The S&P/ASX 200 Index (ASX: XJO) broke a three-session-long losing streak on Tuesday, gaining 0.18% to close at 7,430.9 points.

It came on the back of a strong session on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) and the S&P 500 Index (SP: .INX) both rose 1.1% overnight while the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.5%.

It makes sense then that the S&P/ASX 200 Information Technology Index (ASX: XIJ) posted the biggest gain on the Aussie index, rising 1.3%.

The S&P/ASX 200 Communications Index (ASX: XTJ) also outperformed, gaining 1.1% with the Domain Holdings Australia Ltd (ASX: DHG) share price leading the way, lifting 5.5%.

Meanwhile, market giant CSL Limited (ASX: CSL) saw its share price rise 0.9% on the back of the company's half-year earnings.

On the other end of the market, the S&P/ASX 200 Energy Index (ASX: XMJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) fell 0.4% and 0.2% respectively.

But which ASX 200 share outperformed all others on Tuesday? Let's take a look.

Top 10 ASX 200 shares countdown

The index's best performer today was metal recycler Sims Ltd (ASX: SGM). Its stock soared 7.1% to close at $15.72 on Tuesday.

That was despite the company posting an 80% fall in statutory profit for the first half, leading it to slash its interim dividend by 66% to 14 cents per share.

These shares made today's biggest gains:

Our top 10 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) posted its first gain of the week on Wednesday, lifting 0.35% to close at 7,530.1 points.

It followed a strong session over on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) rose 0.8% overnight while the S&P 500 Index (SP: .INX) gained 1.3% and the Nasdaq Composite Index (NASDAQ: .IXIC) lifted 1.9%.

Back home, the S&P/ASX 200 Financials Index (ASX: XFJ) was out in front, gaining 0.9% today. The Suncorp Group Ltd (ASX: SUN) share price helped drive the sector higher, rising 4.6% on the company's half-year earnings.

On the other end of the market, the S&P/ASX 200 Health Care Index (ASX: XHJ) dropped 0.6%. It was dragged lower by shares in Healius Ltd (ASX: HLS). The stock plummeted 5.4% amid a broker downgrade.

But which ASX 200 shares managed to post today's biggest gains? Let's take a look.

Top 10 ASX 200 shares countdown

The top performing ASX 200 share today was building and construction materials company Boral Limited (ASX: BLD).

It lifted 12.8% to close at $3.97 on the back of a $56.8 million first-half profit – a 53% year-on-year improvement.

These shares made today's biggest gains:

Our top 10 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.

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

Boral Limited (ASX: BLD)

The Boral share price is up 12% to $3.94. This follows the release of the building materials company's half year results. Boral reported a 12% increase in revenue to $1,681.1 million and a 53% jump in net profit after tax to $56.8 million. Looking ahead, management expects its second half earnings before interest and tax (EBIT) to be broadly in line with its first half numbers.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is up 10% to $1.23. This morning, the lithium developer revealed that it now has 100% ownership of the Candelas Project in Argentina. This project is close to its flagship Hombre Muerto West project. Management estimates that Candelas has an indicated mineral resource of 685kt lithium carbonate (LCE) and can generate 14ktpa of battery grade LCE over 25 years of operations.

Nuix Ltd (ASX: NXL)

The Nuix share price is up a further 4.5% to $1.36. This investigative analytics and intelligence software provider's shares have been on fire this week after the company won a major court battle. Nuix's former CEO took Nuix to court seeking damages of $187 million plus interest.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is up almost 4% to $12.94. Investors have been buying this banking and insurance giant's shares following the release of its half year results. Although the company's headline result fell short of expectations, its underlying performance was better than the market was expecting.

The post Why Boral, Galan Lithium, Nuix, and Suncorp shares are racing higher appeared first on The Motley Fool Australia.

The Boral Limited (ASX: BLD) share price is skybound on news of strong earnings and profit growth during the first half of FY23.

The ASX building and construction materials company released its FY23 first-half earnings this morning.

Boral shares opened at $3.75, up 6.5%, before rising to a high of $3.95 — a 12.2% bump on yesterday's close.

The Boral share price is currently up 8.4% at $3.815.

Boral share price jumps on 50% profit lift

In its ASX statement, the company said it had achieved "strong underlying revenue, earnings, and profit growth".

The highlights for the six months to 31 December 2022 are as follows:

• Revenue $1,681.1 million, up 12% on the previous corresponding period (pcp) of 1H FY23
• Earnings before interest and taxes (EBIT) $95.3 million, up 15%
• EBIT margin 5.7%, up 20 basis points
• Return on funds employed (ROFE) 8.5%, improved by 80 basis points
• Net profit after tax (NPAT) $56.8 million, up 53%
• Adjusted earnings per share (EPS) 5.1 cents, up 50%.

Despite the impressive numbers, Boral shareholders will not receive an interim dividend.

The company said this was due to "limited availability of franking credits and free cash flow performance for the half".

The last time Boral paid a dividend was this time last year, along with a capital return.

What else happened in 1H FY23?

While Boral reported a significant boost to its underlying NPAT, its statutory NPAT was actually down 91% at $89.5 million pcp.

That's because 1H FY22 included $1,002.4 million of income from discontinued operations in the United States, and the profit on the sale of its US building products business.

Boral said its 1H FY23 revenue bump of 12% related to volume and price.

The company said it had offset "a sharp increase in costs felt across the business" due to inflation through "price and cost discipline".

Boral said its operating cash flow is up 37% to $117.4 million.

What did management say?

Boral CEO Vik Bansal, said:

While our financial results are pleasing considering a difficult inflationary environment, I know Boral is capable of much more.

It is promising to see our pricing actions gain traction, which along with volume growth and cost discipline drove EBIT, excluding Property, 23% higher to $95.4 million…

We will need to remain highly disciplined and focussed in getting price realisation from the market across the country while maintaining a disciplined approach to cost management. Price erosion is not an option for Boral.

What's next?

Boral said it expects 2H FY23 EBIT to be broadly in line with 1H FY23.

The company said the priorities for 2H FY23 include embedding the new operating model and the continued roll-out of standardisation and simplification initiatives.

This relates to Bansal's PEMAF strategy (people, environment and sustainability, markets, assets, and finance), introduced at the annual general meeting last November.

Bansal said:

During the first half of the year, we have been quick to move towards a new, decentralised but standardised operating model, aimed at better leveraging our network, extensive downstream footprint, and vertically integrated upstream infrastructure.

Other priorities include managing inflationary pressures and focusing on price and volume of sales. The company said price realisation is more important than cost recovery.

Boral share price snapshot

The Boral share price is up 28.5% over the past six months . This compares to a 7.2% bump for the S&P/ASX 200 Index (ASX: XJO).

The post Boral share price soars 12% on 'strong profit growth' appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) traded in the red for just the fourth time this year today, falling 0.3% to close at 7,468.3 points.

And no prizes to those who can guess why. Market experts were shocked by the latest Australian inflation data, released late this morning.

The Australian Bureau of Statistics (ABS) found the Consumer Price Index (CPI) rose 1.9% in the December quarter and  7.8% over the course of 2022. Those figures were notably higher than consensus forecasts of 1.6% and 7.6%, respectively.

The likelihood the Reserve Bank of Australia could begin easing rates next month likely diminished on the findings, thereby disappointing investors.

On a more positive note, the S&P/ASX 200 Financials Index (ASX: XFJ) outperformed despite the inflation read today. It gained 0.3%.

Interestingly, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) also gained, rising 0.4%, while the S&P/ASX 200 Utilities Index (ASX: XUJ) led the market, lifting 0.5%.

Meanwhile, the rates-sensitive S&P/ASX 200 Information Technology Index (ASX: XIJ) fell 1.2% and the S&P/ASX 200 Energy Index (ASX: XEJ) dropped 1.2%.

But enough of that. Let's take a look at the 10 shares that posted the ASX 200's biggest gains on Wednesday.

Top 10 ASX 200 shares countdown

Today's top performing share on the index was News Corp (ASX: NWS).

The stock jumped 6% to close at $29.93 after the company revealed it won't be merging with Fox Corporation and confirmed it's in talks to sell its Move, Inc business.

These shares made today's biggest gains:

Our top 10 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.

Investors read every day about ASX shares that have risen spectacularly… or fallen off a cliff.

But what they don't hear so much about are the stocks that have just gone nowhere. Not even for the most patient long-term investor.

It might be that the business is very cyclical. Or the stock has an image problem, where past performance or trauma has just put potential investors off buying into it.

But if circumstances for the company have changed, it could be a golden buying opportunity before the rest of the market wakes up.

Airlie Funds portfolio manager Emma Fisher reckons she's found exactly that, revealing a stock that she bought just within the past month:

Fisher has no fear about this business

Building materials maker CSR Limited (ASX: CSR) has disappointed investors in recent times, with its share price only rising 9.18% over the past five years.

The lack of capital growth, Fisher said in an Airlie video, is because investors are always nervous about the cyclical nature of its clientele — the housing market.

"You might be thinking, 'Emma, you idiot, you're buying a building products company. Haven't you seen that building activity is about to fall off a cliff?'"

But this does not worry her one bit.

This is because she and her team feel like the business is now at a point where its fortunes are less exposed to the volatility of the housing sector.

"Everyone's really worried about the cycle. No one wants to touch it," said Fisher.

"But if you work through it, it's got a lot of reasons why it's going to be quite a resilient business."

The landscape has changed for CSR

The first reason why the Airlie team thinks CSR will be less volatile is that the dynamics of the markets that it competes in have changed somewhat recently.

"Their worst business was their glass business, and they've exited that," said Fisher.

"They've had Boral Limited (ASX: BLD) exit as a competitor in two of their main businesses — plasterboard and bricks."

Not having to compete with Boral is significant relief for CSR, as the rival was famous for undercutting.

The second reason why Fisher is bullish on CSR is the significant "surplus" real estate holdings that the company possesses.

"They own a big chunk of land in western Sydney, for example, and they've had that property  independently valued at $1.5 billion. That compares to [CSR's] market cap of $2.2 billion," she said.

"You're actually not paying that much for the building products part of the business."

These assets mean that CSR's balance sheet is net cash, which Fisher favours in turbulent times.

And therein lies the opportunity. CSR's current stock price reflects the fear of volatility, but Fisher reckons that sentiment is no longer justified.

"While it's still cyclical, we think a lot of that cyclicality might be smoothed from here."

The post I just bought this ASX share that 'no one wants to touch': fundie appeared first on The Motley Fool Australia.

There was likely a spring in the step of S&P/ASX 200 Index (ASX: XJO) investors today as the market jumped higher. The index closed Thursday's session 1.18% higher at 7,280.4 points.

It followed a joyous session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI) lifted 0.8% on Wednesday while the S&P 500 Index (SP: .INX) rose 1.3% and the Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.8%.

Back home, the banks led the way, with the S&P/ASX 200 Financials Index (ASX: XFJ) flying 1.5% higher.

The S&P/ASX 200 Energy Index (ASX: XEJ) also posted a 1.2% gain after a strong night for oil prices and bullish comments from market experts.

Bringing up the ASX 200's rear on Thursday was the S&P/ASX 200 Utilities Index (ASX: XUJ). It rose just 0.2%.

So, with all that in mind, let's take a look at the shares that posted the ASX 200's biggest gains today.

Top 10 ASX 200 shares countdown

Lithium share Pilbara Minerals Ltd (ASX: PLS) took out today's top spot with a 4.5% gain, closing the session at $4.16. That leaves it a whopping 15% higher than where it started 2023.

These shares made today's biggest gains:

Our top 10 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) broke a four-session winning streak on Tuesday, falling 0.28% to close at 7,131 points.

Most of the ASX 200's 11 sectors closed lower today, with only the S&P/ASX 200 Communications Index (ASX: XTJ) and the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) posting notable gains. They each rose around 0.2%.

The latter may have been bolstered by new data from the Australian Bureau of Statistics, finding Aussie households' discretionary spending was 6.3% higher in November 2022 than in the same month of 2021.

Spending on consumer staples also lifted 17.1%, while spending on goods and services lifted 1.2% and 24% respectively.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XJO) fell 0.3% today despite oil prices rising around 1.3% overnight.

The S&P/ASX 200 Materials Index (ASX: XMJ) also fell 0.5%, weighed down by lithium and gold shares.

Still, there were plenty of gains on the ASX 200 on Tuesday. Let's look at the top 10.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was Boral Limited (ASX: BLD).

It posted a 2.6% gain despite no news having been released by the building products and construction materials provider.

These shares made today's biggest gains:

Our top 10 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.

In its recent monthly update for the listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), the fund manager said it's optimistic about the prospect of China reopening in 2023 and the portfolio is positioned to benefit from any progress on that front.

However, it's also cautious about the outlook for the share market because of the "lagged impact of significant interest rate increases, deteriorating leading economic indicators, increasing pressure on corporate earnings into 2023 and tail risk from geopolitical tensions".

With that in mind, L1 is currently maintaining a conservative portfolio. Here are three of the names that L1 likes:

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price performed strongly in November, rising by 45% thanks to the copper price going up by 11% along with expectations there is going to be a Chinese reopening.

L1 noted that China accounts for more than 50% of global copper demand, so its economic recovery is "critical to support copper prices".

The fund manager noted that Sandfire did a capital raising for $200 million to strengthen its balance sheet as it completes the capital-intensive task of developing the Motheo copper mine in Botswana. Explaining its optimistic view, the fund manager stated:

We continue to see compelling valuation upside in Sandfire with the commencement of Motheo production in FY24 set to deliver a step-change in profits and cash flow for the company.

Boral Limited (ASX: BLD)

L1 describes Boral as one of the largest building and construction materials companies in Australia.

The fund manager notes that the ASX 200 share's net profit after tax (NPAT) has been impacted by rising input costs and significant wet weather delays. However, the fund manager spies a turnaround for the company. L1 said:

Under new leadership, and in a normalised trading environment, we believe Boral has the potential to more than double earnings over the medium-term from current levels.

Qantas Airways Limited (ASX: QAN)

The Qantas share price rose by 7% in November with the airline upgrading its earnings expectations again. It increased the guidance by $150 million to a range of $1.35 billion to $1.45 billion, with a reduction of net debt by $900 million to between $2.3 billion to $2.5 billion by 31 December 2021.

The airline also noted that it is considering more shareholder returns with its low level of net debt.

L1 explained its optimistic case for the ASX 200 share:

We continue to view Qantas as having emerged from the pandemic even stronger than before, given its $1b cost-out program, improved market position and the massive pent-up demand for leisure travel, which we expect will persist despite macroeconomic headwinds. If Qantas management can achieve its FY24 targets, there is potential to deliver close to $1 of earnings per share, with Qantas currently trading on only around 6x price/earnings (P/E) ratio on that basis. We believe there is significant share price upside through earnings growth and a P/E re-rating as the company's earnings mix shifts towards more predictable domestic earnings and loyalty business.

The post 3 ASX 200 shares that have 'significant share price upside': fund manager appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) broke its winning streak in a dramatic way on Thursday. The index closed 1.84% lower at 6,857.9 points.

Its suffering came after the United States Federal Reserve upped interest rates by 0.75% to between 3.75% and 4% in an effort to tackle rampant inflation overnight. Also likely weighing on markets was chair Jerome Powell's warning that future hikes are likely.  

Wall Street plummeted on the back of the news. The Dow Jones Industrial Average Index (DJX: .DJI) fell 1.6%, the S&P 500 Index (SP: .INX) tumbled 2.5%, and the Nasdaq Composite (NASDAQ: .IXIC) plunged 3.4%.

Back home, the S&P/ASX 200 Materials Index (ASX: XMJ) put out today's worst performance, falling 3%.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) dumped 1.2% despite rising oil prices.

The Brent crude oil price lifted 1.6% to US$96.16 a barrel overnight, while the US Nymex crude oil price gained 1.8% to US$90 a barrel.

But not all was dire. The S&P/ASX 200 Communications Index (ASX: XTJ) was the only sector to close in the green, having gained 0.1%.

So, with all that in mind, which ASX 200 share took out today's top spot? Keep reading to find out.

Top 10 ASX 200 shares countdown

The biggest gain on the ASX 200 today was posted by Perpetual Limited (ASX: PPT). Its share price rocketed 7% after the company rejected a $30 per share takeover bid, saying the offer undervalued it.

Today's biggest gains were made by these shares:

Our top 10 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.

Believe it or not, tonight is federal budget night. If you're a little confused, I wouldn't blame you. Yes, we've already had a budget this year, the one delivered back in March.

But that was a different government, with a different Treasurer. Normally, the economics enthusiasts among us get one budget a year to salivate over. But due to the change of government and the new Treasurer's wishes, this year we are getting two for the price of one.

New Treasurer Jim Chalmers is now scheduled to deliver this new budget (some are calling it a mini-budget) at 7.30 pm tonight.

Now, of course, we won't know everything that's in this new budget until it gets released, as is the norm with these things. But we can speculate as to what it might mean for the economy, and of course, ASX shares.

An analysis of the upcoming budget from Bloomberg predicts the key areas to watch are infrastructure, resources, housing, childcare and telecommunications.

Which ASX 200 shares are ones to watch after the budget?

The report points out that the government could be set to pledge $96 billion for road and rail investment. No doubt this will go towards some road and rail upgrades and perhaps even new links altogether. But it also warns that some of this cash may come from scrapping other previous government promises, such as commuter car parks.

Some ASX shares to watch in this space are construction and building companies. Those include Adbri Ltd (ASX: ABC), Boral Limited (ASX: BLD), and Lendlease Group (ASX: LLC). Another one to watch might be toll road operator Transurban Group (ASX: TCL).

The report also predicts that the recent government interest in funding critical mineral supply chains will continue. This could see more grants to ASX 200 shares in the lithium, rare earths and battery metals space. So keep your eye on shares like Pilbara Minerals Ltd (ASX: PLS) and Lynas Rare Earths Ltd (ASX: LYC).

Housing, childcare and telecommunications

Housing continues to be a potent political issue as well. So Bloomberg argues that we could see some further developments addressing these issues in tonight's budget. We already know the government has a new 'first home guarantee' scheme that it took to the election.

The government has also indicated that it wants to see super funds invest in affordable housing. So it will be interesting to see how property-linked ASX 200 shares like REA Group Limited (ASX: REA) and Domain Holdings Australia Ltd (ASX: DHG) fare following this budget.

The government has also already announced an increase in paid parental leave from 18 weeks to 26 weeks from 2024. We could see more announcements in this arena tonight. So more ASX 200 shares to keep an eye on include those in childcare. Think G8 Education Ltd (ASX: GEM) and the like.

Finally, Bloomberg reports that the government is looking at investing another $2.4 billion into the national broadband network (nbn) to expand full-fibre access to another 1.5 million premises by 2025. That could have direct implications for the ASX 200's telco shares. Those include Telstra Corporation Ltd (ASX: TLS), Aussie Broadband Ltd (ASX: ABB), and TPG Telecom Ltd (ASX: TPG).

The post Which ASX 200 shares could benefit from the federal budget? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) recovered further from its September rout today. The index closed 1.74% higher at 6,815.70 points on Wednesday.

It followed a strong session on Wall Street overnight that saw the Dow Jones Industrial Average Index (DJX: .DJI) gain 2.8%. Meanwhile, the S&P 500 Index (SP: .INX) lifted 3% and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) rose 3.3%.

It likely comes as no surprise, then, that the S&P/ASX 200 Information Technology Index (ASX: XIJ) led the way today. It closed 3.8% higher.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) and the S&P/ASX 200 Consumer Staples Index (ASX: XSJ), meanwhile, traded in different directions. The former posted a 2.7% gain while the latter slumped 0.04% – making it today's worst performing sector.

Many ASX 200 miners also posted gains, driving the S&P/ASX 200 Materials Index (ASX: XMJ) to rise 1.4%.

Finally, the S&P/ASX 200 Energy Index (ASX: XEJ) lifted 1.2% following a good night for oil prices.

The Brent crude oil price lifted 3.3% to US$91.80 a barrel and the US Nymex crude oil price gained 3.5% to US$86.52 a barrel.

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

Top 10 ASX 200 shares countdown

The Telix Pharmaceuticals Ltd (ASX: TLX) share price topped the index today, gaining close to 12% despite the company's silence.

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.

At a time of rising inflation, there is one key metric that investors should research before buying a new ASX share, says Prasad Patkar, head of qualitative investments at Platypus Asset Management.

In an article published by the Australian Financial Review (AFR) today, Patkar says it's pricing power.

Patkar said:

If you are only allowed to look for one metric to assess the quality of a business, it would be sustainable pricing power. It is an attribute of particular import today when rising input costs are eroding margins for those who don't possess pricing power.

Analysts grill ASX companies on their pricing power

JP Morgan strategist Jason Steed said price increases were a hot topic during reporting season.

There was a marked increase in the number of questions on price increases in conference call transcripts. Analysts wanted to understand the capacity each company had to raise prices to offset rising costs. Steed said: "Through the season, focus on the topic of price increases hit an all-time high."

A company's ability to raise its prices is important for ongoing profitability.

Rising inflation means many companies are paying more for the inputs into their products and services. So, they need to be able to raise customer prices to help offset or overcome those cost increases.

The ability to raise prices also means companies can take advantage of inflation to an extent, with both business-to-business customers and consumers aware and somewhat accepting that 'everything is going up'.

Which ASX shares have pricing power?

Patkar said businesses with pricing power include REA Group Limited (ASX: REA), Pro Medicus Limited (ASX: PME), ARB Corporation Limited (ASX: ARB), and IDP Education Ltd (ASX: IEL).

Patkar elaborated:

It is not a discretionary purchase for the customer. The product or service offered is superior to that of competition and is backed by reputation or brand. The cost to switch between competitors is usually high and not worth the hassle or risk.

Companies like REA, Seek Limited (ASX: SEK), and Carsales.com Ltd (ASX: CAR) have consistently increased their prices almost every year over the past decade.

REA put its prices up nationally by an average of 8%, according to the article.

The CEO of Ansell Limited (ASX: ANN), Neil Salmon, said they had upped prices without much fuss:

We've seen good receptivity to those price increases and that's why I remain confident that we should be able to fully pass through the inflation effects we see in the rest of our business.

The challenge is getting the balance right. Some companies will lose demand if they raise their prices too much. So it depends on how popular their products and services are and how necessary each customer deems them to be.

Wilsons Advisory told its clients that Cleanaway Waste Management Ltd (ASX: CWY), Telstra Corporation Ltd (ASX: TLS), Lottery Corporation Ltd (ASX: TLC), CSL Limited (ASX: CSL), Resmed Inc (ASX: RMD), and James Hardie Industries plc (ASX: JHX) have significant pricing power to help them offset rising costs.

Some companies protect themselves from rising inflation through contract arrangements with built-in CPI-linked price increases. According to the AFR, 68% of the revenue of Transurban Group (ASX: TCL) is protected this way.

Sustainable and temporary pricing power

In assessing a company's pricing power, Patkar says investors need to differentiate between sustainable and temporary pricing power.

Patkar said: "When demand went through the roof post COVID and supply couldn't keep up, everyone seemed to have pricing power. In a shortage, you can take price almost at will."

Businesses with sustainable pricing power "can take price steadily and regularly because the value they
add to customers is so much larger than the price they charge for it".

Right now, some companies are taking advantage of unprecedented demand in their sectors to raise prices. However, this demand might be temporary.

In Australia, the cost of building a residential house has risen substantially due to supply chain issues, extra demand from tens of thousands of HomeBuilder projects, inflation, and a lack of skilled labourers.

According to the quarterly CoreLogic Cordell Construction Cost Index, the cost of building a house has risen by 10% over the 12 months to June 2022 — the highest increase since the GST was introduced in 2000.

Such demand pressure has allowed building materials manufacturer Boral Limited (ASX: BLD) to bring forward its annual price increase to August. This is on top of extra price rises earlier in 2022 for products like cement and concrete.

Boral CEO Zlatko Todorcevski said:

These are some of the largest pricing increases by geography and by product line that we've put in the market over the past five years. And I think that's appropriate. I think it's reflective of the inflationary environment we're facing.

Big price rises or little price rises?

Some companies with pricing power raise prices in large chunks, while others prefer a steadier approach.

According to the AFR, examples of companies undertaking double-digit price increases include Brambles Limited (ASX: BXB). The cost of hiring CHEP pallets in the United States in 2H FY22 rose by 17%.

ARB says it prefers to do small but frequent price increases given rising inflation is expected to continue into 2023.

ARB says monthly demand for its products has been four times pre-COVID levels. This puts them in a good position to raise prices.

The post Looking to buy ASX shares? Expert reveals 'one metric to assess the quality of a business' appeared first on The Motley Fool Australia.

The Boral Limited (ASX: BLD) share price is in the red after the company released its earnings for financial year 2022.

The S&P/ASX 200 Index (ASX: XJO) building products and construction materials company's stock opened at $2.81 – marking a 2.7% fall.

It has since improved slightly to reach $2.865 – 0.87% lower than its previous close.

Boral share price slips as profit tumbles

Here are the key takeaways from the company's full-year earnings from continuing operations:

• Revenue came in at around $2.95 billion – a 1% improvement
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) slumped 19% to $330 million
• Earnings before interest and tax (EBIT) fell 38% to $112 million, or 32% to $107 million excluding property
• Underlying after tax profit came to $35 million – down 26%
• Posted a statutory net loss of $17 million – down from a $19 million profit
• Adjusted earnings per share (EPS) came to 13.6 cents

The company's earnings were impacted by external conditions, including increases in energy prices and cartage costs – resulting in a $58 million dint. Its sales were hit by the impacts of exceptional rainfall and construction shutdowns.

All such negative happenings ultimately dinted EBIT by $136 million, offsetting the benefits of higher revenue and transformation initiatives.

Looking at the company's total earnings, it recorded a statutory net profit of $961 million – marking a 50.1% improvement. Boral recognised a pre-tax gain of around $1.03 billion for significant items, mostly relating to profit from the sale of non-core North American businesses.

Meanwhile, its transformation program brought a $42 million benefit – below its targeted $60 million to $75 million. It was impacted by delays from COVID-related supply chain impacts and higher cost inflation.

What else happened in FY22?

Of course, the major news from Boral in financial year 2022 was of Seven Group Holdings Ltd (ASX: SVW)'s battle to take over the company.

Seven ultimately walked away with a near-70% stake in Boral, paying a price of $7.40 per share for the holding.

Boral also divested its non-core Boral North America and Australian Building Products businesses and underwent a $3 billion capital return. The capital return encompassed a $2.65 per share capital reduction and a 7-cent special dividend.

What did management say?

Boral CEO and managing director Zlatko Todorcevski commented on the company's earnings, saying:

Boral's revenue benefited from stronger infrastructure and residential activity. However, industry-wide construction lockdowns and exceptional rainfall … curtailed volumes and significantly impacted margins. In addition to reducing operating efficiency, these events resulted in additional operating and repair costs.

With supply chain constraints and labour shortages remaining a key issue across the industry, major projects continued to experience delays. However, we expect momentum to improve in FY2023, and to benefit from several key projects we've secured including the Western Sydney Airport terminal, Sydney Metro West – Central Tunnel Package, Sydney Metro West – Western Tunnel Package, and Tonkin Gap in Western Australia.

What's next?

The company hasn't provided any new earnings guidance for financial year 2023. Though, it did outline its expectations for the period.

Boral expects its revenue to increase this fiscal year, driven by price growth and increased volumes. It believes infrastructure demand will increase, offsetting a predicted softening of detached housing demand in the second half. It also believes benefits from price increases and performance improvement initiatives will more than offset the impact of total cost inflation, while energy costs remain elevated.

The company's financial year 2023 capital expenditure is expected to be around $235 million.

Boral share price snapshot

The Boral share price appears to have had a disastrous year on paper – falling 53% over the course of 2022 so far and 58% over the last 12 months.

However, that doesn't account for the capital reduction and special dividend undergone in February.

The post Boral share price falls as underlying FY22 profit slumps 26% 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:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has sunk 8% to $4.71. Investors have been selling this infant formula company's shares after the US Food and Drug Administration (FDA) deferred further requests to import infant formula products into the United States. This appears to be a sign that infant formula supply levels are now getting back to normal after some major shortages.

Appen Ltd (ASX: APX)

The Appen share price is down 4.5% to $4.78. As well as broad weakness in the tech sector today, this artificial intelligence data services company's shares were hit with a broker downgrade. According to a note out of Bell Potter, its analysts have downgraded Appen's shares to a sell rating with a $4.25 price target.

Boral Limited (ASX: BLD)

The Boral share price is down 2.5% to $2.90. This morning Macquarie downgraded this building products company's shares to a neutral rating and cut the price target on them by 21% to $3.20. The broker sees risks to the company's performance from high energy costs and heavy rainfall.

REA Group Limited (ASX: REA)

The REA share price is down 3.5% to $127.55. In response to the property listings company's results this week, this morning the team at UBS has downgraded REA's shares to a neutral rating from buy with a $142.60 price target. Elsewhere, the team at Ord Minnett downgraded its shares to accumulate from buy with a $140.00 price target.

The post Why A2 Milk, Appen, Boral, and REA shares are dropping today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended a strong week's trade on a high, driven upwards by real estate shares. The index was up 0.81% at 6,945.20 points at Friday's close.

That sees the benchmark 2.26% higher than it was this time last week and at its highest point since 10 June.

The S&P/ASX 200 Real Estate Index (ASX: XRE) led the session today, closing 3% higher after starting the week on a slow foot.

Other top performing sectors included the S&P/ASX 200 Utilities Index (ASX: XUJ) and the S&P/ASX 200 Information Technology Index (ASX: XIJ) – up 2.5% and 1.3% respectively.

Their gains followed a strong session on Wall Street overnight. The S&P 500 Index (SP: .INX) lifted 1.2% in Thursday's session while the Dow Jones Industrial Average Index (DJX: .DJI) and the Nasdaq Composite Index (NASDAQ: .IXIC) both rose 1%.

Iron ore futures and gold futures also lifted overnight, although Singapore iron ore futures reportedly tumbled today.

Of the ASX 200's 11 sectors, 10 were trading in the green at the end of today's session. But which shares delivered the biggest gains? Keep reading to find out.

Top 10 ASX 200 shares countdown

The best performing ASX 200 share on Friday was gold miner St Barbara Ltd (ASX: SBM). The stock leapt 10% on Friday amid the rising price of gold. Find out more about what St Barbara has been up to lately here.

Today's biggest gains were made by these ASX 200 shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays 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 Boral Limited (ASX: BLD) share price was on a roll this week, gaining 7.78% to close on Friday at $2.77.

It followed a 58% tumble experienced by the stock over the first half of 2022, driven by a February capital return.

In comparison, the S&P/ASX 200 Index (ASX: XJO) lifted 3% this week. It's also slipped around 10% since the start of this year.

But with one broker focusing on blue skies ahead, could the market be seeing the start of an about-face from the Boral share price?

Let's take a closer look at what the expert predicts for the future of the building products and construction materials company's shares.

46% upside tipped for Boral share price

The Boral share price has struggled in recent times, with inflation and energy prices taking their toll on the company.

Boral is a large energy user, and much of its business relies on the housing market, which can be hit hard by rising inflation and resulting interest rate hikes, as my Fool colleague Brendon Lau reported last month.

Further, the company announced its earnings were hampered by "extraordinary" rain earlier this year.

It expects the rain left a dint to the size of around $30 million in its financial year 2022 earnings while inflation and energy costs could have had a $15 million impact.

On top of that, the company noted it expected its transformation project to deliver a benefit of between $45 million and $50 million. That's lower than its targeted range of between $60 million and $75 million.

But analysts at Macquarie believe the worst could be over for the ASX 200 stock.

The broker has slapped Boral shares with a $4.05 price target and an 'outperform' rating. That indicates a 46.2% upside on the company's current share price.

The post Up 8% this week, is the Boral share price on the comeback trail? appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) shares bounced back from Friday's disappointing trade today, starting the week out on the right foot. The index closed Monday's session 1.23% higher at 6,687.10 points.

Leading the upwards charge was the S&P/ASX 200 Information Technology Index (ASX: XIJ). The tech sector lifted more than 2% on Monday following Friday's strong session on Wall Street.

The tech-heavy NASDAQ Composite rose 1.79% on Friday overseas. The S&P 500 also lifted 1.92% while the Dow Jones Industrial Average gained 2.15%.

Financial shares were also among today's winners. They were bolstered by news Suncorp Group Ltd (ASX: SUN)'s Suncorp Bank is set to be snapped up by Australia New Zealand Banking Group Ltd (ASX: ANZ) in a $4.9 billion takeover deal.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) was the market's worst performing sector, slipping around 0.7%.

At the end of today's trade, eight of the ASX 200's 11 sectors were trading in the green.

But which shares outperformed all others on Monday? Keep reading to find out.

Top 10 ASX shares countdown

The best performing share among ASX's 200 biggest companies by market capitalisation on Monday was Genesis Energy Ltd (ASX: GNE).

The Genesis Energy share price soared around 10% today. Find out more about what the company has been up to here.

Lithium shares also outperformed today. Both Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR) were among today's ten best performers.

Today's top 10 biggest gains were made by these ASX shares:

Data as at 3:59pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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

Wednesday was a wobbly one for S&P/ASX 200 Index (ASX: XJO) shares as energy stocks weighed on the market. The index finished today's session 0.23% higher at 6,621.60 points.

However, investors may have breathed a sigh of relief as the ASX 200 traded relatively flat today following Wall Street's disappointing session overnight.

The S&P 500 fell 0.92% in Tuesday's session overseas while the Dow Jones Industrial Average lost 0.62%. The tech-heavy NASDAQ Composite also slumped 0.95% as most of Australia slept.

Interestingly, ASX 200 tech shares posted a decent session today, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) closing in the green.

Oil prices plunged more than 7% overnight amid a stronger US dollar, concerns regarding COVID-19 restrictions in China, and fears of an economic slowdown, reports Reuters.

Brent crude oil plunged 7.1% to US$99.49 a barrel overnight while the US Nymex crude price slid 7.9% to US$95.84 a barrel.

Perhaps unsurprisingly, the S&P/ASX 200 Energy Index (ASX: XEJ) was the market's worst performing segment today, falling more than 1.5%.

At the end of Wednesday's trade, seven of the ASX 200's 11 sectors were higher.

So, which ASX shares outperformed all others today? Let's take a look.

Top 10 ASX shares countdown

Taking out the crown as the best performer among ASX's 200 biggest companies by market capitalisation is lithium giant Pilbara Minerals Ltd (ASX: PLS).

Read what Pilbara Minerals has been up to lately, here.

Today's top 10 biggest gains were made by these ASX shares:

Data as at 3:59pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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

The S&P/ASX 200 Index (ASX: XJO) poised a recovery today, driven by materials shares. The index was 0.81% higher at 6,648.0 points at the closing bell.

The S&P/ASX 200 Materials Index (ASX: XMJ) brought the market's biggest gains on Thursday, lifting more than 2%. That came despite commodity prices continuing to retreat overnight.

Iron ore futures slipped 1% during Wednesday's session overseas to reach US$112.33 a tonne. Meanwhile, copper and nickel fell 2% and 3.6% respectively and gold futures slumped 1.6% to US$1,736.50 an ounce.

Meanwhile, ASX 200 industrial and tech shares suffered as their respective sectors plunged lower. The S&P/ASX 200 Industrials Index (ASX: XNJ) fell 0.8% while the S&P/ASX 200 Information Technology Index (ASX: XIJ) slid 0.5%.

The latter was likely weighed down by rising bond yields. US 10-year yields rose to near 2.93% overnight.

At the end of today's session, four of the ASX 200's 11 sectors were in the green.

All that considered, let's take a gander at which stocks came in as the top 10 best performing ASX shares on Thursday.

Top 10 ASX shares countdown

Looking at the 200 biggest ASX shares by market capitalisation, one stood out as a clear winner today.

The Chalice Mining Ltd (ASX: CHN) share price launched 6.6% on the back of exploration results. Find out more about what Chalice has been up to here.  

And coming in second-best was Link Administration Holdings Ltd (ASX: LNK). Its share price gained 6.1% after a suitor increased its takeover offer for the company. Read more about the takeover bid's evolution here.

Today's top 10 biggest gains were made by these ASX shares:

Data as at 3:59 pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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