Australia’s gas industry, “creates highly paid and skilled jobs. It pays for roads, hospitals, schools and our security.”

Indeed, companies like Woodside, Santos, Beach Energy and the rest of the Aussie gas industry are reported to support more than 80,000 jobs. The industry also provides energy to more than five million homes.

King said Australia’s producers supply some 20% of the world’s gas. This delivered $72 billion of export income for Australia’s economy in 2023-24.

And King highlighted how the government’s gas plan can work to help the nation and its trading partners reach their emissions reduction goals.

“We need gas to help us achieve our commitment to net zero. Our trading partners depend on our gas to meet their commitments to net zero.”

Investors may also be bidding up the Woodside share price based on the lengthy timelines at stake here.

“Australia will also need gas into the future, to firm renewables and ensure the reliability of the grid,” King said. She added that, “Gas is needed out to 2050 and beyond.”

She continued:

Australia is committed to reaching net zero emissions by 2050, and we will need gas to get there, which means we must manage the emissions from gas. And gas must remain affordable for Australian customers. To achieve this, we will need new sources of gas to meet long-term demand as existing fields deplete.

In a blow to environmental activists – but a nod to reality and a boon for the Woodside share price today – King said, “Turning off gas overnight would do untold damage to our economy, impede efforts to get to net zero, and have a severe impact on our region.”

To help Australia reach its emissions reduction goals, she said, “I will release more greenhouse gas acreage for carbon capture, use and storage.”

King also addressed the ‘use it or lose it’ provisions that have concerned the ASX oil and gas companies.

“Australia will need continued investment to develop gas supplies to get us through the energy transition with thriving industries. That will mean a continued commitment to exploration,” she said.

“We will assess so-called use it or lose it provisions for retention leases, to get the gas we have already discovered flowing sooner.”

Santos CEO responds

Like the Woodside share price, Santos shares could benefit over the longer term from the government’s new gas policy.

Santos CEO Kevin Gallagher responded to the new policy, saying (courtesy of The Australian), “I’m pleased that the recognition of the role of gas is beginning to be better understood.”

Gallagher noted that around the world he’s seeing “a recognition of the importance of gas in the energy mix of the future”.

And Santos has long been a supporter of increasing carbon capture and storage to help tackle emissions.

“The future of our industry is abated oil and gas, and the only way you can really abate it effectively and at scale, is through carbon capture and storage,” Gallagher said.

As for any pending ‘use it or lose it’ provisions, he added, “We have just gone through a couple of years where you could ‘use it’ but get nothing done because we were held up with approval and regulatory roadblocks… We all want to ‘use it’.”

How has the Woodside share price been tracking?

Despite today’s boost, the Woodside share price remains down 10% in 2024.

Santos shares are just about flat.

And the Beach Energy share price is down 1% year to date.

The post Woodside share price smashes benchmark as government demands ‘more gas!’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Woodside shares are down 17% in 6 months. Is now the right time to buy?
• Morgans names the best ASX 200 stocks to buy in May
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX dividend stocks to buy for an income boost

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

Are you on the lookout for some ASX shares to buy this month? Well, with the market down in the dumps today, now could be a good time to pounce.

But which ASX shares would be good options? Let’s take a look at five buy-rated stocks that brokers are tipping to generate big returns for investors.

IDP Education Ltd (ASX: IEL)

The team at Goldman Sachs thinks that this language testing and student placement company is an ASX share to buy right now.

It feels that recent weakness has created a compelling buying opportunity in a quality company that is going through a temporary headwind. Its analysts note that “we are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL’s structural growth outlook and business quality remain unchanged in our view.”

The broker currently has a buy rating and $25.30 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Bell Potter is feeling very bullish about fashion jewellery retailer Lovisa. In fact, the broker has just lifted its valuation for the company because it believes it can grow its store network at an even quicker than expected rate.

Bell Potter estimates that Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034. It expects this to underpin strong earnings growth over the period.

The broker has a buy rating and $36.00 price target on Lovisa’s shares.

Megaport Ltd (ASX: MP1)

Another ASX share that has been named as a buy is Megaport. It is a leading global provider of elastic interconnection services.

Macquarie is a big fan of the company and is forecasting rapid growth over the coming years. This is thanks to strong near-term operating leverage and the growth of its Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE) products.

Macquarie currently has an outperform rating and $18.30 price target on Megaport’s shares.

Qantas Airways Limited (ASX: QAN)

Over at Goldman Sachs, its analysts also think that this airline operator’s shares are great value at current levels.

Especially given the way the company’s post-COVID transformation has created structurally stronger earnings.

Goldman has a buy rating and $8.05 price target on its shares.

Xero Ltd (ASX: XRO)

Finally, another ASX share that Goldman Sachs is bullish on is Xero. It is a rapidly growing cloud accounting platform provider with a huge market opportunity.

And when I say huge, I mean it. The broker believes Xero is “very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.”

Goldman has the company on its Asia-Pacific conviction list with a buy rating and $156.00 price target,

The post 5 ASX shares to buy following the market selloff appeared first on The Motley Fool Australia.

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More reading

• Are Qantas shares too expensive at over $6?
• Leading broker thinks this top ASX 200 stock’s earnings can soar 130% by FY28
• Top brokers name 3 ASX shares to buy today
• Why AGL, HMC Capital, Megaport, and Patriot Battery Metals shares are racing higher
• 4 reasons this fund manager thinks Qantas shares are a cheap buy

Motley Fool contributor James Mickleboro has positions in Lovisa and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Lovisa, Macquarie Group, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Idp Education, Lovisa, and Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was the ASX 200 healthcare stock of the year in 2023, with its share price catapulting 214% in just 12 months.

But today is a challenging one for Neuren Pharmaceuticals Ltd (ASX: NEU), with its share price crashing 10.6% to an intraday low of $17.97 this morning.

This followed the release of its Q1 FY24 update on sales of its maiden drug, Daybue.

The ASX 200 biotech has since retraced some of those losses. Neuren shares are changing hands for $18.97 apiece, down 5.62%, at the time of writing.

It appears investors aren’t too pleased with the progress of DAYBUE sales in the US.

Let’s look into the details of the update.

ASX healthcare star falls on Q1 sales update

The update issued by Neuren Pharmaceuticals today contains highlights of the Q1 FY24 earnings reported by its United States partner, Acadia Pharmaceuticals (NASDAQ: ACAD).

Acadia is responsible for the global sales and commercialisation of Neuren’s first approved drug, DAYBUE, which received US Food and Drug Administration (FDA) approval last year.

DAYBUE is a world-first drug treatment for Rett syndrome. It’s approved in the US for adults and pediatric patients aged two years and up.

Acadia announced that Q1 net sales of DAYBUE in the US totalled US$75.9 million. This only just missed the guidance range of US$76 million to US$82 million.

Neuren anticipates it will receive royalty revenue of A$11.6 million for the quarter. It expects full-year FY24 royalties of between A$61 million and A$70 million.

That’s on top of sales milestone revenue of A$77 million, assuming Acadia meets its guidance range and the US/AUD exchange rate is 65 cents.

Today’s sales data for 1Q FY24 was lower than last quarter’s net sales of US$87.1 million.

Arcadia reiterated its full-year 2024 guidance for net sales of between US$370 million and US$420 million.

Why were 1Q FY24 sales lower than 4Q FY23?

Neuren has previously explained that seasonal effects negatively impacted 1Q FY24 sales.

These included refills that were due in January and actioned in December, prior to the holidays, and reduced Rett clinic days in January.

The company said discontinuations during Q1 were higher following a surge in new patient starts in the previous quarters.

Gross-to-net discounts were slightly higher in Q1, too.

Net patient additions have resumed, with increases in each of the past six weeks.

The company said:

Approximately 25% of the 5,000 diagnosed Rett syndrome patients in the United States have initiated therapy.

Persistence on therapy continues to track more than 10% higher than the clinical trial experience, with 58% remaining on therapy after treatment for 9 months. 862 patients are currently on therapy.

What’s next for this ASX healthcare stock?

Neuren Pharmaceuticals said Acadia had made good progress on its international expansion for DAYBUE.

A New Drug Submission in Canada was accepted for filing, and priority review was granted, with
potential for approval around the end of 2024.

A pediatric investigation plan (PIP) was filed with and accepted by the European Medicines Agency,
with a Marketing Authorisation Application anticipated in Q1 2025.

A formal meeting with the Japanese regulatory agency (PMDA) to discuss the clinical plan is
scheduled in Q2 2024.

What’s next for Neuren Pharmaceuticals?

Neuren’s second drug candidate, NNZ-2591, is in Phase 2 development for Phelan-McDermid syndrome (PMS), Angelman syndrome, Pitt-Hopkins syndrome and Prader-Willi syndrome.

Neuren is focused on developing new drug therapies to treat serious childhood neurological disorders
that have no or limited approved treatments available.

All of its drugs have ‘orphan drug’ designation for rare and serious diseases in the US, which gives Neuren access to incentives to support its work.

Typically, an orphan drug is not profitable to produce without government assistance, as the diseases they treat are rare and affect only small portions of the population.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, this ASX healthcare share has risen 39.5%. Obviously, that encapsulates part of that magnificent 214% gain over the 12 months to 31 December.

But the company hit a snag in February, which impacted its share price trajectory, as shown below.

Neuren Pharmaceuticals was hit with a short seller’s report on 15 February.

The report described DAYBUE as a “flop” amid “horror stories” of side effects among patients.

Neuren’s response was not enough to stop the ASX healthcare share tumbling, and it’s moved sideways ever since.

The post Why this high-flying ASX 200 healthcare stock just crashed 11% appeared first on The Motley Fool Australia.

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More reading

• Why is this ASX 200 stock avoiding the market selloff and pushing higher?
• Why Baby Bunting, JB Hi-Fi, Temple & Webster, and Westpac shares are falling today
• Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today
• Why are CBA shares sliding following the bank’s quarterly update?
• Why are Westpac shares slumping 5% on Thursday?

Motley Fool contributor Bronwyn Allen 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.