The dust has settled on the February earnings season, giving us the opportunity to now reflect on the ASX shares that reported.

Unlike a typical recap of the standout winners and losers, I wanted to do something a little different — maybe more valuable — than other reporting season post-mortems.

While it can be useful to know which companies smoked expectations and which left their shareholders bitterly disappointed, often those exceptional reports are met with similarly exceptional moves in the share price (either positive or negative).

I'm more interested in the ASX shares with solid numbers that were maybe underappreciated. In my eyes, these could be companies that the broader market is disregarding for reasons outside of the fundamentals. But, in the long run, those fundamentals become rather hard to ignore.

So, here are the companies that failed to attract the level of attention I believe would be commensurate with their results.

The ASX shares working hard when no one is watching

Netwealth Group Ltd (ASX: NWL)

Netwealth brings wealth management to the twenty-first century with its cloud-based software platform. As its management attests, it is the fastest-growing financial services platform with $11.9 billion of net fund inflows for the 12 months to September 2022.

In my opinion, the Netwealth team delivered on all key objectives in the first half. Funds under administration (FUA) and funds under management (FUM) grew by 12.2% and 10.4% respectively. In turn, the company was able to increase its total revenue by 18.9% to $102.8 million and deliver a statutory net profit after tax (NPAT) of $30.6 million — up 12.9%.

Netwealth is executing its mission to provide a better platform than the big wealth-managing incumbents, as demonstrated by the image above. The company continues to nibble away at the market share of competitors.

How did investors react to the release? The Netwealth share price finished 2.7% higher on 15 February… hardly a move to write home about. Although the ASX share trades on a price-to-earnings (P/E) ratio of 56 times, I think there is a level of underappreciation for the extent of growth that could still lie ahead for Netwealth.

DGL Group Ltd (ASX: DGL)

The next company I believe the market could be sleeping on is chemicals manufacturer, transporter, storer, and processor, DGL Group. Shares in this ASX small-cap share finished flat after the company released its first-half results to the market on 28 February.

After a string of acquisitions during the half, DGL reported a 52% increase in sales revenue compared to the prior corresponding period. Impressively, the company notched up its earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 35%.

I have a suspicion that the market may have written off DGL's growth as purely a byproduct of acquisitions. However, as noted in the presentation, 69% of EBITDA growth was organic. Morgans also highlighted that the result showed an ability to grow organically. The broker currently has a buy rating on the ASX share.

What I find enticing about this company, that I think others are overlooking, is the moat it is building through its geographic footprint. Its operations are widely spread across Australia and New Zealand through its network of warehouses (see here). Such a network is difficult to replicate without significant capital.

In my opinion, the expanded network could give DGL an edge in terms of beating competitors on price for transport and product (due to scale) and time for delivery fulfilment (due to proximity).

Supply Network Limited (ASX: SNL)

The last ASX share that I think the market snubbed upon the release of its results during the earnings season is Supply Network. This company sells after-market parts primarily for trucks and buses within Australia and New Zealand.

Simply put, Supply Network's results were extremely strong. Shares lifted a dismal 0.3% on the day of the company's reporting. The half-year filing left a bit to be desired in terms of commentary and added details.

However, the numbers speak to a period of continued demand for parts. In quantifiable terms, revenue increased by 23.6% to $119.2 million, while net profits surged 34.1% to $12.7 million. These figures add to a consistent growth trend over the past five years, as depicted below.

Furthermore, analysts at Ord Minnet think the outlook is still solid for Supply Network with the broker holding an accumulate rating on the ASX share.

Personally, I share a similar perspective. Cost pressures could linger for a year or two, nudging the average tenure of truck ownership higher. As a result, replacement parts could be in higher demand.

Aside from this, the company's balance sheet is in the strongest position its been in years, opening the door to additional growth avenues.

The post Underappreciated: 3 ASX shares I believe were the quiet achievers of earnings season appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week on a high, gaining 0.39% to close at 7,283.6 points. That sees it having recovered all but 0.29% of Monday's losses.

Helping it along on Friday was the S&P/ASX 200 Communications Index (ASX: XTJ). It rose 0.9%.

Bank stocks also had a good run into the weekend, with the S&P/ASX 200 Financials Index (ASX: XFJ) lifting 0.5%.

Meanwhile, mining giants helped drive the S&P/ASX 200 Materials Index (ASX: XMJ) 0.5% higher.

On the other hand, the S&P/ASX 200 Real Estate Index (ASX: XRE) was the worst performer, falling 0.3%.

So, with most of the market trading in the green on Friday, which ASX 200 share posted the biggest gains? Let's take a look.

Top 10 ASX 200 shares countdown

Taking out the index's top spot today was the Liontown Resources Ltd (ASX: LTR) share price.

It roared 13% higher to close at $1.63 on Friday. And that could be just the beginning if Bell Potter is to be believed. The broker recently tipped the lithium hopeful's stock to soar to $2.81, my Fool colleague James reports.

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.

There is much macroeconomic and geopolitical manoeuvring that's distracting investors of ASX shares.

But one mustn't forget the current reporting season has been revealing crucial information about the businesses themselves.

Lucky for us, experts like Morgans analyst Andrew Tang have been keeping tabs on all the company reports.

In his regular "call to action" blog post, he picked out five ASX shares this week that are the best buys on the back of their February updates:

'Industry leading' with growth runway intact

Investment platform provider Hub24 Ltd (ASX: HUB) reported "above expectations", with underlying earnings and net profit both up.

"Hub24 looks to be delivering 'cleaner' financials," Tang wrote on the Morgans blog.

"The product offering is industry leading — along with Netwealth Group Ltd (ASX: NWL) — and the runway to secure more clients looks intact."

Average funds under management and platform revenue also grew significantly.

The only bone to pick with Hub24 shares is that they have already risen 16.8% over the past year and a phenomenal 326% since the COVID-19 market crash.

They're still an add for Tang's team though.

"Whilst upside to our valuation is reasonably low, the potential for larger 'transitions' wins is a realistic catalyst within CY23."

Industry halves but this player is standing strong

Monash IVF Group Ltd (ASX: MVF) is going from strength to strength, according to Tang.

"Despite industry volumes declining in the half, Monash IVF continues to gain market share in its key markets through both organic growth and through acquisitions."

The February report was solid, with net profit after tax (NPAT) of $12.6 million coming in marginally higher than guidance.

"A strong increase in new patient registrations for the 2Q gives us confidence in the pipeline for 2H23," said Tang.

"Management has upgraded underlying NPAT guidance to 15% growth to A$25.5m for FY23 (up from guidance provided at its AGM of 10%+ growth)."

The Monash share price is flat from a year ago.

Potential clouds coming, but this one's still a buy

Tang called online jobs classifieds Seek Ltd (ASX: SEK)'s update "broadly a positive result".

However, forward guidance was biased towards the lower end of expectations with a slowing economy dampening job ad growth in Australia and New Zealand.

Morgans has subsequently downgraded its earning forecast, but the stock remains a buy.

"We adjust our FY23F to FY25F EPS by -5% to +1% factoring in the revised guidance, lower topline estimates across our forecast period on additional conservatism and improved EBITDA margins in SEEK Asia."

The Seek share price is down 9.75% over the past 12 months.

'Potential short-term catalyst' coming for these dealers

Car dealership network Peter Warren Automotive Holdings Ltd (ASX: PWR) enjoyed a surge in vehicle sales at the height of the pandemic.

Despite that fervour subsiding over the past year, its share price has managed to rise 4.4%.

Tang is buying the stock after a result that was "broadly in-line".

"Peter Warren is trading on ~11x our assumed more 'normalised' conditions (FY24/25)," he said.

"Industry consolidation will continue — we expect PWR to be a participant which adds to structural earnings capacity."

He added that the onboarding of Toyota Motor Corp (TYO: 7203) to its network would be "a potential short-term catalyst".

Excellent result and new CEO

Supermarket giant Coles Group Ltd (ASX: COL) hogged the limelight in the financial media earlier this week with excellent results and the transition to a new chief executive.

According to Tang, Coles is expecting consumer habits to change in 2023.

"Management said supermarkets volume growth returned to modestly positive from mid-January and is expecting more customers to be value conscious as cost-of-living pressures increase."

The company's booming supermarkets arm is somewhat cancelled out by reduced earnings in its liquor division.

Coles is also selling off its petrol station network to Viva Energy Group Ltd (ASX: VEA), which will impact short-term earnings.

The Coles share price is up 5.4% over the past 12 months while paying out a 3.5% dividend yield.

Tang's team is maintaining its add rating.

The post Wake up! Buy 5 ASX shares that are reporting season gems: Morgans appeared first on The Motley Fool Australia.

While most investors rightly focus on business performance or structural tailwinds in picking ASX shares to buy, there is another factor that could materially boost the fortunes of a stock.

That is takeovers.

"Identifying companies that will make suitable takeover targets can make for very lucrative investments," Wilsons equities strategist Rob Crookston said in a memo to clients.

"Normally, companies are acquired at a significant premium to their latest share price, and any hint of a possible acquisition can trigger positive momentum even before a bid is announced."

After 2022 saw many non-mining S&P/ASX 200 Index (ASX: XJO) shares fall in value, big institutional investors like superannuation funds and private equity firms are "still on the hunt for high-quality assets at a fair price".

Growth stocks slashed to clear

One set of companies that are "vulnerable" to acquisitions are growth stocks.

It's because they are going for cheap at the moment.

"These stocks have underperformed during periods of rising bond yields and outperformed when bond yields have fallen," said Crookston.

"2022 was no different. The quick-fire rise in bond yields was a significant headwind for growth stocks in 2022."

To demonstrate, the S&P/ASX All Technology Index (ASX: XTX) is still more than 33% lower than November 2021, despite a 10% revival this year.

Crookston noted that takeover bids have already been seen for technology shares such as Nitro Software Ltd (ASX: NTO), Tyro Payments Ltd (ASX: TYR), and ELMO Software Ltd (ASX: ELO).

The next great takeover targets?

So Wilsons analysts set out to find the ASX 200 shares that might become the next takeover targets.

"Our search is looking for more of these opportunities at the larger end," said Crookston.

"We have looked for stocks that have derated significantly over 2022 that offer substantial growth potential."

These are the seven ASX companies that Crookston's team came up with:

• Xero Limited (ASX: XRO)
• Domain Holdings Australia Ltd (ASX: DHG)
• PEXA Group Ltd (ASX: PXA)
• Netwealth Group Ltd (ASX: NWL)
• Iress Ltd (ASX: IRE)
• Altium Limited (ASX: ALU)
• NEXTDC Ltd (ASX: NXT)

The analysts said that Domain is attractive for acquisition because of its "strong market position" that's effectively a duopoly.

"Looks oversold on negative housing sentiment, but likely to grow earnings over the cycle."

Cloud accounting software provider Xero has seen its share price halve since November 2021.

"High multiple might deter but has de-rated heavily over the year," read the Wilsons memo.

"SaaS [software as a service] business with recurring revenue. Strong growth with the potential for substantial cost out."

Another software company, Altium, is undergoing some pain at the moment but will be tempting for savvy institutional investors seeking growth in the medium term.

"Transition to SaaS business causing slight disruption (margins contraction) but should be short-term," read the memo.

"High quality business that is taking market share."

The post 7 ASX 200 growth shares to buy for possible takeovers: expert appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is tipping into negative territory today as the big four banks act as an anchor. Meanwhile, other ASX 200 shares are getting plenty of attention for their latest results.

Currently, the benchmark index is 1.22% worse off than where it finished yesterday — hovering around 7,340 points. Some of the biggest hindrances to the Aussie market today include Treasury Wine Estates Ltd (ASX: TWE), Lifestyle Communities Ltd (ASX: LIC), and Computershare Limited (ASX: CPU).

That aside, let's dive into three companies that have reported today.

Earnings ignite these ASX 200 shares

One company that is seeing its share price driven higher today is GUD Holdings Limited (ASX: GUD). Shares in the automotive parts and water systems seller are jumping 7.86% to $8.92 as investors absorb what appears to be a solid half-year result.

It was a period of phenomenal growth for GUD in the latest six-month period. Primarily driven by acquisitions, revenue was dialled up 55.7% year-on-year to $517 million. Meanwhile, the company's net profit after tax (NPAT) increased by a blistering 88.7% to $45.6 million.

In terms of outlook, management painted a reasonably positive outlook. The APG brand is expected to benefit from normalisation in sales toward higher historic volumes. Likewise, the remaining automotive business is anticipated to benefit from aging vehicles.

Another ASX 200 share relishing in a commendable result is Netwealth Group Ltd (ASX: NWL). The financial services platform provider's share price is currently up 4.82% to $13.92.

The three key figures that shareholders ought to be pleased with are the company's funds under administration (FUA), revenue, and NPAT.

Ultimately, the business relies upon its FUA on the platform. Fortunately, funds on Netwealth increased 12.2% to $62.4 billion in the first half. Similarly, revenue and earnings were grown to the tune of 18.9% and 12.9% respectively.

Despite a strong performance so far in 2023, the Netwealth share price is still down 6.13% over the past year.

Failure to impress with these figures

The third and final ASX 200 share with robust numbers out today is Pro Medicus Ltd (ASX: PME). The imaging software provider's shares are currently up 0.29% to $65.24 apiece.

Perhaps one of the biggest success stories on the Australian share market may not have lived up to expectations today.

In its half-year report, Pro Medicus served up revenue of $56.89 million — representing an increase of 28.3%. Even better, net profits were 31.5% bigger than the prior corresponding period, perched at $27.19 million.

The improved financials were attributed to some major wins in North America with customers such as Novant Health, Allina Health, and Inova Health.

Nevertheless, it seems investors might be concerned about whether the premium valuation is still compatible following these results. For reference, Pro Medicus currently trades on a price-to-earnings (P/E) ratio of 154 times.

Though, longer-term shareholders couldn't be upset. Shares in the software company are still up almost 41% compared to this time last year.

The post 3 ASX 200 shares on the move amid strong earnings updates 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.

It's simple enough to envisage a $100,000 portfolio of income stocks that would pay thousands of dollars in dividends.

Names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS) may pay a decent yield today but they may not achieve a strong capital compound annual growth rate (CAGR) from here.

However, I think there are a couple of ways that ASX growth shares can achieve good cash flow for investors.

Strong dividend growth

There are plenty of businesses on the ASX that don't have dividend yields of more than 3%. That could be because of a combination of lower dividend payout ratios as well as higher price/earnings (P/E) ratios.

This could reflect the fact the business is retaining more of its profit to reinvest (therefore, it has a lower payout ratio) and the market is pricing the business for a higher earnings growth rate.

Some ASX growth shares have achieved enormous dividend growth because their payouts are growing along with their earnings growth.

For example, Lovisa Holdings Ltd (ASX: LOV) shares paid an annual dividend per share of 17.6 cents in FY17, which had grown to 74 cents per share in FY22.

Hub24 Ltd (ASX: HUB) has grown its annual dividend per share from 4.6 cents in FY19, up to 20 cents per share in FY22.

Johns Lyng Group Ltd (ASX: JLG) shares paid an annual dividend of 3 cents per share in FY19 and this has grown to 5.7 cents per share in FY22.

Netwealth Group Ltd (ASX: NWL) shares paid an annual dividend per share of 10.6 cents in FY18 and this had grown to 20 cents per share in FY22.

TechnologyOne Ltd (ASX: TNE) shares paid a dividend per share of 5.6 cents in FY13, which had grown to 17 cents in FY22.

What I'm trying to show here is that even if a dividend yield is 1.5% or 2% today, if the dividend quickly doubles or triples then the yield has become decent and that dividend could keep growing strongly.

Sell-down ASX growth shares

If an investor had a $100,000 portfolio of ASX growth shares, investors will hopefully see a certain level of capital growth over time.

Instead of receiving dividends, investors could decide to sell a portion of their investment and use the cash from that sale.

For example, if a $100,000 growth portfolio increased by 10% in a year then it would gain $10,000. An investor could sell $5,000, access that money, and be left with a portfolio worth $105,000.

If the growth portfolio worth $105,000 grew by 10% again, an investor would have $115,500. An investor could then sell $5,000 or $5,500 of those shares and be left with around $110,000.

One benefit of this strategy is that if an Australian taxpayer holds an investment for more than 12 months by the time of the sale, the gain can be eligible for a capital gains tax discount which can halve the taxable gain.

Of course, growth isn't guaranteed every year. In some years, the growth could be less than 10% but, of course, in other years, it could be stronger.

The post How to create a second income from ASX growth shares appeared first on The Motley Fool Australia.

Every expert seems to be warning investors to be selective about which ASX shares to buy at the moment.

With consumers and businesses starting to tighten their belts after a year of interest rate hikes, "quality" is an often-used word currently among professional investors.

"The market is fairly priced, but there's still pockets of value and there's pockets of overvaluation," Schroders portfolio manager Ray David told The Motley Fool last week.

"The market, we think, is going to be volatile going forward."

Fortunately, two of David's peers named a pair of stocks that they deem high enough quality to buy in the current market:

Revenue up 50% already but further boost coming

Medallion Group analyst Jean-Claude Perrottet told The Bull that international education services provider IDP Education Ltd (ASX: IEL) delivered "strong results" for the last financial year.

"The company lifted revenue by 50% on the prior corresponding period."

As the world gradually shifted to a post-COVID era in 2022, the IDP share price crept upward as investors anticipated the free movement of students across borders once again.

Since mid-June, the stock has rocketed 50% higher.

But a recent catalyst makes Perrottet believe the party will continue for a while yet.

"China recently banned its students from online learning at overseas universities," he said.

"We expect IDP Education to benefit from an influx of Chinese students returning to Australia."

IDP shares are currently something of a darling among the professional community. According to CMC Markets, eight out of 10 analysts call it a buy.

Higher cash margins to come

Bell Potter Securities investment advisor Christopher Watt named Netwealth Group Ltd (ASX: NWL) as a buy.

"Netwealth is a financial services company. Funds under administration increased 10.2% or $5.8 billion for the 12 months to December 31, 2022, despite negative market movement of $4.6 billion."

The Netwealth share price is down 9% over the past 12 months.

Watt admitted recent in-flows had been "weaker than expected" but was upbeat about the future.

"We anticipate an improvement underpinned by recent client wins," he said.

"Further, higher cash margins and slowing cost growth are expected to result in stronger earnings growth."

Other professionals aren't quite as convinced about Netwealth. Only six out of 13 analysts currently surveyed on CMC Markets rate it as a buy.

The post Buy these 2 ASX 200 shares growing earnings as we speak: expert 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.

Four ASX shares that have failed to follow the market higher are listed below. Here's why they are dropping:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is down almost 3% to $23.68. This appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the medical device company's shares to a neutral rating on valuation grounds following a strong run over the last three months.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down a further 1.5% to $12.20. Investors have been selling the wealth management platform provider's shares since the release of a trading update last week. Netwealth reported a significant slowdown in its net inflows. They came in at $2,087 million during the second quarter, which was down 42% on the prior corresponding period and 29% from the first quarter.

Stanmore Resources Ltd (ASX: SMR)

The Stanmore Resources share price is down 6.5% to $3.42. This follows the release of the coal miner's fourth quarter update. Investors have been selling the company's shares despite it achieving its second half guidance. Stanmore delivered production of 6.4Mt, compared to its guidance of 6Mt to 6.6Mt.

Terracom Ltd (ASX: TER)

The Terracom share price is down over 3% to $1.00. This coal miner's shares are also dropping following the release of a quarterly update. Terracom reported operating EBITDA of $150 million from coal sales of 2.05Mt. Management also revealed that the company's Blair Athol operation remains on track to achieve its full year guidance despite significant rainfall during the quarter. Investors appear to have been expecting an even stronger quarter.

The post Why Fisher & Paykel, Netwealth, Stanmore, and Terracom shares are dropping appeared first on The Motley Fool Australia.

One of the consequences of depressed share markets, like we have seen in the past year or so, is that the tools that people use to invest become underutilised.

ASX shares of investment companies certainly have fallen out of favour in recent times. Investment technology platforms have not lit the world on fire either.

However, at least with those fintech stocks many investors are hoping for long-term growth as they scale up and gain market share.

The three big names in this platform category are Netwealth Group Ltd (ASX: NWL), Hub24 Ltd (ASX: HUB) and Praemium Ltd (ASX: PPS).

Just this week Shaw and Partners portfolio manager James Gerrish was asked on his Market Matters Q&A which of these stocks he would buy right now:

Disappointing results for Netwealth

Unfortunately 2022 ended poorly for all concerned, but it was especially worrying for the biggest player.

"It was a disappointing quarter for all of the investment platform companies and Netwealth was the hardest hit," Gerrish said.

"While they are still seeing funds under administration (FUA) growth, the $2.1 billion of net inflows fell short of expectations of ~$3 billion."

The miss in expectations was caused by low general investor sentiment for stock markets.

Considering these hiccups, Gerrish feels, the two larger platform providers still seem overvalued.

The Netwealth share price has dipped 24.5% over the past 12 months, while Hub24 has taken a 12.9% hit.

"Overall, Netwealth is a great business, but like its peers, they need scale to justify the ~39x price to expected earnings," said Gerrish.

"Hub24 trades on ~35x."

Last man standing

That leaves the smallest player out of the trio, Praemium.

Compared to its bigger rivals, Praemium shares are going for dirt cheap.

"The smallest of the bunch, Praemium trades on nearly 14x — a discount we don't believe is justified."

The company has seen its shares suffer massive discounting relative to Netwealth and Hub24, almost halving in value over the past 12 months.

Gerrish revealed that he overwhelmingly prefers Praemium out of the platform trio. In fact, his team possesses the shares in its emerging companies portfolio.

But he would also become interested in the other two fintech stocks if they suffered a dip.

"We would consider either into a pullback."

The post Which ASX fintech stock is hot to buy right now? appeared first on The Motley Fool Australia.

At this time of the year, there are many predictions and forecasts from experts to wade through.

However, you can't invest directly in macroeconomic trends. And those predictions might be incorrect, or the expert's timing might be off.

So it's much more helpful if the pundits actually mention specific S&P/ASX 200 Index (ASX: XJO) stocks that they're backing.

That way, the fund managers are putting their money where their mouth is, and you can consider buying stocks on the basis of the company's potential rather than ethereal economic drivers.

The ECP Growth Companies Fund did exactly this recently, naming three ASX shares that had mixed fortunes last month but are worth holding for the long term:

'A high-quality business'

The share price for building materials provider James Hardie Industries plc (ASX: JHX) tanked almost 10% in December.

In fact, with interest rates rising steeply, the past year has been pretty unpleasant for investors, with the stock plunging more than 40%.

"The slowdown in housing continues to weigh on investment appetite, particularly the rate of deterioration in volume outlook and lack of visibility," read ECP analysts' memo to clients.

"Growing their economic footprint may be challenging in the near term."

​​

Despite these short-term pressures, the fund is sticking with James Hardie because of its excellent prospects in the longer run.

"James Hardie remains a high-quality business demonstrating its commitment to managing supply and demand, with a clear focus on product mix," the memo read.

"Colourplus growth remains strong, with 31% volume growth in 2Q23, which should support average selling price and margins."

'Strongly positioned' to grow in 'structurally attractive' market

Financial services software maker Netwealth Group Ltd (ASX: NWL) had a pretty ordinary Christmas too, with the share price plummeting 12% last month.

According to ECP analysts, there was no news from the company to justify the de-rating.

"Short-term investor sentiment has remained focused [on] the cadence of in-flows to wealth platforms with advisors regaining client consolidation momentum as markets have stabilised."

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Despite the short-term hiccups, the ECP team is keeping the faith in Netwealth. 

"Notwithstanding variable quarterly flow results, we continue to believe Netwealth is strongly positioned to continue gaining market share in the structurally attractive wealth platform market."

Netwealth shares have dipped 21% over the past 12 months.

China could be ramping up

December was a different story for the stock price of mining giant Rio Tinto Ltd (ASX: RIO), as it soared more than 6%.

The ECP team attributed this to China's COVID-19 reopening triggering a rocket under iron ore prices.

"The Chinese government has also been making positive noises in relation to economic growth and have signalled that they plan to address issues related to residential property prices," read the memo.

"Infrastructure spending is also likely to be a focus."

The Rio Tinto share price has been on a wild rollercoaster over the past year, dipping as low as $87.60 and flying as high as $128.55.

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The post 3 all-star ASX 200 shares ECP is going all-in on appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Alumina Limited (ASX: AWC)

The Alumina share price is down 7.5% to $1.57. This follows the release of a fourth quarter update. That update revealed that the AWAC joint venture struggled with "input cost pressures combined with subdued alumina prices." As a result, the company's net receipts from AWAC were just $4.5 million in the second half of 2022.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down almost 10% to $12.58. This follows the release of a quarterly update from the investment platform provider. That update revealed a significant slowdown in net inflows. Netwealth's net inflows of $2,087 million were down 42% on the prior corresponding period and 29% from the first quarter. This reflects "larger than usual outflows in the High Net Worth (HNW) investors and mid-market segment.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is down 8% to $1.03. This morning the nickel producer announced the completion of a $264 million institutional placement. These funds were raised at $1.02 per new share, which represents a 9% discount to its last close price. The proceeds will be used for acquisitions.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down over 6% to 73 cents. This follows the release of the uranium developer's quarterly update. That update confirms that the company expects it to be another year until the Langer Heinrich Mine returns to production. Management is targeting the commencement of production during the first quarter of calendar year 2024.

The post Why Alumina, Netwealth, Nickel Industries, and Paladin Energy shares are falling today appeared first on The Motley Fool Australia.

Today has been no exception, with a large number of updates hitting the wires. Some have been positive; some have been less so.

Three that have led to big moves from ASX 200 shares today are summarised below. Here's what is happening:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is rocketing higher today after the infection prevention company upgraded its full year guidance.

Its shares are up 11% at the time of writing after a stronger than expected first half led to management boosting its FY 2023 revenue growth guidance to between 36% and 41% from 20% to 25%.

One slight disappointment that investors appear willing to overlook is that its operating costs are now expected to grow 22% to 27% in FY 2023 instead of 15% to 18%.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price has come crashing down to earth after the release of the investment platform provider's quarterly update.

This ASX 200 share is down 10% after reporting a significant slowdown in net inflows. Although its funds under administration (FUA) grew 10.2% year over year to $62,414 million, its net inflows of $2,087 million were down 42% on the prior corresponding period and 29% from the first quarter.

This reflects "larger than usual outflows in the High Net Worth (HNW) investors and mid-market segment."

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 7% following the release of the uranium developer's quarterly update.

Investors may be disappointed that it is expected to be another year until the company's Langer Heinrich Mine returns to production. Management is targeting the commencement of production during the first quarter of calendar year 2024.

One positive is that Paladin finished the period with unrestricted cash of US$163.2 million.

The post 3 ASX 200 shares making big moves following trading updates appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) kicked off the week strong, leaping 0.82% on Monday to close at 7,388.2 points.

That was despite a lacklustre performance from mining shares. The S&P/ASX 200 Materials Index (ASX: XMJ) lifted just 0.2% today as lithium stocks and iron ore giants weighed on the sector.

The S&P/ASX 200 Information Technology Index (ASX: XIJ), on the other hand, led the market's gains, lifting 1.8%.

It was also a good day to be invested in ASX 200 bank shares. Shares in the big four banks rose between 0.7% and 1.6% on Monday after many of their New York-listed peers leapt on quarterly earnings on Friday.

Finally, the S&P/ASX 200 Energy Index (ASX: XEJ) rose 1.5% on Monday following a strong Friday session for oil prices.

So, with all that in mind, let's take a look at the 10 shares taking out today's top spots on the ASX 200.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was none other than Super Retail Group Ltd (ASX: SUL). Shares in the retailer jumped 7.7% to close at 12.34.

The company provided a glimpse into its record first half this morning, with revenue for the period expected to come in at close to $2 billion.

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.

There are a few key reasons for this, which I will detail below.

The potential for high returns

Historically, shares have provided higher returns than other investments such as bonds and cash over the long term. While past performance is not indicative of future results, investing in ASX 200 shares could potentially lead to higher returns compared to less risky investments.

Compounding

When you earn a return on your investment, you have the opportunity to reinvest that return. This can lead to compound returns, where the returns earned in one period are reinvested to potentially earn even more in the future. Compounding explains why generating a 10% return each year turns $1,000 into $1,100 in one year but $2,000 in a touch over seven years.

Inflation protection

Another reason to invest in ASX 200 shares over the long term is inflation. Inflation can erode the value of cash over time, but shares have the potential to increase in value along with inflation. This can potentially help protect your purchasing power over the long term.

But which ASX 200 shares are buy and hold candidates?

Late last year, Bell Potter released its "champion stocks" list. These are the ASX 200 shares that the broker believes would be great long term options for investors. It explained:

These Champion Stocks all have a long term positive thematic, which should drive superior earnings growth and shareholder value over the coming years, notwithstanding inevitable disruptions in the economic and investment environment such as COVID-19 as well as some corporate stumbles from time to time.

Among its champion stocks list you'll find biotherapeutics giant CSL Limited (ASX: CSL), industrial property company Goodman Group (ASX: GMG), and wealth management platform provider Netwealth Group Ltd (ASX: NWL).

The post Are these the best ASX 200 shares to buy and hold? appeared first on The Motley Fool Australia.

There are many factors and characteristics I look at when it comes to analysing ASX shares.

I like to understand the business inside and out. Identify if the company has any sustainable competitive advantages. Dig into the industry landscape, various growth drivers, and key risks.

But another important consideration is the management team.

And when it comes to assessing who's steering the ship, one big tick in my book is skin in the game.

When a management team holds a meaningful chunk of shares in the business they're running, it helps to align their interests with shareholders. After all, their money is on the line as well.

With this in mind, here are three ASX 200 shares boasting significant insider ownership.

Reece Ltd (ASX: REH)

First up, we have an ASX 200 share with a history that dates all the way back to 1920, when H.J. Reece started selling hardware supplies from the back of his truck. Later that year, he opened the very first Reece store in Caulfield, Victoria.

In 1969, on the same day that humans first stepped on the moon, the Wilson family became majority shareholders in Reece. And from here, a beautiful partnership was formed.

Fast forward half a century and Reece is a leading distributor of plumbing and HVAC-R products through more than 800 branches in Australia, New Zealand, and the United States.

Three generations of the Wilson family have been involved in taking Reece to new heights. The company is currently led by Peter Wilson. Meanwhile, his father Alan, who held the CEO reins for 40 years, remains an executive director on the board.

Over the years, there have been many family members involved in the business, several of whom hold shares through various investment vehicles. This makes it hard to pinpoint the exact number of shares held by the Wilson family, as various shareholding notices and disclosures often relate to the same shares.

But from Reece's 2022 annual report, we know that the Wilsons hold interests in at least 362 million Reece shares. This represents roughly 56% of the company and is worth a monstrous $5.4 billion at current prices. 

Over the last 10 years, Reece shares have delivered share price gains of around 250%, not to mention consistent dividend income. 

Netwealth Group Ltd (ASX: NWL)

Next up, Netwealth is another ASX 200 share with strong family ties. 

With a passion for finance and building businesses, Michael Heine launched the wealth management platform in 1999.

Positioning itself as a superior, independent alternative to the incumbent platforms, such as those offered by AMP Ltd (ASX: AMP) and BT, Netwealth has shaken up the industry.

Today, it's the fastest-growing platform provider by net funds flows in Australia. In the 12 months to June 2022, it accounted for 45% of industry net funds flows, raking in $13 billion. 

It's a family affair at Netwealth, with Michael and his son Matt sharing the reins as joint managing directors.

Together, the pair hold combined interests in nearly 128 million Netwealth shares, representing roughly 52% of the business. With Netwealth shares last closing at $13.92, these holdings are currently worth a whopping $1.8 billion.

Since listing on the ASX almost five years ago to the day, Netwealth shares have soared 160% whilst also paying out dividends along the way.

Lovisa Holdings Ltd (ASX: LOV)

Last but not least, ASX 200 jewellery retailer Lovisa also boasts strong insider ownership. 

The company began in 2010 when former CEO Shane Fallscheer spotted a gap in the market for on-trend fashionable jewellery at ready-to-wear prices. 

Prior to this, Fallscheer had been managing Diva, a tween jewellery chain owned by veteran retailer Brett Blundy. Diva was growing quickly but its narrow, young customer demographic meant there were question marks over the company's long-term sustainability.

So, Fallscheer came to Blundy with a proposal for Lovisa. And the rest is history.

In the years that followed, Diva's stores were either closed down or rebranded to Lovisa, which had discovered a sweet spot in the market.

Today, Lovisa is truly a global force, with a network of 676 stores across 26 countries. Its store rollout and international expansion continue at pace, with the ASX 200 retailer on track to open its first stores in Italy, Mexico, and Hungary in the coming weeks.

After leading the company for 12 years, Fallscheer stepped away from Lovisa in 2021 and has sold his shares. 

But Blundy continues to chair the board and through his private investment company, BB Retail Capital, he retains a hefty 40% stake in Lovisa.

This stake seems to be getting more valuable by the minute, with the Lovisa share price going from strength to strength. It's been able to brush aside concerns of rising interest rates and inflation to shoot 58% higher over the last six months, lasting trading at $24.45.

The post 3 ASX 200 shares with enormous insider ownership appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to push higher on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.65% higer this morning. In late trade on Wall Street, the Dow Jones is up 1%, the S&P 500 is up 1%, and the Nasdaq is up 0.8%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$81.04 a barrel and the Brent crude oil price has risen 1.2% to US$88.46 a barrel. News that Saudi Arabia is sticking to its output cuts boosted prices.

Annual general meetings

Another group of ASX 200 shares are scheduled to hold their annual general meetings today and could provide the market with trading updates. Among the companies holding events are property company Abacus Property Group (ASX: ABP), wealth management platform provider Netwealth Group Ltd (ASX: NWL), and logistics solutions company WiseTech Global Ltd (ASX: WTC).

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down a fraction to US$1,738.4 an ounce. Gold is on course to decline for five sessions in a row.

TechnologyOne shares downgraded

Although TechnologyOne Ltd (ASX: TNE) delivered a strong full year result on Tuesday, analysts at Morgans have downgraded the enterprise software provider's shares to a hold rating with an improved price target of $13.50. It commented: "We view this as another high quality result […] following an 18% share price run in the last 6 months we move to a Hold recommendation."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

The Australian share market was on fire today after the United States reported a softer-than-expected inflation number for October.

The implication, of course, is that interest rate rises might finally be working in the world's largest economy, and perhaps the Fed will ease up on further hikes from here.

That's cause for celebration in what has been an incredibly turbulent year for ASX All Ords shares.

Today, the S&P/ASX All Ordinaries Index (ASX: XAO) closed the session up 2.86% and the S&P/ASX 200 Index (ASX: XJO) flew 2.79% to a five-month high of 7,158 points.

But in this valley of green, eight All Ords shares really took off, sprouting more than 10%. The interesting part is there's a real mixed bag in this list — and no lithium shares in sight, which is rare these days.

8 All Ords shares that really flew on Friday

Megaport Ltd (ASX: MP1)

There was no price-sensitive news from Megaport today, so it's likely that NASDAQ momentum carried the ASX tech share 13.57% higher to $6.11. The NASDAQ Composite Index (NASDAQ: .IXIC) leapt 7.3% overnight after the US inflation number was released. It's worth noting that last night Megaport announced that major shareholder, Mitsubishi UFJ Financial Group has raised its stake by 1% to 12%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

There was no news out of Pinnacle today but my colleague Tristan revealed this morning that he rates Pinnacle among the top 3 ASX 200 shares to buy for 2023. Fool Cathryn points out that had Tristan invested $5,000 in Pinnacle shares 10 years ago, he'd be a millionaire today. The Pinnacle share price rose by 12.5% to finish at $9.

Block Inc CDI (ASX: SQ2)

With no price-sensitive news from Block today, it's clear that slowing inflation in the US — and potentially fewer or at least lower interest rate rises by the Fed from here bodes well for the buy now, pay later sector, which relies on consumers and businesses continuing to buy goods and services via their platforms. The Block share price finished up 11.53% to $100.91.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price closed Friday's session at $13.87, up 11.67%. There was no company news today but as we reported last month, Nick Sladen of LSN Capital Partners reckons it's a winner. Sladen said: "We consider the best return opportunities are in those companies that operate in structurally growing industries who can deliver earnings growth despite the difficult economic backdrop." He said Netwealth "is benefitting from market share gains, providing annuity-style revenue, high margins, and strong cash flow. The industry tailwinds support a clear trajectory for growth over the long term." 

St Barbara Ltd (ASX: SBM)

St Barbara shares rose by 10.71% today to 62 cents. That's a relief for shareholders after the gold miner turned in the worst performance of any ASX 200 share in the month of October with a 31.1% decline. As we reported, investors weren't happy with the company's first-quarter update, which saw St Barbara downgrading its full-year production guidance and increasing its all-in sustaining cost guidance.

Pro Medicus Limited (ASX: PME)

A bit over a week ago, my Fool colleague Tony reported that medical imaging company Pro Medicus was ready to rocket again according to Medallion Financial Group advisor Stuart Bromley. We may have had a lift-off today with the Pro Medicus share price soaring 11.45% to finish at $58.50 per share. Bromley reckons Pro Medicus is good for long-term growth and a defensive holding in the short term.

Credit Corp Group Limited (ASX: CCP)

A couple of months ago, my Fool colleague Tony reported that Shaw and Partners portfolio manager James Gerrish considered Credit Corp a risk-reward play attractively priced at about $18. Credit Corp shares screamed past that point today, up 11.2% to $20.35 apiece. Gerrish said: "On 13.7x FY23 earnings Credit Corp is still around fair value in Market Matter's view but… we can easily see ~30% upside…".

WiseTech Global Ltd (ASX: WTC)

The share price of this logistics software provider soared 10.38% to $57.86 today. There's been no news out of WiseTech this month except further notices regarding the founder and CEO's stock sell-down. Richard White offloaded $6.46 million worth of shares on-market between 28 October and 3 November. But this isn't new. White has been selling shares on-market since mid-2020.

The post 8 All Ords shares that soared 10% or more today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) surged to a five-month high on Friday following a ripper session on Wall Street. The index closed 2.79% higher at 7,158 points. That left it 3.85% higher week-on-week.

It followed a major rally in New York as the latest US inflation data drove the nation's markets sky-high. The US consumer price index lifted 0.4% in October and 7.7% over the prior 12 months, bolstering hopes the Federal Reserve might ease up on rate hikes.

The Dow Jones Industrial Average Index (DJX: .DJI) lifted 3.7% overnight while the S&P 500 Index (SP: .INX) gained 5.5% and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) rocketed 7.3%.

It likely comes as no surprise, therefore, that the S&P/ASX 20 Information Index (ASX: XIJ) led the Aussie bourse today, gaining 5%.

The S&P/ASX 200 Health Care Index (ASX:XHJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) were also bright sparks, lifting 3.6% and 3.7%, respectively.

Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) was the only sector to close in the red, falling 0.5%.

The S&P/ASX 200 Energy Index (ASX: XEJ) also underperformed, gaining just 0.7%.

But which ASX 200 share topped the lot on a day of massive gains? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was Megaport Ltd (ASX: MP1). The stock followed its home sector higher on Friday, lifting 13.6%.

The company dropped a non-price sensitive release yesterday evening, announcing its major shareholder, Mitsubishi UFJ Financial Group had upped its stake in the company by 1% to 12% last night.

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.