There's no doubt Nine Entertainment Co Holdings Limited (ASX: NEC) will be aiming to continue its recent run of growth into 2020 and beyond. After running hard on expansion and consolidation in 2019, the Nine Entertainment share price has risen more than 30% from the same time last year.

Nine won the coveted number 1 ratings network for the calendar year, a prize that has eluded it for 12 years. Combine this with other success stories across multiple platforms and you'll see why some brokers are urging a strong buy on Nine shares.  

The Nine share price is trading for $1.85 at the time of writing and offers a gross dividend yield of 7.72%. There are some good reasons to suggest that now might be the time to add Nine to your portfolio, or at least put it on your watchlist.

Programming wins

Despite losing the rights to broadcast cricket, Nine has filled its slate with a variety of programs that rated exceptionally well. You may not watch a lot of 'reality based' programming but a LOT of people do. Married at First Sight, Lego Masters, The Voice, Australian Ninja Warrior, and The Block were all major ratings winners in the golden 7.30pm time slot. Married at First Sight was the highest rating non-sports program for the year. We can expect to see most of these back on our screens in 2020.

Acquisition

Nine became the nation's largest media firm after the acquisition of Fairfax in 2018. There was no rest in 2019 as Nine picked up the Macquarie Radio network. This acquisition includes prized radio properties 2GB in Sydney, 3AW in Melbourne and Brisbane's 4BC.

Streaming on STAN 

At its recent AGM, Nine CEO Hugh Marks outlined STAN's success in gaining both subscribers and profit. When you consider the competition for subscribers in this market, STAN has done remarkably well. I shall be the first to admit I thought STAN might struggle against the big multinationals like Netflix, Amazon Prime and Disney Plus. For STAN, strategic programming and a healthy amount of Australian content, including exclusive commissions, has worked a treat.

Domain

Nine's online real estate catalogue hasn't had quite the year that other parts of the business have. This is likely because it follows the same cyclical nature of the wider real estate market. It follows that, as we see improvements in the housing market, Domain's fortunes will follow suit.

Foolish takeaway

Nine Entertainment is now an increasingly large, multi-platform media empire that operates in both the old and new media spaces. Recent acquisitions, combined with strategic management of the older media forms like the free-to-air tv stations, can deliver huge opportunities for cross promotional outcomes, partnerships and cost benefits via shared services for the various units.  The future is looking bright for Nine and I'd urge investors seeking media stock or diversity in their portfolio to take a closer look.

The post Have you got Nine Entertainment shares on your ASX watchlist? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 2 ASX shares tipped to grow 62% or more in the next 12 months

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you follow the travails of Australia's retail sector, you'll be fully aware that things are flat. The Australian Bureau of Statistics kindly provides a monthly summary that's worth adding to your investment research list.

Despite this, I still think there's great value to be found because there are some notable standouts in the sector that are swimming against the tide. If I was putting my retirement portfolio together today, JB Hi-Fi Limited (ASX: JBH) and Premier Investments Limited (ASX: PMV) would be at the top of my retail sector list.  

JB HI-FI 

JB Hi-Fi had an excellent FY19 and was one of the shining stars that reported full year results back in August. Sales and earnings were both up record levels, with overall sales up 3.5% ($7.1 billion) and net profit after tax growing a very healthy 7.1% ($249.8 million). 

The share price has lifted 65.55% over the past 52 weeks and JB Hi-Fi shares are currently trading for $37.95 at the time of writing. Investors can look forward to a fully franked dividend of 5.33%.

Online sales continue to steadily increase which presents a tremendous opportunity for JB Hi-Fi to build on what is now only 5.5% of total sales.

The retail sector is now firmly focusing on the pre-Christmas trade period. I suspect JB Hi-Fi will continue to do what it has done all year, which is kick goals via quality products, strategic pricing policies and excellent advertising campaigns.

Premier Investments 

Premier Investments had plenty to crow about at its recent full year results presentation. Notable high-end sleepwear designer Peter Alexander and children's stationer, Smiggle, were among the Premier Investment brands breaking sales records.

Overall group profit was up 11% on FY18 and like JB Hi-Fi, the company is making great strides online. Online sales account for 13.4% of overall sales, also a record on previous results. Investors looking for dividends would be pleased with the fully franked dividend yield of 5.25%.

Over the past 52 weeks the share price at increased 13% in value. Investors looking for clues to future growth can look to increased exposure to Europe via a deal with Amazon for distribution and continued organic growth in Asian markets for Smiggle. Additionally, there's no reason to suggest that online sales won't continue their upward trajectory.

Foolish takeaway

There's no denying some significant headwinds are bearing down on Australia's retail sector. Despite these market challenges, both JB HI-FI and Premier Investments have put forward a good argument to potential investors that these smart retailers are not only swimming against the tide but thriving.

With JB Hi-Fi currently trading for $37.95 and Premier Investments at $19.30, both are worth your consideration as a long-term investment.

The post Why JB Hi-Fi and Premier Investments are defying ASX retail sector trends appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: JB Hi-Fi, Xero, Northern Star Resources shares
• JB Hi-Fi vs Lovisa: Which beaten-down ASX retailer could rebound strongly?
• Buy, hold, sell: JB Hi-Fi, Sandfire Resources, Ramsay Health Care shares
• Harvey Norman vs Premier Investments: Which founder-led stock is the better buy in 2026?

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you've reached the point of peak frustration with the interest rates available on your term deposits, you may have decided to switch strategies and explore the Australian Stock Exchange.

If you're ready to take 100% control of your own destiny on the share market, why not kickstart your portfolio with 3 iconic, historically reliable Australian companies. I'm talking about Qantas Airways Limited (ASX: QAN), Telstra Corporation Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA).

Qantas Airways 

Buying Qantas shares today will cost you $7.20 and you'll get a healthy fully franked dividend at 5.00%. If you think Qantas might be for right for your starter portfolio, you'll need to consider the current environment and where any future growth may come from. Whilst business travel may stay relatively consistent, the holiday market can fluctuate and relies on disposable income.

At a recent Investor Day, Qantas announced future growth initiatives in the Asian market and a stable domestic market as key reasons to feel positive about the carrier heading into 2020.

Investors looking for green credentials should make a note of Qantas' ambitious target of net zero carbon emissions by 2050.

Telstra Corporation 

Telstra bounced back in 2019 after a relatively disappointing 2018. To highlight this point, Telstra shares have increased 21% in value over the past year. Looking forward, there are some great growth opportunities ahead with the roll out of the new 5G network. Last week, Telstra held a 5G launch in regional Victoria where tests revealed speeds up to 728Mbps – that's a whopping 7 times the current speed of the 4G network and a serious alternative to the NBN.

You can pick up some Telstra shares today for $3.73 and then look forward to a modest gross dividend yield of 3.86%. 

Commonwealth Bank 

The first thing you'll notice when you study CBA's fundamentals is a very attractive fully franked dividend yield of 7.79%. There's no way of knowing if that rate will hold going forward but whilst others have adjusted dividends downwards in recent years, the Commonwealth Bank dividend has remained steady.

Current investors would have been disappointed in the 4.7% drop in net profit for FY19 but signs that the housing market is re-energising itself could point to some improvements in the credit market as home buyers look for good mortgage deals. Ideally, the RBA won't drop interest rates any further.

You can purchase Commonwealth Bank shares today for $79.28. If you're still hesitant, I'd highlight that despite some challenges the share value has risen more than 13% over the past 12 months. How does that compare to the interest rates offered on your term deposits?

Foolish takeaway

If you're a "first -timer" managing your own share portfolio, you could do well to add all 3 of these shares. You'd get instant portfolio diversity and some historically stable Australian companies, with plenty of opportunities for future growth. Do your own research and read widely, and if you do decide to purchase one or all these shares, hang on to them for the long haul.

The post Kickstart your first ASX portfolio with these iconic Australian companies appeared first on The Motley Fool Australia.

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• Higher for longer: How to invest in a high-inflation Australia
• Why I'd buy Qantas and these cheap ASX shares
• Here are the top 10 ASX 200 shares today
• If I could only check my ASX portfolio once a year, these are the 10 shares I'd own
• 6 ASX shares experts are backing amid the market downturn

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Nearmap provides high resolution aerial imaging to range of customers and subscribers around the world. Many analysts have written and spoken about Nearmap's high growth story, which is highlighted by recommendations by my fellow Foolish contributors here. 

Potential investors will be hoping that they haven't missed the boat on Nearmap and would be looking for clues that point to continued growth.

So, where is that growth likely to come from?  

Nearmap provided some insight into future plans at its FY19 presentation back in August. Let's take a closer look. 

Global growth

Increasing Nearmap's global footprint is one of the keys to unlocking its enormous potential growth. According to Geobuiz, the global market for aerial imaging services was estimated to be $7.4 billion in 2018 with an anticipated market of $10.1 billion by 2020.

Nearmap has outlined several strategies to propel sales and subscriptions and gain its share of this predicted market growth. Several marketing strategies were outlined at the recent presentation including increasing sales and marketing investment in the North American market to accelerate growth.

In addition, Nearmap is undertaking to improve brand awareness with several targeted campaigns in the pipeline. Further, Nearmap intends to invest in automation and analytics to bolster upselling and identify new customers. Lastly, the company is committed to remaining vigilant for new global opportunities and evaluating its potential.

New and improving products

Keeping ahead of the technology curve and providing industry leading applications is another road to growth. Nearmap is looking to expand its rollout of the HyperCamera2, which can offer greater coverage and premium content.

Nearmap has touted several technological improvements in the pipeline – some will provide subscribers with more tools to analyse web-based images, whilst others will improve and accelerate 3D capabilities.

Happy customers

The key to running a successful business on a subscription model is satisfied customers. Subscription based industries like the arts, publishing and in this case, high resolution aerial photography, know that without high level customer support and engagement those "one year" subscriptions can very quickly become "one off" subscriptions.

Nearmap has managed to reduce churn to 5.3% in FY19. "Churn" is a way of measuring subscriptions not renewed offset by recovered or new subscriptions. The reduction in this figure highlights improving retention rates amongst existing subscribers.

Understanding the vital importance of customer retention, Nearmap had undertaken to deepen customer engagement going forward. Strategies have been built around greater investment in customer success and stronger engagement with key accounts. Nearmap will also use available technologies to harvest new customers and to assist in engaging with a large customer base and eventual customer retention.

The above strategies should provide potential Nearmap investors with plenty of food for thought. However, one aspect of Nearmap's business that I've always found impressive is the diversity of its customer base. The chart below highlights the different industry groups that Nearmap's customers belong to. It also highlights 6 industry sectors prime for Nearmap to unlock future growth.

If you're inclined to invest, the Nearmap share price is currently trading for $2.58. That price is 39% less than the 19 June record high of $4.23, and yet Nearmap can still boast a 46% increase in share value over 52 weeks. With the price currently at the lower end, it may be a good time to buy. 

The post Towards 2020: Nearmap's road to continued growth appeared first on The Motley Fool Australia.

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JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Ingenia Communities Group (ASX: INA) share price has climbed 31% higher so far in 2019 to close last Friday's trade at $3.92.

Ingenia is a real estate group that focuses on three core areas: selling and renting community accommodation, services for seniors and family friendly holiday parks.

Ingenia may have gone a little under the radar in this reporting season compared to some of the big names, but what you need to know is that this company has been kicking some significant goals.

Its full-year results were delivered on 20 August and current investors would have been pleased with Ingenia's overall performance. Here's why:

• Guidance was exceeded for the third consecutive year
• Record EBIT of $61.5 million – up 26% on FY18
• Underlying EPS of 21.0 cents – up 19% on FY18
• Revenue of $228.7 million – up 21% on FY18
• Operating cash flow of $59.3 million – up 26% on FY18

Despite a lacklustre real estate market, Ingenia is doing a terrific job of swimming against the tide. There's every reason to be optimistic about continued growth with 336 new homesites secured and 10 projects under development with two due for completion in FY20.

Potential investors should also note Ingenia's residential rental occupancy rate is at 91%, which indicates a certain level of desirability and demand for these properties. That number is potentially set to grow further through acquisitions and new developments that the company has in the pipeline.

Aside from the residential communities, Ingenia's holiday parks have bucked the trend in a softening tourism market. Holiday rental income was up 9%, driven by the acquisition of two key properties and additional holiday cabins at existing sites.

The Ingenia share price closed out last week at $3.92, and if you need any further reason to delve deeper, that's a 30.6% increase in share value over the past year. This is a quiet achiever to put on your watchlist and if you decide to jump in and invest, I'd hang on to them for the long term.

Foolish takeaway

Fellow writer Tristan Harrison was the last Fool to recommend Ingenia back in August 2018. Had we all listened to him, we could have invested when the share price was at $3.10.

At the time, he was rightly concerned that rising interest rates may have a negative impact on Ingenia's performance going forward. However, as the year has unfolded, we've seen interest rates go down, with some analysts believing that they may yet go even lower. Potentially, this may assist Ingenia in keeping those double-digit growth numbers rolling in.

The post What you need to know about this ASX 300 quiet achiever appeared first on The Motley Fool Australia.

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FlexiGroup Limited (ASX: FXL) and G8 Education Ltd (ASX: GEM) are 2 ASX 200 companies that might have caught the eye of investors looking for lower cost shares with upward movement last week, with the share prices of both companies rising more than 9% since last Monday.

Flexigroup and G8 Education's share prices now sit at $1.84 and $2.48, respectively (at the time of writing). Considering that buying one share in either of these companies will essentially only cost you a handful of pocket change, let's take a closer look at their recent performances.

Flexigroup

Flexigroup Limited is a financial services group offering consumer and commercial leasing, interest free finance products and no interest ever products. 

The group's FY19 results have been met with overwhelming positivity from the market. Customers are up 8% to 1.76 million, 5,000 additional retail partners have been added and NPAT is $76.1 million. Flexigroup's shares are currently trading at $1.84, which is a 28% increase in value since last Monday's opening.

Flexigroup also announced a suite of new products through its Buy Now Pay Later, Credit Cards and SME lending businesses. These new activities coupled with the top level marketing strategies conveyed at the presentation provided a real sense of momentum.

Investors looking for dividends should also note Flexigroup's 5.9% gross dividend yield.

G8 Education

G8 Education is the nation's largest for-profit childcare service with additional operations in Singapore. 

G8 Education's recently announced half-year results were a mixed bag. NPAT was down 20% and licensing delays impacted the opening of several new centres. Perhaps the most concerning aspect of the announcement was the lower occupancy rate at 71% across all centres. This reduction in occupancy rates may have also had an impact on the underperformance of a number recently opened large format centres.

On the positive side, the company confirmed its strategic growth program is on track, listing a number of activities and achievements including:

• Centre turnaround focus group established and on track to complete 25 turnarounds in CY19, encompassing team, assets and curriculum
• Rollout of pilot labour scheduling and rostering system set for January 2020, with benefits from CY20 H2
• Committed CY19 centre pipeline, with 17 greenfield centres and 2 brownfield centres.

Investors responded to the announcement by selling off G8 shares, but by mid-last week we saw a rebound of sorts with a 9% increase in share value. This could be an indication that the immediate response to the company position has settled. Investors may again be contemplating a more long-term view of G8 Education.

Shares have dropped around 2% in today's trade and are currently priced at $2.48 per share, with a fully franked gross dividend yield of 7.59%. This price is still a distance away from February's 52-week high of $3.63. The current lower price might interest some potential investors; however, others might take a wait-and-see approach and monitor how G8 Education responds to the challenges ahead.

Foolish takeaway

Flexigroup and G8 Education are great examples of how you can invest in solid companies with a modest initial outlay. Just a few hundred dollars will get you decent sized parcel of shares and then you're on your way to setting up your dream retirement.

The post 2 low cost ASX 200 shares that made big moves last week appeared first on The Motley Fool Australia.

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• IDP Education vs G8 Education: Which battered ASX stock could rebound?

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has recommended FlexiGroup Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Marketwatch.com has delivered its latest "Strong Buy" recommendations and Smartgroup Corporation (ASX: SIQ) and Seven Group Holdings (ASX: SVW) are two picks that I think are worthy of closer investigation.

Smartgroup

Smartgroup provides a range of administrative services including salary packaging and payroll administration as well as fleet management services. Smartgroup derives most of its revenue from large state and federal government contracts. 

An overwhelmingly positive investor presentation on 19 August has encouraged brokers sit up and take notice. It's no wonder, revenue, earnings and dividends are all up in 1H CY2019. Specifically, revenue is up 3%, profit after tax is up 5% and the fully franked dividend is up 5%. 

If you're wondering where further growth can be derived, Smartgroup believes that organic growth will continue across salary packaging services and novated leasing. New partnerships have been launched and several are in the pipeline including the online mortgage health checker, Loandolphin. 

Smartgroup is currently trading for $11.21 per share and has a gross dividend yield of 5.59%.

Seven Group Holdings

Seven Group Holdings is best known for its 41% stake in Seven West Media (ASX: SVM) but it also has significant investments in industrial services and oil and gas.

At the recent announcement of full year results, Group CEO and Managing Director, Ryan Stokes, had plenty to say that should fill investors and potential investors with a degree of confidence. Some highlights of Stokes' presentation are listed below:

• Group underlying EBIT of $695 million for the year, up 40 per cent on FY18
• Revenue was up 27 per cent to $4.1 billion
• Operating cash flow of $411 million was up 62 per cent on the prior year
• A final fully franked ordinary dividend of 21 cents per share.

It would be of some concern that Seven West Media's earnings toward Group EBIT was down 13% on the previous year. However, with the AFL finals series about to kick off, potential investors can hope for a strong finish to the calendar year. In 2018, the AFL Grand Final was the most watched sporting event in the country, according to AdNews. Insiders and advertisers will be hoping for a repeat performance this year.

Seven Group Holdings is currently trading at $16.16, and the aggregated broker opinions over at  martketwatch.com see it as a "Strong Buy".

Foolish takeaway

Smartgroup and Seven Group Holdings are great companies with lots of upside. Brokers have a wide knowledge base and when they herd together in agreement, we should take note. However, as I always say, take some time to scan the range of opinions on offer and read widely. Ask yourself how these shares would fit in with your overall investment strategy, and go from there.

The post Why top brokers are backing these 2 ASX 200 shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you're a new investor, Premier Investments Limited (ASX: PMV) is a company that you might not have heard of. Peek behind the name and you'll find a treasure trove of famous and successful Australian retail brands, including women's fashion outlets like Portman's, Dotti and Jaqui E. There's also unisex fashion staples like Just Jeans and Jay Jays.  These brands will be familiar to most people who frequent most major shopping hubs around the country.

In addition, there are two more stars of the group including sleepwear designer Peter Alexander and the potential superstar children's stationery supplier, Smiggle.

Peter Alexander

Peter Alexander is one of the great success stories of the Australian fashion industry. The popularity of the highly sought-after range of high-end sleepwear has endured for more than 30 years and is highlighted by the existence of over 100 outlets in Australia and New Zealand.

At the most recent investor presentation in March, the Peter Alexander brand had achieved record 1H19 sales up 14.1% to $130.4 million. New stores are opening or in the pipeline and online sales were performing beyond expectations.

Smiggle

It's difficult to convey just how beautifully designed and built for purpose the Smiggle outlets are. The shops are small, but as you enter, you'll be greeted by an explosion of colour. Inside, you'll find every nook and cranny packed with beautifully designed and presented stationery. On its website, Smiggle suggests that you "come on in, experiment, explore, poke, prod and play, because a visit to our stores is just like a hug from your best friend. Where a smile meets a giggle, it's the world's greatest place."

It's easy to see why kids are so drawn to the Smiggle brand and as investors, we can see the global potential that it exudes. To highlight this, Smiggle announced it had opened 10 new stand-alone or concession stores in the 1H FY19 throughout South East Asia, the UK and Australia. The Asian component is a standout as sales have grown a remarkable 112% in just two years.

The chart below illustrates Smiggle's overall sales trajectory since 2009.

Like Peter Alexander, Smiggle is kicking goals online with online revenue margins higher than the brand average. A major deal with Amazon to distribute to the European market in the 2H FY19 will expose the brand to a market of 250 million people and significant plans are underway to take Smiggle to the world. Additionally, costs appear tightly managed with unprofitable stores closed and better locations and rental agreements sought.

Foolish takeaway

Like the rest of the ASX, the Premier Investments share price has ridden the roller coaster of the past few weeks. The share price opened today at $14.62, which is 24% lower than the record high at the same time last year. Despite this, and even considering Australia's static retail sales data, there are signs of short to medium term growth. And investors can also look forward to a grossed-up dividend yield of 6.31%.

Ideally, Premier Investments is one for the long-term investment portfolio and today's price might be the right time to get on board. Conservative investors may choose to wait and see. At the very least, it's one for the watch list.

The post This ASX 200 retail growth stock is a gem for beginner investors appeared first on The Motley Fool Australia.

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors in Graincorp Ltd (ASX: GNC) or Bega Cheese Limited (ASX: BGA) might have started the week with a smile, after news dropped on Monday that the food and grocery manufacturing sector is booming in northern Victoria.

Given this is a location both companies call home, will the news result in an uptick in the Graincorp and Bega share prices? Let's take a closer look at the region and the recent performance of both companies.

What's the news out of regional Victoria?

The Australian Food and Grocery Council has released research showing that food and grocery manufacturing in northern Victoria is positively booming. Not only does this translate to thousands of jobs on the ground, but also a $9.2 billion contribution to the economy and $1.76 billion in exports from this region alone. 

Along with Graincorp and Bega, the region plays host to a range of food manufacturers including multi-nationals like Unilever and Nestlé, right down to small family-owned businesses. The Australian Food and Grocery Council CEO, Tanya Barden, said "as the population continues to increase in Northern Victoria, food and grocery manufacturing will continue to provide important jobs growth and investment in the region."

Spotlight on Graincorp

Graincorp announced last week that it expected an underlying net loss after tax in the range of $70–90 million. The ongoing drought in key parts of Australia, disruptions in the global grain market and another predicted below average production year in 2019–2020 highlight Graincorp's current predicament.

Historically, Graincorp has had positive year-on-year earnings and continues to pay out a modest fully franked dividend at 2.81% yield. In this context, now might be the time to write this year off as an outlier and look at buying the usually reliable Graincorp at a lower price. Graincorp is currently trading for $8.02 at the time of writing.

Spotlight on Bega Cheese

Bega Cheese has long been one of my favourite Australian companies. It's got great products, great promotions and it was Bega that brought Vegemite back under Australian ownership in 2017. But it hasn't been a great year for Bega. The company share price is down 46% over the past 12 months and it has underperformed against both its sector (-52.6%) and its stablemates in the ASX 200 (-50%) over the same time period.

Like Graincorp, some of Bega's troubles lie in the ongoing drought conditions in some parts of Australia. Additionally, Bega announced last week that the predicted earnings before interest, tax, depreciation and amortisation (EBITDA) stated at the 1H FY19 update would be adjusted down to between $113–$117 million from $123–$130 million. There were also several positives to come out of the announcement including a significant 41% increase on milk intake from FY18 and an increase in market share from 8.1% to 12.4% of the Australian milk pool.

Bega shares opened this morning at $3.98 which reflects a 10% drop in value since the August 2 market update, and are now trading up slightly at $4.03. The current price is also sitting around the lowest it has been since 2013, and it may stay on the lower side while management navigate a difficult period. I'd put Bega on my watch list and seriously consider purchasing shares at the current price. You may have to hang on to them longer to reap the benefits, but in the meantime, there's a solid 3.95% gross dividend yield and good businesses like Bega are resilient and bounce back.

Foolish takeaway

The new research out of the Food and Grocery Council won't change the world for GrainCorp or Bega, but a return to more favourable weather conditions certainly will. What the research does show is that both have footprints right in the thick of a booming food and grocery manufacturing region and can take advantage of hub-style supply and distribution networks. Industry clusters are also good for potential cooperation in research and local vocational education. The upside of combining these factors is that they can increase productivity and add value over the long term.

The post Will the Graincorp and Bega share prices rise on news of regional boom? appeared first on The Motley Fool Australia.

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A lot happened on the ASX last week. The early part of last week saw the ASX heading swiftly downwards. By mid week the Australian index had commenced somewhat of a U-turn.

Here we are at the beginning of a new week and picking through the residual effects and prices at this morning's open, there are plenty of bargains in the under $5 dollar share price range.

Reliance Corporation Worldwide Limited (ASX: RWC)

Reliance Corporation Worldwide designs, manufactures and provides water flow and control solutions, also known as specific plumbing supplies, to the residential, commercial and industrial markets globally.

At first glance, it's been a poor year with the share price down 45% from the same time last year. Reliance contends that the lack of modest "freeze events" in the northern hemisphere, coupled with a decline in new home constructions in Australia, have placed some hurdles in the way of growth.

Those "freeze events" keep Reliance busy replacing cracked pipes. With the northern hemisphere winter only a few months away there's every chance those unique products will be back in high demand.

Despite the hurdles mentioned above, Reliance outlined several positives in a recent announcement. There's plenty of growth potential in both brass and plastic fittings technologies and the company remains a market leader across multiple product categories.

I'm optimistic about RWC with the share price currently sitting at $3.36 and a gross dividend yield at 3.12%. I'd have a very serious think about adding them to my portfolio as a long-term investment.

Nufarm Limited (ASX: NUF)

Nufarm is a global company that manufactures and distributes chemical products and specialist seeds to the agricultural industry.

Current investors will be disappointed in a 37% loss in share value over the past twelve months, which also includes the lowest share price since 2014. Since that low of $3.94 in May we have seen a rebound of almost 20% to be trading today at $4.64.

The share performance over the past twelve months can be attributed to ongoing drought conditions in large parts of Australia and supply issues to key parts of the European market. Despite this, the aggregated broker opinion at Marketwatch.com.au is that Nufarm is a "strong buy".

This optimism could be driven by an anticipated strong demand for products in the upcoming Latin American season. Nufarm also states that "[o]ur Seed Technologies business has continued to see strong demand and we expect this to continue into FY20, with additional upside if weather conditions in Australia revert to more normal patterns."

Foolish takeaway

If you're looking to buy cheaper shares, then I'd consider Reliance Corporation Worldwide and Nufarm as longer term investments. Coincidentally, both companies are reliant on favourable weather conditions and we should remind ourselves than no-one can control the weather. Take that on board as another piece of the puzzle as you make your own investment decisions.

The post Bargain hunter's paradise: 2 ASX shares under $5 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 3 ASX shares given buy ratings this week offering 20% to 40% upside
• 2 ASX shares UBS says could increase 13% to 37%

JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

MarketIndex.com.au has again released its latest aggregation of broker opinion on the ASX's best buys. Glancing down the list, I'd like to highlight three of their "strong buy" suggestions in the consumer discretionary sector.

Webjet Limited (ASX: WEB)

The online travel service has been in the "strong buy" category since March. At that time you could have picked up shares for $14.84. Today, Webjet is trading for $13.16, up 2.25% on yesterday's close. With analysts confident in Webjet's expansion plans into accommodation services and organic growth, now might be the time to pick up Webjet shares at a good price.

Aristocrat Leisure Limited (ASX: ALL)

There's no doubt about it, Australians love to gamble and according to the Victorian Responsible Gambling Foundation we spent 23.5 billion dollars having a punt in 2015–2016. Aristocrat Leisure has been reaping the benefits, with a suite of online and offline gambling platforms and systems and a global market. It's no surprise to see brokers herding towards it.

Despite the announcement of legal proceedings in an intellectual property matter against Ainsworth Game Technology Limited (ASX: AGI) in early July, the Aristocrat share price has continued a gentle upward trajectory. The wider market dip earlier this week has brought the share price back to $29.79 at the time of writing. Adding to the appeal, Aristocrat has a recent history of incrementally growing dividends to a fully franked 49 cents a share in the most recent full year results.

Corporate Travel Management Limited (ASX: CTD)

Corporate Travel is one of the recent shooting stars of the ASX, growing exponentially and quickly in share value. The full service business travel company has grown steadily through acquisition and the careful building of a highly recognisable corporate brand. These strategies have clearly had market appeal judging by the growth in share price Corporate Travel has experienced in a relatively short period of time.

Brokers allocating this to the "strong buy" category are perhaps sensing the momentum for further growth. Investors who might agree with the broker consensus on Corporate Travel can buy shares today at $21.46 (at time of writing). Dividend payouts have been consistently growing since 2013 and in the last full year you would have received a gross fully franked dividend of 46.9 cents a share.

Foolish takeaway

It's interesting to see where brokers agree, but it doesn't always mean they get it 100% right. Like all of us they're assessing a range of information but they're also using advanced analytical tools available to them. Ultimately, it's up to individual investors as to how much weight of opinion they apply to aggregated reports.

The post Brokers send strong buy message on these ASX consumables appeared first on The Motley Fool Australia.

More reading

• Analysts tip these ASX shares to return 20% to 50%
• IATA releases $65m security guarantee for Corporate Travel Management
• 3 ASX shares tipped by brokers to return 41% to 85% in the next 12 months
• The Lottery Corporation vs Aristocrat Leisure: ASX shares compared
• Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of us dedicate a healthy percentage of our portfolios to defensive shares. These shares ideally provide a buffer against economic downturns. Defensive shares typically represent products and services we might regard as "life's necessities", such as food and electricity.

Given the events on the ASX this week I thought it was a good time to test the theory and see if the "buffer" has come into play by looking at 2 ASX defensive shares over the past few days.  

Coles and Woolies

Coles Group Limited (ASX: COL) and Woolworths Group Limited (ASX: WOW) shares are regularly touted as "must-have" defensive shares for a balanced portfolio. They can be categorized as "defensive" because even during economic uncertainty they can still rely on a consistent supply of customers. Both companies belong to the S&P/ASX 200 Consumer Staples index (ASX: XSJ) which dropped a total of 3.82% in value on Monday and Tuesday. By comparison, the Coles share value dropped 3.42% and Woolworths shares slid by 2.96%.

Both companies outperformed the average losses of their industry stablemates, but what if we raise the bar and compare their performance against the S&P/ASX 50 (ASX: XFL) which lowered by 4.14% over the same time period. Once again both Coles and Woolworths did better than the index average. We can put Woolworths under one final examination against the S&P/ASX 20 (ASX: XTL) which lost 4% of its value. Again, Woolworths' 2.96% outshone the average.

No-one likes to see a drop in the value of a carefully put-together portfolio. If you own Coles or Woolworths shares you might not be smiling but you did get your "buffer". They performed exactly the way defensive shares should work by avoiding the worst of a downturn. It may seem like these are relatively small differences in percentage points, but just 1% can represent millions in overall company value.

The better news is, both Coles and Woolworths rallied on Wednesday with the Coles share price up 1.33% on the day's trade and Woolworths up 2.28%.

Foolish takeaway

If you're feeling motivated to load up your portfolio with more defensive shares, then either Coles or Woolworths might be a good place to start. Coles shares closed this afternoon at $13.61 per share, 16% higher year-to-date, while Woolworths closed near its 52-week high at $35.50 with the bonus of a fully franked gross dividend of $1.36 per share.

No-one can say with absolute certainty what will happen to the Australian economy in the short term. You can, however, reduce your portfolio exposure to risk with a sound defensive strategy.

The post Are your defensive shares doing their job? appeared first on The Motley Fool Australia.

More reading

• Higher for longer: How to invest in a high-inflation Australia
• If I could only check my ASX portfolio once a year, these are the 10 shares I'd own
• APA Group, QBE Insurance, Woolworths shares reach 52-week highs: Is there any upside left?
• I looked for ASX shares that could double their dividends by 2036. Here's what I found
• Plan on retiring early? I've found 5 dividend stocks that have what it takes to pay you for life

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The global pharmaceutical industry is huge, and it's growing. According to the Business Research Company, the global market is growing at 5.8% per year and will be worth US$1.171 billion by 2021. You might be familiar with the American mega corporation, Pfizer Inc., or Novartis AG, which trades on the Swiss exchange. Our local pharmaceutical industry is small in comparison to some of these overseas giants, but Australia has its own success stories.

If you're sticking with the ASX for your investments, where should you look to diversify into this sector?

Introducing Clinuvel Pharmaceuticals Limited (ASX: CUV)

Clinuvel has a reasonably narrow focus, in that it predominantly develops and markets pharmaceuticals for serious and rare skin disorders. Clinuvel is known for developing the compound SCENESSE, and if you're keen on taking a deep dive into the science you can read more about what it does here.  The company also has operations in Switzerland, the USA and Singapore.

The current environment

Back in June, Clinuvel was upgraded into the S&P/ASX 200 (INDEXASX: XJO) index. This index has taken a hit since Monday's open and Clinuvel's share price has not been immune to the sell off, closing yesterday at $27.09 – a 12.2% decline over the last two days. 

The key for new investors to remember is that, if you're like me, you're playing a long game. In April and early June of this year, Clinuvel experienced similar dips in share price only to achieve a record high price of $38.95 at the end of June. I highlight this point to show how quickly things can turn around. There will always be ups and downs on the sharemarket to varying degrees. I look to invest in well-run companies with great products that can roll with the punches in down times but at the same time demonstrate a history of steady and consistent growth.

Should I buy, or wait?

Despite the storm clouds over the ASX, I still think Clinuvel is worth further investigation. While the share price has lifted slightly today to $27.40, the temptation is there to wait and see if the price drops any further before purchasing. On a related note, the company's price-to-earning (P/E) ratio is quite high, leading some analysts to believe the share price is potentially overvalued. Others will see that as an indicator of anticipated higher earnings.

Setting aside the events on the ASX this week, Clinuvel's share price has grown a very impressive 104% over the past 52 weeks. Potential investors should note that the United States Food and Drug Administration is due to complete its review of SCENESSE in October. If successful, we could see significant future growth via the US market. In another recent announcement we learned that Clinuvel's European cash receipts were up significantly (121%) for the quarter due to unit orders of SCENESSE. A further factor to consider is that there is a "seasonal" aspect to Clinuvel's cash flow. Product demand can be significantly higher in the summer months, which can lead to vastly different revenue outcomes quarter to quarter.

Through my own research I came across Clinuvel's Instagram page, which serves to educate and enlighten followers in the hard science of its business in an approachable and easy to understand way. Potential investors may be well served by using this as a starting point for further investigation. Clinuvel is a complicated scientific enterprise with a lot of potential to grow over the long term. I think it's worth putting it on your "watch list" at the very least.

The post Is the Clinuvel share price in the buy zone? appeared first on The Motley Fool Australia.

More reading

• 6 ASX stocks receiving analyst downgrades this week
• Buy, hold, sell: Sigma, Cliunvel, and NextDC shares
• Telix vs Clinuvel Pharmaceuticals: Which ASX healthcare share deserves your next $1,000 of investment capital?

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's not often the government hands back a reasonable chunk of cash to taxpayers, but this tax season Australians earning between $60,000 and $90,000 will have received $1,080 as part of the federal government's low and middle income tax offset. If that applies to you, you might be asking yourself whether it's time to dip your toe into the sharemarket.

Should I buy shares?

While $1,080 doesn't sound like a lot of money, it can get you started on the road to investing in some great companies. Take Qantas Airways Limited (ASX: QAN). Your tax rebate minus a $10 trading fee will get you about 186 shares in Qantas, based on the current price of $5.745 (at time of writing).

According to Marketindex.com.au, Qantas has more than 93 thousand shareholders, and about 44% of them own less than 1000 shares. Everybody has to start somewhere. Qantas also pays out a yearly dividend and your small stake will net you about $57, fully franked. If that still doesn't sound like much, try finding a term deposit that equals it over 12 months. With your Qantas shares you're already winning.

So, now that I've convinced you to start small and reach for the stars, here are a couple of starter suggestions for you to consider.

Westpac Banking Corporation (ASX: WBC)

Why not dive straight in with a blue-chip share like Westpac? It's one of Australia biggest banks with an attractive dividend and share price at $28.92. The current gross dividend yield sits at 9.35%. Some analysts suggest that an uncertain real estate market and the potential for further lowering of interest rates could bite into profit margins, so as a result, the current dividend price may not be sustainable. There's no way to know for sure, but Westpac's dividends have been consistent over the past 5 years.

With this pick you may not see a lot of growth in share value over the short term due to the mitigating circumstances mentioned above, but I see Westpac as a long-term option that I would be happy to see sitting in my retirement portfolio.

Coles Group (ASX: COL)

Coles is the iconic supermarket brand familiar to all Australians. Coles shares are currently trading for $14.28, so your tax rebate will get you about 75 shares and my advice is to hang on to them. Coles appeals to me for its huge potential to grow consistently over the long term – since spinning off from Wesfarmers Ltd (ASX: WES) 8 months ago, the Coles share price has been ambling its way upwards and has grown 12.24% since listing.

It's not just about supermarkets, there's plenty of growth potential in the Coles-owned liquor outlet brands as well the Coles Express service stations. I'm optimistic that growth will be driven organically through natural population increases but also though expansion via new supermarkets and outlets as our cities continue to sprawl out. There has been no dividend announcement from Coles yet, although we might expect one in the short term.

Foolish takeaway

I hope the above suggestions give you some food for thought as you receive your FY 18/19 tax returns. As mentioned, $1,080 might not seem like a lot, but it's more than enough to start your adventures on the Australian Stock Exchange.

The post How to use your $1,080 tax rebate to get started on the ASX appeared first on The Motley Fool Australia.

More reading

• Higher for longer: How to invest in a high-inflation Australia
• Why I'd buy Qantas and these cheap ASX shares
• Here are the top 10 ASX 200 shares today
• If I could only check my ASX portfolio once a year, these are the 10 shares I'd own
• 6 ASX shares experts are backing amid the market downturn

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For anyone looking for lower cost shares, I've rounded up a couple of options to consider adding to your portfolio – one for growth, one for income, both for less than the cost of a large latte per share!

Qube Holdings Limited (ASX: QUB)

Qube is the largest supplier of export and import logistics in Australia and operates in 125 locations around Australia, New Zealand and South East Asia. Qube's key business units include ports, bulk, logistics and infrastructure and property, as well as a 50% interest in Patrick Terminals.

Investors looking for growth will be interested in Qube's many projects that are near completion and in the pipeline. Notable 2018/2019 financial year projects include the expansion of the company's warehouses in Victoria and a commitment to a major new warehouse facility at Moorebank Logistics Park in New South Wales. The Bintan Offshore Marine Centre has also commenced operations, with Qube predicting that earnings will strengthen from this asset from FY20 onwards. Qube has also acquired a major industrial park in Western Australia.

Many observers are also keen to see the outcome of Qube's recently announced plan to acquire integrated logistics and supply chain management operators, Chalmers Limited.

In terms of its fundamentals, Qube announced several highlights at its half-yearly update, including revenue being up by 5%, net profit after tax rising by 36.1%, and dividend earnings rising by 30.3%.

Qube is a large and complex company that is successfully diversifying its business units, which is a good sign of potential resilience when the economic winds change. The Qube share price is trading for $3.18 at the time of writing, and could be a handy inclusion to any portfolio.

Stockland Corporation Limited (ASX: SGP)

Stockland is an Australian real estate company that develops, owns and manages retail centres, business parks, logistics centres, office buildings, residential communities and retirement living villages. The industry term for this type of stock is a real estate investment trust (REIT). My colleague Sebastian Bowen writes a weekly REIT Report if you're keen to know more about this income generating sector.

As Sebastian has suggested, Stockland hasn't seen a lot of movement in its share price recently, and is currently trading for $4.73 per share. The good news is, if you're looking for income, Stockland will earn you a healthy 5.87% dividend yield. Stockland's dividend results over the past 5 years have been stable and consistent, which will please investors looking for reliability when estimating an annual income.

Foolish takeaway

Whatever your portfolio strategy, there's always plenty of lower cost shares in great companies like Qube and Stockland to consider. Scan the sectors you like, and you're bound to find something in the lower cost range that fits your bill.

The post 2 ASX shares for under $5 to add to your portfolio this week appeared first on The Motley Fool Australia.

More reading

• Stockland posts steady 1Q27 operational update and reaffirms FY27 guidance
• 9 ASX 200 shares experts are backing for growth amid market weakness
• Stockland vs Vicinity Centres: Which ASX REIT is the better buy?

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you've been watching much commercial television lately it's unlikely that you've missed the advertising campaign from Domino's Pizza Enterprises Ltd. (ASX: DMP) for its new 'DOM Pizza Checker'.

In the short 30 second TV commercial, you see a bunch of customers anxiously receiving their home-delivered pizzas dramatically set to Tchaikovsky's '1812 Overture'. There's a short pause before each customer reveals their pizza, which indicates "did I get what I ordered?" The pizza boxes are opened and there is "joy" from these happy customers.

The ad goes on to introduce us to the DOM Pizza Checker, which will "quality check" your order and send you a photo before it leaves the store. 

What does this new feature mean for Domino's? 

At first glance, this is a positive add-on to the Domino's customer experience. When you dig a little deeper and see what this technology is capable of, it's a huge game changer that will put Domino's in pole position to leave its franchise competitors in its wake.

DOM Pizza Checker is essentially a high tech camera that uses artificial intelligence that, according to Geek.com, "can recognize, analyze, and grade pizzas based on correct toppings, pizza type, distribution, and temperature. It can take a picture of the pizza and leverage AI to compare it with a large dataset of correct pizzas and generate a quick assessment before it goes out to a customer." The plan being, you'll never have a dud pizza delivered by Domino's again.

As consumers we tend to stick to the local food delivery outlets we trust. It can be frustrating to see an order arrive that is far below expectations or shows little resemblance to what you've ordered. We'll stop using them and move on. This new technology goes a long way to alleviating those concerns and provides a customer with a much higher sense of confidence in what will arrive at the front door.

Is it a good time to invest in Domino's?

Back in August of 2016, Domino's was trading at a record high $80.10 per share but has since lost slightly more than half its value, valued at $38.39 at time of writing. This current and concerted effort to advance the quality of its products, coupled with plans to continue opening new outlets that will double its existing footprint, might indicate that it's time to look at buying Domino's shares.

In addition, the most recent full-year results showed that investors were rewarded with a dividend yield of 2.99%. I'd consider Domino's as a long-term option for portfolios looking to inject some diversification via the consumer discretionary sector.

The post Domino's set to dominate with new AI feature: should you invest? appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The sharemarket watch site Market Index regularly publishes an aggregated list of broker opinions based on a sell, hold, buy and strong buy scale of recommendations. While it doesn't necessarily guarantee you a win, it's well worth investigating what we could term 'popular opinion'. Let's look at a couple of broker recommendations from the consumer discretionary sector of the ASX.

Webjet Limited (ASX: WEB)

Webjet Limited will be familiar to most people as an online travel service in Australia and New Zealand. Its great strength is that it can quickly offer a range of flights from a variety of carriers in just a few clicks. In recent years it has also acquired several brands that specialise in hotel bookings for individuals and groups. The WebBeds division, which operates globally, purports to be the fastest growing accommodation supplier to the travel industry.

As Webjet continues to grow through expansion and more people switch to online travel services, the company is well worth consideration as a longer-term growth stock, with a bonus modest dividend currently at 1.5% dividend yield. Webjet is currently trading for $13.81 per share.

Bapcor Ltd (ASX: BAP)

Bapcor is a supplier of parts and consumables required to service and maintain vehicles. As new car sales have slowed and we as consumers hang on to our existing vehicles for longer periods, we inevitably need to service and maintain them to keep them running smoothly.

Only recently, my old Honda got a brand new set of brakes, leads, points and a starter motor. Enter Bapcor to supply my mechanic with the parts he needed, and I'm back on the road. It's a story that plays out around the country every day. Combine this with the knowledge that the average age of registered vehicles in Australia is 10.1 years and we can surmise that there's a lot of servicing and maintenance to be done to keep the national fleet on the road.

You can see why brokers have been drawn to Bapcor as a potential growth share. Back in September 2018 Bapcor achieved a record high price at $7.88 per share but is now trading at $6.35, indicating that now might be the time to dive in. On top of this, Bapcor's dividends are fully franked and in the last full year would have earned you 15.5 cents a share.

The brokers won't get it right every time, but in the case of Webjet and Bapcor there is certainly a strong recommendation to invest. It's absolutely worth considering but, as always, read widely and draw your own conclusions.

The post 2 ASX shares brokers are backing in the consumer discretionary sector appeared first on The Motley Fool Australia.

More reading

• Analysts tip these ASX shares to return 20% to 50%
• 3 ASX shares tipped by brokers to return 41% to 85% in the next 12 months

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As of close on Friday, 29 companies in the S&P/ASX 100 (INDEXASX: XTO) enjoyed a share price boost, while 9 held their position and the remainder went in the wrong direction. While daily spikes are like candy for day traders, long-term investors may take a slightly more conservative approach. Regardless, it's still worthwhile investigating reasons behind those spikes to see how it may form part of a wider case for investment. Here are two star ASX 100 performers from last week that are worth a closer look.

JB HiFi Limited (ASX: JBH)

Current investors in JB Hi-Fi are having an excellent July with the share price rising around 15% from the July 1 close to this afternoon's current price of $30 per share. Looking at Friday's 1.44% increase in share price in a wider context, we might conclude that it was driven by month long upward momentum and investors hedging their bets on a modest boost for retailers.

Some analysts believe that the current price is somewhat overvalued, but I think we'll get an even clearer picture when Australia's retail trade data is released for June and July. I'm keen to see if the lower- and middle-income tax offset gave retailers a welcome boost, or if we stashed the bonus away for a rainy day.

Treasury Wine Estate (ASX: TWE)

Treasury Wine Estate is one of the largest wine companies in the world. Aside from making a range of highly recognisable Australian wine brands like Penfolds and Wolf Blass, the company has vineyards in most of the world's great wine growing regions.

Like JB Hi-Fi, Treasury Wine Estate had a very good day on Friday, lifting its share price 1.84% over the day to close at $17.70, where it has stayed during today's trade. That price is still short of the twelve month high of $18.55 before the share price dropped to a twelve month low of $13.52 in November. Since then the share price has rather laboriously headed back into the growth zone.

At Treasury Wine Estate's half year update, the good news just kept on rolling. Net sales revenue is up 16.4%, EBITS is up 17.8% on a constant currency basis, net profit after tax is up 17% and earnings per share is up 19% to 30.5 cents per share. The full-year results will be announced on 15 August.

This is a well run company that makes great wine and has a world-class marketing team to move those many brands to market.

Foolish takeaway

While I can appreciate a daily spike in share price as we saw last week, I prefer to take a step back a look at the big picture – I'm looking for a company that has shown real growth over the long term and has a sound plan to keep it going. I'd consider both JB Hi-Fi and Treasury Wine Estate in my balanced retirement portfolio.

The post Will these 2 ASX 100 shooting stars fizzle out or keep soaring? appeared first on The Motley Fool Australia.

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• JB Hi-Fi vs Lovisa: Which beaten-down ASX retailer could rebound strongly?
• Buy, hold, sell: JB Hi-Fi, Sandfire Resources, Ramsay Health Care shares
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Leading up to the May federal election, ASX childcare sector share prices headed upwards in anticipation of an ALP victory and with it a suite of new policies for the sector.

We all know the unexpected results of the election, so how has the dust settled for the childcare sector now that we're a couple of months down the track? 

G8 Education Ltd (ASX: GEM)

G8 Education is one of the leading providers of childcare services in Australia and also provides services in Singapore. G8 Education manages and operates a total of 519 centres across both countries. In February, the company announced a challenging period that had seen a drop in earnings but was optimistic about future growth heading towards 2022.

Fast forward to 8 July and an almost 10% share price drop in a day wiped $138 million off its market capitalisation. The culprit for this drop was lower than anticipated occupancy rates across its 502 Australian childcare centres, conditions that are not expected to improve until later this year.

G8 Education is trading at $2.68 per share (at time of writing), with some analysts suggesting this is the time to buy. There's also a fully franked dividend on offer at 14.5 cents per share (6.74% dividend yield) to entice investors; however, the dividend yield has been declining since 2016 when it was paying 24 cents per share.

The outlook for the childcare sector

Australian birthrates were slightly down in 2017 from a record number of 311,104 registered births in 2016, which may not be a major concern. However, coupled with an annual cut of 30,000 to the permanent migration cap we could see some challenges to occupancy rates down the road. The ongoing federal government subsidies to the sector can help to stabilise earnings while the company navigates some short-term headwinds.

A note on childcare services and consumer behaviour

Corporate fundamentals and brand are not necessarily front of mind when selecting a childcare service. These decisions can be very personal and hyper local. Good services gain reputation by word of mouth and you'll often see requests on local social media groups for local recommendations.

The key questions for parents will focus around quality of facilities and staff, staff turnover and cost. Having said that, these things become less important in areas of super high demand and low supply. If you're a mega supplier like G8 Education, you'll need to understand local issues, you'll need to meet and exceed the demands of the regulated quality frameworks and you'll need some geographical foresight when acquiring new centres in high demand areas. These are the keys to getting those occupancy rates in the high zone.

The post What's happening with the ASX childcare sector? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

You'd have to have been living under a rock to have not taken notice of the attention Nearmap Ltd (ASX: NEA) has been getting lately. If you're just getting started on your investment journey and would like to know more about Nearmap and its investment credentials, read on.

What is Nearmap?

Nearmap is a gloriously simple idea backed up by some ultra high-end technological fire power. The company takes high resolution aerial images and updates them regularly. To give you some idea, you may be familiar with Google Maps and have looked at satellite images of your house or suburb; however, if you check in regularly enough, you'll notice those images don't change very often.

Nearmap claims the resolution of its images is 80% better than what satellite imagery can provide and that 88% of Australia's population is imaged and stored regularly.

The applications of this technology are boundless. These images can provide strategic solutions in a range of industries including mining, construction, urban and regional planning, forestry and land management, renewable energy site development, as well as community benefits like disaster planning, management and renewal.

Is now the time to invest in Nearmap?

The past week hasn't been a great one for Nearmap, with the company's share price dipping almost 16%. My Foolish colleague Rhys Brock puts the slide down to the announcement of significant changes in Nearmap's accounting policies.

However, there is also a lot of reasons to be optimistic over the longer-term, including record growth of 36% to $90.2 million for FY19, highlighting Nearmap's global growth initiatives and consolidating its flagship position as market leader in Australia and New Zealand.

Nearmap opened this morning at $3.11 and is trending upwards to $3.14 over afternoon trade, although it's still a way from its record high of $4.23 four weeks ago on 23 June. There's been no advice on potential future dividends, but the rate of growth should give long-term investors pause for thought.

As I mentioned before, the possibilities for this technology are enormous. This is definitely one for the long-term portfolio, provided competitors are kept at bay and market share is maintained and developed.

The post ASX beginner's guide: should you buy Nearmap shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.