The team at Goldman Sachs has been running the rule over the healthcare sector following the conclusion of earnings season.

Two ASX 200 healthcare shares that have been given the thumbs up by the broker are listed below. Here's what its analysts are saying about them:

Cochlear Limited (ASX: COH)

This hearing solutions company could be a top option in the sector according to Goldman Sachs. Its analysts believe Cochlear is well-placed to outperform its guidance in FY 2023 thanks to improving trading conditions.

Goldman has a buy rating and $265.00 price target on its shares. It commented:

We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. We expect a sequential improvement in momentum through 2H23 (further elective volume improvement and new processor launch momentum, potentially tempered by some moderation in Acoustics). We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program (GSe: $75m/year).

ResMed Inc. (ASX: RMD)

Another ASX 200 healthcare share that Goldman Sachs is bullish on is ResMed. It is forecasting double-digit earnings growth through to at least 2026. It also sees scope for even quicker growth depending on the Philips re-entry after a major product recall.

Goldman has a buy rating and $38.00 price target on this sleep treatment company's shares. It said:

The timing/nature of Philips' re-entry remains an important debate, but under most scenarios we expect excess demand through end-2023 at least. Whilst supply shortages and cost inflation mitigated the tailwinds through FY22, the benefits to RMD are significant, and could accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, both near- and long-term. We expect a sequentially stronger 2H23, and currently model an EPS CAGR of +11% FY23-26E (with potential upside depending on how competitive dynamics develop).

The post Buy these excellent ASX 200 healthcare shares: Goldman Sachs appeared first on The Motley Fool Australia.

Wouldn't it be nice to grow your ASX share portfolio from $20,000 to $1 million?

Well, the good news is that this is entirely possible. All you need is time, patience, a portfolio of high-quality ASX 200 shares, and compounding.

How to turn $20k into $1 million with ASX 200 shares

Historically, the stock market has provided investors with an average annual return of approximately 10% per annum.

And while there is no guarantee that it will continue to generate returns of this nature in the future, if it were to do so, your single $20,000 investment would grow into $1 million after 41 years.

Maybe that's too long for you? If it is, don't worry. All you need to do is add to your portfolio each year and you'll cut down the time it takes to reach your million-dollar target.

For example, if you were able to invest $20,000 each year, your portfolio would grow to our target value after 17 years.

Alternatively, starting with a $20,000 investment and then investing $10,000 into high-quality ASX 200 shares each year would get you to $1 million in 22 years if you averaged 10% per annum.

Which shares should you buy?

I would aim to buy quality over quantity and focus on building a portfolio filled with ASX 200 shares that have the following characteristics:

• Competitive advantages
• Fair valuations
• Strong long-term growth prospects
• Sizeable addressable markets
• Growing dividends

A few ASX shares that spring to mind immediately are gaming technology company Aristocrat Leisure Limited (ASX: ALL), hearing solutions specialist Cochlear Limited (ASX: COH), and sleep treatment company ResMed Inc (ASX: RMD).

Over the last decade, these ASX shares have generated average annual total returns of 26.7%, 13.4%, and 22.4%, respectively. And based on their qualities, I would not be surprised to see them beat the market over the next decade.

The post How I'd invest $20,000 in ASX 200 shares to aim for a million appeared first on The Motley Fool Australia.

If you're looking for ASX 200 shares to add to your portfolio, then you may want to look at the two named below that have been tipped as buys by analysts at Morgans following the release of their results.

Here's why the broker is very positive on these shares:

Cochlear Limited (ASX: COH)

The first ASX 200 share that Morgans is bullish on is Cochlear.

It is a manufacturer and distributor of cochlear implantable devices for the hearing impaired across over 30 countries. It offers three main products: Cochlear implants, Baha bone conduction implants, and Cochlear Wireless Accessories.

Morgans was pleased with Cochlear's recent half year update. It commented:

Cochlear's 1H results were better than expected, underpinned by strong sales growth in both developed and emerging markets, but OPM declined on growth initiatives. […] We see continued momentum, with FY23 guidance reaffirmed, implying a strong 2H (+25% at the mid-point), underpinned by strong fundamentals and progressively improving trading conditions.

The broker has an add rating and $250.60 price target on its shares.

Corporate Travel Management Ltd (ASX: CTD)

Another ASX 200 share that Morgans is bullish on right now is corporate travel specialist Corporate Travel Management. It believes it is well-placed for growth over the medium term. This is thanks to acquisitions, its lower cost base, and technology development.

In response to its half year results, Morgans commented:

CTD's 1H23 result was a slight miss compared to implied guidance and our forecast. However, the result included additional costs so that CTD can take advantage of the expected strong recovery in the 2H23 and FY24. The midpoint of FY23 EBITDA guidance was slightly better than consensus however higher D&A and tax results in NPATA downgrades. CTD is confident of achieving a full recovery in FY24 based on significant new clients wins.

Morgans currently has an add rating and $21.90 price target on the company's shares.

The post 2 ASX 200 shares to buy post-results: Morgans appeared first on The Motley Fool Australia.

The ASX 200 earnings season is well underway with brokers progressively rerating various S&P/ASX 200 Index (ASX: XJO) shares based on their FY23 half-year results.

Here we take a look at four ASX 200 shares that have received upgrades from the experts, courtesy of The Australian.

Cochlear Limited (ASX: COH)

Cochlear released a strong set of results for the six months ending 31 December. There was a 9% increase in sales revenue to a record $893 million but its underlying net profit fell 10% due to increased costs.

A strong balance sheet enabled the ASX 200 stalwart to maintain its interim dividend at $1.55 per share.

Cochlear also announced a progressive on-market buyback, starting with a $75 million program.

Cochlear reaffirmed its FY23 guidance. It expects an underlying net profit of between $290 million to $305 million, up 5% to 10% on FY22.

On the back of this news, Morgan Stanley raised its rating on Cochlear to equal weight. The broker has given Cochlear a share price target of $214.

RBC Capital rerated the stock to 'sector perform' with a $207 target. Jarden Securities cut Cochlear shares to neutral with a price target of $224.71.

The Cochlear share price is currently $225.02, down 0.63%. It is up 7.7% for the week.

Corporate Travel Management Ltd (ASX: CTD)

The ASX 200 travel share fell upon the release of the company's half-year results, despite a $15.7 million profit. Corporate Travel also reported $4.2 billion in total transaction value (TTV), up 102% year over year.

The company reported $51.3 million in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), up 182%, and a $15.7 million statutory net profit after tax (NPAT), up from a $10 million loss.

The ASX 200 share will pay an unfranked interim dividend of 6 cents per share.

Looking forward, Corporate Travel is expecting record full-year earnings with forecasted EBITDA of between $160 million and $180 million and an underlying profit before tax of between $120 million to $140 million.

Investment group CLSA raised its rating to reduce with a share price target of $16.50. The Corporate Travel Management share price is already well above this target at $18.18, up 5.37% today and up 10% for the week.

Vicinity Centres (ASX: VCX)

A large real estate investment trust (REIT) within the ASX 200, Vicinity Centres announced a 24.1% bump to funds from operations (FFO) at $357.1 million. This was primarily due to a 20.5% increase in net property income to $459.6 million.

The company said there was "continued strength of retail sales leading to improved cash collections, rental growth, and higher percentage rent".

The A-REIT has revised its FY23 guidance to FFO per share of between 14 cents to 14.6 cents.

Vicinity Centres declared an interim distribution of 5.75 cents per share, up 22.3% on 1H FY22.

JPMorgan upgraded its rating on the ASX 200 share to neutral with a price target of $2.10. CLSA cut its rating to sell with a target price of $1.88.

The Vicinity Centres share price is currently $2.10, up 0.48%. It is up 6% for the week.

Wesfarmers Ltd (ASX: WES)

Wesfarmers had a ripper result for 1H FY23, reporting a 27% jump in revenue to $22.56 billion and a 14.1% bump to NPAT at $1.38 billion. Basic earnings per share (EPS) came to $1.223 – a 14% rise.

The top 10 ASX 200 share will pay a boosted dividend of 88 cents per share, up 10% on 1H FY22.

Macquarie has raised its rating to neutral with a price target of $56.70, up 23%. This implies a potential 11% upside for Wesfarmers investors, with the share price currently $50.96, down 0.7% today.

Jarden Securities went the other way and cut its rating to neutral with a price target of $46.

The Wesfarmers share price is up 3.7% for the week.

The post 4 ASX 200 shares rerated by brokers following earnings results appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) followed Tuesday's pop with an 1.06% drop on Wednesday, falling to close at 7,352.2 points.

It came amid a deluge of earnings from some of the market's biggest names including Wesfarmers Ltd (ASX: WES), Commonwealth Bank of Australia (ASX: CBA), Cochlear Limited (ASX: COH), and Fortescue Metals Group Limited (ASX: FMG).

Weighing on the market today was the massive S&P/ASX 200 Financials Index (ASX: XFJ). It tumbled 3.4% as the big four banks weighed heavily, led by the CBA share price's 5.7% fall.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) also had a rough session, dropping 1.4%.

Meanwhile, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) was among the top-performing sectors today, rising 0.5% with earnings from Wesfarmers and GUD Holdings Limited (ASX: GUD).

And I can tell you today's top-performing ASX 200 stock is at home on the consumer discretionary section. Let's take a look at what drove it sky-high on Wednesday.

Top 10 ASX 200 shares countdown

Today's biggest gains came from casino operator Star Entertainment Group Ltd (ASX: SGR). Its share price rocketed 14.4% in a partial recovery from recent losses.

The stock dived 20.8% on Monday on the back of a disappointing earnings update. It followed that up with a 13.5% tumble yesterday.

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 aren't letting that hold them back today are listed below. Here's why they are charging higher:

Cochlear Limited (ASX: COH)

The Cochlear share price is up over 6% to $222.72. This follows the release of the hearing solutions company's half year results. While Cochlear reported a decline in its half year profit, it continues to expect solid full year profit growth thanks to the launch of the new Nucleus 8 Sound Processor and the continuing recovery from COVID surgery delays.

GUD Holdings Limited (ASX: GUD)

The GUD share price is up over 6% to $8.80. Investors have been buying this diversified products company's shares after it reported a 55.7% increase in half year revenue and an 88.7% jump in net profit. This was driven by a strong core automotive result combined with full six-month contributions from APG and Vision X.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 5% to $13.91. This has been driven by the investment platform provider's half year results. Netwealth reported an 18.9% increase in total income to $102.8 million and record underlying EBITDA of $47.4 million. This was driven by a 10.2% increase in funds under administration to $62.4 billion.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up 2.5% to $49.82. The catalyst for this has been the release of the conglomerate's half year update. Wesfarmers reported a 27% increase in revenue to $22.56 billion and a 14.1% lift in net profit after tax of $1.38 billion. Strong performances from Bunnings and Kmart played a role in this solid performance.

The post Why Cochlear, GUD, Netwealth, and Wesfarmers shares are charging higher appeared first on The Motley Fool Australia.

In early trade, the hearing solutions company's shares are up over 6% to $222.87.

Investors have been bidding the Cochlear share price higher following the release of the company's half year results.

Cochlear share price higher on strong result

• Sales revenue up 9% to $893 million
• Statutory net profit down 16% to $142 million
• Underlying net profit down 10% to $142 million
• Interim dividend maintained at $1.55 per share
• On-market share buy-back announced
• Guidance reaffirmed

What happened during the half?

For the six months ended 31 December, Cochlear reported a 9% increase in sales revenue to a record of $893 million. This was driven by strong growth in cochlear and acoustic implant revenue.

Cochlear implant units increased 14% over the prior corresponding thanks partly to strong demand for the Cochlear Nucleus 8 Sound Processor, which was launched during the second quarter. This was supported by the continuing recovery from COVID surgery delays across the emerging markets.

Things weren't quite as positive for Cochlear's earnings, at least on paper. Its statutory net profit was down 16% to $142 million due to one-off gains included in the prior corresponding period.

On an underlying basis, its net profit was down 10%. This reflects an increase in cloud computing‐ related expenses, new product launch costs, and the impact of the weighting in operating expenses to the second half of FY 2022.

Excluding its cloud computing‐related expenses, Cochlear's underlying profit margin would have been 17%, which is just a touch below its long term target of 18%.

Despite this profit decline and thanks to the strength of its balance sheet, the Cochlear board has maintained its interim dividend at $1.55 per share.

Speaking of balance sheet strength, management has announced a progressive on-market share buy-back this morning. This will start with a $75 million buy-back, after which the company intends to progressively buy shares over the coming years until its cash balance is approximately $200 million.

Cochlear finished the period with a cash balance of $505 million, though $170 million will be used for an impending acquisition.

Outlook

Cochlear has reaffirmed its guidance for the remainder of the financial year.

It is expecting underlying net profit in the range of $290 million to $305 million, which will be a 5% to 10% increase on FY 2022's underlying net profit or an increase of 8% to 13% when adjusted for the increase in cloud computing‐related expenses.

Commenting on trading conditions, management said:

Trading conditions have been progressively improving, in line with expectations, with intermittent COVID‐related hospital or region‐specific elective surgery restrictions or staffing shortages continuing. While surgical and clinical capacity to serve implant candidates appears to have stabilised, we continue to be mindful of the pressure on the healthcare system globally to contend with surgical waiting lists, ongoing staffing challenges and growing demand. We will continue our investment in R&D and market growth activities to support long‐term market growth.

The post Cochlear share price surges 6% on solid half and buyback appeared first on The Motley Fool Australia.

But which blue chip ASX 200 shares could be in the buy zone? Here are three from different sides of the market to consider:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that could be a buy is Goodman Group. It is a leading integrated commercial and industrial property company. Thanks to its successful strategy of developing high quality industrial properties in strategic locations, Goodman has been a standout performer over the last decade. The good news is that it has been tipped to continue its growth in the future.

Citi is a fan and has a buy rating and $21.10 price target on its shares. Its analysts continue to "favour industrial exposure, and remain attracted to GMG's best-in-class balance sheet."

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a buy is Cochlear. It is one of the world's leading hearing solutions companies. Thanks to its portfolio of world class products, which have been developed through its significant annual investment in research and development, Cochlear appears well-placed for long term growth. Particularly given its strong position in a market benefiting from ageing populations.

Morgans is bullish on Cochlear and has an add rating and $236.70 price target on its shares. It believes the Nucleus 8 launch will be a key driver of near term growth.

Rio Tinto Limited (ASX: RIO)

A final ASX 200 blue chip share that has been rated as a buy is Rio Tinto. It is of course one of the world's largest miners and the owner of a collection of world class operations across different commodities and geographies.

Goldman Sachs is positive on the miner due to its "compelling valuation" and production growth expectations. Goldman currently has a buy rating and $132.00 price target on Rio Tinto's shares.

The post Why experts say these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

Both have been named as buys and tipped to deliver solid long term growth. Here's what you need to know about these ASX 200 shares:

Breville Group Ltd (ASX: BRG)

This leading appliance manufacturer could be an ASX 200 share to buy for the long term.

Breville has been growing at a solid rate for over a decade. This has been driven by the popularity of its brands, its international expansion, successful acquisitions, and its investment in research and development.

The good news is that all these drivers remain in place and Breville appears well-positioned to replicate its success over the next decade. Particularly given its exposure to the growing premium coffee in-home consumption trend.

It is partly for this reason that Morgans currently has an rating and $25.00 price target on its shares.

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a top buy and hold option is Cochlear.

Like Breville, it has been growing at a consistently solid rate for at least a decade. This has been driven by its world class hearings solutions portfolio and growing demand.

And with demand only expected to increase as the global population ages, Cochlear appears well-placed for more of the same over the next decade. Particularly given the industry's high barriers of entry and its sizeable investment in research and development. The latter looks set to help the company maintain its leadership position for the foreseeable future.

Goldman Sachs is very positive on Cochlear. It currently has a buy rating and $247.00 price target on its shares.

The post Buy and hold these ASX 200 shares: experts appeared first on The Motley Fool Australia.

Here's why analysts think they are in the buy zone this month:

Cochlear Limited (ASX: COH)

The first ASX 200 blue chip share that has been named as a buy is this leading hearing solutions company.

Goldman believes that Cochlear is well-placed to deliver the top end of its guidance this year. It commented:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

Goldman Sachs currently has a buy rating and $247.00 price target on its shares.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 blue chip share that has been named as a buy is airline operator Qantas.

Morgans is bullish on the company and believes it is well-placed in the current environment. It said:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply.

The broker also sees plenty of value in the Qantas share price at the current level. Morgans adds:

QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

All in all, this makes Qantas the broker's top pick in the travel sector right now. As a result, it has put an add rating and $8.50 price target on the company's shares.

The post Why experts say these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

This week is shaping up to be one to forget for the S&P/ASX 200 Index (ASX: XJO). It posted its second loss of the week today, falling 0.07% to close at 7,476.7 points.

It follows a similarly poor session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI) slumped 0.77% on Monday's session overseas, while the S&P 500 Index (SP: .INX) dropped 1.3% and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) slid 2%.

It makes sense, then, that the S&P/ASX 200 Information Technology Index (ASX: XIJ) posted the day's worst performance. It fell 1.3% on Tuesday, weighed down by the Megaport Ltd (ASX: MP1) share price's 25% tumble on the back of the company's quarterly earnings.

Mining shares also broadly suffered today, with the S&P/ASX 200 Materials Index (ASX: XMJ) falling 0.8%.

But not all was dire. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) posted the biggest gain, rising 2.3%.

So, with all that in mind, let's dive into the 10 shares outperforming all others on Tuesday.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was none other than supermarket giant Woolworths Group Ltd (ASX: WOW).

It rose 3.77% to close at $36.08 amid news Credit Suisse upgraded the stock to outperform, slapping it with a $36.51 price target.

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.

If you're "over the market volatility", it may be time to buy blue-chip ASX 200 shares that won't deliver spectacular returns over the short term but will deliver reliable earnings and growth over the long term.

That's the advice of Motley Fool Australia's chief investment officer, Scott Phillips, who chatted with Gemma Dale on nabtrade's Your Wealth podcast yesterday.

Phillips nominated two ASX healthcare shares with "multi-decade runways" for growth based on long-term social trends. Both are large-cap shares in the S&P/ASX 200 Index (ASX: XJO).

The 'long-term winners' for growth this year

Phillips said the economy is in a state of flux and no one really knows what's going to happen next.

In such tumultuous times, he reckons "long-term winners are really, really, really attractive" because they offer earnings stability and good growth prospects.

Phillips said:

… if you can do moderately well for a very long period of time as an investor, you'll do very well overall.

And if you can buy businesses that are in that space that just continue to compound away, grind away and just get bigger and bigger and bigger, and more and more successful over time, I think that's an opportunity there.

Which two ASX 200 shares should you buy?

The two ASX 200 shares Phillips recommends are Cochlear Limited (ASX: COH) and Resmed CDI (ASX: RMD).

Phillips likes these ASX 200 shares because the world is getting older and fatter, and these companies are the market leaders in their respective fields of helping people hear and helping them sleep.

Why buy Cochlear shares?

Cochlear is the world's leading hearing implant device manufacturer. Its implants are the standard of care for children with severe or profound hearing loss. The company also sells products to seniors once their normal hearing aids are no longer effective.

Phillips said:

It's a medically diagnosed condition [and] Cochlear is the leader in this space. They are in a business that is going to have more and more people diagnosed over time because medical science gets better, the world is becoming more affluent so the developing worlds … will be able to afford some of this technology … and if you're a Cochlear customer, you're a Cochlear customer effectively for life — it's an implanted device.

Why buy Resmed shares?

Resmed is a global leader in sleep technology. It develops, manufactures, and distributes medical devices such as CPAP masks, and cloud-based software applications that diagnose, treat, and manage a range of respiratory disorders. These include sleep apnoea, which is common among obesity sufferers, and chronic obstructive pulmonary disease (COPD).

Phillips said:

… sleep apnoea is a continuing issue, the world is getting fatter, we're getting older, the growth in the diagnosis of sleep apnoea continues to be huge, so these are companies I think with literally multi decade runways.

They're not going to be spectacular growth, they're not going to give you Afterpay-like returns over six or 18 months but these are just great businesses that I think have a really great long term future.

Phillips said as the market leaders, the two ASX 200 companies had excellent prospects for revenue growth, which bodes well for share price appreciation.

He said: "As long as you remain the brand of choice, that's a pretty good way to keep that cash rolling."

Also during the interview, Phillips discussed what investors could do to set their portfolios up for success in today's difficult economic environment.

The post 2 ASX 200 shares with multi-decade growth runways: Scott Phillips appeared first on The Motley Fool Australia.

Searing inflation, unrelenting interest rate rises, and an economy walking a recessionary tightrope. The landscape of 2023 is an unfamiliar one for anyone that began building a portfolio this side of the GFC.

Many have resorted to labelling this tightening environment as the 'new normal'. But for it to be new, it needs to be the first of its kind — but is that really the case for the set of conditions investors are now facing?

The Motley Fool's chief investment officer, Scott Phillips, suggests otherwise. In chatting with Nabtrade's Gemma Dale on the latest Your Wealth podcast, Phillips gives his reasoning on why this might be more suitably dubbed the 'old normal'.

So, how can we better prepare our portfolios for a return to a more conventional share market?

Inflation and interest rates matter

If you were hoping that the New Year marked the end of inflation's influence on ASX shares, you might be disappointed.

In answering Gemma Dale's question on whether the hidden tax — alongside interest rates — will make an impact on investments this year, Phillips responded:

[Interest] rates matter to the price of the assets that I buy […], rates matter to the amount of debt a company can affordably carry, and what it can do with that debt; and what my investment thesis looks like with those rates.

Inflation matters because pricing power matters. If you are a business that can't pass on higher costs, you have no choice but to deliver lower margins, [and] lower profits.

While this might seem like uncharted territory for some, Phillips says this is more akin to the 'normal economic circumstance' of the 1980s and early 1990s. A period of time where some level of ongoing inflation was expected and interest rates moved up and down — not just down.

So, what does that mean for investing in ASX shares and portfolio construction?

Build a resilient portfolio

Importantly, the answer isn't to try and predict winners based on a specific economic situation a year from now. Instead, Phillips opined that a more reasonable approach to this 'old normal' is by taking a holistic view of the companies you're investing in.

Think about the sort of companies you own or might want to invest in. Think about their resilience in the face of a range of economic circumstances. If you look at your company and say, if this happens, it'll be great… but if that happens, it'll be terrible. […] I don't think that's the smartest way to go about it because I don't think you want to be in a situation where you you have only one way to win and a very clear way, unfortunately, also to lose.

Essentially, the best companies to invest in are those that can continue to grow through most — if not all — environments that they are faced with. Whereas, companies that are dependent on ultra-low interest rates for their survival are, by nature, less resilient.

Finally, the Motley Fool CIO highlighted some ASX shares that could be well-placed to grow through this 'old normal' during the podcast. Companies such as Domino's Pizza Enterprises Ltd (ASX: DMP), Lovisa Holdings Ltd (ASX: LOV), Resmed CDI (ASX: RMD), and Cochlear Limited (ASX: COH).

On the flip side, Phillips cautioned listeners on price takers, saying "I'd be really careful of businesses that don't bring pricing power to the table."

The post How to prepare your portfolio for the 'old normal': Scott Phillips appeared first on The Motley Fool Australia.

Here's why its analysts think they are in the buy zone now:

Cochlear Limited (ASX: COH)

The first ASX 200 blue chip share that Goldman has named as a buy is this leading hearing solutions companies.

Thanks to its portfolio of world class products in an industry with high barriers of entry, Cochlear has been growing at a strong rate for well over a decade. And with the industry now benefiting from favourable tailwinds such as ageing populations, it appears well-placed to continue this trend long into the future.

Goldman Sachs currently has a buy rating and $247.00 price target on its shares. The broker feels that Cochlear is well-placed to hit the top end of its guidance in FY 2023. It said:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

REA Group Limited (ASX: REA)

Another ASX 200 blue chip share to Goldman rates highly is property listings company REA Group.

It is the company behind the realestate.com.au website, which is dominating the ANZ market with an average of well over 100 million monthly visits. This is over three times greater than its nearest competitor.

It is thanks to this dominant market position, together with acquisitions and new revenue streams, that REA Group has been tipped to deliver the goods again in FY 2023 despite the housing market downturn.

Goldman Sachs has a buy rating and $158.00 price target on its shares. It said:

We remain confident that REA can continue deliver > 10% yield growth in FY23, despite the challenging backdrop, supported by ongoing increases in Premiere All attachment, Price rises, and Premiere Plus attachment (contributes GSe +4%/+3% yield driver in FY23/24).

The post Goldman Sachs says these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

For a few names, the pandemic saw elevated earnings. COVID testing produced a lot of extra profit and cash flow for names like Sonic Healthcare Ltd (ASX: SHL), as illustrated below, and Australian Clinical Labs Ltd (ASX: ACL).

But the COVID-testing businesses have seen their share prices plunge over the past year as COVID testing has reduced.

Many other ASX 200 healthcare shares actually suffered because surgeries and other forms of healthcare were delayed. Two examples of such delays impacting earnings during COVID include Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH).

CSL Limited (ASX: CSL) also suffered because the pandemic increased the cost of blood plasma and also reduced collections.

What's the outlook for ASX 200 healthcare shares?

The companies that saw surgery delays now have waiting lists, so they can benefit from that strong demand in FY23.

While COVID testing is dropping, it's still happening. For the month of October 2022, Sonic Healthcare reported that it generated $57.7 million of COVID-related revenue, which suggests that testing cash flow can still benefit those companies involved.

The investment giant Blackrock is one of the investors that likes the healthcare sector at the moment.

Blackrock said that healthcare is benefiting from a structural transition amid ageing populations. It said that healthcare has "appealing valuations and likely cash flow resilience during downturns".

The fund manager suggested that it also likes healthcare because it's "developing medicine and equipment to help meet ageing population needs".

Valuations

While some ASX 200 healthcare shares have fallen, they still don't have incredibly low price-to-earnings (P/E) ratios, reflecting investor confidence in their defensive nature.

Using the Commsec earnings projections for FY23, these are some of the valuations:

The CSL share price is valued at 35 times the estimated earnings.

The Ramsay Health Care share price is valued at 39 times the estimated earnings.

The Sonic Healthcare share price is valued at 19 times the estimated earnings.

The Cochlear share price is valued at 45 times the estimated earnings.

The ResMed CDI (ASX: RMD) share price is valued at 31 times the estimated earnings.

The post Are healthy returns on the horizon for ASX 200 healthcare shares in 2023? appeared first on The Motley Fool Australia.

Soaring inflation and rising interest rates plagued share markets in 2022, ultimately sending the S&P/ASX 200 Index (ASX: XJO) down 5.5%.

Despite being known for their defensive qualities, ASX 200 healthcare shares weren't spared from the pain. In fact, the S&P/ASX 200 Health Care Index (ASX: XHJ) underperformed the broader market, suffering an 8.4% fall.

This index comprises the 12 healthcare shares in the ASX 200. Notably, none of these companies delivered a positive return in 2022. And only one managed to outperform the ASX 200.

Without further ado, let's take a look at the top three ASX 200 healthcare shares of 2022, ranked by share price performance.

CSL Limited (ASX: CSL) 

CSL is the largest healthcare share on the ASX. And it just so happens to be the only ASX 200 healthcare share that outperformed the benchmark index in 2022.

Even still, the CSL share price marginally reversed in 2022, dropping 1% or roughly $3 to close out the year at $287.76.

Headlining 2022 was CSL's $16.4 billion acquisition of Swiss pharmaceuticals company Vifor Pharma. The deal was completed in August and diversified CSL's traditional immunology-focused portfolio, expanding its presence into the kidney disease and anaemia management markets.

Since the acquisition was completed after the end of the financial year, Vifor didn't contribute to CSL's FY22 results. These results saw the ASX 200 healthcare giant deliver muted topline growth, which climbed 3% to US$10.7 billion, while net profit after tax (NPAT) slid by 6% to US$2.3 billion.

Due to the long-term nature of CSL's manufacturing cycle, it was still feeling the effects of COVID in FY22. Lockdowns put a clamp on the company's plasma collections, which are a crucial component for manufacturing its treatments. This led to reduced supply and increased costs within its Behring business; challenges that have since significantly improved.

In other notable news, CSL recently announced a CEO succession plan. Paul Perreault will be retiring in March after holding the top job for 10 years. Taking the reins will be Dr Paul McKenzie who currently serves as CSL's chief operating officer.

Cochlear Limited (ASX: COH)

Next up, the silver medal goes to Cochlear, taking out the title of the second best-performing ASX 200 healthcare share in 2022.

The Cochlear share price retraced 5.6% across the year, underperforming the ASX 200 by the smallest of margins. Cochlear shares finished the year at $204.12.

Like CSL, Cochlear also worked through an acquisition in 2022, albeit one much smaller in size. In April, it announced plans to acquire Oticon Medical from Demant A/S (CPH: DEMANT) for roughly $170 million. Oticon is a Danish hearing implant company with a base of more than 75,000 implant recipients.

However, this deal has hit a snag. Last month, the Australian Competition and Consumer Commission (ACCC) outlined "significant preliminary concerns" with Cochlear's proposed acquisition of Oticon.

Not long after, the UK Competition and Markets Authority (CMA) separately made the decision to refer the case to a further phase of review.

In terms of results, Cochlear continued its recovery from COVID in FY22. Cochlear implant unit volumes climbed 5%, contributing to cochlear implant sales revenue of $935 million, up 3% from the prior year. Meanwhile, underlying NPAT jumped 18% to $277 million.

More broadly, in FY22, the company helped more than 40,000 people hear with one or two of its cochlear or acoustic implants. Cochlear estimates this will provide a net societal benefit of more than $6 billion over the lifetime of the recipients from improved health outcomes, educational cost savings, and productivity gains.

Importantly, the company launched its new Nucleus 8 sound processor towards the end of the year, five years on from the launch of the Nucleus 7. This will act as a catalyst for revenue growth as recipients upgrade their devices.

Telix Pharmaceuticals Ltd (ASX: TLX)

Rounding out the podium finishes is Telix, a lesser-known ASX 200 healthcare share involved in diagnostic and therapeutic radiopharmaceuticals.

The Telix share price backtracked 6.2% in 2022, closing the year at $7.27. This gives the company a market capitalisation of around $2.3 billion. 

2022 was Telix's first year in the ASX 200. It joined the ranks in February, replacing Sydney Airport which was bought out in a $23.6 billion takeover deal.

But an even bigger milestone for Telix in 2022 was the launch of its first commercial product, Illuccix, in April. Used with PET scans, Illuccix is a prostate cancer imaging product designed to help doctors better detect the presence of cancer cells. 

Illuccix has received regulatory approval from the US Food and Drug Administration (FDA) and the Australian Therapeutic Goods Administration (TGA). However, commercialisation in Europe has been delayed.

In the quarter ended 30 September 2022, the second quarter of commercial sales in the US, Telix generated $53.7 million of revenue from Illuccix. This represented a 178% increase on the prior quarter, with sales momentum gathering pace since US reimbursement became effective on 1 July.

With Illuccix launched, the most advanced product in Telix's research and development pipeline is TLX250-CDx, an investigational renal cancer PET imaging agent. 

In November, Telix announced "highly positive top-line results" from the phase III study of TLX250-CDx. The study met all of its primary and secondary endpoints, exceeding sensitivity and specificity targets.

Based on these positive results, Telix plans to file a biologics license application with the US FDA and seek marketing authorisation in key commercial jurisdictions around the world.

The post The 3 best-performing ASX 200 healthcare shares of 2022 revealed appeared first on The Motley Fool Australia.

Time is your greatest asset when it comes to investing. The longer you're in the market, the more you can benefit from the power of compounding.

So, what better time to start investing than day dot?

I don't have kids, but when I eventually do, I already have a plan to set them up for a comfortable future.

Investing for your kids

My plan involves opening up a trust account on their behalf and building a strong $10,000 starter portfolio for when the kid is born, and then adding to it periodically over the next 20 years.

I would start by buying high quality ASX 200 shares that have the potential to grow strongly over the next couple of decades. Companies that lead their industries such as Cochlear Limited (ASX: COH), CSL Limited (ASX: CSL), and ResMed Inc (ASX: RMD) tick a lot of boxes for me.

Once the portfolio is established, I would ideally like to continue making annual contributions of $2,500.

How much will my kids receive?

According to Fidelity, over the last 30 years, the Australian share market has provided investors with an average return of 9.6% per annum.

And while there is no guarantee that it will achieve the same return in the future, this is in line with historic returns on Wall Street. So, I would be somewhat surprised and disappointed if the returns fell well short of this.

Based on this potential return, my starter portfolio, and the annual additions, on my child's 21st birthday I would be able to hand over a portfolio valued at over $200,000.

They could use this for a home deposit, or perhaps they could just keep hold of it and let it continue to grow, pocketing the dividends along the way.

Though, don't forget that even minors have to pay tax on dividend income. In fact, if your child owns shares and earns more than $416, you must lodge a tax return on their behalf according to the ATO.

Christmas gift

If you already have children or grandchildren, it's never too late for them to start investing.

This Christmas a share certificate in a quality ASX 200 share like Goodman Group (ASX: GMG) could end up being the gift that keeps giving.

The post Looking to buy ASX shares for your kids this Christmas? I think these are great options appeared first on The Motley Fool Australia.

1) It continues to be a tough old grind for those – like myself – who are not invested in the resources sector. 

Fund manager reports for November are just coming out, with QVG Capital saying the Small Resources Sector was up 11.6% in the month.

"With limited exposure to Resources, we did not keep up with the benchmark."

Rather than jump into a resources sector which they say "usually lacks the earnings certainty of through-the-cycle return on invested capital (ROIC) we desire," QVG Capital is sticking with industrials such as fast growing Johns Lyng Group Ltd (ASX: JLG) and even faster growing Lovisa Holdings Ltd (ASX: LOV).

Although not traditionally cheap – fast fashion jewellery retailer Lovisa shares trade at around 40 times earnings –  with sales up 60% for the first 19 weeks of FY23, it won't take too long for the company to grow into its premium valuation.

As QVG Capital reminds us, over longer timeframes, share prices follow earnings. If Lovisa can keep up its breakneck global store opening pace in conjunction with double digit comparable store sales, the future looks bright.

2) Put simply, equity markets are facing two major headwinds…

1. Higher interest rates.
2. Slower economic growth. 

The Reserve Bank of Australia (RBA) today raised interest rates by another 25 basis points, bringing the cash rate to 3.1%. 

Whilst this inflicts more pain on variable-rate mortgage holders, long-suffering savers are finally able to earn a decent return on their cash balance, with some savings accounts paying close to 4%.

A no-risk 4% compares pretty well to the 3.6% fully franked dividend yield on offer for Commonwealth Bank of Australia (ASX: CBA) shares, and very well to the 2.7% fully franked dividend yield on offer for Woolworths Group Ltd (ASX: WOW) shares. Given those two companies are both growing slowly and trading on premium valuations, given the choice, I'd happily park my cash in the bank.

No wonder industrial sector equities are on struggle-street.

3) The economy is not the stock market, and so although 2023 is likely to see slower or even negative growth for some companies, shares could perform well.

In a recent article on Livewire titled "Why 2023 could be the biggest buying opportunity since the GFC," J.P. Morgan Asset Management's global team believes "2023 will see the traditional 60/40 portfolio record its best year since 2010. In their view, average forecast returns for both equities and bonds will continue to climb even if a global recession hits."

The team is tipping both developed and emerging market equities to rebound, and although the S&P/ASX 200 Index (ASX: XJO) has outperformed its developed market peers, they are projecting it to return 7%+ per annum over the next 10-15 years.

In a world fixated on the next monthly move by the RBA or the next inflation print or the next jobs report, you've got to love their long-term perspective. 

A 7% per annum return compounded over 10 years will roughly double your money. Not exciting like the tech-stock boom (RIP) some of us recently enjoyed, but very good, especially when compared to just about every other asset. Can you imagine your $1 million investment property doubling in value by 2032? It would require someone taking on an astronomical monthly repayment to take that property of your hands. 

No wonder property prices are falling.

4) So which stocks will be beneficiaries in 2023?

If only we knew. The J.P. Morgan boffins referenced above have a preference for defensive sectors, including healthcare and banking stocks.

I'm happy to pass on bank shares. 

Quality large-cap ASX 200 healthcare stocks like CSL Limited (ASX: CSL), Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH) all trade on nose-bleed valuations. I'll pass on them too, thank you very much.

No wonder stock picking is hard.

5) One sector that is cheap is energy, despite many shares having already had a great run so far this year.

Interviewed in the AFR, SG Hiscock portfolio manager Hamish Tadgell says his fund is positioned for higher inflation and the energy transition, with a top three holding being Woodside Energy Group Ltd (ASX: WDS) shares.

The Woodside share price has already gained more than 60% so far in 2022, but Tagell's still a fan, saying in terms of balance sheet, "it's got good growth options through Scarborough and the West Australian developments it's looking at. And that's in a world where I think there's clearly an increased demand for gas." 

Woodside shares trade at just eight times trailing earnings. Add in a trailing 9% fully franked dividend yield and you can see the attraction. 

The post 5 popular ASX 200 stocks I'm avoiding, plus one that still looks dirt cheap appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) broke a four day winning streak on Monday. The Index closed 0.42% lower at 7,229.1 points.

And weighing it down was none another than the S&P/ASX 200 Energy Index (ASX: XEJ). It plunged 1.7% today amid falling oil prices.

It has been broadly reported that WTI crude oil and Brent crude oil each hit their lowest points since December 2021 today. The former fell to around US$74 a barrel while the latter slipped below US$82 a barrel.

The S&P/ASX 200 Materials Index (ASX: XJO) also struggled on Monday, sliding 0.9% despite major commodity prices rising.

Gold futures price rose 0.5% to US$1,754 an ounce on Friday while iron ore futures lifted 0.9% to US$92.74 a tonne.

However, it wasn't all bad. The S&P/ASX 200 Communications Index (ASX: XTJ) led the market, gaining 0.6%, while the S&P/ASX 200 Real Estate Index (ASX: XRE) lifted 0.5%.

All in all, four of the ASX 200's 11 sectors ended the day in the green. But which stock outperformed all others to take today's crown? Keep reading to find out.

Top 10 ASX 200 shares countdown

While many of the market's biggest energy stocks struggled today, their coal-focused counterparts outperformed.

Indeed, today's best performer was New Hope Corporation Limited (ASX: NHC). Its share price lifted 5% despite the company's silence.

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.

These growth shares have recently been named as buys by experts. Here's what they are saying about them:

Cochlear Limited (ASX: COH)

The first ASX growth share that has been named as a buy is Cochlear. It is one of the world's leading hearing solutions companies.

Due to its portfolio of world class products in an industry with high barriers of entry, Cochlear has been tipped to grow strongly over the long term. Particularly given how the industry is benefiting from favourable tailwinds such as ageing populations.

Goldman Sachs is bullish on Cochlear and has a buy rating and $247.00 price target on its shares. Its analysts believe the company is well-placed to hit the top end of its guidance in FY 2023. The broker said:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

IDP Education Ltd (ASX: IEL)

Another ASX growth share that has been named as a buy is IDP Education. It is a language testing and student placement company and a co-owner of the IELTS test.

The IELTS test is the English test that is trusted by more governments, universities, and organisations than any other. This puts the company in a great position to benefit from the growing number of people learning English globally.

Goldman Sachs is also a big fan of IDP Education. Last week, the broker reiterated its buy rating and $36.00 price target on the company's shares. Its analysts believe that IDP's shares are trading at an attractive level based on its growth potential. It said:

IEL is trading c.10% below its 5-yr average P/E. The stock is trading at a relatively undemanding 2.2x PEG based on its historic FY22 PE of 79x and forecast 35% FY22-25E 3-yr EPS CAGR.

The post Are these the ASX growth shares to buy for 2023? appeared first on The Motley Fool Australia.