At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share despite its short interest easing to 11.8%. Revenue margin headwinds may be causing concerns.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 11.2%. This may be due to competition and cash burn concerns.
• Sayona Mining Ltd (ASX: SYA) has 10.4% of its shares held short, which is down slightly week on week. Falling lithium prices have been weighing on the sector.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.7%, which is down week on week. The sustained weakness in spot lithium prices appears to be spooking investors.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.3%, which is up week on week. This may be down to short sellers doubting Zip's ability to achieve its profitability goals.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 9%. Short sellers will have been pleased to see this network as a service provider's shares sink last week after the shock exit of its CEO.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.5%, which is up week on week again. This appears to be due to major cost blow outs at the Kathleen Valley Lithium Project and lithium price weakness.
• Pointsbet Holdings Ltd (ASX: PBH) has returned to the top ten with short interest of 7.2%. Concerns about the sports betting company's cash burn could be behind this.
• JB Hi-Fi Limited (ASX: JBH) has arrived in the top ten with 7% of its shares held short. This may be due to fears over the impact of the cost of living crisis on consumer spending.
• Nextdc Ltd (ASX: NXT) has also entered the top ten with short interest of 6.8%. There may be fears that the economic environment could delay major contracts for this data centre operator.

The post Here are the 10 most shorted ASX shares this week appeared first on The Motley Fool Australia.

The investment world has completely changed over the past year with interest rates in the US and Australia now much higher than before. In turn, term deposits are offering much better rates. But, ASX dividend shares can offer much bigger dividend yields.

While it's pleasing that safe assets, like term deposits and high-interest savings accounts, do offer stronger returns, they don't offer the potential for self-funded growth.

But, when an ASX dividend share has a high dividend payout ratio and/or a low price/earnings (P/E) ratio, it can end up in a very big dividend yield.

We're almost three-quarters of the way through FY23, so I'm going to focus on what the dividend yields might be in FY24, which includes current expectations of any economic slowdown.

According to Canstar, the best rate of offer from a 12-month term deposit is 4.5%. So let's check the returns on the following shares:

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the leaders in retail products related to hair removal. It has a national network across Australia, as well as a growing presence in New Zealand. Shaver Shop also sells items like oral care, grooming products, and so on.

The business trades on a low price-to-earnings (P/E) ratio, enabling the share to have a very high dividend yield.

According to Commsec, the business is expected to pay a dividend per share of 10.7 cents in FY24.

At the current Shaver Shop share price, that translates into a grossed-up dividend yield of 13.9%, with further growth expected in FY25.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest retailers in Australia with its national networks of JB Hi-Fi stores as well as its network of The Good Guys stores. While the business sells items such as TVs, it also sells products that many households may view as essential such as fridges, phones, and computers.

During the COVID-19 period, and even in the first half of FY23, the ASX dividend share sold elevated levels of items to consumers as spending was redirected.

That's why the JB Hi-Fi dividend is expected to drop by almost 25% to around $2.28 per share in FY24, according to Commsec.

At the current JB Hi-Fi share price, that translates into a grossed-up dividend yield of 7.5%.

Adairs Ltd (ASX: ADH)

Adairs is a furniture and homewares retailer. It sells through three different brands – Adairs, Focus on Furniture, and Mocka. The business is trying to grow through a combination of a store rollout, membership growth, larger stores, and improved efficiencies.

The ASX dividend share is another that saw a big earnings boost during the COVID-19 period.

In FY24, its dividend is predicted to be 19 cents per share, according to Commsec.

At the current Adairs share price, that works out to be a grossed-up dividend yield of 11.7%. As well, further dividend growth is expected in FY25.

The post The highest-paying term deposit right now offers 4.5% interest. Here are 3 ASX dividend shares paying way more appeared first on The Motley Fool Australia.

But investors shouldn't be overly concerned. All three ASX 200 shares are trading ex-dividend today.

Which ASX 200 shares are trading ex-dividend?

The Whitehaven Coal Ltd (ASX: WHC) share price is down 3.1% in afternoon trading as investors buying the ASX 200 coal stock now will no longer receive the outsized interim dividend.

With net profit after tax (NPAT) up 423% to $1.8 billion for the six months ending 31 December, Whitehaven's board declared a fully-franked interim dividend of 32 cents per share. That's up 300% from the 8 cents per share paid out in 1H FY22.

The payment date for investors who bought the ASX 200 share before it traded ex-dividend is 10 March.

JB Hi-Fi Limited (ASX: JBH) is also trading ex-dividend today, reflected by a 5.4% fall in the JB Hi-Fi share price.

The ASX 200 electronic retailing share reported a 14.6% year on year increase in its half-year profits, with NPAT coming in at $330 million. This saw the board declare a fully franked interim dividend of $1.97 per share, up 21% from 1H FY22.

Eligible investors can expect that payment on 10 March.

The third ASX 200 share you might not know is trading ex-dividend today is financial software provider Iress Ltd (ASX: IRE).

The Iress share price is down 3%, with investors buying the stock today no longer eligible to receive the 30 cents per share unfranked dividend.

That's the same as the final dividend payout the prior year, despite Iress reporting a 28.6% fall in full-year NPAT, which came in at $52.7 million.

The post 3 ASX 200 shares you might not know are trading ex-dividend today appeared first on The Motley Fool Australia.

It's that time of the year folks. The February earnings season is in full swing with S&P/ASX 200 Index (ASX: XJO) shares declaring dividends left, right, and centre, and there are several names set to trade ex-dividend this week.

Once the ex-dividend milestone passes, new investors in the companies will have missed out on their upcoming offerings. It also means the stocks will likely be trading in the red at one point in the week.

Let's take a look at some of the high-profile market giants gearing up to trade ex-dividend this week.

ASX 200 shares trading ex-dividend this week

Among the first to trade ex-dividend will be ASX 200 giant Wesfarmers Ltd (ASX: WES). And I've got bad news for anyone wishing to secure its upcoming dividend but isn't yet invested in the stock.

The retail-focused conglomerate trades ex-dividend this morning. It boosted its interim dividend 10% last week, declaring an 88 cent per share fully franked offering as part of its strong first-half earnings.

Glove and personal protective equipment manufacturer Ansell Limited (ASX: ANN) will also trade ex-dividend today. It declared a 20.1 US cent interim dividend last week – marking a 17% year-on-year drop.

Following in its footsteps on Tuesday will be ASX 200 shares Endeavour Group Ltd (ASX: EDV) and Computershare Limited (ASX: CPU).

The former boosted its interim dividend last week, declaring a fully franked 14.3 cent per share payout – a 14% improvement. The latter beat that. It offered a 30 cent per share unfranked interim dividend – a 25% increase on that of last year.

On Wednesday, shares in ASX 200 goliath Commonwealth Bank of Australia (ASX: CBA) will likely drop as the bank trades ex-dividend. It lifted its dividend by 20% to $2.10 per share last week. Though, that wasn't enough to stop the market bidding the bank's stock 5.7% lower.

AGL Energy Limited (ASX: AGL) will also trade ex-dividend on Wednesday after disappointing many with its half-year results. Its profits for the period tumbled 55% while its interim payout was halved to 8 cents per share.

ASX 200 electronics retailer JB Hi-Fi Limited (ASX: JBH) will pass the milestone on Thursday. JB Hi-Fi posted strong first-half earnings last week. It upped its interim dividend by nearly 21% to $1.97 per share, fully franked.

Finally, Friday will probably be a rough one for the share price of GUD Holdings Limited (ASX: GUD). Would-be shareholders will then miss out on GUD's 17 cent per share interim payout, declared last Wednesday.

The post 8 ASX 200 shares trading ex-dividend this week appeared first on The Motley Fool Australia.

While the market fell in 2022, it essentially recovered all of that lost ground in January 2023 after gaining 6%.

But, since early February, ASX 200 shares have been drifting lower.

Let's look at some of the opposing thoughts on the situation.

Optimistic case for ASX 200 shares

I think that when the market becomes scared, the sell-off usually happens when uncertainty is at its highest. By uncertainty, I don't mean how bad things are, I mean when it's not clear how bad things will become.

For example, the worst of the COVID-19 crash was in March 2020, even though deaths and lockdowns persisted for a long time after that.

Last year, the ASX 200 hit lows in June 2022 and at the end of September 2022. But, even though interest rates are much higher than in June and September, the share market has recovered. Investors have already gotten used to the high inflation story and are now focusing on the recovery.

Over time, many ASX 200 shares have shown they can grow profit to new records, which makes me believe plenty of them can grow profit into the future. This thought can help investors remain positive.

Investing is a long-term endeavour, so the short term isn't that important. But businesses like Wesfarmers Ltd (ASX: WES) and JB Hi-Fi Limited (ASX: JBH) are still reporting sales growth in January 2023. The Commonwealth Bank of Australia (ASX: CBA) result also showed another increase in net profit after tax (NPAT) thanks to stronger lending profits.

With the ASX 200 being weighted to banks like CBA and resource businesses like BHP Group Ltd (ASX: BHP), the index could be protected in 2023 by the banks' higher lending profits and strong resource prices (thanks to Chinese demand).

Bearish case

On the other hand, there's no guarantee that the ASX 200 will continue to perform.

On the resource side of things, China is reportedly not seeing a major upswing with its economy (yet), despite ending lockdowns. CNBC reported that there has been a "sharp drop in loans to households" year over year. The chief China economist of financial group Nomura, Ting Lu, said: "The mixed data send a clear message that markets should not be too bullish about growth this year."

With how important mortgage demand is for the construction sector in China, which uses a lot of steel/iron, it could imply that the iron ore price has risen too far.

Another negative factor could be that interest rates could continue to rise, further than some ASX 200 share investors are expecting.

The Australian Financial Review reported on Reserve Bank of Australia (RBA) governor Philip Lowe's comments to Senate estimates that people on fixed-rate loans who didn't use low rates to build up savings are in for "a lot more difficulty".

In the latest RBA monthly interest rate increase, Dr Lowe said that Australian CPI inflation for the three months to December 2022, in underlying terms, was 6.9%, which was higher than expected. The RBA board expects that "further increases in interest rates will be needed over the months ahead".

In the US, inflation rose in January by 0.5% after a 0.1% increase in December, according to reporting by CNBC. This was also more than expected. The Dallas Fed President Lorie Logan said:

We must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions.

Higher interest rates could be bad news for a number of sectors like retailers, property-linked businesses, and so on.

ASX bank shares could also suffer if a lot more households start getting into arrears.

Foolish takeaway

I don't think that the overall ASX 200 share market is going to crash, the worst of the decline may have been seen last year.

However, if some businesses report weaker-than-expected numbers, then this could lead to a plunge in share prices, such as we've seen with Temple & Webster Group Ltd (ASX: TPW) and JB Hi-Fi Limited. But I think that the declines are opening up long-term opportunities.

The post Will ASX 200 shares crash in 2023? appeared first on The Motley Fool Australia.

Although the world is preoccupied with inflation and interest rates, the ASX reporting season is chugging along in earnest.

Fortunately, Morgans equity strategy analyst Andrew Tang has been keeping an eye on the action.

In his "best calls to action" column this week, Tang has helpfully picked out four ASX shares that investors should jump on right now on the basis of their financial reporting this month:

'Business performing well'

Liquor retail and hospitality provider Endeavour Group Ltd (ASX: EDV) understandably struggled during COVID-19 lockdowns and restrictions. 

But, according to Tang, the latest update showed it was "getting back to normal".

"Endeavour's 1H23 result was comfortably ahead of expectations with retail margin performance the key standout," Tang said on the Morgans blog.

"Both segments delivered earnings and margins ahead of our expectations. Group ROFE [return on funds employed] increased 80 basis points to 12.2%."

The Endeavour share price has already rocketed 14% year-to-date. But Morgans was so impressed with the February report that it has upgraded its rating to "add".

"The result highlighted management's ability to control costs despite inflationary pressures," said Tang.

"While the regulatory environment remains uncertain, on balance, we think the risks lie to the upside with the underlying business performing well."

'Both potential price upside and reasonable yield'

Freight rail operator Aurizon Holdings Ltd (ASX: AZJ) has opposite fortunes, with the share price dropping more than 10% over the past few days.

Tang reported that its results were not flattering.

"1H23 earnings (EBITDA -7% on pcp, earnings per share -34%), cashflow, and dividend per share (-33% on pcp) were below expectations, and FY23 EBITDA guidance was downgraded 4%."

But the lower share price now means "attractive valuation metrics" and a chance of a rebound "as the market digests the one-offs affecting FY23". 

"We think there is both potential price upside and reasonable yield at the current share price — more attractive looking into FY25F."

'Sufficient upside' to buy

Electronics retailer JB Hi-Fi Limited (ASX: JBH)'s reporting had no surprises, as it largely revealed what was to come in a preannouncement in January.

But with the share price now down slightly since late last month, Tang reiterates the add rating from his team.

Tang reported that Beach Energy Ltd (ASX: BPT) released a "soft" first-half result due to "cost increases and production declines". 

"Guidance for FY23 has been downgraded with production reduced by 7% and field operating costs up by 12%."

But the Morgans team still has a buy rating on the oil and gas producer.

"We still see sufficient upside," he said.

"FY24 production guidance [is] to be provided at the full year result."

The Beach Energy share price is 4% lower than it was a year ago.

The post Stop mucking about and buy these 4 ASX shares right now: Morgans appeared first on The Motley Fool Australia.

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

Endeavour Group Ltd (ASX: EDV)

According to a note out of Morgans, its analysts have upgraded this drinks giant's shares to an add rating with an improved price target to $7.80. Morgans notes that Endeavour's half year result was comfortably ahead of expectations with its retail margin performance the key standout. And while the regulatory environment remains uncertain, on balance, it thinks the risks lie to the upside with the underlying business performing well. The Endeavour share price is trading at $7.00 on Tuesday.

JB Hi-Fi Limited (ASX: JBH)

A note out of Citi reveals that its analysts have retained their buy rating and $55.00 price target on this retailer's shares. This follows the release of a result and trading update in line with its expectations. Overall, the broker continues to see upside risk to consensus expectations and plenty of value in its shares. The JB Hi-Fi share price is fetching $45.15 this afternoon.

REA Group Limited (ASX: REA)

Analysts at Goldman Sachs have retained their conviction buy rating and $158.00 price target on this property listings company's shares. Goldman was pleased with the realestate.com.au operator's half year results and believes both the quality of the company and its positive thesis were reinforced by it. The REA share price is trading at $121.66 on Tuesday.

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

When a business suffers a fall, it can be useful to look at that ASX share and consider whether the market is being too harsh or is thinking too short-term about the situation.

Let's remind ourselves about what the business revealed.

Earnings recap

For the six months to 31 December 2022, the company generated total sales of $5.28 billion, which was an increase of 8.6%. JB Hi-Fi said there was continued elevated customer demand for electronics and home appliances.

The company pointed to the sales growth and gross profit margin improvement as the cause of the 14% increase in the earnings before interest and tax (EBIT) to $479.2 million.

Net profit after tax (NPAT) increased by 14.6% to $329.9 million and the interim dividend was bumped up by 20.9% to $1.97 per share.

While the six months to December 2022 demonstrated good growth, the trading update for January 2023 was less promising. Slowing growth could be a warning sign for some investors regarding JB Hi-Fi shares.

Trading update

The business reported how the first month of the second half went compared to January 2022 and January 2020.

JB Hi-Fi Australia's total sales were up 2.5% year over year, and up 25.5% compared to January 2020.

JB Hi-Fi New Zealand's total sales were up 20% year over year and up 43.4% compared to January 2020.

The Good Guys sales were flat (0% growth) compared to January 2022 and up 17% compared to January 2020.

The JB Hi-Fi CEO Terry Smart explained:

While we are pleased with the January trading result, with sales continuing to be well above pre Covid January 2020, we have seen sales growth start to moderate from the elevated levels seen in the first half of FY23. As we enter an uncertain period, our business is well placed with a proven ability to adapt to any changes in the retail environment and trusted value-based offerings that will continue to resonate with our customers and grow our market share.

Is the JB Hi-Fi share price a buy?

The broker Morgans certainly thinks so, with the rating improved to buy.

I think that this result once again showed that JB Hi-Fi is one of the leading retailers in Australia. Being able to grow sales in January 2023, despite many economic challenges, is an impressive achievement in my opinion.

The next 12 months could be tricky for the business and retail as a whole. I'd guess there are going to be fewer electronics and appliances bought in the next 12 months compared to the last 12 months.

However, the JB Hi-Fi share price is down around 20% since the peak in March 2022. I think this makes up for the short-term uncertainty.

I think the quality and scale of the business means it can easily ride through whatever happens next. Australia's growing population should also be a boost for long-term earnings.

In my opinion, the JB Hi-Fi share price is a buy for the long term. Investors can receive large dividends until the retail situation improves.

The post Are JB Hi-Fi shares now at a bargain price? appeared first on The Motley Fool Australia.

While share prices have already moved in response to the results reported by these companies, investors can still grab shares before it's too late to be entitled to the dividend.

If investors are interested in the business and the dividend payment, they need to invest before the ex-dividend date. Investors who buy shares on or after that date will miss out on the dividend.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi reported its result today, revealing that total sales grew by 8.6% to $5.3 billion and earnings per share (EPS) went up 20.4% to $3.018.

The company's board decided to grow the dividend by 20.9% to $1.97 per share. The ex-dividend date is 23 February 2023, so that's not far away.

With the incoming $1.97 dividend, that payment alone amounts to a fully franked dividend yield of 4.4%, with a grossed-up dividend yield of 6.3%.

However, there may not be much dividend growth in the second half of the year. For January 2023, the ASX 200 dividend share said that total sales growth for JB Hi-Fi Australia was 2.5%. JB Hi-Fi New Zealand's total sales growth was 20%. The Good Guys' total sales growth was 0%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Funds management business Pinnacle has seen its share price drop by around 50% since November 2021 as investors lost confidence in asset markets amid rising interest rates.

In its FY23 half-year result, the company reported a 24% fall in net profit after tax (NPAT) to $30.5 million.

However, the interim dividend was only decreased by 11% to 15.6 cents per share. That dividend from the business amounts to a fully franked dividend yield of 1.65%, or a grossed-up dividend yield of 2.4%.

Despite all of the market volatility hurting sentiment about the ASX 200 share, the funds under management (FUM) of the fifteen Pinnacle affiliates ended December 2022 at $83.2 billion, which was only a decrease of 1% during the first half.

The ex-dividend date for the Pinnacle payment is 2 March 2023.

Amcor PLC (ASX: AMC)

Amcor is one of the world's largest plastic packaging companies. When walking around the supermarket, there are plenty of products that have been packaged by the business.

It recently announced its FY23 second quarter and first-half result.

The ASX 200 share announced that its net sales increased by 6% to $7.35 billion, while adjusted earnings before interest and tax (EBIT) and adjusted EPS grew by 8% on a comparable constant currency basis.

It announced a quarterly dividend of 12.25 US cents per share, up from 12 US cents per share. The 12.25 cents per share dividend equates to 17.3 cents per share in Australian dollar terms. This quarterly dividend amounts to 1.1%.

The ex-dividend for this upcoming quarterly dividend is 28 February 2023.

The post Deadline coming: 3 ASX 200 shares to buy now before dividend payouts appeared first on The Motley Fool Australia.

At the time of writing, the retail giant's shares are down 3% to $45.18.

This follows the release of the company's half year results this morning.

JB Hi-Fi share price slumps on half year results

• Total sales up 8.6% to $5.3 billion
• Net profit after tax up 14.6% to $330 million
• Earnings per share up 20.4% to 301.8 cents
• Interim dividend up 20.9% to 197 cents per share

What happened during the half?

For the six months ended 31 December, JB Hi-Fi reported an 8.6% increase in sales to $5.3 billion.

A key driver of this growth was a 9.1% increase in JB Hi-Fi Australia sales to $3.59 billion. This reflects an 8.5% lift in comparable sales, underpinned by growth in communications, audio, accessories, computers, and fitness categories. This offset a 34.8% decline in online sales.

Elsewhere, total sales were up 16.1% in New Zealand and 7.3% at The Good Guys. The latter was driven by growth in refrigeration, laundry, floorcare, visual, and audio categories. Once again, online sales were down 21.5% on the prior corresponding period.

JB Hi-Fi's gross profit increased quicker than sales thanks to margin improvements. Management advised that this reflects improvements in key product and service categories and positive sales mix.

This ultimately led to the company reporting a 14.6% increase in net profit after tax to $330 million and, thanks to its buyback reducing its share count, a 20.4% increase in earnings per share to 301.8 cents.

In light of this strong form, the JB Hi-Fi board declared an interim dividend of 197 cents per share, which is up 20.9% year over year. The record date for this dividend is 24 February, with the payment then to be made on 10 March.

Management commentary

JB Hi-Fi's CEO, Terry Smart, was rightfully pleased with the half. He commented:

We are pleased to report record sales and earnings for HY23 as trading conditions started to normalise following two years of Covid related disruptions. Our relentless focus on providing the best value and high levels of customer service every day, both in store and online, continues to resonate with our customers.

Outlook

Given how most of JB Hi-Fi's first half result was pre-released last month, its outlook is likely to be the main focus for investors today.

Unfortunately, management revealed that its sales growth is now slowing in Australia, which could be weighing on the JB Hi-Fi share price today.

In January, total sales growth for JB Hi-Fi Australia was 2.5% and The Good Guys sales were flat.

Though, things are notably better across the Tasman, with JB Hi-Fi New Zealand reporting a 20% increase in sales during the month.

Mr Smart added:

While we are pleased with the January trading result, with sales continuing to be well above pre Covid January 2020, we have seen sales growth start to moderate from the elevated levels seen in the first half of FY23. As we enter an uncertain period, our business is well placed with a proven ability to adapt to any changes in the retail environment and trusted value-based offerings that will continue to resonate with our customers and grow our market share.

The JB Hi-Fi share price is down 13% over the last 12 months, as you can see below.

The post JB Hi-Fi share price slumps on half-year results appeared first on The Motley Fool Australia.

Finishing the week in style, the JB Hi-Fi Limited (ASX: JBH) share price is strutting higher today ahead of its earnings announcement on Monday.

Shares in the consumer electronics retailer are ticking 0.53% upwards to $46.81 as we head toward mid-afternoon. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is trending 0.7% lower, weighed down by tech and utilities.

It's the last day for investors to take a stake in JB Hi-Fi before the release of its FY23 first-half results next week. That might explain the above-average volume traded today. More than 490,000 shares have been exchanged since the opening bell.

What could we see on Monday?

The reality is JB Hi-Fi shareholders already have a fairly good idea of what they'll see on Monday. Most of the guesswork has been removed after the company posted preliminary unaudited figures roughly three weeks ago.

As a quick recap, the Aussie and New Zealand retailer defied the odds and achieved record sales and earnings in the first half.

Revenue was ratcheted up 8.6% year-on-year to $5,278.5 million, and net profit after tax (NPAT) increased 14.6% to $329.9 million. These numbers can change during auditing. Though, usually, the figures aren't altered meaningfully.

What will be important — which was not included in the preliminary results — is guidance around the forward outlook. Undoubtedly, this will be a key driver for which direction the JB Hi-Fi share price goes.

Between the last update and now, the conversation has changed around how far the Reserve Bank of Australia will go with interest rate rises. This could be problematic for the retailer, as it could mean a harder hit to consumer spending and the economy at large.

The Australian bond market is now pricing in a peak cash rate of around 4%. Previously, the peak was expected to be closer to 3.7%. At present, the Australian cash rate sits at 3.35% following the 0.25% hike on Tuesday.

How have JB Hi-Fi shares responded in the past?

Which way the JB Hi-Fi share price goes on Monday will likely depend on how rosy the full-year guidance is from management. A particular focus will be on whether wage inflation could hurt earnings, or if rising rates are beginning to discourage spending.

While it holds little to no bearing on how the shares will respond on Monday, it can be interesting to review past share price reactions to earnings. The table below shows the JB Hi-Fi share price change amid its results.

Shares have moved to the downside on one occasion over the last three years.

The post Earnings inbound: How could JB Hi-Fi shares respond on Monday? appeared first on The Motley Fool Australia.

So it goes without saying that this is a person we should all be taking lessons from on how to invest.

I certainly am. And I'll be using Buffett's wisdom to try and buy ASX shares at deep discounts.

One of Buffett's fundamental principles of investing is that price and value aren't the same things. Just because the share market is telling us that Commonwealth Bank of Australia (ASX: CBA) shares are worth roughly $110 today, doesn't necessarily mean they have a value of $110.

Let's take another example that investors might be a little more envious over. Today (at the time of writing), one share of the US e-commerce giant Amazon.com Inc (NASDAQ: AMZN) is worth just over US$100. But back in February 2015, those same shares were worth just US$19. So are both prices 'fair value'?

I would argue that the pricing Amazon was commanding back then was extremely undervaluing the business. That's why investors have enjoyed more than a 400% return in just eight years. That's a compounded annual return of 23% per annum.

Back in 2008, Buffett said the following in his annual letter to the shareholders of Berkshire Hathaway. Keep in mind that this was written in the midst of the global financial crisis:

…the market value of the bonds and stocks that we continue to hold suffered a significant decline along with the general market.

This does not bother Charlie and me. Indeed, we enjoy such price declines if we have funds available to increase our positions. Long ago, Ben Graham taught me that "Price is what you pay; value is what you get." Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.

Now, recessions and a stock market crash like we saw in 2008 don't come along very often. But that doesn't mean we can't still employ this timeless wisdom today.

How to buy ASX shares like Buffett

Although the ASX share market has had a very positive start to the year, I still think there are many ASX 200 shares out there that are being priced well below what they are truly worth.

Take the JB Hi-Fi Ltd (ASX: JBH) share price. It's currently trading on a price-to-earnings (P/E) ratio of just 10. That gives the company a fully franked dividend yield of over 6.7%.

Contrast that with CBA shares. CBA is presently boasting a P/E ratio of 20.45, with a dividend yield of just under 3.5%.

Compared to CBA and the broader market, JB Hi-Fi looks like "merchandise that has been marked down" to me. Buffett has shown this method of value investing can reward investors handsomely. That's why I'm still looking for ASX shares trading at deep discounts right now.

The post I'm listening to Warren Buffett and buying ASX shares at deep discounts appeared first on The Motley Fool Australia.

1) Interest rates and central bankers are back on centre stage.

Yesterday, the RBA hiked interest rates by 25 basis points to 3.35%, with governor Philip Lowe saying "further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary".

That sent the ASX 200 into negative territory as traders priced in the risk of a higher terminal interest rate, and interest rates staying higher for longer.

According to the Australian Financial Review, Commonwealth Bank head of Australian economics Gareth Aird had been expecting the RBA to pause at 3.35%. On Tuesday, he was forced to revise that figure higher to 3.85%, implying two more increases.

The same publication quotes head of market economics at National Australia Bank Tapas Strickland as saying there is now a risk the RBA could increase the cash rates as high as 4.1%.

Earning around 4% on your money, risk-free in a savings account, looks a better bet than investing in a number of ASX blue chips, including…

Source: S&P Capital IQ. Earnings yield is the inverse of the price-to-earnings (P/E) ratio.

Just like tech stock investors ignored valuation as they bid market darlings up to the moon, so are blue chip investors buying at today's elevated prices. 

Any resulting pain won't see share prices of these popular ASX shares plunge 50% or more – these are profitable, dividend-paying companies with sustainable competitive advantages – but the risk is definitely to the downside, especially as the economy slows and interest rates keep edging higher.

2) So if it's not industrial blue chips, where does an Aussie investor plonk their cash?

According to the AFR, although commodity prices broadly have eased from their June 2022 highs, they are still higher than at any stage since 2014, helping propel local resources stocks.

"A combination of supply discipline, China reflating and emerging from their COVID-zero policy and elevated cost pressures suggests strong commodity prices are likely to remain," says Todd Hoare, head of public markets at LGT Crestone.

By contrast to the above valuations, blue chip resources stocks look positively cheap, with BHP Group (ASX: BHP) shares trading on an earnings yield of 12% and a dividend yield of 9.8%. Fellow mining giant Rio Tinto (ASX: RIO) shares trade on an earnings yield of 14.8% and a dividend yield of 9.5%.

Resources shares are notoriously cyclical, something that is reflected in the very modest valuations of those two mining giants. As to whether that still means they are incredible value… well, that's not a game in which I have an edge, nor one I have a desire to play. 

3) Back to interest rates and central bankers…

Overnight in the US, Federal Reserve chief Jerome Powell stuck to his script that US interest rates would need to go higher as the fight against inflation carries on.

Markets initially fell, then rallied strongly as traders – perhaps clutching at straws – noted Powell had the chance to signal he'd be more aggressive in hiking interest rates, but didn't take it.

The tech-heavy Nasdaq Composite jumped 1.9% higher, putting it close to bull market territory. How quickly things can change from bear to bull.

It was only yesterday when the focus was on corporate earnings, and not interest rates, inflation, and sentiment. 

As results continue to roll in for US and Australian companies, I fully expect the focus to return to earnings, particularly outlook statements.

Speaking of which…

In the US, the Chipotle Mexican Grill (NYSE: CMG) share price is down 5% in after-hours trade after the popular burrito restaurant chain said higher costs associated with labour cut into its profit in its most recent quarter, while sales were depressed during the holidays.

Here in Australia, the Amcor PLC (ASX: AMC) share price is down 3.4% after the packaging company gave a more cautious near-term outlook, saying it saw softening in demand for its consumer staples and healthcare end markets and customer destocking through the December quarter.

Earnings season really hots up next week, with JB Hi-Fi (ASX: JBH) – somewhat of a bellwether for consumer discretionary goods – reporting on Monday. 

JB Hi-Fi shares are cheap, trading on an earnings yield of 10% and a dividend yield of 6.6%. We'll find out Monday whether they are cheap for good reason. 

4) In its statement accompanying the RBA's monthly meeting, the Board recognised "monetary policy operates with a lag and that the full effect of the cumulative increase in interest rates is yet to be felt in mortgage payments".

Today we have somewhat conflicting opinions on talk of a mortgage cliff as fixed-rate housing loans at around 3% roll over into the new standard variable rate of around 6%.

No doubt talking her own book, Australian Banking Association chief executive Anna Bligh said there was a minority of people who were "very stretched" with repayments and that many homeowners had considerable savings buffers, according to the AFR.

"For those people who find it really tough, banks are not going to be sitting there watching people fall off a cliff. They are already working with some of those customers to make different arrangements so that they can get through this period of high-interest rates and get through until interest rates start to stabilise and come down.

"It is in banks' commercial interest to keep people in their homes and get them to keep them there until they've paid off the loan in 25 years' time."

On the other hand, ANZ Bank chief executive Shayne Elliott says a recession in Australia is possible but not likely, and that households are in for a "period of pain" now that the buffer built into mortgage loans has gone, also according to the AFR.

Quoting an interview on 3AW radio, Elliott said "we are at a very difficult pivot point".

"Up to now people have been managing OK… but it's really from here on it gets very difficult because we are over that buffer, and it starts to really bite into people's savings." 

It might be no coincidence that ANZ shares are by far the cheapest of the big four banks, although I'd imagine if one big bank is bracing itself for headwinds, the three others will be too.

The post With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares appeared first on The Motley Fool Australia.

The ASX 200 has done so well that it's close to its all-time high.

However, I'd largely put that down to the two sectors that make up a significant part of the index – banks and resources.

With higher interest rates and a higher iron ore price, it's good times for names like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Still plenty of opportunities out there

While ASX's biggest industries are doing well, the share prices of (at least) three other areas still look promising.

ASX tech shares were smashed in 2022, so I think those names that have been hit heavily represent much better buying. For example, compared to their peak prices, the Xero Limited (ASX: XRO) share price, the REA Group Limited (ASX: REA) share price and the Seek Ltd (ASX: SEK) share price are all down materially.

Fintechs are also down, despite elevated earnings on the cash they hold, such as Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL).

Higher interest rates do reduce asset prices, in theory. But, they're still the same businesses they were before. So, I think the much lower price we're seeing with these names is giving us opportunities to invest at a cheaper price.

There are some areas within the ASX 200 that may see an earnings hit in 2023, but I believe the lower share prices make up for that, though some share prices have risen a fair bit.

Retail and building products could be interesting hunting grounds to look at. Over the next three to five years, I think ASX 200 shares like Brickworks Limited (ASX: BKW), James Hardie Industries plc (ASX: JHX), CSR Limited (ASX: CSR), Wesfarmers Ltd (ASX: WES), JB Hi-Fi Limited (ASX: JBH), Premier Investments Limited (ASX: PMV) and Metcash Limited (ASX: MTS) could also perform well.

Ready to keep investing

I think that a number of these shares will surpass their former heights in the coming years as they grow their underlying operations.

While some industries do go through cycles, I think the lower point of the cycle is a good time to invest in retailers, building product businesses and ASX tech shares.

I'm going to be putting more money to work this year, which will hopefully accelerate my wealth-building efforts in the coming years. Buying at a lower price also means that I'm getting a higher dividend yield from my investments.

I will probably write an article about the next ASX 200 share that I buy, so keep an eye out for that.

The post The ASX 200 is still full of cheap shares despite this year's surge and I'm ready to buy more appeared first on The Motley Fool Australia.

The good news for investors is that the broker is positive on the sector as a whole. So much so, it has named a total of eight ASX retail shares to buy right now.

What is Morgans saying about ASX retail shares?

Morgans notes that consumer spending has remained surprisingly strong despite rising interest rates. This even led to the biggest Christmas period for retailers on record in 2022. It commented:

Australian consumer sentiment has been in the doldrums. Preoccupied by the impact of higher home loan and rental payments on household finances already feeling the effects of the highest rates of inflation in 30 years, consumers indicated throughout 2022 that they intended to tighten their belts and pull back on their discretionary expenditure.

And yet, retail sales continue to rise faster than market expectations. The Australian Retailers Association recently commented that last Christmas saw 'without a doubt the biggest festive spend on record'.

In light of the above, the broker suspects that a number of ASX retail shares could report strong results next month.

Combined with the prospect of inflation easing and the RBA slowing its interest rate hikes, it believes analysts may be forced to upgrade their earnings estimates meaningfully. It explained:

We do expect consumer demand to soften over the course of 2023, especially as a high proportion of fixed rate mortgages roll off.

But with the prospect of inflation easing and with the possibility that the RBA will pause its relentless series of rate hikes, we think the market may have overestimated the extent of the weakness in the year ahead.

We could see earnings upgrades in the retail sector during February as analysts adjust to better than expected numbers in 1H FY23 and the emerging prospect of a more gentle decline in 2H FY23.

Which shares should you buy?

The eight ASX retail shares in the consumer discretionary space that Morgans rates as a buy are as follows:

• Beacon Lighting Group Ltd (ASX: BLX)
• Breville Group Ltd (ASX: BRG)
• Domino's Pizza Enterprises Ltd (ASX: DMP)
• JB Hi-Fi Limited (ASX: JBH)
• Lovisa Holdings Ltd (ASX: LOV)
• Step One Clothing Ltd (ASX: STP)
• Super Retail Group Ltd (ASX: SUL)
• Universal Store Holdings Ltd (ASX: UNI)

However, of the eight, its key picks are Beacon, JB Hi-Fi, and Universal Store.

Commenting on Beacon, for which it has an add rating and a $2.60 price target, the broker said:

The potential of the trade strategy is underestimated. We expect it will allow BLX to continue to grow earnings positively even as retail demand softens.

As for JB Hi-Fi, which the broker has an add rating and $53.00 price target on, Morgans said:

We think the market overestimates the extent of the likely slowdown in sales in 2H23, resulting in a P/E that's too low and a dividend yield that's too high.

Finally, Universal Store, which Morgans has an add rating and $6.70 price target on, the broker commented:

We believe this is one of the most underrated retailers on the ASX. It offers network growth, resilient demand, price and cost discipline.

The post Morgans names 8 ASX retail shares to buy appeared first on The Motley Fool Australia.

So we are certainly off to the races this year thus far.

Here at the Fool, we like to be eternal optimists when it comes to shares. Our own chief investment officer Scott Phillips recently spoke to Gemma Dale for NABtrade's 'Your Wealth' podcast. Scott was asked what he's excited about in 2023, so let's see what he served up.

1) Another year of compounding our wealth

Scott loves the compounding effects that the share market can bring patient investors. Here's some of what he said about 2023 and what it can bring to long-term shareowners:

You know I'm a massive fan of the Vanguard Index chart… a spectacularly good 30-year chart that Vanguard produce. Over the last 30 years to 30 June 2022, the market had turned $10 grand into $130 grand.

And so honestly, the thing I am most excited about is also the most boring thing, which is, this year will be one of the [next] 30 years. Investing [going forward] for the long term will be astonishingly successful and value-creating, in my opinion…

Part of it is not being too short term in your view (and one year is a short-term view). So I'm excited for people to continue to add money regularly to their investment accounts, diversify properly, invest intelligently, reinvest their dividends… all those things we know we should do.

2) A return to 'normal' ASX share investing

The last few years have seen some (frankly) crazy trends, fads, and occurrences in the world of investing. Near-zero interest rates, unprecedented government stimulus, and a pandemic have all upended financial markets.

This has resulted in crazes such as the 'meme stock' frenzy and the cryptocurrency and NFT mania. And who could forget the GameStop Corp (NYSE: GME) saga, where retail investors banded together to short a shorter?

But Scott is looking forward to things returning to 'normal' in 2023:

I'm excited that investing might become a bit more normal. The way I was taught to invest was simple, thoughtful business analysis, and paying the right price for that business.

Since the outbreak of COVID (and perhaps a little bit before that)… growth has been in the ascendency almost permanently. And that's happened largely because the circumstances have been so unusual… It's kind of distorted markets a little bit.

But if you look at 2023, we've got some inflation, we've got higher (or 'normal') interest rates, and business fundamentals matter again…

I think we'll end up in more normal times, and I think that's really good thing for most investors who want to put the time in.

3) The cheap ASX shares still out there

Even though the share market has been on a tear in recent months, Scott still reckons there are pockets of value that are well worth exploring right now. Here's an excerpt on which rocks he's looking under in the new year:

At the beginning of 2023, I'm looking around at some of these bombed-out share prices, and saying hey, some have bombed out for very good reasons… but one area I really like now is retail... The prices of some of these businesses are way too low, given their long-term potential…

JB Hi-Fi Ltd (ASX: JBH) is a great example. At [its recent prices], even if we have a recession, even if JB's profits fall by 20% this year but come back and grow from there, I don't see a scenario where they are at least the level they are now, and probably a lot higher in five, or seven or ten years' time.

The post 3 things Scott Phillips is most excited about investing in 2023 appeared first on The Motley Fool Australia.

After a highly tumultuous year for the share market in 2022, there's no shortage of ASX value shares right now. And investors can somewhat take their time in finding and researching them, given many of the experts think the chances of a genuine rebound or a new bull run any time soon are slim at best.

Indeed, if the United States goes into recession, ASX shares could definitely go lower than they are today.

But that's all short-term stuff. Here at the Fool, we advocate buying high-quality ASX shares and holding them for the long term. Market downturns and corrections simply allow you to buy them cheaply.

Many good-quality mid-cap and large-cap shares are trading well under a 15 times price-to-earnings (P/E) ratio right now. That's a good starting point in determining which ASX shares are undervalued.

Here we outline three ASX shares that could be considered undervalued within various contexts.

JB Hi-Fi Limited (ASX: JBH)

The electronics and home appliances retailer surprised the market by beating consensus estimates significantly in its preliminary FY23 half-year results released this week.

Despite market fears of inflation and interest rates potentially reducing consumer discretionary spending, JB Hi-Fi revealed record sales and earnings. Group sales increased 8.6% year-over-year to $5,278.5 million. Net profit after tax (NPAT) screamed 14.6% higher to $329.9 million.

As my colleague Mitch reported, management attributed the results to elevated demand for their products and well-executed Black Friday and Boxing Day promotions.

In terms of value, JB Hi-Fi is currently trading on a P/E of 10 times.

As we explain in our Education Centre, the P/E ratio measures the current share price against the company's earnings per share (EPS). This provides insight, within context, as to whether a company is undervalued or overvalued. Generally, ASX shares with a P/E under 15 times are considered cheap.

A recent note out of Citi reveals its analysts have retained their buy rating and lifted their price target on JB Hi-Fi shares to $55. Morgans has retained its add rating with an improved $53 price target.

The JB Hi-Fi share price is currently $47.90, implying about a 13.5% potential upside for investors in 2023.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa was the top-performing ASX 200 retail share of 2022 with a 15% share price gain. Every other retail share in the benchmark index lost value last year. That says a lot about the resilience and future growth prospects of this affordable fashion jewellery and accessories business.

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

As part of its vertically-integrated business model, Lovisa designs and manufactures all of its products in-house. This boosts Lovisa's gross margins, which came in at a whopping 79% in FY22. Lovisa also has smaller stores, which means lower rents. This contributed to an FY22 EBITDA margin of 31%.

Lovisa is currently trading on a P/E of 47 times. On face value, that screams 'overpriced'. But you have to take P/Es with a pinch of salt when it comes to young, up-and-coming companies.

An elevated P/E can also indicate market confidence about a company's future. Sometimes investors are willing to overpay today if they expect strong earnings and share price growth in the future. And given Lovisa's seemingly bright future at this point, some investors may see this one as 'undervalued'.

As we recently reported, broker Canaccord Genuity has lifted its 12-month share price target on Lovisa by 22% to $27.75. Based on today's share price of $25.64, that's a potential 8% upside for investors in 2023.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The ability to invest in 100 of the largest non-financial businesses on the US NASDAQ exchange is certainly appealing. Many of them are the No. 1 or No. 2 market leaders in their fields. Examples are Microsoft, Apple, Alphabet, Amazon.com, Tesla, Adobe, Intel, and Meta Platforms.

As you can see, there are a lot of tech companies in this exchange-traded fund (ETF). They lost a fair bit of valuation in last year's tech sell-off as interest rates began to rise.

As my Fool colleague Sebastian reports, the Microsoft share price dropped almost 30%, Amazon lost almost 50%, the Alphabet share price declined almost 40%, and the Tesla share price sank 65%. Of course, this affected the NDQ share price, too.

Today, there are signs that US inflation is cooling, which might mean interest rates won't go much higher and the world's biggest economy could even avoid a recession. Either way — no matter what happens in 2023 or 2024 or even 2025 — we live in a high-tech age and this is a decades-long investment trend.

Current economic headwinds simply provide a buy-the-dip opportunity on an ETF that should arguably be a lifelong holding. The NDQ ETF is currently trading at a 24% discount to this time last year.

The post 3 undervalued ASX shares that should be on your radar appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) wobbled in and out of the green on Wednesday before ultimately closing 0.1% higher at 7,393.4 points.

Providing the biggest boost was the tech sector. The S&P/ASX 200 Information Technology Index (ASX: XIJ) outperformed, lifting 1.7% on Wednesday, driven by a 4.6% gain out of Block Inc (ASX: SQ2).

Weighing heaviest on the Aussie bourse, meanwhile, was the S&P/ASX 200 Real Estate Index (ASX: XRE), falling 0.9%.

In the doldrums alongside it was the S&P/ASX 200 Energy Index (ASX: XEJ). The sector slumped 0.2% despite oil prices rising overnight.

The Brent crude oil price rose 1.7% to US$85.92 a barrel overnight while the US Nymex crude oil price gained 0.4% to US$80.18 a barrel amid better-than-expected growth data out of China.

So, with all that in mind, let's take a look at the 10 ASX 200 shares posting the index's biggest gains on Wednesday.

Top 10 ASX 200 shares countdown

Leading the charge today was lithium favourite Sayona Mining Ltd (ASX: SYA). Its share price roared 8.9% higher to close at 24.5 cents.

Interestingly, there was no price-sensitive news from the company today. Though, its stock did tumble 2% on Tuesday.

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.

Having some cash stored away for that inevitable rainy day is a fundamental step in being financially independent. It's important to have money set aside for when your car breaks down, there's a medical emergency, or whatever other malady life can throw in one's way.

The last place you want to find yourself when presented with an unexpected expense is the personal loan application desk at your local bank.

But just as importantly, it's important to realise that savings are insurance, not a path to wealth. Whilst interest rates have shot up over the past 12 months, which at least gives investors some meaningful cash flow, cash still isn't offering real (inflation-beating) returns. The top interest rate available for a term deposit right now is around 4.5%.

But recently, we've found out that Australian inflation was running at a hot 7.3% over the 12 months to 30 November. That means that the purchasing power of our cash in our 4.5% term deposit is going backwards by 3.3% in real terms.

As such, it is virtually impossible to grow one's wealth using cash alone.

That's why I'm turning to ASX shares.

Why invest in cheap ASX shares for retirement?

ASX shares are one of the best places to have your money if you wish to build wealth. For one, the best companies can keep ahead of inflation by increasing their prices to match the falling real value of cash.

But ASX shares can also give investors inflation-beating returns. Even an index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) has delivered an average return of 8.54% per annum over the past ten years on average. That crushes the returns of cash.

The ASX share market has rallied quite convincingly over the past two months or so, which dulls the potential returns of investors just getting started with investing. But that doesn't mean there aren't plenty of dirt-cheap ASX shares still out there. One sector I'm currently looking at is ASX 200 retail shares.

Rising interest rates have dampened investor demand for consumer discretionary companies like retailers. But I think this has left many looking cheap.

Take JB Hi-Fi Limited (ASX: JBH). It's currently sitting on a price-to-earnings (P/E) ratio of just 9.54, yet has a trailing, fully franked dividend yield of 6.6%.

Harvey Norman Holdings Limited (ASX: HVN) is looking even cheaper. It has a P/E ratio of just 6.64 right now, but with a fully franked dividend yield of 8.34%. I wouldn't be surprised if these shares turn out to be market-beaters over the next few years at least.

So that's why I'm not saving for my retirement. I'm investing for it instead.

The post Don't 'save' for retirement! I'd invest in dirt-cheap ASX shares instead appeared first on The Motley Fool Australia.

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

Data#3 Limited (ASX: DTL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $8.95 price target on this information technology solutions provider's shares. This follows the release of a trading update which revealed that Data#3 expects to deliver first half profit before tax at the top end of its guidance range. Goldman notes that this is ahead of its estimate and implies year over year growth of at least 24%. Outside this, Goldman is positive on its outlook thanks to government and enterprise IT spending and its position as an expert in cloud migrations, software, and cybersecurity. The Data#3 share price is trading at $7.30 on Wednesday.

JB Hi-Fi Limited (ASX: JBH)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this retail giant's shares to $55.00. This follows a half year trading update that was well ahead of Citi and consensus estimates. Combined with the update from Super Retail Group Ltd (ASX: SUL), the broker believes consumer health is better than the market's thinking heading into the second half. The JB Hi-Fi share price is fetching $47.95 this afternoon.

Rio Tinto Ltd (ASX: RIO)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this mining giant's shares to $134.40. This follows the release of the company's latest quarterly update. Goldman was pleased with Rio Tinto's record iron ore production in the quarter and its guidance for an 8% increase in FY 2023. The Rio Tinto share price is trading at $121.78 at the time of writing.

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