The S&P/ASX 200 Index (ASX: XJO) stock Bapcor Ltd (ASX: BAP) has seen plenty of volatility over the past year. Could some insider buying by directors be a promising signal for investors?

For investors that haven't heard of Bapcor, it's one of the largest auto parts businesses in the Asia Pacific region. It owns a number of different businesses in its portfolio including Burson Auto Parts, Truckline, WANO, Autobarn, Autopro, Midas, ABS, Shock Shop and Battery Town.

After the company's recent FY23 half-year result, directors have been buying.

Insider buying

The latest purchase by a director was Mark Bernhard who bought 10,000 shares on the market, at a price of $6.63 per share.

Director Kate Spargo bought 10,000 shares for an average price of $6.475 per share on the market.

The director Brad Soller bought 7,500 shares on the market for a price of $6.66 per share.

Director Margaret Haseltine bought 7,515 shares for a price of $6.65 per share.

Earnings recap

Bapcor recently reported its half-year result for the six months to 31 December 2022.

The ASX 200 stock achieved record revenue, with growth of 11.2% to $1 billion – there was "strong growth in all Australian segments."

The company said that the first half of FY23 demonstrated the "resilience of Bapcor's diversified business model", with an ongoing focus on capital efficiency with actions implemented to enhance cash conversion.

It said that there was continued network expansion and growth in proportion to own-brand sales across all of its segments. The ASX 200 stock also said that the distribution centre in Queensland is on track for practical completion in the second half of FY23.

Bapcor reported that its pro-forma net profit after tax (NPAT), or the underlying net profit, increased by 2.3% to $62 million.

In terms of an outlook, the ASX 200 stock said it expects a "solid underlying performance in FY23 with slight improvements" in trading in the second half of FY23, compared to the first half of FY23. But, it also said that more progress is required to further reduce Bapcor's still-elevated inventory levels.

The business expects to keep growing its network in the coming years, which can help grow its scale and profitability. That could help the Bapcor share price in time too.

Bapcor share price valuation

According to Commsec, Bapcor shares are valued at 18 times FY23's estimated earnings.

The post 4 directors have been buying up this ASX 200 stock since the company reported appeared first on The Motley Fool Australia.

There's been plenty of insider buying among S&P/ASX 200 Index (ASX: XJO) shares this week, with one director snapping up a whopping $198,000 stake in their company.

Let's take a closer look at all the action going down among market favourites.

6 ASX 200 directors buying their own companies' shares

The spotlight might be on ASX 200 lithium share Allkem Ltd (ASX: AKE) this week after the company's chair Peter Coleman snapped up a sizeable chunk of its securities.

He bought 17,054 Allkem shares between Friday and Tuesday, paying an average of around $11.61 apiece to more than double his holding. That equals a total spend of nearly $198,000.

The buying spree saw the boss bolstering his stake for a bargain price if Goldman Sachs is to be believed. The top broker tipped the Allkem share price to soar to $15.40 earlier this week, as my Fool colleague James reports.

Also the subject of insider buying this week is Charter Hall Retail REIT (ASX: CQR). The real estate investment trust's (REIT's) chair Roger Davis bought 38,669 units for around $3.98 apiece on Monday.

Over at banking giant Commonwealth Bank of Australia (ASX: CBA), director Anne Templeman-Jones was buying. She snapped up 300 shares for an average price of $101.10 apiece.

Meanwhile, Bapcor Ltd (ASX: BAP) saw not one, but two board members buying up its shares this week.

Chair Margaret Anne Haseltine bought 7,515 shares for $6.65 apiece while director Brad Soller bought 7,500 for the slightly higher price of $6.66 apiece.

Gold miner Regis Resources Ltd (ASX: RRL) has also seen insider buying this week. Director Paul Arndt bought into the company on Tuesday, acquiring 9,273 shares for a total of around $15,857, or approximately $1.71 apiece.

And finally, Healius Ltd (ASX: HLS) chair Jenny McDonald bolstered her stake in the pathology giant, buying 37,500 shares for $2.751 apiece – a total spend of around $103,000.

The post 6 ASX 200 directors buying up their companies' shares this week appeared first on The Motley Fool Australia.

Here's why brokers think investors ought to buy them next week:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating on this auto parts retailer's shares with an improved price target of $9.18. This follows the release of the company's half year results. Citi was happy with the results but is particularly positive on Bapcor's transformation program and believes it will offset any short term performance risks. It also feels that any inventory concerns are unnecessary and expects levels to moderate in the second half. The Bapcor share price ended the week at $6.33.

CSL Limited (ASX: CSL)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this biotherapeutics company's shares to $337.92. Morgans was pleased with CSL's results and believes that its strong plasma collections and ongoing demand across both Behring and Seqirus, coupled with Vifor's added breadth, suggests strong growth and momentum ahead. The CSL share price was fetching $298.40 at Friday's close.

Endeavour Group Ltd (ASX: EDV)

Another note out of Morgans reveals that its analysts have upgraded this drinks giant's shares to an add rating with an improved price target of $7.80. This follows the release of Endeavour's half year result, which was comfortably ahead of expectations. And while Morgans acknowledges that the regulatory environment remains uncertain, it feels that the risks are to the upside with the underlying business performing well. The Endeavour share price ended the week at $6.78.

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

The S&P/ASX 200 Index (ASX: XJO) is up 0.76% late today, receiving a midday surge following news from the Bureau of Statistics that Australia's unemployment rate increased from 3.5% to 3.7% in January.

It appears the rise in unemployment is being interpreted by some investors as a potential signal that interest rate rises are starting to slow the economy, which is necessary to tame inflation.

And inflation is the sole reason the Reserve Bank has been raising interest rates so rapidly.

RBA Governor Dr Philip Lowe has already indicated that another two 25-basis point rate rises are almost certain in 2023. He told a Senate committee yesterday that inflation remains "way too high".

Why are ASX 200 shares going up?

Right now, any news indicating that interest rate rises are working is good for the share market. It means we're getting closer to the point when the Reserve Bank will back off and pause rates.

The bank isn't going to do that until there's enough evidence that inflation is falling. In order for inflation to fall, certain things have to happen, like lower consumer spending and business investment.

The prices of everyday goods will come down when supply bottlenecks clear and consumers rein in spending.

The share market likes today's news because inflation is bad for most businesses. Put simply, it raises their input costs. Then rising interest rates increase their debt costs.

The impact is especially seen in ASX consumer discretionary shares.

When inflation is rising, discretionary businesses face rising input costs as well as fewer customers. Most discretionary businesses can't raise their prices to offset the effect, so it's a real triple whammy.

So, it's little wonder that today's jobs data is pushing up ASX 200 consumer discretionary shares the most.

The S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is the top riser of the 11 market sectors today, up 2.81% in late afternoon trading.

Among the biggest ASX 200 movers in the sector today are Corporate Travel Management Ltd (ASX: CTD) shares up 9.8%, Bapcor Ltd (ASX: BAP) shares up 5.3%, and ARB Corporation Limited (ASX: ARB) shares up 5.2%.

Following behind is the S&P/ASX 200 Information Technology (ASX: XIJ) sector, up 2.4%.

ASX tech shares have also been hit hard by rising interest rates, as Australia's tech sector is pretty young and thus in growth mode, and ASX growth stocks typically have higher debt ratios than the blue chips.

Among the biggest ASX 200 tech movers are Block Inc CDI (ASX: SQ2) shares up 8.9% and Life360 Inc (ASX: 360) shares up 4.7%.

Economists cautious on jobs data

According to reporting in The Australian, economists are cautious about today's jobs data for a number of reasons.

One of them is that the data relates to January, which is typically a month in which people switch jobs. Those in the switch period are technically counted as unemployed at the time of the survey.

RBC Australia chief economist Su-Lin Ong said the labour market "is likely past peak strength" but will not sustainably weaken until 2H FY23.

Ong said:

We doubt if today's labour force will derail RBA hikes in the coming months.

Goldman Sachs Australia chief economist Andrew Boak says the labour market likely remains robust.

Boak said:

Overall, the weakness in the headline data bears watching, but we caution against placing too much weight in today's report.

The post Why did the ASX 200 leap higher on rising unemployment data? appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 5.5% to $6.55. Investors have been buying this auto parts retailer's shares following the release of its half year results. Bapcor reported an 11.2% increase in revenue to $1 billion and a 2.3% increase in pro-forma net profit after tax to $146.3 million. Both were records for the period. This allowed Bapcor to boost its interim dividend by 5% to 10.5 cents per share.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has jumped 10% to $10.37. This is despite the struggling fund manager delivering a terrible half year result. Magellan reported a 67% decline in net profit after tax to $83.8 million. This was driven by the halving of its average funds under management since this time last year. Investors appear to have been expecting an even worse update or are attracted to its 46.9 cents per share interim dividend.

Sonic Healthcare Limited (ASX: SHL)

The Sonic Healthcare share price is up almost 14% to $33.03. Investors have been buying this healthcare company's shares despite its half year result falling ever so slightly short of consensus estimates. They may be focusing more on news that the company is looking at making some acquisitions.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is up 2% to $4.23. This follows the release of the telco giant's first half results. Telstra delivered a result ahead of expectations with its 6.4% increase in total income to $11.6 billion and 11.4% jump in EBITDA to $3.9 billion. This allowed the Telstra board to increase its fully franked interim dividend by 6.3% to 8.5 cents per share.

The post Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher appeared first on The Motley Fool Australia.

The Bapcor Ltd (ASX: BAP) share price is roaring higher after the company released its earnings for the first half of the financial year this morning.

Shares in the S&P/ASX 200 Index (ASX: XJO) automotive spare parts and accessories provider are currently trading 5.15% higher at $6.53.

Bapcor share price leaps as revenue reaches $1b

Here are the key takeaways from Bapcor's latest earnings release:

• $1 billion of revenue – a 11.2% jump on the prior comparable period (pcp) and a new record
• $62 million of pro-forma net profit after tax (NPAT) – up 2.3%
• $146.3 million of pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 6.7% jump
• Pro-forma earnings per share (EPS) came to 18.3 cents
• Interim dividend boosted 5% to 10.5 cents per share

The company's specialist wholesale segment brought in the lion's share of revenue last half, at 36%, with trade close behind, responsible for 35% of revenue. Retail brought in 21% of its revenues while its New Zealand business was behind the other 8%.

Its positive financial result came despite overall margins being impacted by challenges in retail, economic weakness in New Zealand, and higher supply chain costs.

Bapcor ended the period with a $329 million net debt position.

What else happened last half?

It's been a busy period for Bapcor.

The company boasts 31 more company-owned locations than it did in the first half of financial year 2022.

It has also successfully transitioned its Bearing Wholesales and Federal Batteries brands into its Victorian distribution centre last half and is on track for practical completion of its Queensland distribution centre in the current half.

Finally, its Better than Before transformation moved from planning into implementation and execution and remains on schedule.

What did management say?

Bapcor CEO and managing director Noel Meehan commented on the news driving the company's share price higher today, saying:

Our diversified model has demonstrated the resilience of Bapcor's business, and despite input cost pressure we have had strong performances of our trade and wholesale operations that allowed us to mitigate shorter-term headwinds in supply chain, retail and New Zealand.

What's next?

The company experienced a solid start to the year in January, with trading conditions unchanged.

It believes the second half of this fiscal year will bring slight improvements in trading, subject to market conditions. It also notes more progress is needed to further reduce elevated inventory levels.

Finally, it still expects to realise the initial capital expenditure for its transformation plan next half. The plan aims to provide a net earnings before tax and interest (EBIT) benefit of at least $100 million and return at least 12% of invested capital by financial year 2025.

Bapcor share price snapshot

Today's gain has put the Bapcor share price back into the year-to-date green.

The stock is currently 1% higher than it was at the start of 2023. Though, it has fallen 7% since this time last year.

For comparison, the ASX 200 has gained 7% year to date and 2% over the last 12 months.

The post Bapcor share price surges 5% on record half appeared first on The Motley Fool Australia.

For readers who don't know, Bapcor is an auto parts business with a number of different businesses including: Burson Auto Parts, Precision Automotive Equipment, BNT (NZ), Truckline (heavy commercial vehicles) and WANO (light commercial vehicles), Autobarn, Autopro, Midas, ABS, Shock Shop, and Battery Town.

It's diversified across the automotive industry.

The Bapcor share price has dropped close to 10% over the past year. And there's good reason to think that the company can outperform the ASX 200 in the coming months.

A downturn may not be bad news

Bapcor is a major seller of auto parts. It's possible that a downturn will lead to a lower level of purchases of new cars.

But people still need to drive, and vehicles can still break down. Rather than buying a new car, more people may choose to go with fixing the vehicle with a new part. A downturn could mean stronger demand for many Bapcor businesses.

When the business gave an investor presentation in November 2022, it said that it had seen ongoing positive revenue growth despite lower market growth amid cost-of-living pressures in the retail sector and the New Zealand economy.

However, the company did say that it's experiencing a temporary profit margin compression because its price adjustments lag the cost inflation that it's seeing.

The current profit forecast on Commsec suggests the ASX 200 stock's earnings per share (EPS) will be flat in FY23, at 38.7 cents. Then, it could grow EPS by 12% to 43.5 cents in FY24 and grow again by 19% to 51.7 cents in FY25.

Those projections would put the Bapcor share price at under 17 times FY23's estimated earnings and at 12 times FY25's estimated earnings.

Profit improvement potential

Bapcor has a program called 'better than before' where it aims to increase its net earnings before interest and tax (EBIT) by at least $100 million, enhance the return on invested capital (ROIC), and improve the company's organisational health.

It's going to achieve this in a variety of ways, including increasing internalisation of spending, supply chain optimisation, increasing the proportion of private label sales in certain categories, and consolidating supplier spending across the business for better pricing and rebates.

If the business is able to increase its presence in Asia, it could unlock a good source of new earnings in a large population region.

Profit growth could also enable the dividend to keep growing. It has increased its dividend every year since FY15. By FY25, it could be paying an annual dividend per share of 29.3 cents – this would translate into a grossed-up dividend yield of 6.5%.

Foolish takeaway

I think the ASX 200 stock is on track to grow its earnings in the coming years, which I think is promising for the Bapcor share price to rise in the future.

I'm not sure how the business will perform in the distant future when there are a substantial amount of electric vehicles on the road but in the next few years, it could still do well.

The post Why is nobody talking about this gem of an ASX 200 stock? appeared first on The Motley Fool Australia.

It's fair to say 2022 was a challenging year for ASX 200 retail shares. Rising inflation and interest rates meant shoppers began to tighten their belts.

In such an environment, consumer discretionary shares are often the first to take a hit. Being 'discretionary' in nature, these businesses don't sell essential goods.

So, when households and young hip singles, who are critical to the consumer discretionary market, are forced to slim down their spending, they typically start with discretionary items first.

So it's even more impressive that the top-performing ASX 200 retail share of 2022 is a jewellery retailer.

Lovisa Holdings Limited (ASX: LOV)

The fashion jewellery and accessories retailer recorded an astonishing 15% share price gain in 2022.

To put that into perspective, this was a far superior performance to its ASX 200 retail share peers.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) dived about 23% over the 12-month period. The S&P/ASX 200 Index (ASX: XJO) slipped 5.5% as well.

So, Lovisa shares really shimmered and shone by comparison. And here's a clue why.

As my Fool colleague Cathryn reports, Lovisa does things differently to other ASX 200 retail shares.

As part of its vertically-integrated business model, Lovisa designs and manufactures all of its products in-house. Other retailers sell a mix of own-brand and third-party products.

This boosts Lovisa's gross margins, which came in at a whopping 79% in FY22. As Cathryn puts it, "for every pair of $10 earrings flying off the shelves, it paid suppliers on average just $2.10".

Lovisa also has smaller stores, which means lower rents. This contributed to an FY22 EBITDA margin of 31%.

The Lovisa share price is having a great day today, currently $26.30, up 3.3%.

As my Fool colleague James reports, today's bump is likely a response to a broker note out of Canaccord Genuity. According to the note, its analysts have lifted their price target on Lovisa shares by 22% to $27.75.

Bapcor Limited (ASX: BAP)

The second 'best-performing' ASX 200 retail share in 2022 was car parts and accessories retailer Bapcor — but its share price actually lost value. Yep, that's how bad the year 2022 was for retailers.

The Bapcor share price shed 7.85% in value over the 12 months. That's a lot better than the index, but it's doubtful shareholders were comforted by that.

But there's some good news looking ahead.

Broker Citi reckons automotive shares are worth buying despite the obvious economic headwinds in 2023.

Bapcor is Citi's "top pick" among small-cap car shares. This broker likes its "relatively less-discretionary product offering" and potentially "conservative fiscal 2025 consensus earnings".

The Bapcor share price is trading at $6.66 on Friday afternoon, down 1.26%.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price lost 13.2% in value in 2022. But this follows a 99% spike from the stock's trough price during the COVID-19 crash in early 2020 through to the end of 2021.

JB Hi Fi's net profit skyrocketed by 80% between FY20 and FY22 as people sought more home entertainment options during lockdowns, along with technology upgrades to help them work from home.

So, in this context, a 13.2% correction for this ASX 200 retail share appears not to be a big deal.

As Motley Fool Australia's chief investment officer, Scott Phillips points out, the price decline has actually made JB Hi-Fi shares an appealing value buy.

JB Hi-Fi shares are still trading on a very low price-to-earnings (P/E) ratio of 9.67, according to the ASX.

The JB Hi-Fi share price is trading at $45.74 on Friday afternoon, up 0.46%.

The data above is from S&P Global Market Intelligence canvassing ASX 200 retail share price gains from the close on 31 December 2021 to the close on 31 December 2022.

The post Still shopping, share price not dropping: Lovisa shines among 3 best ASX 200 retail shares of 2022 appeared first on The Motley Fool Australia.

Three ASX automotive shares could be buys in 2023 according to Citi analysts.

The three shares are Bapcor Ltd (ASX: BAP), ARB Corporation Limited (ASX: ARB) and GUD Holdings Limited (ASX: GUD).

Let's take a look at the outlook for ASX 200 automotive shares in more detail.

What's the outlook?

Citi recommends multiple ASX 200 automotive shares amid a rise in new car sales.

Data from the Federal Chamber of Automotive Industries (FCAI) showed a 31.9% lift in SUV vehicle sales in November. New vehicle sales lifted 17.9% compared to November 2021. Passenger vehicles fell 0.8%. Toyota was the market leader during the month, with Mazda and Ford following next.

Citi analyst Sam Teeger, quoted in The Australian, said "consumer demand for new cars appears to be holding up" but remains cautious amid higher interest rates and cost of living pressures.

Bapcor is Citi's "top pick" in small-cap auto. This is due to its "relatively less-discretionary product offering" and potentially "conservative fiscal 2025 consensus earnings".

The analyst also rates ARB Corporation as a buy given its strong balance sheet, while GUD also gained a mention. In a note to clients cited by the publication, Teeger added:

While both ARB and GUD should benefit as (car manufacturer) supply recovers, we see ARB relatively better positioned due to its export growth potential and a stronger balance sheet.

Given ARB's long-term growth prospects appear unchanged, we see the current
weakness as temporary and as an opportunity to get set in a quality long-term
growth story

ARB Corporation designs, manufactures and distributes four-wheel-drive and light commercial vehicle accessories. The company reported $52.7 million of net cash holdings in its FY22 results. Bapcor specialises in automotive aftermarket spare parts and accessories in Australia, New Zealand and Asia. GUD also manufactures, imports and distributes automotive products.

New December stats from the FCAI released yesterday show a 12.1% lift in new vehicle sales compared to December 2021. Passenger vehicles lifted by 3.1%, with Toyota again the market leader.

Share price snapshot

The Bapcor share price has slid 5% in the last year.

The ARB Corporation share price has slid 48% in the past 52 weeks.

The GUD Holdings share price has fallen 32% in the last year.

The post 3 ASX 200 automotive shares worth buying despite headwinds: Citi appeared first on The Motley Fool Australia.

The ASX share market includes businesses from a wide array of different sectors, which have differing levels of exposure to weakness in the economy.

The rapid increase of interest rates and the high rate of inflation has led to increasing uncertainty, and a higher risk to the economy.

While a downturn wouldn't be the end of the world, it could cause profit pain to some businesses.

It's impossible to know which ASX shares would suffer the most, but some ASX shares may be able to provide stability if there is a recession.

Woolworths Group Ltd (ASX: WOW)

We all need to eat food, so a supermarket business could be an effective investment to protect against the risk of a downturn.

The ASX share has also just announced it's buying the majority of the parent business of PETstock, which could provide defensive earnings as well – pets are usually an important part of the family that need food and other items. Management believes this business can deliver attractive growth in the coming years.

Woolworths is slowly adding to its network of stores in Australia, increasing its ability to generate earnings and achieve organic growth.

The Woolworths share price has dropped 13% since mid-August, so it looks better value.

Bapcor Ltd (ASX: BAP)

Bapcor is one of the leading auto part businesses in the Asia Pacific region. It owns a number of brands including Burson, Autobarn, Autopro, Midas, ABS and a number of speciality wholesalers focused on different parts of the market including large trucks, small trucks, electrical parts and so on.

In a recession, I think it's logical to expect that new car sales would reduce. Instead, I think that people would try to make their current car last longer – if a car part breaks, it would make financial sense just to replace the part. A recession could lead to more demand for some areas of Bapcor's business.

I think the Asian expansion of the business is promising. It is slowly building a Burson network in Thailand, which has a large population for Bapcor to tap into.

It wasn't long ago that Bapcor acquired 25% of Tye Soon, an Asian-listed auto parts business that has a presence in a number of south-east Asian businesses. This provides extra Asian diversification for the ASX share.

As a bonus, Bapcor has grown its dividend every year since it first started paying one several years ago.

Centuria Industrial REIT (ASX: CIP)

Higher interest rates have had an impact on some asset prices, but demand for quality industrial buildings remains strong. Once the rental contract is signed, the tenant has to keep paying, even if there is a downturn.

This real estate investment trust (REIT) is the largest ASX-listed, Australian-based pure play on industrial property. It recently announced that the rental growth is substantially offsetting the impact of higher interest rates.

It also announced the sale of stakes in some of its properties, which is being used to reduce its level of gearing (debt). As a bonus, the ASX share is expecting to pay a distribution of 16 cents per unit in FY23, which translates into a forward distribution yield of around 5%.

The post 3 ASX shares to buy for a possible recession next year appeared first on The Motley Fool Australia.

That may seem an obvious statement.

But with 2022 having seen inflation rocketing to 30-year highs with the prospect of a recession ahead, the ASX 200 shares that outperformed during the COVID recovery years may not deliver that same strong performance in the year ahead.

So which blue-chip companies look best set to weather the inflation storm?

For some expert insight into that, we defer to the analysts over at Perpetual Asset Management Australia.

Three ASX 200 shares to weather the inflation storm

When looking for ASX 200 shares likely to outperform in a time of high inflation and rising interest rates, the analysts focused on companies with pricing powers that are able to better control their own destinies than their competitors.

The first ASX 200 share to make their list is automotive spare parts and accessories giant Bapcor Ltd (ASX: BAP).

"Australia's new and used car market has experienced unprecedented demand over 2022, and we expect this growth to continue in the medium term," Perpetual said. "The attraction of the business centres on the strength of their competitive position within the automotive aftermarket industry, the nature of that industry, as well as Bapcor's proven strategy."

Perpetual notes that the number of cars in Australia continues to grow consistently even as they get more technologically complex, requiring higher-end repair and maintenance parts.

According to Perpetual:

Their customers are essentially the mechanics, and the mechanics are much more focused on getting the right part quickly, than on price. Ultimately, that means Bapcor has a high degree of pricing power, an attribute that is increasingly important in the current inflationary environment.

Which brings us to the second inflationary resilient ASX 200 share.

The world's largest pallet pooling operator

Brambles Ltd (ASX: BXB) has operations in 60 nations. Its pallets and containers are used to transport goods across the world.

Explaining why Perpetual likes this ASX 200 share in today's inflationary environment, the analysts note: "The transport and logistics company has been able to use its considerable pricing power and clout in the market as insulation from inflationary costs, while also being disciplined in recovering costs."

According to Perpetual:

Brambles has kept revenues strong over 2022 through its ability to pass on in full the rising costs of timber, fuel, labour and transport to customers using its pool of 360 million pallets, crates and containers…

We expect Brambles to win new customers in the US, management to extract better operating performance from the existing network and to continue to push prices to reflect the higher inflation in the business.

They noted this ASX 200 share achieved a 14% year-on-year profit growth in 2021-22 "despite having to absorb US$470 million in timber price inflation".

The third inflation-resistant ASX 200 share

Rounding off the list of ASX 200 shares likely to outperform in a time of rising interest rates and high inflation is telecommunications and information service provider Telstra Group Ltd (ASX: TLS).

Perpetual said it's bullish on Telstra, with its analysts "attracted to Telstra's market-leading mobile position".

On the inflation front, Perpetual notes that Telstra "offers an infrastructure-like exposure through the Infraco assets, in particular inflation-linked receipts from the National Broadband Network for use of Telstra's network assets".

The analysts said there is some risk that rising interest rates could see some valuation pressure on this ASX 200 share. However, they added that "the quality, scale and defensive revenue attributes of Telstra's network assets make them an appealing proposition".

The post 3 ASX 200 shares to weather the inflation storm: fundie appeared first on The Motley Fool Australia.

Inflation and higher interest rates are hurting the valuations of many businesses at the moment. It's also important to note here that a business isn't guaranteed to increase its dividend every single year. Indeed, it may not even pay one.

But I think even in the current environment, the two ASX 200 dividend shares in this article are capable of continuing to deliver solid dividends, representing a good dividend yield at current valuations.

Charter Hall Long WALE REIT (ASX: CLW)

This business is a real estate investment trust (REIT) that owns a diversified portfolio of properties across a variety of sectors. The factor that links them is that they have long-term rental agreements, which is shown in the weighted average lease expiry (WALE) figure.

The WALE was 12 years at the last disclosure which, as the business said, provides portfolio income security. I think this is attractive in uncertain economic times.

Its properties are spread across the following sectors: long WALE retail, industrial and logistics, office, social infrastructure, and agri-logistics.

Charter Hall Long WALE says that 99% of its tenants are blue chip, being either government, ASX-listed, multinational, or national companies. Some of its main tenants include Australian government entities, Telstra Corporation Ltd (ASX: TLS), BP, and Endeavour Group Ltd (ASX: EDV).

The ASX 200 dividend share recently bought a 25% share of the Geoscience Australia property in Canberra on a 7.4% initial dividend yield with 3% fixed annual rent increases.

Charter Hall Long WALE is also expecting to generate 28 cents of operating earnings per security (EPS) and a distribution per security of 28 cents. This translates into a forward distribution yield of 6.3%.

I think the 18% fall in the share price since the end of April is enough to reflect the higher interest rate environment. Don't forget, the rental income continues to rise as well. Certainly, the rental income linked to CPI inflation is getting a large boost.

Bapcor Ltd (ASX: BAP)

This is a business focused on auto parts. Its key Burson business sells parts to mechanics while Autobarn and Autopro are two large retail chains providing auto parts to the public.

The company has a number of wholesale businesses relating to heavy truck parts, light truck parts, electrical parts, and so on.

The ASX 200 dividend share also has service businesses like Midas and ABS.

During tougher economic times, it's understandable there will be fewer new car purchases. People are logically more likely to buy a second-hand car or try to make their current car last longer. I think this means that demand for car parts could increase during a recession. Certainly, if a part on my car were to break, I'd rather replace it than buy another car.

Time will tell whether Bapcor can keep growing its profit over the next couple of financial years, but I think there's a good chance the dividend growth streak can continue. Indeed, it has grown every year since 2015.

I'm also positive about the company's plans to expand into Asia, where it has a small but growing Burson network.

According to Commsec, it could pay an annual dividend per share of 22.6 cents per share in FY23, which translates into a grossed-up dividend yield of 4.7%.

The post These 2 ASX 200 shares could be a lifeline in a recession appeared first on The Motley Fool Australia.

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

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating on this auto part company's shares with an improved price target of $7.96. This follows the release of an update at Bapcor's investor day event. Citi notes that the earnings upside from the Better than Before strategy is expected to >$100 million in FY 2025. This was better than it was expecting. Outside this, the broker continues to expect Bapcor to outperform in an increasingly challenging macro environment. The Bapcor share price is trading at $6.69 today.

Nanosonics Ltd (ASX: NAN)

A note out of Morgans reveals that its analysts have upgraded this infection prevention company's shares to an add rating with a $4.91 price target. Morgans notes that Nanosonics has provided a four-month trading update which showed that revenue was up 42% over the prior corresponding period. The broker notes that this means Nanosonics is tracking ahead of guidance and consensus estimates. In light of this and share price weakness in 2022, the broker sees a lot of value in its shares. The Nanosonics share price is fetching $4.16 on Wednesday.

Temple & Webster Group Ltd (ASX: TPW)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this online furniture retailer's shares to $7.60. According to the note, the broker likes Temple & Webster due to its nascent structural growth opportunity that it feels is underappreciated by the market. The broker believes investors should focus on the long term instead of near term revenue headwinds and uncertainty around the housing market. The Temple & Webster share price is trading at $5.05 this afternoon.

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

The soccer World Cup is under way, with 32 national teams now camped in the Middle East to compete for glory.

While the choice of host, Qatar, has been controversial due to the country's human rights record, billions of soccer fans will still tune in to barrack for their flag. The sport is a matter of life and death in many parts of the world.

As Australia prepares for its first game kicking off early Wednesday morning, Abrdn investment manager and soccer enthusiast Shawn Lee couldn't help himself.

He has picked his own team of 11 ASX shares that would lead his portfolio to a World Cup win:

Goalkeeper

The safe pair of defensive hands at the back for Lee is Auckland International Airport Limited (ASX: AIA).

"We need a good communicator with quick reflexes guarding our goal," Lee said on the Abrdn blog.

"Auckland Airport's prompt response to the COVID crisis was impressive. It moved swiftly to rein in its cost base, pausing large capital projects and preemptively raising emergency capital."

With the world now well into the post-pandemic era, he feels like Auckland Airport can "fend off the ups and down of economic cycles" and offers its investors a monopoly asset.

Left and right backs

According to Lee, left back Bapcor Ltd (ASX: BAP) is "one of the most compelling defensive players".

"Even though Bapcor has had a recent change of coach, new chief executive Noel Meehan has progressively won over the dressing room to restore our team's stability," he said.

"Although many things may not be 'better than before', we think Bapcor has a long playing career ahead and, allied to reasonable valuation, demands a place in our starting line-up."

The right back position will be taken by real estate fund Centuria Capital Group (ASX: CNI).

"We wanted a versatile full-back that's quick on its feet, with good anticipation and composure," said Lee.

"Centuria fits the bill nicely, with its nimbleness evident as it pivots its core unlisted funds business."

He admitted office assets were under a cloud in the post-COVID era, but the company has other fires burning.

"Centuria continues to seek out growth by pivoting its product towards other property sub-sectors more in vogue – including healthcare, industrial property and agriculture investments."

Centre backs

Lee's middle defenders are Infratil Ltd (ASX: IFT) and Ridley Corporation Ltd (ASX: RIC).

"We want our centre backs to provide as much pitch coverage as possible, and Infratil's portfolio of other core investments span a range of sectors such as data centres, telecommunications, retirement living and electricity generation," he said. 

"We think Infratil is staying one step ahead of a fast-evolving game – evident through its investment in solar/wind farm developer and operator Long Road Energy."

Animal feed producer Ridley is on the radar of many experts at the moment.

"Ridley's defensive psyche is finely tuned, with the majority of customer contracts allowing it to pass through inflationary costs, while its mix of divisional exposures should also provide some protection against adverse weather," said Lee.

"After shedding excess, some might say Ridley has a small frame. But this player still packs a punch."

Midfielders

Left, centre and right midfielders are IPH Ltd (ASX: IPH), AUB Group Ltd (ASX: AUB) and Monadelphous Group Limited (ASX: MND), respectively.

"Like any good midfielder, IPH is in excellent condition and is no stranger to playing the endurance game, especially given that the patent lifecycle and corresponding workflow can span 20 years or more," said Lee.

"We drafted AUB in to play a crucial role in our team as we believe its traditional defensive strengths are being nicely complemented by an improving offensive game."

Monadelphous sounds like a biotech, but it's actually a Perth-based mining services provider.

"It has an exemplary operating track record, differentiating it from what is otherwise a peer group of service providers that typically experience booms and busts," Lee said.

"Midfield is often referred to as the engine room of the team, and the WA resources engine is most definitely humming!"

Forwards

The wingers for Lee would be IDP Education Ltd (ASX: IEL) and Hub24 Ltd (ASX: HUB).

"Wingers need good ball control to get in behind opposition defences and set up attempts on goal. We believe IDP has excellent skills and a few tricks in its locker," he said.

"In between digitising the business through computer-based IELTS testing, the acquisition of online course database provider Hotcourses, the launch of marketplace platforms such as IDP live, the shrewd purchase of IELTS India and thriving amid the COVID crisis that otherwise devastated the international student industry, we think the business has executed almost flawlessly and consistently made fools of opposing defences."

Hub24 has "had more shots at goal than many of its peers".

"Speed is a key attribute of good wingers, and this is where Hub24 does not disappoint," said Lee. 

"Platform funds under administration have grown at breakneck speed since the business was established in 2007, in part due to tailwinds from the move towards independent financial advice, but also as a result of innovative platform technology and a superior customer experience."

Finally, the big goal scorer in the centre forward position is Pro Medicus Limited (ASX: PME).

"We can't fault Pro Medicus's hot scoring streak, announcing multiple record-sized cloud-based contract wins, together with strong renewal momentum on improved pricing and contractual terms," said Lee.

"Not only do we anticipate conversion of the contract pipeline, we think the business has enhanced its scalability through cloud-based deployment, which will grow its addressable market meaningfully and allow it to penetrate a smaller customer base previously deemed to be less economic."

The post 11 ASX shares that make Abrdn's World Cup team appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 3.5% to $6.12. This morning analysts at Credit Suisse downgraded the auto parts retailer's shares to a neutral rating and cut the price target on them by 90 cents to $6.60. This followed the release of a trading update at Bapcor's annual general meeting on Wednesday which revealed higher than expected costs.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 6% to 88.5 cents. This is despite there being no news out of the heavily shorted semiconductor company. Though, it is worth noting that the tech sector is a sea of red today, with the S&P/ASX All Technology Index currently down 3.9%.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 7% to $1.87. Investors have been selling this gold miner's shares following a drop in the gold price and the release of its quarterly update. The former has seen a number of gold shares tumble today. This has led to the S&P/ASX All Ordinaries Gold index falling 2.7%.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has crashed 26% to 53.5 cents. This follows the release of another poor update from this ecommerce company. To the disbelief of many, the loss-making Redbubble is increasing its costs materially in FY 2023. This includes increasing its salaries and wages by $4.7 million during the first quarter, which took them to $19.3 million and annualises at a massive $77.2 million. That's more than half its market capitalisation. Incredibly, further increases to its wages of at least $9.3 million are expected over the remainder of FY 2023!

The post Why Bapcor, BrainChip, Evolution Mining, and Redbubble shares are sinking appeared first on The Motley Fool Australia.

Here's why they have been tipped to as buys by experts:

Bapcor Ltd (ASX: BAP)

The first ASX 200 dividend share for income investors to look at is Bapcor.

Through brands such as Autobarn, Burson Auto Parts and Midas, it is the Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions.

The team at Citi is positive on Bapcor and has a buy rating and $7.82 price target on the company's shares. It believes that the company's guidance for FY 2023 is conservative.

As for dividends, its analysts are forecasting fully franked dividends of 21 cents per share in FY 2023 and then 24 cents per share in FY 2024. Based on the current Bapcor share price of $6.35, this will mean yields of 3.3% and 3.7%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend share for income investors to consider is this supermarket giant.

Thanks to its defensive qualities and strong market position, which includes 800+ supermarkets and 900+ liquor retail stores, it has been tipped to continue growing its sales, profits, and dividends in the coming years whatever the economy throws at it.

This will be supported by the construction of its smart distribution centres, which are aiming to make its operations more efficient and cut costs.

Morgans is bullish on Coles and has an add rating and $20.00 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of 65 cents in FY 2022 and 66 cents in FY 2023. Based on the current Coles share price of $16.57, this will mean yields of 3.9% and 4%, respectively.

The post Experts say income investors should buy these ASX dividend shares appeared first on The Motley Fool Australia.

Perhaps it was inevitable that some retailers weren't going to keep posting record profits. And maybe demand for buying cars will reduce.

But, while share prices are hard to predict, is it possible to find businesses that could see their profits barely affected by a recession – perhaps even grow?

I think there are a few places we can look to.

Food

We all need to eat. I believe that businesses that sell food to consumers could continue to see decent results. Certainly, I think the demand will still be there.

In my opinion, food is one of those areas where people will keep spending, even if they have to change to cheaper alternatives. Supermarkets are an obvious suggestion here, such as Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

But, I also think that KFC and Taco Bell operator Collins Foods Ltd (ASX: CKF) could be another defensive idea.

Farmland real estate investment trust (REIT) Rural Funds Group (ASX: RFF) could be another defensive All Ords ASX share idea, thanks to its long-term rental contracts and the ongoing tenancy by leading farming businesses.

Energy

There doesn't seem to be an end in sight to the Ukraine conflict and energy prices remain high. The world needs energy, even if demand were to drop a little. I think that Woodside Energy Group Ltd (ASX: WDS) could keep generating good earnings, particularly with the All Ord ASX share's LNG division as Europe looks for alternative sources of energy away from Russia.

APA Group (ASX: APA), the owner of various energy assets including a large gas pipeline network, could also keep generating good cash flow as it transports half of Australia's natural gas.

Telecommunications

People's phones and home internet are very important bills to pay. Indeed, my work depends on it. Communication is vitally important. And so on. Nearly every business needs the internet for some reason.

I think Telstra Corporation Ltd (ASX: TLS), TPG Telecom Ltd (ASX: TPG), and Aussie Broadband Ltd (ASX: ABB) all could offer defensive earnings, particularly with the NBN transition now over.

Telstra is expecting to grow its earnings per share (EPS) over the next few years.

Healthcare

People don't choose when to get sick, but I do think people (and the government) would keep paying to access healthcare services. All Ords ASX share names like CSL Limited (ASX: CSL) and Sonic Healthcare Ltd (ASX: SHL) (excluding COVID-19 testing) are two names that I think won't see much change in demand.

Gambling

There is research that shows that "when people are experiencing financial difficulties during economic recessions, the possibility to improve their financial situation by winning large jackpots with low initial stakes becomes more enticing".

The Lottery Corporation Ltd (ASX: TLC) is the business that operates Australia's lotteries through The Lott.

Funerals

There are only two things certain in life – death and taxes, as the saying goes.

While it's a bit morbid to think about owning All Ords ASX shares that are funeral operators, they could provide defensive earnings. Demand is based on deaths rather than economic factors.

Within this sector are names like InvoCare Limited (ASX: IVC) and Propel Funeral Partners Ltd (ASX: PFP).

Auto parts

Finally, Bapcor Ltd (ASX: BAP) is an interesting one in my opinion. It's the biggest auto parts business in Australia and New Zealand with a number of brands like Burson and Autobarn.

I think that people are more likely to delay a new car purchase in leaner times. This means trying to make their current car last longer, which could mean buying replacement parts when needed. This, in turn, could be good for Bapcor's earnings.

The post Which ASX All Ords shares could perform well in a recession? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) slumped lower on Friday, marking the end to what was likely a disappointing week for Australian investors. The index closed 1.4% lower at 6,747 points today.

That leaves the ASX 200 2.14% lower than it was at the end of last week, mostly due to Wednesday's disastrous session.

The S&P/ASX 200 Energy Index (ASX: XEJ) weighed heaviest today, falling 3%. The sector's suffering likely came on the back of falling oil prices.

The Brent crude oil price fell 3.5% to US$90.84 a barrel overnight while the US Nymex crude oil price dropped 3.8% to US$85.10 a barrel.

Mining giants also dragged on the market, with the S&P/ASX 200 Materials Index (ASX: XMJ) dumping 2.3%.

Gold futures slumped 1.9% to US$1,677.30 an ounce overnight while iron ore futures lifted 0.1% to US$100.58 a tonne. Meanwhile, the price of nickel fell 4.5% and that of copper slipped 0.6%.

Today's top performing sectors were the S&P/ASX 200 Utilities Index (ASX: XUJ) and the S&P/ASX 200 Information Technology Index (ASX: XIJ). They fell 0.4% and 0.6% respectively.

But which ASX 200 share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top performing ASX 200 share was Star Entertainment Group Ltd (ASX: SGR).

The company's interim chair Ben Heap responded to the findings of a review into its suitability to operate its Sydney casino, released earlier this week, yesterday afternoon.

Today's biggest gains were made by these shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

The S&P/ASX 200 Index (ASX: XJO) is a hunting ground for dividend investors right now as companies release results and hand back some of their profits to shareholders.

When a company declares a dividend, it must set a cut-off date to determine which shareholders are entitled to the payment.

This is also known as the ex-dividend date. Any shares you buy on or after this date won't come with the latest dividend payment.

A company's shares typically fall on the day they turn ex-dividend. This is because money is flowing out of the company to line the pockets of shareholders. As a result, it has less cash on its books, so theoretically it's worth less.

What's more, some investors will look to sell their shares once they've locked in the dividend payment.

With this in mind, there'll be downwards pressure on these three ASX 200 shares tomorrow as they turn ex-dividend.

Evolution Mining Ltd (ASX: EVN)

Today is the last day Evolution Mining shares will be trading with a fully franked final dividend of 3 cents.

The ASX 200 gold miner recently unveiled its FY22 results, declaring its 19th consecutive dividend for shareholders since 2013.

The payment date for this final dividend has been locked in for 30 September.

Across the financial year, the company halved its total dividend payments to 6 cents per share.

At current levels, Evolution Mining shares come with a trailing dividend yield of 2.4%. Including franking credits, this yield dials up to 3.4%.

Beach Energy Ltd (ASX: BPT)

Beach Energy is another ASX 200 share turning ex-dividend tomorrow. 

The oil and gas company recently declared a fully franked final dividend of 1 cent. Beach has held its interim and final dividends steady at 1 cent since 2017.

Investors who own Beach shares by the time the market closes today should pencil in a payment date of 30 September.

Investors also have the option of participating in a dividend reinvestment plan (DRP) instead.

Beach's total dividends for FY22 come to 2 cents, putting shares on a trailing dividend yield of 1.1%. This grosses up to 1.6% including franking credits.

Bapcor Ltd (ASX: BAP)

Rounding out this trio of ASX 200 dividend shares going ex-dividend on Tuesday is automotive aftermarket specialist Bapcor. 

The company recently announced a fully franked final dividend of 11.5 cents, which will be paid on 16 September.

Adding in the company's 10-cent interim dividend declared earlier in the year brings total FY22 dividends to 21.5 cents.

This means Bapcor shares are currently flashing a trailing dividend yield of 3.1%, which grosses up to 4.5%.

The post 3 ASX 200 shares trading ex-dividend on Tuesday appeared first on The Motley Fool Australia.

However, I believe that the companies I'm going to reveal should be counted as dividend beasts. Each of the names below have grown their dividends since 2015.

A growing dividend isn't the only factor that is important when investing in businesses. I also like to see that the company has a good chance of growing earnings into the future, as rising profit can have a positive influence on share prices.

I like owning ASX dividend shares because of how they reward shareholders with a regular payout.

Let's look at three ASX 200 dividend shares with pleasing records.

Brickworks Limited (ASX: BKW)

Brickworks has grown its dividend each year since 2014. It's quite diversified thanks to its underlying segments.

It is a major shareholder of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), an investment house spread across a number of sectors including telecommunications, property, financial services, resources, agriculture, and swimming schools. Soul Pattinson itself has paid a steady stream of growing dividends to shareholders.

Brickworks also owns half of a quality industrial property trust which is constructing buildings such as huge warehouses for names like Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL). The growing net rental profit from Brickworks' property investments can help fund bigger dividends.

It's worth mentioning too that the ASX 200 dividend share hasn't cut its dividend for over four decades.

As the name implies, Brickworks also has brickmaking operations in Australia and the US. It also makes many other building products in Australia such as roofing and masonry.

It has a trailing grossed-up dividend yield of 4.3%.

Bapcor Ltd (ASX: BAP)

Bapcor is a leading auto parts company in the Asia Pacific region, owning numerous businesses like Burson, Autobarn, Autopro, Truckline, Midas, and Battery Town. It also owns a quarter of Tye Soon, an Asian auto parts business.

The ASX 200 dividend share has grown its dividend for shareholders every year since 2015. It is currently benefiting from the strong market conditions for automobiles. More people are using their private vehicles and the strong second-hand market means there is plenty of demand to keep older cars running.

It has plans to grow its store network, improve its efficiencies, grow in Asia, and increase the amount of private brand products it sells. In the recent FY22 result, Bapcor grew its annual dividend by 7.5% to 21.5 cents per share.

The ASX dividend share offers a trailing grossed-up dividend yield of 4.75%.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large franchisee of KFCs in Australia and Europe. It also has a small, but growing, network of Taco Bells in Australia.

The ASX 200 dividend share has grown its dividend every year since 2014.

It has been benefiting from the long-term trend of its same store sales (SSS) growth as well as an expanding network of KFC outlets. Taco Bell is a very useful growth avenue for the company.

In a recent presentation, the ASX 300 share noted that its operating cash flow is helping capital investment to grow its restaurant chain. Over the past five years, its operating cash flow has gone up 60% and the dividend has gone up 59%.

The company points to "significant expansion opportunities" in Europe. In the Netherlands alone, it's targeting up to 130 net new restaurants over the next decade.

Using the trailing dividends, Collins Foods has a grossed-up dividend yield of 4%.

The post Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years appeared first on The Motley Fool Australia.