Regardless of whether you're a bull or a bear, consensus seems to be that more turbulence and volatility will rule ASX shares this year.

With consumers and businesses having less to spend due to steep interest rate rises, inflation still roaring and unemployment potentially rising, nothing is a certainty for any stock.

However, one industry that's favoured by many professional investors for its defensive qualities is insurance.

The idea is that insurance companies reap better returns from premiums because of higher interest rates, have pricing power that can combat inflation, and their supply expenses are relatively low.

If you subscribe to this theory, here are two ASX shares playing in the insurance ecosystem that could make excellent buys at the moment:

Revenue and earnings upgraded for the year

Although Johns Lyng Group Ltd (ASX: JLG) seems to be a favourite among analysts in recent times, the share price has still lost more than 23% over the past year.

"The company provides insurance building and restoration services in Australia and the US," Seneca Financial Solutions investment advisor Arthur Garipoli told The Bull.

He still has faith that the stock will come good.

"First half 2023 group sales revenue of $635.6 million was up 71.2% on the prior corresponding period," he said.

"Catastrophe work significantly contributed to group revenue."

Other business divisions also reported ahead of forecasts, boosting the share price over the past month in excess of 10%.

"The company has upgraded revenue and EBITDA for the full year."

Incredibly, the professional investing community unanimously agrees with Garipoli.

According to CMC Markets, Johns Lyng Group is rated as a strong buy by all 10 analysts currently covering the stock.

'A candidate for further upgrades going forward'

Garipoli's said that his other pick, Steadfast Group Ltd (ASX: SDF), provides insurance brokerage services and underwriting agencies.

Similar to Johns Lyng, the reporting season was fruitful for the company.

"Steadfast delivered a solid first half 2023 result. Underlying EBITA of $188.6 million was up 22% on the prior corresponding period," he said.

"Underlying net profit after tax and amortisation of $111.1 million was up 18.8%."

The market has been appreciative of Steadfast's potential in the current financial climate. The stock price has risen a tidy 23.3.% over the past 12 months.

Garipoli has high hopes of further gains.

"The company has the capacity to grow via acquisitions," he said.

"The premium rate cycle remains strong. Steadfast is a candidate for further upgrades going forward."

Garipoli's peers are much more divided on Steadfast compared to Johns Lyng.

Seven out of 12 analysts currently surveyed on CMC Markets rate Steadfast shares as a strong buy, but the other five think it's a hold.

The post 2 ASX 200 shares to rocket from same booming industry: expert appeared first on The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) is back in the green for the first time since Monday, helped along by these three shares. They've each posted notable gains today, driving their share prices to their highest points in more than a year.

Right now, the ASX 300 is 0.27% higher at 7,265.3 points.

Let's take a closer look at what might be boosting these ASX stocks to long-forgotten heights on Friday.

3 ASX 300 shares leaping to 52-week highs today

First up, the Super Retail Group Ltd (ASX: SUL) share price leapt 1.9% to peak at $13.75 earlier today – the highest it's been since late 2013.

Stock in the company behind retailers like Supercheap Auto and BCF has been on a roll since the release of its half-year earnings last week.

It posted a record half-year of sales, coming in at nearly $2 billion, while its profit for the period jumped 30% to $144 million.

The share price of fellow ASX 300 retailer Accent Group Ltd (ASX: AX1) is also in the green, roaring 10% to a new 52-week high of $2.36 on the release of its first-half earnings today.

The fashion and footwear retail group posted a 290% jump in profits for the half, reaching $58.3 million. That saw it boosting its interim dividend by 380% to 12 cents per share.

But "most pleasing", according to CEO Daniel Agostinelli, was the performance of the company's core brands, including Skechers, Platypus, Hype DC, The Athlete's Foot, Vans, and Dr Martens.

Finally, shares in ASX 300 insurance broker network Steadfast Group Ltd (ASX: SDF) popped 0.5% to an all-time high of $5.88 earlier today before slipping into the red.

Like Super Retail and Accent before it, the company is a recent reporter. It dropped its first-half earnings on Tuesday.

Within them, it reported a 27% jump in underlying revenue – reaching $662.8 million – and an 18.2% increase in underlying net profit after tax (NPAT).  

The post 3 ASX 300 shares soaring to new 52-week highs on Friday appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) plummeted in afternoon trade amid the release of the minutes from the Reserve Bank of Australia's (RBA) latest meeting. The index closed Tuesday's session 1.54% lower at 7,024.3 points.

Also likely driving the market lower were announced changes to the Bank of Japan's monetary policy. The central bank has decided to modify the conduct of yield curve control.

Meanwhile, the RBA revealed it considered both hiking rates by 0.5% and keeping them flat amid continuous inflation at its last meeting of 2022. Of course, it ultimately declared a 0.25% hike earlier this month.

The S&P/ASX 200 Energy Index (ASX: XEJ) outperformed for much of today following a strong night's trade for oil prices. However, by the end of Tuesday's trade, it had dropped 1.4%.

Coming in as today's top-performing sector was instead the S&P/ASX 200 Utilities Index (ASX: XUJ), which dropped 0.1%. The worst performer, meanwhile, was the S&P/ASX 200 Information Technology Index (ASX: XIJ). It fell 4.4%.

So, with all that in mind, which ASX 200 shares come in as today's top performers? Keep reading to find out.

Top 10 ASX 200 shares countdown

The index's biggest gains today were posted by shares in Steadfast Group Ltd (ASX: SDF). That was despite no news having been released by the insurance broker.

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.

Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part two of this edition, we're rejoined by Andrew Martin, principal of Alphinity Investment Management. The Alphinity Concentrated Australian Share Fund has delivered an annual return of 7.6% after fees over the past five years.

The Motley Fool: In part one of our interview yesterday we talked about some of your best calls in 2022. Do you have any regrets over the past year, things that with 20:20 hindsight you wish you had or maybe had not done in the investment markets?

Andrew Martin: We had some exposure to lithium through IGO Ltd (ASX: IGO). But in hindsight, I wish we had more exposure to lithium stocks. Our exposure has done incredibly well. And some of these stocks are so large now that if you don't have a position it can really hurt you. Where they go from now, is another question.

The other one would be, in hindsight, exposure to rising interest rates. I always thought they were going up, but they have gone up much faster and harder than the market expected.

So, a company like Computershare Limited (ASX: CPU), which has got real exposure to rising short-term rates, has done very well. We don't own that one. We find it a bit risky when it's just picking macro things like rates going up, we prefer it to be more operational focused. But with hindsight, we'd potentially take a position in something like that, given the exposure it gets to rising rates.

MF: You still hold IGO shares today. What's your outlook for this ASX 200 lithium stock?

AM: Lithium, as a commodity, is still doing very well. One of the reasons we were there is the markets were taking time to catch up with that story, as in what they expect the lithium price to be going forward.

It always tempers things a little bit when they've done so well. We can't have the same conviction we had six months ago, given how well they've all done.

The outlook for lithium is still positive, and hence we still have an exposure.

But, like everything, we don't want to buy companies just because they have exposure to lithium. We want more to the story. We like IGO as a business and their strategy.

MF: When we spoke back in September 2021, you stressed the importance of earnings and investing in quality, undervalued companies in an earnings upgrade cycle. Which ASX 200 shares fit that bill today?

AM: In this kind of market there are always those kinds of companies.

Qantas Airways Limited (ASX: QAN) is one of those. We've seen some really good earnings upgrades come through.

People have been grumbling about them, lost bags and delays and what have you. But the reality is that pricing is going up, there's very strong demand domestically and offshore. And there's just not a lot of capacity around. So they are able to generate very good profits, and very good cash flow which rapidly improves the quality of the balance sheet.

I think the ASX 200 banks are sitting in this space as well. In this reporting season, we're still seeing earnings upgrades for the banks. They have very strong balance sheets at the moment; great capital; great provisioning positions.

We prefer National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA). They are not the cheapest banks, but we think from a performance perspective they are doing better than the other banks.

And another one is Steadfast Group Ltd (ASX: SDF), an insurance broking business.

They're in a great market environment at the moment, where insurance premiums are going up. And they can be taking a commission and fee off the back of that. They're also buying up small stakes in broking businesses and building out their network. And they're in a very consistent upgrade cycle. It's a very strong quality business with a very strong quality management team as well.

**

Tune in tomorrow for part three of our interview with Andrew Martin. If you missed part one, just click here.

(You can find out more about Alphinity's Australian, Global, and Sustainable funds here.)

The post 4 quality, undervalued ASX 200 shares in an earnings upgrade cycle revealed: fund manager appeared first on The Motley Fool Australia.

For more than a decade, investors became rich from ASX growth shares — but all that changed almost overnight late last year.

As the very infectious Omicron variant of COVID-19 struck the world in November, share markets turned against growth, and haven't really looked back since.

In such an environment, The Motley Fool has certainly noticed a big change in attention towards dividend shares.

The logic among investors seems to be that if capital growth is so anaemic, you might as well grab some income to make up for it.

However, the team at Wilsons had a stark warning for dividend hunters.

"However, high yield stocks have proven to underperform the market on a long-term view," its recent memo to clients read.

"We therefore believe a dividend strategy cannot solely rely on high yielding stocks to be successful."

The checklist for quality ASX dividend shares

For Wilsons analysts, it's imperative to search for businesses that grow dividends over time. That might mean sacrificing some yield now.

"We think selecting a dividend strategy by its initial yield is a poor choice because the growth of the dividend over time ultimately determines the income payouts in future years."

Also, a high current dividend yield tells nothing about the business performance or its outlook.

"Therefore, we think it is also paramount to consider companies based on their competitive positioning and industry backdrop, their earnings quality, and their long-term growth outlook."

Considering this, the team screened the S&P/ASX 100 [XTO] (ASX: XTO) for businesses that met the following criteria:

• Financial year 2025 dividend yield greater than 2%
• Positive or flat three-year forecast dividend per share compound annual growth rate
• Balance between growth and yield
• Predictable earnings supported by "relatively defensive demand" through economic cycles
• Decent moat or industry outlook
• No iron ore miners, which Wilsons believes to be in structural decline 

Using this screen, the team came up with 22 ASX shares that are providing 2023 financial year yields above 3%:

• Westpac Banking Corp (ASX: WBC)
• Australia and New Zealand Banking Group Ltd (ASX: ANZ)
• Scentre Group (ASX: SCG)
• APA Group (ASX: APA)
• Insurance Australia Group Ltd (ASX: IAG)
• National Australia Bank Ltd (ASX: NAB)
• Ampol Ltd (ASX: ALD)
• Transurban Group (ASX: TCL)
• Telstra Corporation Ltd (ASX: TLS)
• Woodside Energy Group Ltd (ASX: WDS)
• Mineral Resources Limited (ASX: MIN)
• Wesfarmers Ltd (ASX: WES)
• Medibank Private Ltd (ASX: MPL)
• Macquarie Group Ltd (ASX: MQG)
• Domino's Pizza Enterprises Ltd (ASX: DMP)
• Charter Hall Group (ASX: CHC)
• Carsales.Com Ltd (ASX: CAR)
• Treasury Wine Estates Ltd (ASX: TWE)
• ALS Ltd (ASX: ALQ)
• Steadfast Group Ltd (ASX: SDF)
• Woolworths Group Ltd (ASX: WOW)
• Seek Limited (ASX: SEK)

"Overall, we think it is worth taking a holistic view of total return when considering a dividend strategy," read the memo. 

"Investors should adopt a total return approach when selecting stocks for their portfolios by thinking long-term and understanding that earnings growth will support long-term dividend income."

The post 22 high-yield ASX dividend shares Wilsons is targeting appeared first on The Motley Fool Australia.

The Steadfast Group Ltd (ASX: SDF) share price is in a trading halt today.

It comes after the insurance broker announced its acquisition of Insurance Brand Australia and a solid set of results for FY22 this morning.

There's a lot to unpack here, so let's dive into the latest developments on Steadfast.

What did the company report?

Steadfast reported a string of highlights for FY22. Here are the key results:

• Revenue rose 21.3% to $911.4 million compared to FY21
• Underlying earnings before interest, taxation and amortisation (EBITA) increased 29.5% to $340.4 million
• Net profit after tax (NPAT) lifted 20% to $171.6 million
• Declared a fully franked final dividend of 7.8 cents per share, up 11.4% from FY21
• Total full-year dividend of 13 cents per share, up 14% from FY21

Steadfast said EBITA growth was driven by a 16.2% contribution from acquisitions and organic growth of 13.1%. Organic growth was primarily due to increases in premiums and some volume uplift.

Across FY22, Steadfast completed $552 million of earnings per share (EPS) accretive acquisitions, based on its latest annual report.

The company's increased dividend for FY22 represents a dividend payout ratio of 75% of underlying NPAT. It will be paid on 9 September.

Acquisition of Insurance Brands Australia

Steadfast has also announced it will acquire Insurance Brands Australia (IBA) and its subsidiary companies.

IBA is one of Australia's largest privately owned insurance distribution businesses with a strong focus on the small to medium enterprises segment.

The total consideration for the acquisition is $301 million. This is comprised of an initial payment of $276 million and an earn-out payment of $25 million.

The initial payment is made up of both cash and scrip dividends.

The cash will be sourced from Steadfast's corporate debt facilities. Certain IBA management and employee shareholders will have the choice of opting for shares instead of cash dividends (scrip dividends). However, this is limited to a value of $56.1 million.

The earn-out payment is subject to achieving performance criteria in FY23 and any additional payment will be made in the first half of FY24.

Management expects this acquisition to be EPS accretive in the first full year.

The acquisition is expected to be completed by 23 August.

Further acquisitions ahead

Steadfast management continues to flex its roll-up strategy, identifying further Trapped Capital acquisition opportunities worth around $400 million.

The average EBITA multiple for these purchases is estimated at around 10 times.

Management expects to complete around $220 million of these acquisitions in FY23.

What did management say?

Steadfast Managing Director and CEO Robert Kelly said:

Our enduring business model, the skills and stability of our executive team, our prudent approach to acquisitions and the strong performance of our equity owned businesses resulted in a 26.2% increase in commission and fee revenue for FY22, improved margins and a 29.3% increase in underlying NPAT to $169.0 million for FY22.

More growth ahead for Steadfast

Management is guiding the following key financial targets for FY23.

• Underlying EBITA of between $400 million and $420 million
• Underlying NPAT of between $190 million and $202 million
• Underlying diluted EPS growth of 5% to 11%

Steadfast foresees price increases by strategic partners across the market to continue in FY3.

Steadfast share price snapshot

The Steadfast share price has performed quite well compared to the broader market recently.

In the last year, the Steadfast share price has risen 10% and 13% across the last six months.

The S&P/ASX 200 Index (ASX: XJO) has fallen by 5.6% in the past year and dropped 2.80% across the last half year.

Steadfast shares will remain in a trading halt at $5.39 apiece until market open on Friday 19 August or when the company's announcement is released to the market, whichever is earlier.

Foolish takeaway

I'd like to highlight Kelly's comment about management's prudent approach to acquisitions.

Future growth lies in Steadfast's ability to become a dominant player in the insurance broking industry. Steadfast is looking to devour its smaller competitors.

However, Steadfast appears to remain disciplined and selective in what it acquires. In such roll-up strategies, I believe an investor needs to focus on management's acquisition track record.

This requires a lot of groundwork as it involves understanding the value contributed by past acquired companies.

The post Steadfast share price halted following FY22 results and acquisition appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is back on track today after posting its first loss in more than a week on Wednesday. And some of its favourite constituents are taking advantage of its upwards momentum, posting their highest share prices in at least a year.

Right now, the ASX 200 is trading 0.3% higher.

Let's take a closer look at the 3 ASX giants surging to their highest point in 52 weeks today.

3 ASX 200 shares soaring to long-forgotten highs

Transurban Group (ASX: TCL)

Shares in ASX 200 toll road operator Transurban leapt to a new 20-month high today, trading at $14.93.

Interestingly, no news has been released by the infrastructure giant over the last six weeks. Though, fundies have tipped to stock as a major inflation beater.

The fees that make up the company's revenue are linked to Australia's inflation measure, meaning its profits rise alongside inflation.

Vicinity Centres (ASX: VCX)

ASX 200 real estate investment trust (REIT) Vicinity Centres has also seen its share price reach a 52-week high today. It lifted around 2% to reach $2.12 earlier this morning before slipping to trade slightly in the red.

That marks a new post-COVID high for the stock. The stock has outperformed the S&P/ASX 200 Real Estate Index (ASX: XJO) by a whopping 37% over the last 12 months.

Steadfast Group Ltd (ASX: SDF)

The final ASX 200 share trading at a new 52-week high on Thursday is Steadfast Group. In fact, the stock reached its highest point ever today – leaping to $5.50 in intraday trade.

Steadfast operates a general insurance broker network in Australia and New Zealand.

The market hasn't heard a word from the company since February.

Still, its share price has surged nearly 300% over the past five years to culminate in today's new record high.

The post 3 ASX 200 shares smashing new 52-week highs on Thursday appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended Monday's session in the red, weighed down by tech shares. At market close, the index was 0.02% lower at 6,789.9 points.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) dumped 1.5% following Friday's poor performance on Wall Street.

The tech-heavy NASDAQ Composite (NASDAQ: .IXIC) slumped 1.9% on Friday's session overseas while the S&P 500 (SP: .INX) fell 0.9% and the Dow Jones Industrial Average (DJX: .DJI) recorded an 0.4% slip.

Telecommunication and healthcare shares also suffered today, with their sectors slipping 1.2% and 1%, respectively.

Looking into the green, though, utilities and materials outperformed. The S&P/ASX 200 Materials Index (ASX: XMJ) lifted 1% following a slight uptick in base metal prices, as well as iron ore futures and gold futures.

All in all, four of the ASX 200's 11 sectors were recording gains at the closing bell.

So, which ASX 200 shares outperformed all others on Monday? Let's take a look.

Top 10 ASX 200 shares countdown

Today's top performing ASX 200 share was Insurance Australia Group Ltd (ASX: IAG). The stock bounced back from its recent lousy performance to post a 6% gain today. Find out more about what the insurer has been up to here.

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

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

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

Shares inside the S&P/ASX 200 Index (ASX: XJO) that offer an above-market average dividend yield tend to be popular among investors.

A high dividend yield is an enticing characteristic for any company, but a high yield can come and go in a flash. Ideally, we are looking for businesses that can reliably grow dividends in a sustainable trajectory. These are companies that have consistently increased their dividends per share year after year, after year, after year — you get the idea.

Sounds dreamy, doesn't it! Well, here are three ASX 200 shares that have been living up to the 'dividend beast' moniker by steadily increasing their dividends over the past five years.

ASX 200 dividend shares that keep on giving

Before we get into the thick of it, the criteria for an ASX 200 company to feature in this list is simple… but not easy. Crucially, annual dividends per share (DPS) paid to shareholders need to have increased each year for the past five years. If the DPS were flat or fell for a single year, it is scratched from consideration.

Steadfast Group Ltd (ASX: SDF)

Australiasia's largest general insurance broker network, Steadfast has lived up to its name over the last five years when it comes to dividend payments. Despite swinging into unprofitability for a short time during 2020, the company has navigated the financial waters to deliver a steadily growing annual dividend, as illustrated below.

Similarly, this ASX 200 share has provided investors with considerable capital appreciation over the years. Today, the Steadfast share price is 80.4% higher than where it was five years ago. For comparison, the benchmark index is only up ~24%.

Steadfast currently offers a dividend yield of 2.51%. This might seem low, but when accounting for the rate of growth in dividends, this company earns its spot as a bona fide dividend beast.

Cleanaway Waste Management Ltd (ASX: CWY)

This ASX 200 share is one of the dirtier companies on our list, but its dividend track record is anything but rubbish. Playing an integral role in waste management solutions, including recycling facilities, treatment plants, and refineries, Cleanaway has built an admirable business over the years.

While the rate of growth in dividends per share has slowed in the past couple of years, Cleanaway has still managed to consistently increase its payout to shareholders. Notably, earnings in the first half were suppressed by acquisition costs. However, the integration of Sydney Resource Network demonstrates the company's continued reinvestment for sustaining further potential dividend growth.

Once again, this is a company with a relatively low yield at 1.7%. However, a five-year dividend compound annual growth rate of 20% is impeccable.

Pro Medicus Limited (ASX: PME)

Lastly, this ASX 200 share comes with the smallest dividend yield. However, what it lacks in size it makes up for in growth. At a compound annual growth rate (CAGR) of 43% over five years, Pro Medicus is growing its dividends at a blistering pace (see chart below).

A company growing at a high clip rate while also offering a dividend is typically a peculiar sight. The reason behind this medical imaging company's unique combination of income and growth is its stellar profit margins. For the 12 months ending December 2021, Pro Medicus derived $37.98 million in earnings on a 47% margin.

For some, a yield of 0.4% may not cut it to be considered a 'dividend beast'. But, at the rate those dividends are growing, this is arguably a future dividend beast in the making.

The post Dividend beasts: 3 ASX 200 shares that have powered up their dividends over the past 5 years appeared first on The Motley Fool Australia.

Typically, WAM likes to hunt for businesses where a catalyst could drive the company's valuation higher.

One of the funds that it operates is the listed investment company (LIC) WAM Active Limited (ASX: WAA).

The idea behind WAM Active is to find market mispricing opportunities on the Australian market.

Since its inception in January 2008, this LIC has delivered a gross return of 11% per annum, that's before expenses, taxes and fees.

These are the two ASX shares outlined in the most recent WAM Active update:

Steadfast Group Ltd (ASX: SDF)

Wilson Asset Management described Steadfast Group as the largest general insurance broking network and group of underwriting agencies in Australasia, with growing operations in Asia and Europe.

Last month, the insurance ASX share announced its FY22 half-year result, which beat expectations, according to WAM. The fund manager noted that Steadfast's underlying net profit after tax (NPAT) grew by 26.4% to $76.3 million.

WAM explained that a positive environment for the pricing of commercial insurance policies and the successful integration of previous acquisitions contributed to the company beating forecasts. Explaining why Steadfast is in the WAM Active portfolio, the fund manager said:

We remain positive on the outlook for Steadfast Group and believe that a strong balance sheet can give the company the ability to continue to make earnings accretive acquisitions.

Uniti Group Ltd (ASX: UWL)

Wilson Asset Management said that this company is focused on the construction of core telecommunications infrastructure. It's also the owner and operator of fibre cable networks across Australia.

In February 2022, the company announced its FY22 half-year result, showing a 98.4% rise in revenue to $109.5 million and a 130.3% increase in operating cash flow to $65.4 million. Uniti's half-year earnings before interest, tax, depreciation and amortisation (EBITDA) grew 140.3% to $70.5 million.

WAM noted that the result was in line with market expectations, yet the report disappointed the market – the Uniti share price fell following the announcement.

The fund manager thinks that Uniti has the ability to make earnings accretive acquisitions because of its "strong" balance sheet. The ASX share also recently commenced an on-market share buyback.

WAM isn't the only investor that thought Uniti looked good value.

Uniti has entered into exclusive discussions with HRL Morrison & Co, a New Zealand asset manager. There is a non-bonding, conditional indicative proposal for an indicative price of $4.50 per share.

There is also speculation that Macquarie Group Ltd's (ASX: MQG) Vocus Group could be interested in making a bid for Uniti.

The post 2 ASX shares with compelling futures: fund manager appeared first on The Motley Fool Australia.

As we wave goodbye to summer and cap off another earnings season, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in March. Here is what the team came up with.

Tristan Harrison: Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price has fallen by around 47% since the start of 2022.

However, the company continues to grow. Its FY22 half-year result showed record revenue, with growth of 18% to $113.1 million. Active customers also rose 13% to 876,000. Meanwhile, annual revenue per active customer leapt 5% to $224. Returning customers also grew by 56%.

Adore Beauty's profit margin increased by 0.6 percentage points to 33.1%, showing increased profitability. And, the online retailer is investing for growth. Its 'owned marketing channels' are also helping with marketing costs.

UBS rates Adore Beauty as a buy and expects double-digit revenue growth over the medium term. The broker has a price target of $4.70 on Adore shares, more than 120% above yesterday's share price of $2.12 at the market close.

Motley Fool contributor Tristan Harrison does not own shares of Adore Beauty Group Ltd.

Sebastian Bowen: Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the oldest ASX 200 blue-chip shares on the market. It is the company behind iconic retailers Bunnings, OfficeWorks, and Kmart. It also owns and has investments in a slew of other diversified businesses.

Historically, Wesfarmers is an ASX share that doesn't seem to go through price corrections too often. Yet that is what we've seen in recent months. Since August last year, this conglomerate has lost close to 30% of its value.

This, in turn, has pushed the company's fully franked dividend yield to more than 3.5% on recent pricing. As such, Wesfarmers shares might well be worth a look at in March.

Motley Fool contributor Sebastian Bowen does not own shares of Wesfarmers Ltd.

Mitchell Lawler: Steadfast Group Ltd (ASX: SDF)

Steadfast is Australia's largest general insurance broker and underwriting agency network. In simple terms, that means it acts as the broker – not the insurer — selling insurance onto predominantly small-to-medium-sized enterprises.

This $4.59 billion company has had a slow start to the year, with Steadfast shares losing around 12%. However, the company provided solid numbers for the first half of FY22. These included underlying revenue increasing by 19% and net profit after tax (NPAT) surging by around 43% to $104.9 million.

In further positive news, Steadfast's full-year guidance was bumped up to between $163 million and $170 million.

Motley Fool contributor Mitchell Lawler does not own shares of Steadfast Group Ltd.

Bernd Struben: Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is an iconic nursery retailer with 64 stores across Australia. The company plans to open more outlets over the coming months, forecasting it will eventually have more than 100 in Australia.

The company's expansion into New Zealand has been delayed by the pandemic, with the first Kiwi store now expected to open in 2023.

Atop the potential from its ongoing store rollout, Baby Bunting's diverse product offerings arguably present a decent-sized moat for would-be competitors. The company recently reported strong half-year results, with revenues and profits both up.

Baby Bunting also pays a 2.9% dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares of Baby Bunting Group Ltd.

Aaron Teboneras: Bubs Australia Ltd (ASX: BUB)

According to Citi, the Bubs share price represents a significant buying opportunity at its current level.

The infant formula company released its 2022 financial year half-year results last Wednesday. Investors were clearly impressed, sending the Bubs share price almost 5% higher on the day.

In the release, Bubs management noted it continues to be the fastest-growing infant formula manufacturer across key retail chains. These include Chemist Warehouse, Coles Group Ltd (ASX: COL), and Woolworths Group Ltd (ASX: WOW).

Following the record financial performance, Citi analysts raised their 12-month price target for Bubs shares by 7.4% to 73 cents.

Based on the Bubs share price of 42.5 cents at Monday's close, this represents a potential upside of almost 70%.

Motley Fool contributor Aaron Teboneras does not own shares of Bubs Australia Ltd.

Zach Bristow: G8 Education Ltd (ASX: GEM)

The ASX has copped a hammering in 2022 – not G8 Education shares though.

Shares in G8 have thrust from a low of $1.04 in late January to close on Monday at $1.29 apiece, a gain of 24%. This also puts the G8 Education share price up by 14% for the year so far.

The company owns and operates childcare centres in Australia and Singapore. For the first half of FY22, operating revenue was up by 11% to $866 million, and net profit after tax (NPAT) was $46 million – up from a loss of $189 million last year.

EverBlu Capital is bullish on G8 Education shares and reckons valuations are attractive right now. The broker values G8 at $2.33 per share, suggesting a potential upside of around 80% at the time of writing.

Motley Fool contributor Zach Bristow does not own shares of G8 Education Ltd.

Brendon Lau: APM Human Services International Ltd (ASX: APM)

There appears to be significant upside to the APM share price following the company's strong first-half result and upgraded profit guidance, according to Goldman Sachs. Investors appeared to agree, sending the company's shares 11% higher when its results were released last Friday.

APM's guidance upgrade was driven by the company's recent acquisitions but Goldman believes the upgrade might be too conservative. The broker is recommending APM shares as a buy with a 12-month price target of $4 per share. Based on the APM share price of $2.90 at Monday's close, this represents a possible upside of almost 38%.

Motley Fool contributor Brendon Lau does not own shares in APM Human Services International Ltd.

James Mickleboro: Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price was a very strong performer in February, climbing by almost 15%. But it may not be too late to invest in this fashion jewellery retailer in March.

That's the view of the team at Morgans, which has put an add rating and $24.00 price target on the company's shares. Based on the Lovisa share price of $19.94 at Monday's close, this represents further potential upside of almost 20%.

Morgans was very impressed with Lovisa's performance during the first half and is confident this positive form will continue in the future. In fact, under the leadership of Lovisa's new CEO, Victor Herrero, the broker sees scope for Lovisa to become "a global force" and "one of the biggest success stories in Australian retail."

Motley Fool contributor James Mickleboro does not own shares of Lovisa Holdings Ltd.

The post Top ASX shares to buy in March 2022 appeared first on The Motley Fool Australia.

The ex-dividend date is an important point in time for an ASX 200 share, as the market reassesses the share price.

Buyers of a share on its ex-dividend date will not receive the company's next dividend payment. Because of this, investors usually prescribe a lower share price to the ASX share to reflect the absence of the dividend. Depending on the size of the payout, there can be drastic changes in what the market is willing to pay for shares.

Keeping that in mind, here are five S&P/ASX 200 Index (ASX: XJO) shares that have closed the curtains on their dividend payment today.

ASX 200 shares calling time for their next divvy

Fortescue Metals Group Limited (ASX: FMG)

Iron ore mining giant Fortescue Metals is getting plenty of unwanted attention on Monday as it goes ex-dividend. The mining company is set to pay a fully franked interim dividend of 86 cents per share on 30 March. The Fortescue share price has reacted to trading ex-dividend with a 5% fall this morning, before recovering somewhat. At the latest Fortescue share price of $18.14, the company is offering a dividend yield of 16.4%.

Worley Ltd (ASX: WOR)

Landing next on our list of ASX 200 shares going ex-dividend today is engineering services company Worley. Keeping pace with its recent trend dividend payments of 25 cents per share, Worley will be paying another 25 cents payment on 30 March. At the latest Worley share price of $11.86, the company is trading on a dividend yield of 4.2%.

Steadfast Group Ltd (ASX: SDF)

Steadfast is an ASX 200 share that won over investors last week after announcing record results in the FY22 first half. Exciting passive income seekers, the broker network operator increased its interim dividend to a record 5.2 cents per share. For reference, this represents an ~18% rise from the previous payment. At the latest Steadfast share price of $4.62, the has a dividend yield of 2.6%.

Aurizon Holdings Ltd (ASX: AZJ)

The share price of Australia's largest rail freight operator is running off the tracks on Monday as this ASX 200 share goes ex-dividend. Investors who snagged Aurizon shares prior to today can expect to receive 10.5 cents per share on 30 March. This is down 27% from the company's previous interim dividend of 14.4 cents. At the latest Aurizon share price of $3.51, the company is offering a hefty dividend yield of 7.1%.

Evolution Mining Ltd (ASX: EVN)

Finally, Evolution Mining is the one ASX 200 shares on this list that has avoided the red on its ex-dividend date. Shares in the gold mining company are currently up 1.4% from their previous close. Shareholders can expect a dividend on 25 March of 3 cents per share. At the latest Evolution Mining share price of $4.25, the miner is reflecting a dividend yield of 2.9%.

The post 5 ASX 200 shares trading ex-dividend today appeared first on The Motley Fool Australia.

The Steadfast Group Ltd (ASX: SDF) share price is triumphantly trekking to the upside on Wednesday.

This follows the release of the company's first-half results for FY22 after markets had closed yesterday afternoon.

Steadfast share price jumps following upgraded earnings

• Underlying revenue up 19% over the prior corresponding period to $520.9 million
• EBITA up 22.7% to $153.9 million
• Statutory net profit after tax (NPAT) up 42.9% to $104.9 million
• Diluted earnings per shares (EPS) up 20.5% to 8.41 cents per share
• Interim fully franked dividend of 5.2 cents per share, up 18.2%
• Gross written premium (GWP) of $5.2 billion during the half, up 15.6%

What else happened during the first half?

The six months ended 31 December 2021 was a cracking display from ASX-listed Steadfast Group, delivering both organic and acquisition growth.

During the six-month period, the broker network segment of the business added another acquisition to its name. In August last year, Steadfast swept up Australian insurance broker Coverforce for an enterprise value of $411.5 million.

The deal means the ASX-listed company has now captured 18 completed acquisitions as part of its 'Trapped Capital Project'. This acquisition success has been a key component in the growing Steadfast share price.

Furthermore, Steadfast's broker network is now 434 brokers strong. This includes 361 in Australia, 54 in New Zealand, and 19 across Singapore. Through these brokers, GWP was grown by 15.6% to $5.2 billion during the half. For reference, the company delivered outside of acquisitions, achieving 8.3% organic growth in GWP.

Meanwhile, the underwriting agencies part of the business also performed strongly with a 16.3% increase in GWP to $852 million. Additionally, the majority of this growth was organic, with 14.5% organic growth compared to 1.8% acquisition growth.

Steadfast's tech platform offering experienced strong uptake during the first half. The Steadfast client trading platform (SCTP) reached 19,201 active users, with $458 million in GWP transacted via the platform — an increase of 31.6%.

Notably, the majority of Australian and New Zealand brokers are now using SCTP.

What did management say?

Steadfast managing director and CEO, Robert Kelly commented:

Steadfast's business has grown strongly since listing on the ASX in 2013, and I am pleased to report Steadfast has again delivered a record financial and operating result for the six months to 31 December 2021. Our underlying earnings growth for the period was again driven by sustained organic growth in the Group's insurance broking and underwriting agencies and our prudent acquisition strategy.

Regarding the Coverforce acquisition, Kelly stated:

The Coverforce acquisition in late August and other network broker acquisitions, including those from our Trapped Capital Project, are performing in line with expectations. The cash conversion of earnings continues to be strong, with more than 100% of underlying NPATA converting into cash during the period.

What's next?

For the Steadfast share price, the good times are expected to keep on rolling, with its FY22 guidance being upgraded. As a result, underlying NPAT is now expected to be between $163 million and $170 million. Previously, Steadfast had guided between $159 million and $166 million.

However, the upgrade did come with a number of assumptions, including:

• Moderate premium price increases
• Organic growth exceeding original guidance
• No impacts from COVID-19

Finally, shareholders can expect to receive their Steadfast dividend on 23 March 2022.

Steadfast share price snapshot

Over the past year, the Steadfast share price has been a worthwhile investment. The broker network has managed to outperform the S&P/ASX 200 Index (ASX: XJO) with a return of 15% in the 12-month window. Although, the performance has been rockier so far in 2022, slipping 12.9%.

The post Trifecta: Steadfast (ASX:SDF) share price jumps 5% amid record results appeared first on The Motley Fool Australia.

Look, by now you know I'm something of a cricket tragic.

Well, proper cricket.

Don't get me started on Twenty20 – does anyone remember who won last week, last month or last year? Didn't think so! – but the longer forms of the game are my favourite of all sports.

Maybe it's long lost summer days in front of the box or the radio. Maybe it's that in summer at least, we can all follow the same sport, rather than being splintered into the different winter codes.

Or maybe it's just slow, careful indoctrination by Richie, Bill, Tony, Ian, Greg and Max on Channel 9, and the voice of summer, Jim Maxwell on the ABC for a few decades!

In any event, this morning is both an exciting time – the fifth Ashes Test starts today, as if you didn't know – and a bittersweet one: it's the fifth of five, so the summer of cricket is drawing to a premature close.

And look, if I can find an excuse to put cricket and investing together, you just know I'm going to take it, right?

So, at the suggestion of one of my Twitter followers, Tristan, I got the investing team to nominate an ASX Test XI – the 11 companies we'd pick, if we were putting together a Test team to take on the rest of the investing world.

Now, a few things.

As with cricket, the panel didn't agree on every position. And, as self-appointed Chairman of Selectors, I might have made some final calls (sorry, team!), but I tried to represent the views of the whole investment team in the selections.

Second, and again just like cricket, we've tried to pick players for positions. But remember, this is just a little fun, so don't get too caught up in the nitty gritty.

Next, we don't expect you to agree. Which is fantastic, because we'd love you to wander over to our Twitter, Facebook and Instagram pages to share your thoughts on who you'd pick and who you'd drop!

What I will tell you is that each company was nominated by at least one of the investing team (and more often, more than one) and they're all companies we think are long term market-beaters.

Not only do you get to have a little fun with this, but I hope you might get a few stock ideas, too!
And for what it's worth, this is a Test team that we think has long-term promise. We're 'pick-and-commit' selectors, aiming for a side that'll be together for a long time to come.

So, to the list:

To open the batting, we're looking for solid, reliable, sensible characters with great technique.

1. ARB Corporation Limited (ASX: ARB)
2. Dicker Data Ltd (ASX: DDR)

Now, at first drop, the player who can still take some shine off the ball if an early wicket falls, but is also capable of building a big innings.

3. Steadfast Group Ltd (ASX: SDF)

Then to the best batter in the side. Great average, classy stroke-making and always more likely than not of putting together a big score

4. Xero Limited (ASX: XRO)

Next one in should be a solid player, capable of accumulating runs, and hanging around to add meaningfully to the score while batting with the tail.

5. Macquarie Group Ltd (ASX: MQG)

The team's all-rounder is next in the batting order. Adds real value with both bat and ball. Quality teammate who brings diversification to the side

6. Betashares NASDAQ 100 ETF (ASX: NDQ)

Our 'keeper is a vital part of the side, playing a specialist role, but also adding runs, encouraging the bowlers and keeping morale high during long days in the field. Reliable as they come.

7. Wesfarmers Ltd (ASX: WES)

Then we're getting into the bowlers. First is the guy or girl who is a reliable line-and-length bowler, who can maybe add a couple of runs, or hold up an end to give the recognised batter a chance to do the same.

8. Brickworks Limited (ASX: BKW)

Then our mercurial spinner. More than a few tricks up the sleeve. Mercurial. Out and out match-winner… sometimes.

9. Catapult Group International Ltd (ASX: CAT)

Then the best bowler in the side. Wonderful line and length. Metronomic, but also takes wickets. Frustrates batters into mistakes. Best bowling average in the side

10. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Then the strike bowler. Takes three-for-none or bowls a brace of wides and goes wicketless. But you wouldn't be without them, especially in Test cricket over a long series.

11. Dubber Corp Ltd (ASX:DUB)

Well, that's our XI.

Given that there is usually more than one cricketer carrying the drinks, these days, we'll add in a near miss for the starting XI in Kogan.com (ASX: KGN), and then a couple who were unlucky to miss out, given the quality of the team: Nanosonics Ltd. (ASX: NAN) and Pinnacle Investment Management Group Ltd (ASX: PNI).

Perhaps, like Scotty Boland, some of those names are new to you. Hopefully, then, you'll have some new ideas to research. 

And if you flat out disagree, that's fine, too! Who do you think we should have included, instead?

Let us know on our socials. You can find us on Facebook, Instagram and Twitter!

And bring on the Test!

Fool on!

The post An ASX XI to take on the world appeared first on The Motley Fool Australia.

Businesses are regularly updating the market and conditions are changing. Add in that fact that share prices are changing as well and investors can get the chance to regularly find potential options in different areas.

The two businesses in this article are ones that are liked by multiple brokers:

Monash IVF Group Ltd (ASX: MVF)

Monash IVF describes itself as a leading provider of assisted reproductive services and specialist women's imaging and diagnostic services in Australia and Malaysia. It is a leading player in the development of new technology in the sector.

Over the last year the Monash IVF share price has risen by around 45%. However, brokers still think that the ASX share is an opportunity.

It's currently rated by at least three brokers, including Morgans, which has a price target of $1.09 on the business. That suggests the Monash IVF share price could rise by more than 15% over the next 12 months, if the broker is right.

Morgans reckons that Medicare data shows there's a good level of demand for reproductive services that could mean FY23 is promising.

On Morgans' numbers, Monash IVF is valued at 13x FY23's estimated earnings. It could pay a grossed-up dividend yield of 7.4%.

In FY21 the business generated revenue growth of 26.3% to $183.6 million, with Australian stimulated cycles up 36.6% (with Australian stimulated cycle growth of 36.6% and 0.6% market share growth). Ultrasound scan volumes increased 12.9% to 10,623 scans.

Monash IVF experienced rising profitability across the business. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37.1% to $47.7 million and adjusted net profit after tax (NPAT) went up 61.5% to $23.3 million – this beat the profit guidance of $21 million to $23 million. It also generated free cashflow of $32.8 million.

The ASX share itself said there has been a fundamental shift as a result of the pandemic, changing people to focus on family, health and wellbeing, with a re-direction towards family extension.

Steadfast Group Ltd (ASX: SDF)

Steadfast describes itself as the largest general insurance broking network and the largest underwriting agency group in Australasia. It provides services to broker businesses across Australia, New Zealand, Asia and London. The ASX share also operates as a co-owner and consolidator through its equity interests in a number of broker businesses, underwriting agencies and other businesses.

It also has a stake in unisonSteadfast, a global general insurance broker network with 264 brokers in 140 countries.

Steadfast is currently rated as a buy by at least three brokers, including Macquarie Group Ltd (ASX: MQG) which has a price target on the business of $5.30. Based on Macquarie's estimate, Steadfast is valued at 21x FY23's estimated earnings. It's expected to pay a grossed-up dividend yield of 4.1% for FY23.

The ASX share recently announced its FY21 result and also completed an acquisition.

It has bought Coverforce, one of the largest privately owned insurance brokers, which is predominately focused on the small and medium enterprise sector. The acquisition price was $411.5 million, funded with a capital raising. Management said this was expected to leverage the expertise and skills across both platforms, whilst also benefiting from increased scale.

In FY21, it generated revenue growth of 8.9% to $899.9 million, whilst underlying net profit surged 20.2% to $130.7 million. This allowed the business to grow its total dividend by 18.8% to 11.4 cents per share.

The post 2 ASX shares that are rated as buys by multiple brokers appeared first on The Motley Fool Australia.

Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Andrew Martin – principal portfolio manager of the Alphinity Australian Share Fund and Alphinity Concentrated Australian Share Fund – explains why earnings leadership is a key factor for any company making it into the funds.

MF: How would you describe your fund to a potential client?

AM: We invest in what we call earnings leadership. Those are companies that are performing better than the market expects from an earnings perspective. Companies that are getting consistent earnings upgrades.

We don't want to overpay for those upgrades. We care about value and we want to make sure that those upgrades are sustainable. So, we care about the quality of those upgrades.

Succinctly, we invest in quality, undervalued companies in an earnings upgrade cycle. You can find those kinds of stocks in any part of the market cycle. We're not style dependent.

Sometimes you'll find earnings leadership in the market in defensive stocks, sometimes it's cyclical, sometimes it's growth or value.

For us, it's always about the earnings.

What kind of market cap are you aiming for?

We tend to stick to S&P/ASX 300 Index (ASX: XKO) stocks for a number of reasons.

One, that's where our competence lies. There's this view that you can't get alpha out of larger-caps, but we disagree. We've done that for a long, long time.

Two, there's liquidity. We're of a scale where we want to ensure we can create alpha for our clients and get in and out of stocks when we need to.

Now, there are some exceptions.

An [initial public offering] IPO might come out that's outside the index which may be particularly compelling to look at. For example, we were one of the original investors in Life360 Inc (ASX: 360), a little tech company, through their IPO.

So, we'll take those opportunities when we see them. But it's at the margin of what we do.

Are you still invested in Life360?

We are; it's a great business. It's a smaller holding for us, but we think it's something quite different to what you can get elsewhere in Australia. And it has a fantastic management team, really executing well. Their potential is huge.

What triggers a buy signal for you on a potential ASX share?

We always start with earnings. Is this company in an earnings upgrade cycle? Is it more than likely to be in an upgrade cycle going forward? Has something changed around earnings is really the trigger.

We aren't a fund that will buy a cheap company and see if it turns around some time in the future. Our view is let's take all that guess work out. Earnings will tell us where things are going in this business. And once you get an earnings upgrade in a stock, you're more likely to get another one, which is again likely to be followed by another one.

So, a change in earnings direction, a change in earnings expectations, is a real trigger for us.

Value is rarely something that causes us to buy a stock. You have to have something that's going to be the catalyst as to why you want to invest in that value.

On the other side of the equation, what triggers a sell for a particular shareholding?

Once a stock starts to get earnings downgrades, typically you'll find the supporters of the stock say it's just a bump in the road, and it's all fine long-term. But, on average, that's actually not right. Something's actually changed in the business, and more than likely you're going to see more downgrades.

Value's not a great signal to buy a stock. But it's actually a decent signal to sell a stock. Particularly if you have some kind of earnings momentum in your process, you need ways of selling out before earnings turn. Because when they do turn, that's not a great time to be the last one in line.

If you see the quality of earnings change, that's a great sell signal. When management is stretching to make their earnings targets by doing interesting things on the balance sheet, that's a signal that those upgrades are not sustainable.

What ASX sectors look promising to you over the coming 12 months?

The sector level isn't what we concentrate on, more the individual stocks bottom up. But there do tend to be trends in the market that come through sectors.

One of the few sectors left getting earnings upgrades is insurance. It's traditionally quite a volatile sector, because you can get big hits every now and again. But they're experiencing some of the best conditions they've experienced since the early 2000s. A much better pricing environment coming through is helping grow the top line, and then you get this expansion in margin.

For a company like QBE Insurance Group Ltd (ASX: QBE), which has had some real issues in the last 10 years, this has come at just the right time for them because they've gotten to the point where they've really cleaned the business up and gotten rid of all of the bad business. And having that efficiency cost out program just at the point where you're now getting a much better pricing environment, you should be able to see that leverage come through the business in the next few years.

Closer to home, Suncorp Group Ltd (ASX: SUN) is a similar type of story. There's a bit of a turnaround happening that's just starting to bite. And it also gets a bit of benefit from COVID lockdowns. When fewer people drive their cars, fewer people crash. And when more people are at home, fewer houses get burgled.

If people don't like the risk you can get with some of the insurance companies, you can still get the benefit through an insurance broker.

Steadfast Group Ltd (ASX: SDF) is one we really like. Where you get the benefit of the pricing that's happening in the market but you don't have the risk of large claims from big events happening. They're brokers, so they sell insurance. But they're also rolling up smaller brokers into the big parent and then they give them the technology and the means to become much more efficient and then grow that way.

Are there other ASX shares you believe will potentially outperform?

We quite like Medibank Private Ltd (ASX: MPL). It's an insurance company, but health insurance, so a different kind of market. That's another business that's really been transforming itself since it listed. It's taken some really strong leadership in terms of sorting out a number of issues in the market around claims and what was happening in terms of healthcare costs going up materially. They've worked with the industry to try to contain pricing and therefore grow the industry.

Macquarie Group Ltd (ASX: MQG) is one we've held for a while and we think they're just getting better. It's an incredibly adaptable company to the market conditions, and they've reinvented themselves a number of times. The operating environment we're in is fantastic for them. And demand for their services is better than ever at the moment.

Knowing you're not very sector specific, are there still sectors you're likely to avoid over the coming months?

There are parts of the market that are really expensive, both at an absolute and historic relative sense, which is being largely pushed by low interest rates. And that's mainly in the high price-to-earnings (P/E), high growth part of the market.

In an environment where the pressure is more for interest rates to go up rather than down in the future, it makes it harder for that part of the market from a valuation perspective.

There are parts of tech that are getting upgrades and other parts are getting downgrades.

If you're getting situations where earnings are being downgraded at the same time, that would be tough. Think about the Appens [Appen Ltd (ASX: APX)] and Altiums [Altium Ltd (ASX: ALU)] of the world, that makes life harder for them.

So, we largely try to avoid those high P/E growth stocks where we can't find a positive earnings story at the same time.

If the market closed tomorrow for 5 years, which ASX share would you want to hold?

I think Macquarie is the perfect stock to own for the next 5 years. Ironically, if the ASX closed for the next 5 years, the demand for their services would probably go up.

A really interesting part of their business, which I think still isn't properly priced in the market, is their exposure to green energy. They're a developer, a manager, a funder, and an owner of green energy assets. And that area of the market is just getting bigger and bigger. Macquarie is right in the centre of being able to make money out of that [clean energy] transition.

What do you see as the biggest threat for ASX investors over the next year?

Probably the biggest one is interest rates and the yield curve.

We've been getting earnings upgrades in the Australian market. But when you delve into it it's been really narrow. It's mostly been resource companies, particularly iron ore, and banks. So, it looks like the market isn't that expensive because those sectors are a big part of the index, they've been getting upgrades. But if you strip those out the market begins to look a lot more expensive, and any rise in interest rates is going to be a big headwind.

The other potential big threat for Australian investors is the geopolitics around China. It hasn't had a major, direct impact on the market yet. But you can't rule that coming out of left field.

And what's the biggest opportunity for ASX investors over the next 12 months?

One is the reopening of the economy into next year. We've watched what's happening in the US and the UK and parts of Europe, and that's going to throw up a lot of opportunities and potentially growth surprises.

The other one is the freight train that is ESG [environmental, social and governance] and sustainable investing. The weight of money coming into that sector is enormous. That means money gets directed more and more to certain types of industry and investments and less to others. Boards and management start to pick this up and start to change their practices, and that also changes what works and what doesn't work.

Trying to take advantage of that presents a potential opportunity. Not just for the next year, but for the next 5 to 10 years.

***

(You can find out more about Alphinity's funds here: Our Funds – Alphinity)

The post The most important catalyst for outperforming ASX shares: fund manager appeared first on The Motley Fool Australia.

Today, the S&P/ASX 200 Index (ASX: XJO) experienced another red session. The benchmark index fell 0.94% to 7,511 points. A disappointing performance by financials and materials dragged the Aussie index lower.

The question is: which shares from the top 200 bucked the trend on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Steadfast Group Ltd (ASX: SDF) was the biggest gainer today. Shares in the insurance broker network increased 4.8% after successfully completing its institutional placement to raise funds for its latest acquisition. Find out more about Steadfast Group here.

The next best performing ASX share out of the top 200 today was Domain Holdings Australia Ltd (ASX: DHG). The real estate media and technology company's shares rose 4.7% to $4.89 following its FY21 results. Uncover the latest Domain Holdings details here.

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

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

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

Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is up 5% to $4.91 following the release of its full year results. For the 12 months ended 30 June, the property listings company reported a 66% increase in net profit to $37.9 million. The company also revealed that its unique digital audience increased to a record of more than 9 million during the year.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price has risen over 2.5% to $3.48. This morning the consumer and commercial finance company released a strong full year result. It revealed a 38.5% increase in its loan book to $601 million and a 76.6% jump in net profit after tax to $39.2 million. This allowed Money3 to increase its full year dividend to 10 cents per share. Management is positive on FY 2022 and expects growth beyond 20% in FY 2022. Strong demand for finance for used cars is underpinning its growth.

ResMed Inc. (ASX: RMD)

The ResMed share price is up 2.5% to $38.28. This follows the announcement of the launch of the sleep treatment company's new AirSense 11 device. It is a next-generation positive airway pressure (PAP) device designed to help hundreds of millions of people worldwide with sleep apnoea start and stay on therapy to treat and manage obstructive sleep apnoea. The device comes with new features such as Personal Therapy Assistant and Care Check-In.

Steadfast Group Ltd (ASX: SDF)

The Steadfast share price has risen 3.5% to $4.85. Investors have been buying the insurance broker's shares following the release of its full year results and the announcement of a major acquisition. In respect to the latter, the company is acquiring Australian privately owned insurance broker Coverforce for an enterprise value of $411.5 million.

The post Why Domain, Money3, ResMed, & Steadfast shares are charging higher appeared first on The Motley Fool Australia.

The Steadfast Group Ltd (ASX: SDF) share price has hit a record high today after the company emerged from a trading halt. This comes after the insurance broker released its full-year results and announced a major acquisition yesterday.

Today, however, the company revealed it has successfully completed an institutional placement.

At the time of writing, Steadfast shares are swapping hands for $4.86, up 3.62%.

Steadfast completes placement

Investors are excited about how the company is tracking along, pushing up the Steadfast share price in the process.

According to its latest release, Steadfast has successfully raised $200 million (before costs) through an institutional placement. The offer was significantly oversubscribed with support from both existing and new investors.

In total, roughly 44.3 million shares will be issued for a price at $4.51 apiece. This represents a 2.4% discount to the dividend-adjusted last closing price of $4.62 on 13 August, and a premium to the underwritten floor price of $4.35 per share.

Settlement of the shares is expected to take place on 19 August, with allotment the following day.

In addition, a Share Purchase Plan (SPP) is also being conducted to allow retail shareholders to participate in the offer. The issue price for the SPP will be equal to the lesser of $4.51 or a 1% discount to the volume-weighted average price over the five trading days ending on the closing date of 13 September.

The funds will be used to acquire Australian privately owned insurance broker Coverforce for an enterprise value of $411.5 million. This will comprise $200 million from the placement, along with the remaining amount of $217.8 million via vendor scripts.

Coverforce has a robust track record of solid earnings growth and high margins in its history. The acquisition gives Steadfast an opportunity to strengthen its position as the leading general insurance broker network in the Australasia region.

The acquisition is scheduled to be completed on Friday 20 August, 2021.

About the Steadfast share price

Over the past 12 months, the Steadfast share price has accelerated by more than 40%, with year-to-date gain of 20%. The shares have also been on a continued growth trajectory since the company's initial public offering (IPO) in 2013.

Based on today's price, Steadfast has a market capitalisation of around $4.24 billion, with 871 million shares outstanding.

The post Steadfast (ASX:SDF) share price pushes higher following placement appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 today:

Westpac Q3 update

The Westpac Banking Corp (ASX: WBC) share price is trading lower on Tuesday after the release of its third quarter update. Although the bank released an update that was largely in line with expectations, concerns over margin headwinds and higher expenses are weighing on its shares. Goldman Sachs commented: "…the fact management explicitly reiterated its 2H21 considerations in relation to NIMs and expenses, suggests that pressure on both these line items might be greater than what is currently reflected in consensus forecasts."

Breville shares lower on supply chain concerns

Breville Group Ltd (ASX: BRG) shares have come under pressure today after its strong profit growth was overshadowed by supply chain concerns. For the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. This was ahead of its upgraded guidance. However, this was offset by supply chain concerns, with management warning that "supply chain disruptions drove a restricted inventory position" at the end of June.

Magellan share price sinks after profit decline

The Magellan Financial Group Ltd (ASX: MFG) share price is sinking after the release of its full year results. This morning the fund manager revealed a 33% decline in net profit after tax to $265.2 million. This was despite its average funds under management (FUM) increasing 9% to $103.7 billion in FY 2021. Weaker performance fees weighed on its result.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Steadfast Group Ltd (ASX: SDF) share price with a 4% gain. Investors have responded positively to its results and the acquisition of insurance broker Coverforce. The worst performer on the ASX 200 has been the Magellan share price with a 9% decline.

The post ASX 200 midday update: Westpac update, Breville and Magellan sink appeared first on The Motley Fool Australia.