The traditionally defensive sectors found favour during tough trading as investors braced for an interest rate hike on Tuesday.

The benchmark index fell 0.76% over the week to close at 8,665 points, after hitting a 15-week intraday low on Friday.

Traders are pricing in a 95% chance of the Reserve Bank (RBA) raising the cash rate to 4.6% this week.

Many experts expect another rate hike in November, which would be the fifth this calendar year.

Inflation remains above the RBA's 2% to 3% target, and last week the Governor, Michele Bullock, spoke of "materialising" upside risks.

On Friday, Trading Economics analysts said:

Markets are pricing a 95% chance of a 25-bp hike to 4.60% in September and a possible peak around 5.10%.

Meanwhile, uncertainty surrounding US-Iran negotiations kept oil prices elevated, fueling inflation concerns and a renewed selloff in global bond markets, while strong US business activity has increased bets for another Fed hike, boosting the greenback.

The US Federal Reserve raised interest rates for the first time in three years this month.

Consumer staples shares led the ASX sectors last week

While consumer staples and healthcare did best last week, both sectors moved only slightly higher.

ASX 200 consumer staples shares rose 0.78% and healthcare edged just 0.09% higher.

Let's take a look at some specifics.

The Woolworths Group Ltd (ASX: WOW) share price rose 0.63% to $38.47 per share.

The Coles Group Ltd (ASX: COL) share price edged 0.3% higher to $23.19.

Endeavour Group Ltd (ASX: EDV) shares increased 3.1% to $2.99.

Inghams Group Ltd (ASX: ING) shares ripped 10.99% to $2.12 after PSP Investments took a 5.62% stake.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lifted 5.24% to $5.42.

The Bega Cheese Ltd (ASX: BGA) share price rose 1.33% to $6.08.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) rose 0.15% to $6.57.

The Elders Ltd (ASX: ELD) share price lifted 0.31% to $6.38.

The A2 Milk Company Ltd (ASX: A2M) share price descended 5.5% to $6.65.

Almond food producer Select Harvests Ltd (ASX: SHV) fell 2.93% to $4.31 per share.

Australian Agricultural Company Ltd (ASX: AAC) shares lost 0.77% to close at $1.29.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

Check out the 15 ASX shares going ex-dividend next week.

The post Investors get defensive as ASX 200 drifts to a 15-week low appeared first on The Motley Fool Australia.

The ASX 200 is up 1.5% to 8,721.7 points at the time of writing.

Reported expectations are that the ceasefire will be extended by 60 days and the Strait of Hormuz may be reopened.

Despite today's recovery, ASX 200 shares remain in the red for 2026.

However, the experts have flagged five ASX shares that they believe will outperform over the next 12 months.

Champion Iron Ltd (ASX: CIA) 

The Champion Iron share price is $4.51, down 5.7% today.

This ASX mining share is down 27% in the calendar year to date (YTD).

RBC Capital has a buy rating on Champion Iron shares with an $8.11 target.

This indicates a potential 80% upside ahead.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is $4.17, up 1.5% today.

This ASX consumer discretionary share has increased 12.4% YTD.

Canaccord Genuity has a buy rating with a $7.50 target.

This implies potential capital gains of 80% ahead.

Kingsgate Consolidated Ltd (ASX: KCN)

The Kingsgate share price is $6.10, up 4.1% today.

This ASX gold mining share is up 5.7% YTD.

Canaccord Genuity has a buy rating with a $10.30 target.

This implies a potential near-70% upside ahead.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman y Gomez share price is $19.50, up 0.6% today.

This ASX 200 consumer discretionary share has fallen 9.6% in 2026.

After Guzman upgraded its earnings guidance and announced its US exit, Morgans renewed its buy rating.

The broker also raised its 12-month price target from $26.70 to $29.40.

This suggests capital growth of 51% over the next 12 months.

The broker said:

The exit removes a loss sooner than consensus anticipated and simplifies the story while the Australian operations are performing well and in line with expectations.

Stripping out the US losses results in material upgrades to our EBITDA and NPAT forecasts.

We maintain our BUY rating and upgrade our price target to A$29.40.

Australian Agricultural Company Ltd (ASX: AAC)

The Australian Agricultural Company share price is $1.31, up 0.5% today.

This ASX agriculture share is down 9.8% YTD.

Bell Potter has a buy rating with a $1.85 price target.

This implies a potential 41% capital gain over the next 12 months.

The broker said:

AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs.

While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.

The post 5 ASX shares set to soar 40% to 80% in 12 months: experts appeared first on The Motley Fool Australia.

Rabobank, which is a specialist agribusiness bank, says producers face mixed weather conditions and significantly higher input costs.

It estimates Australia's winter cropping area will be 23.1 million hectares, down 8% on last year and 4.3% below the five-year average.

The Australian RaboResearch team predicts wheat cropping will fall 20.4% to 9.8 million hectares this season.

However, barley, canola and pulse plantings are forecast to increase.

Report author, Vitor Pistoia, a senior grains and oilseeds analyst at RaboResearch, said:

Australia enters the 2026/27 winter cropping season with a more uneven and weather-dependent cropping area than in recent years.

The season is opening with a clear geographic split across Australia's cropping regions.

Conditions on the northern east coast, particularly in southern Queensland and northern New South Wales, have been dry through summer and early autumn, leaving limited topsoil moisture and delaying sowing.

Pistoia said lower rainfall was likely amid the high risk of a shift towards El Nino conditions this season.

He added that higher costs, particularly for fertiliser and diesel due to the Iran war, were influencing farmers' decisions this winter.

These higher costs are encouraging shifts towards lower-input crops and contributing to a reduction in total cropping area.

Let's take a look at experts' ratings on three ASX agriculture shares.

Australian Agricultural Company Ltd (ASX: AAC)

Australian Agricultural Company shares have fallen 9.5% over the past 12 months.

Last week, Australian Agricultural Company reported a record operating profit of $71.6 million for FY26, up 23% year-over-year.

After reviewing the numbers, Bell Potter kept its buy rating in place on the ASX agriculture share.

The broker said:

AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs.

While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.

Bell Potter reduced its 12-month price target from $1.95 to $1.85, implying a 43% potential upside from here.

Graincorp Ltd (ASX: GNC)

The Graincorp share price has tumbled 32% over the past 12 months.

After reviewing the company's 1H FY26 results, Morgans downgraded the ASX agriculture share to a hold rating.

The broker commented:

GNC's 1H26 result was weak but broadly in line with consensus at the NPAT level.

GNC reported a significantly larger than expected cash outflow and its core cash position was also lower than expected.

The era of special dividends now appears to be over. GNC reiterated its FY26 earnings guidance.

The outlook for the FY27 winter crop is one of caution given grain grower's cost pressures and the BOM's dry outlook.

GNC's strategic assets are worth materially more than its current share price. However, given earnings look set to decline again in FY27, the stock is lacking share price catalysts, and we move to a HOLD recommendation.

The broker has a $5.62 price target, which still implies a potential 11% upside ahead.

Ricegrowers Ltd (ASX: SGLLV)

The Ricegrowers share price has lifted 11% over 12 months.

On The Bull, Mark Elzayed from Investor Pulse said the Sunrice brand owner had benefited from elevated rice prices and strong export demand.

However, he has a sell rating on this ASX agriculture share.

Elzayed explained: 

… we believe much of the good news is already reflected in the share price of this global group.

Moving forward, we expect earnings growth to moderate as global rice supplies normalise amid what we consider to be elevated input costs.

The company is up against strong competition in several markets.

Margins also face pressure from freight and currency volatility, potentially limiting near term upside.

The post Buy, hold, sell: Australian Agricultural Company, Graincorp, Ricegrowers shares appeared first on The Motley Fool Australia.

This is the second time in a month that the defensive sector has led the market.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) edged 0.3% higher to finish the week at 8,657 points.

The market whipsawed last week as the war in Iran dragged on and depressing economic data was released.

US President Donald Trump said he called off strikes on Iran after Persian Gulf leaders assured him of an acceptable deal in the works.

However, on Friday, reports emerged of Iran and Oman working together to create a permanent toll system for the Strait of Hormuz.

The Strait, through which about a fifth of the world's oil and gas is shipped, runs between the two nations and remains effectively closed.

Meanwhile in Australia, the market was surprised by a fall in employment in April that pushed the unemployment rate up to 4.5%.

Additionally, the latest monthly consumer sentiment index rose just 3.5% off the extreme low recorded last month.

Matthew Hassan, Head of Australian Macro-Forecasting at Westpac Banking Corp (ASX: WBC), commented:

… consumers remain deeply pessimistic.

Forward views are clearly still being weighed down by uncertainty around global energy supply with the Strait of Hormuz still effectively shut.

However, rate rise fears are also in the mix.

Fierce debate also broke out last week over how proposed capital gains tax (CGT) changes may disincentivise start-ups in Australia.

Amid volatile trading conditions, ASX 200 investors upped their exposure to defensive consumer staples shares.

Let's take a look at the impact.

Consumer staples shares led the ASX sectors last week

The Woolworths Group Ltd (ASX: WOW) share price rose 5.15% to finish at $34.68 per share on Friday.

The Coles Group Ltd (ASX: COL) share price rose 3.17% to $21.47.

IGA network owner Metcash Ltd (ASX: MTS) lifted 3.39% to $3.05 per share.

Endeavour Group Ltd (ASX: EDV) shares fell 0.65% to $3.08.

The A2 Milk Company Ltd (ASX: A2M) share price tumbled 7.67% to $5.66.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) increased 5.88% to $4.50.

The Bega Cheese Ltd (ASX: BGA) share price rose 0.37% to $5.39.

Almond food producer Select Harvests Ltd (ASX: SHV) ascended 6.65% to $3.85 per share.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) decreased 8.64% to $4.76.

Elders Ltd (ASX: ELD) shares tanked 18.33% to $5.88 after the company released its 1H FY26 numbers last week.

The Australian Agricultural Company Ltd (ASX: AAC) share price rose 2.27% to $1.35.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 consumer staples shares outperformed again last week appeared first on The Motley Fool Australia.

It has just named the stock as a buy after its record result.

Which ASX All Ords stock?

The stock that Bell Potter is recommending to clients is Australian Agricultural Company Ltd (ASX: AAC).

It is a vertically integrated cattle and beef producer with operations across the entire supply chain across genetics, nutrition, pastoral operations, feedlots and processing.

Bell Potter was pleased with the ASX All Ords stock's performance in FY 2026, noting that its record result was ahead of expectations. It said:

AAC reported FY26 Operating EBITDA up +23% YoY to $71.6m and ahead of our forecast of $69.2m. Key operating statistics of the result included: Operating results: Revenue of $422.1m was up +9% YoY (vs. BPe $426.7m). Operating EBITDA of $71.6m was up +23% YoY (vs. BPe $69.2m) and included $9m in flood costs, implying an underlying figure closer to $80.6m and implying +38% YoY growth. Liveweight (lwt) sold was down -2% YoY.

Revenue per Kg lwt was up +11% YoY (with meat pricing up +8% YoY and live pricing +17% YoY) and EBITDA per Kg lwt sold was up +25% YoY (+40% ex-flood impact). Cost of production per kg was up +1% YoY, with kilograms produced up +5% YoY. Statutory EBITDA of $208.9m, includes an unrealised favourable $128.6m movement in herd values.

Looking ahead, while demand for global beef is expected to remain strong, Bell Potter notes that the Middle East conflict is having a negative impact on costs. It adds:

Outlook: Qualitative comments include: (1) Global beef demand is expected to remain strong; (2) Headwinds which emerged in late FY26, may more meaningfully impact FY27e including the conflict in the Middle East (which is causing inflationary pressures in energy, transport and production).

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX All Ords stock with a trimmed price target of $1.85 (from $1.95).

Based on its current share price of $1.31, this implies potential upside of 40% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating remains unchanged. AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs. While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.

The post Bell Potter says this ASX All Ords stock could rise 40% after record result appeared first on The Motley Fool Australia.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 1.79% to finish the week at 8,786.5 points.

ASX investors are feeling increasingly pessimistic that the war in Iran will end anytime soon.

This was likely a factor behind the support for ASX 200 consumer staples and utilities shares last week.

Consumer staples and utilities are among the most defensive of the 11 market sectors during economic upheaval.

This is because staples and utilities companies have reliable income streams, given they sell essential goods and services.

Another sector considered somewhat defensive is real estate investment trusts (REITs), which lifted 0.14% last week.

The glaring exception among defensives last week was healthcare, a sector that continues to face multiple headwinds.

A 42% dive in Cochlear Ltd (ASX: COH) shares pushed the S&P/ASX 200 Health Care Index (ASX: XHJ) to a 6-year low last week.

Technology also finished just inside the green, as the sector continues its rebound from a prolonged downturn.

Iran war drags on

Oil and gas prices spiked 15% to 18% and ASX 200 shares spent four consecutive days in the red last week.

The world is anxiously awaiting news of when a second round of US-Iran peace talks will begin.

Lucinda Jerogin, Associate Economist at CBA, said:

… fundamentally the situation has not changed; no talks, no fighting and no ships passing through the Strait of Hormuz.

Iran has stated it will neither reopen the Strait nor engage in negotiations until the US lifts its naval blockade.

The longer the Strait remains closed, the greater the costs to the world economy through higher energy prices and supply chain disruptions.

The International Monetary Fund (IMF) has warned of a global recession given the long-tail impact of energy shocks.

In Australia, expectations of higher inflation and more interest rate rises do not bode well for the economy.

The market is factoring in a 69% chance of a rate rise next month. Meanwhile, consumer confidence has tanked.

The Westpac-Melbourne Institute Consumer Sentiment Index recorded its biggest fall in five years this month.

All of these broader macroeconomic concerns likely contributed to support for ASX 200 defensive sectors last week.

Consumer staple shares led the ASX sectors last week

The sector's largest stock, Woolworths Group Ltd (ASX: WOW), gained 2.99% to finish at $37.89 per share on Friday.

The Coles Group Ltd (ASX: COL) share price rose 2.31% to $23.06.

IGA network owner Metcash Ltd (ASX: MTS) fell 2.76% to $2.82 per share.

Endeavour Group Ltd (ASX: EDV) shares rose 7.36% to $3.50.

The A2 Milk Company Ltd (ASX: A2M) share price edged 0.94% lower to $7.40.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lifted 12.22% to $4.50 on news of a revised operating model.

Inghams Group Ltd (ASX: ING) shares fell 0.5% to close at $1.98 on Friday.

Bega Cheese Ltd (ASX: BGA) shares eased 0.51% to $5.87.

Almond food producer Select Harvests Ltd (ASX: SHV) rose 0.54% to $3.75 per share.

Cobram Estate Olives Ltd (ASX: CBO) shares lifted 1.69% to $3.61.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) increased 0.79% to $6.40.

The Elders Ltd (ASX: ELD) share price fell 2.13% to $7.35.

Stock feed producer Ridley Corporation Ltd (ASX: RIC) lifted 4.46% to $2.81.

The Australian Agricultural Company Ltd (ASX: AAC) lost 2.24% to finish the week at $1.31.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Nervous investors turn to ASX 200 defensives as global energy shock drags on appeared first on The Motley Fool Australia.

Queensland was battered by storms in late December, with record rainfall in the state's north leading to flooding across wide areas of the state.

Several flood and major flood warnings remain in effect across the state, issued by the Bureau of Meteorology, with the Diamantina and Flinders rivers subject to major flood warnings.

Material impact on the way

Australian Agricultural Company, or AACo as the company refers to itself, said in a statement to the ASX on Monday morning that three of its 27 properties – Carrum, Dalgonally, and Canobie – had been affected by flooding.

The company went on to say:

AACo has a herd of approximately 456,000 head of cattle. The three AACo Gulf properties impacted by the flooding are carrying a total of approximately 55,000 head of cattle (significantly lower head count than 2019 flood event in the same region). Any comparisons between the 2019 event and the current event should be approached with caution, due to current cattle valuations, operating practices, property and livestock conditions, weather and rainfall variations and seasonality. At this early stage, as conditions are evolving and remain challenging, a credible assessment of the impact on livestock and infrastructure is currently unable to be undertaken – noting there is still the possibility of further wet season impacts.

The company went on to say that the impact of the flooding on its earnings for the March 2026 financial year was yet to be determined, but was "likely to be material".

It said further:

Management is currently assessing and managing the situation and an update will be provided as appropriate, when further assessments of the impacted properties are available.

The company said that, in keeping with industry practice and because of the large cost involved, it was not insured for the impact of flooding on its herd and infrastructure.  

It said:

Whilst the impact of the situation is continuing to be determined, the company's balance sheet and financial position remain strong.

Good conditions elsewhere

On the upside, the company said it was experiencing favourable rainfall in southwestern Queensland and the Northern Territory, where the majority of its cattle were located, and "the company remains able to fulfil supply obligations to its key markets in line with its strategy''.

AACo shares were 3.5% down in early trade on Monday at $1.40.

The company in November announced it had almost doubled its first-half operating profit to $39.8 million, compared to $20.2 million in the previous corresponding period.

The company was valued at $874 million at the close of trade on Friday.

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The company said while there were "unstable market conditions" in the first half, it had executed well across its three strategic focus areas of "better beef, unlocking the value of the land, and partner and invest''.

Bottom line looking good

The company's revenue for the first half was $239.9 million, compared to $195.6 million in the prior corresponding period (pcp). The operating profit came in at $39.8 million, compared to $20.2 million in the pcp.

The company said in a statement to the ASX that it was a solid result.

Operating profit, which rose 97% versus the previous corresponding period and is AACo's highest half year operating profit, was driven by favourable beef and cattle sales margins and supported by a strategic program of earlier live cattle sales compared to the prior period. Good productivity outcomes driven by improved land condition and station-based cattle management activities meant AACo was able to capitalise on increased demand and higher prices for live cattle.

The company's average beef price per kilo grew 7% over the previous corresponding period to $18.62 per kilogram, driven by the company's "sophisticated in-market sales and distribution strategy''.

Production costs remained steady, down 1% to $2.46 per kilogram.

AACo managing director David Harris said he was pleased with the progress against the company's strategy, which was released six months ago.

There are multiple streams of work underway against those priorities, which will help drive company growth into the future. Our excellent financial results this period further highlight the ability we have to leverage our integrated supply chain to maximise performance. They also demonstrate the different avenues we can take to achieve consistent positive outcomes and create long-term value.   

Increased investment to drive profits

AACo said it would continue to invest in its world-class Wagyu herd, which would "improve the genetic profile and overall efficiency of AACo's herd by increasing the proportion of Wagyu animals, as part of the Better Beef program''.

That is expected to result in both immediate gains and long-term value creation through improvements in overall quality, and a greater number of animals better suited to the company's premium brands and high-paying markets.

The company said it had also progressed its landscape carbon project at Glentana Station in central Queensland with the installation of infrastructure, which would help with the generation of Australian carbon credit units.

On the outlook, the company said the market remained "dynamic", with cost-of-living concerns and a downturn in high-end food services being experienced in some key regions.

The company added:

However, market reports suggest a tightening of global beef supply could balance out these price pressures, and AACo is well positioned to manage evolving circumstances through its global distribution network.

AACo did not declare an interim dividend. The company was valued at $867.9 million at the close of trade on Wednesday.

The post Australian Agricultural Company shrugs off cost-of-living concerns to almost double first-half profit appeared first on The Motley Fool Australia.

It's been a turbulent year for Australia's cattle industry, hit by rising feed costs, challenging weather conditions, and Trump's tariffs.    

The Elders Ltd (ASX: ELD) share price sank to $5.80 following Trump's tariffs announcement in April.

Less than six months earlier, Elders shares were changing hands for around $9.42 each.

And the Australian Agricultural Company Ltd (ASX: AAC) share price sank from $1.57 in mid-March to $1.36 following the tariffs announcement.

The prospect of higher duties for North America, Australia's biggest beef export market, hurt ASX livestock shares.   

Bouncing back

Aussie beef shares soon recovered as other markets, particularly China, looked set to absorb any shortfall.

The Aussie beef shares have been steadily rising from their April lows.

Elders shares are up almost 30% over the past few months, while Australian Agricultural shares have gained 6%.

Where to from here?

The latest figures from Meat and Livestock Australia (MLA) show Australia will achieve record beef production this year.

Australia is forecast to produce a record 2.79 million tonnes of beef in 2025.

The record haul is expected to be driven by stable carcase weights, improved weather conditions, and increased slaughter.

The beefy production forecast comes while exports are tipped to remain strong as Australia continues to fill the global supply shortage.

Beef exports are forecast to reach 1.5 million tonnes shipped weight in 2025, according to the MLA.

And declining production in key competitor markets such as the United States and Brazil has exacerbated global supply constraints.
 
As such, the MLA believes Aussie beef producers are well placed to capitalise.

With the US progressing into a herd rebuild phase and Brazil facing herd contraction following heavy slaughter and drought recovery, Australia is uniquely positioned to meet rising international demand.

This export strength is further supported by Australia's robust processing capacity, consistent product quality, and long-standing trade relationships across North Asia, North America, and Southeast Asia.

Looking ahead

The MLA says the herd is expected to remain stable through 2026 before easing slightly in 2027 due to drier seasonal conditions.

Still, ongoing improvements in carcase weights and processing could support high production levels.

According to the MLA, consistent seasonal conditions in northern Australia and cautious stocking practices in the south will also support stable production numbers.

The post Beefing up: These shares are climbing higher amid record production forecast appeared first on The Motley Fool Australia.

The Elders Ltd (ASX: ELD) share price lost about 15% of its value in the wake of the announcement, adding to previous declines.

In February, Elders shares were trading for about $7.56 before sinking to around $5.80 in April, a 23% decline.

And the Australian Agricultural Company Ltd (ASX: AAC) share price went from $1.57 in mid-March to bottom out at $1.36 following the tariffs announcement.

That represents a drop of about 13% over a month.

But things are starting to turn around for Aussie beef exporters.

Aussie beef exports surge

Beef exports overall came in at 127,172 tonnes last month, according to Meat and Livestock Australia.

That represents a 21% higher year-on-year increase and a record export volume for April.

North America remained the largest market, with exports to the United States rising 37% over the prior corresponding period to 37,213 tonnes.

And exports to Canada were up 40% to 3,322 tonnes.  

While North America remains the largest market for Aussie beef, China is fast closing the gap.

In December last year, amid improving relations between China and Australia, China removed the final impediments impacting Australia's beef exports to the country.

As a result, exports to China surged, and that trend continues with April's exports rising 62%.

Did Trump score an own goal?

Trump imposed hefty tariffs on Chinese goods of 145%, which prompted a retaliation from China.

Beijing responded with taxes on US goods of 125%.

Tensions have since eased, and tariffs have been significantly reduced.

But for US beef exporters, the damage may have already been done.

As recent figures show, Australia's beef exports have surged amid reports of US beef exports to China slowing significantly.

And Aussie beef shares have been climbing as the trade war plays out.

The Australian Agricultural Company share price is back up to $1.51.

As such, the Australian Agricultural Company share price is up about 10% from its slump in the aftermath of Trump's tariffs announcements.

And the Elders share price is up about 12% from its April lows.

Will Aussie beef shares continue to climb?

With beef prices expected to increase and exports on track to achieve another record in 2025, according to Meat and Livestock Australia, Aussie beef shares look well placed to capitalise.

And, while the key US export market could come under pressure, increased demand in other markets, particularly China, will more than make up for any US shortfalls.

The post Aussie beef shares bounce back from tariff lows appeared first on The Motley Fool Australia.

President Donald Trump's 10% tariff on Australia's exports has come into effect, and the US president has pointed the finger at Aussie beef.  

Australian beef exports to the United States were worth more than $4 billion in 2024, making it the industry's biggest export market.

According to Meat and Livestock Australia, Australian beef exports reached 1.34 million tonnes last year, 22% higher than the previous year.

And the strongest growth was seen in the United States, where exports lifted 60% to 394,716 tonnes.

Mad cow disease

On the flip side, in 2003, Australia imposed restrictions on US beef imports amid concerns associated with an outbreak of bovine spongiform encephalopathy, or mad cow disease.  

Those restrictions seem to have drawn the ire of President Trump, who made a point of referencing the issue when he signed the executive order enacting the tariffs.

The value of Aussie beef stocks have taken a hit since Trump's tariffs were implemented on April 2.

T-rumped

The Elders Ltd (ASX: ELD) share price lost about 15% of its value in the wake of the announcement.

And the Australian Agricultural Company Ltd (ASX: AAC) share price dropped by around 4%.

Looking back a little further, the Australian Agricultural Company share price has dropped by around 10% since mid-March, while the Elders share price has come down by about 18% over the same period.

Overcooked?

The share prices of both companies have since bounced back.

The Elders share price closed 3.79% higher yesterday, while Australian Agricultural Company shares were up 1.08%.

Meat & Livestock Australia Managing Director Michael Crowley seems confident Australia's beef industry can prosper despite the tariffs.

He pointed out that Australia continues to respond to the strong global demand for high-quality red meat, exporting record amounts in 2024 to over 100 countries.

"The demand outlook for Australian red meat remains very strong and we maintain favourable market access conditions with over 85 percent of exports covered by free trade agreements," Mr Crowley said.

While the US was the biggest growth market for Aussie beef in 2024, in Southeast Asia, exports lifted 33% to 177,684 tonnes.

Australia's other major markets include China, Japan, and Korea, which are worth $3.9 billion, $2.6 billion, and $2.5 billion, respectively.

And according to the MLA, the Middle East/North Africa Market is worth $2 billion and offers growth opportunities.

Australia is also in the early years of a free trade deal with the UK, with improved market access for Australian red meat over a 10-year phase-in period.

Negotiations have also concluded on an agreement between Australia and the United Arab Emirates, which will eliminate tariffs on frozen beef and sheep meat.

In total, 91% of beef, 74% of sheep meat and 89% of goat meat exports are covered under existing FTAs, which remain effective.

"The US will continue to buy Australian red meat to supplement their requirement for high quality protein.

"MLA will continue working with industry to support the wind back of tariffs and to grow market demand globally. The global market outlook remains very strong for Australian red meat," Mr Crowley said.

The post Trump tariffs target Aussie beef: are ASX beef stocks impacted? appeared first on The Motley Fool Australia.

The ASX 200's positive trajectory for the week came to an abrupt end on Wednesday after the US revealed its reciprocal tariffs.

Uncertainty over how the reciprocal US tariffs, which go on top of other existing tariffs, would impact ASX shares caused a three-day rout.

Based on closing values, selling pressure pushed the ASX 200 into an official market correction, down 10.38% from its 14 February record.

Which market sector actually gained value amid the drama?

Only one ASX 200 market sector shone through the sea of red last week.

That was the consumer staples sector, which rose by 2.53%.

It was the only ASX 200 sector to finish in the green last week.

At the opposite end of the scale, the energy sector was trashed, diving 13.16%, while technology lost 8.31%, and materials fell 7.08%.

Let's review what happened last week.

Consumer staple shares led the ASX sectors last week

Consumer staples is considered a safe-haven market sector given its reliable earnings in all market conditions.

The ASX 200 supermarket shares survived the rout well.

Over the five trading days, the Woolworths Group Ltd (ASX: WOW) share price lifted 5.19% to close at $31.13 on Friday.

The Coles Group Ltd (ASX: COL) share price rose 7.53% to $21.13, which is a record high.

IGA network owner Metcash Ltd (ASX: MTS) lifted 2.68% to $3.26 per share.

Among the ASX 200 wine shares, Treasury Wine Estates Ltd (ASX: TWE) lost 12.65% to finish the week at a 52-week low of $8.63.

Endeavour Group Ltd (ASX: EDV) shares lifted 2.83% to $4.

A2 Milk Company Ltd (ASX: A2M) shares fell 3.35% to $7.78.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) fell 3.62% to close at $6.66 on Friday.

The Elders Ltd (ASX: ELD) share price tumbled 8.56% to $6.30.

Bega Cheese Ltd (ASX: BGA) dipped 1.52% to $5.19 per share.

The Australian Agricultural Company Ltd (ASX: AAC) share price dropped 5.41% to $1.40.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Which ASX 200 market sector GAINED value during last week's rout? appeared first on The Motley Fool Australia.

Every one of the 11 market sectors recorded gains over the week, with consumer staples the strongest cohort, up 3.9%.

Last week's recovery followed four weeks of falls that left the ASX 200 on the brink of an official market correction.

A correction is defined as a 10% fall from the most recent peak.

The benchmark index fell 9.43% from its record closing high on 14 February to what appears to have been the trough on 13 March.

Global markets fell over the month as concerns rose about US tariffs potentially creating a trade war and sending the US into recession.

Last Thursday, the US Federal Reserve's decision to keep interest rates on hold at 4.25% to 4.5% seemed to lift market sentiment.

In Australia, the news prompted the largest rally in ASX 200 shares in nine weeks.

Investors were also comforted by US Fed Chair Jerome Powell stating that historically, inflation created by tariffs can be "transitory".

Judging by the strength of the market rebound, it appears many ASX 200 investors were prompted to buy the dip last week.

There were plenty of good options, with several ASX 200 blue-chip shares trading at multi-year lows following the sell-off.

And here's a fun fact for you: Did you know that one market sector actually gained value during the sell-off?

Let's recap the week.

ASX consumer staples shares lead the recovery

Let's start our coverage of the ASX 200 consumer staples sector with the supermarket shares.

Last week, the sector's biggest stock, Woolworths Group Ltd (ASX: WOW), ripped 7.6% higher to finish at $29.93 per share on Friday.

The Coles Group Ltd (ASX: COL) share price lifted 4.51% to close at $19.46.

Shares in IGA network owner Metcash Ltd (ASX: MTS) rose 4.93% to $3.19 per share on Friday.

Looking at some ASX 200 food and milk shares now…

Bega Cheese Ltd (ASX: BGA) shares rose 4.4% to $5.24 per share.

Shares in poultry producer Inghams Group Ltd (ASX: ING) lifted 0.3% to $3.12 per share.

Synlait Milk Ltd (ASX: SM1) shares rose 7.7% to 92 cents, while A2 Milk Company Ltd (ASX: A2M) sank 7.1% to $8.13.

Shares in olive oil producer Cobram Estate Olives Ltd (ASX: CBO) fell 1.8% to $1.89 apiece.

Onto the ASX 200 wine shares and alcohol retailers…

The Treasury Wine Estates Ltd (ASX: TWE) share price slipped 1.3% to finish the week at $9.95.

Shares in BWS and Dan Murphy's owner Endeavour Group Ltd (ASX: EDV) fell 2.4% to $4.02.

Among the ASX 200 agricultural shares…

The Graincorp Ltd (ASX: GNC) share price rose 2.5% to finish the week at $7.02.

Shares in stock feed producer Ridley Corporation Ltd (ASX: RIC) lifted 2.8% to $2.56 per share.

The Elders Ltd (ASX: ELD) share price lost 2.7% to close at $6.89 on Friday.

The Australian Agricultural Company Ltd (ASX: AAC) share price fell 4.2% to $1.48.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 rebounds as investors seek bargains following market sell-off appeared first on The Motley Fool Australia.

Here's what happening.

ASX shares posting new 52-week highs

Up first we have Farm Pride Foods Ltd (ASX: FRM).

Shares in the Aussie egg company are up 4.8% to 22 cents in very thin trade today.

This puts the ASX share up 83.3% in a year and trading at its highest levels since February 2022.

At the company's half-year results (H1 FY 2025), reported on 26 February, Farm Pride reported an after tax profit of $1.6 million, up from a loss of $920,000 in H1 FY 2024. Management noted this marked the first half-yearly profit the company had achieved since the financial year ending 30 June 2018.

The second ASX share hitting new 52-week plus highs despite today's sinking market is Australian Agricultural Co Ltd (ASX: AAC).

Shares in the Australian beef producer are up 0.3% today, changing hand for $1.535 apiece.

While that's a slender intraday gain, it sees the Australian Agricultural share price up 9.6% in a year and trading at the highest level since June 2023.

The last price-sensitive news from the ASX share was the release of its half-year results (H1 FY 2025).

Australian Agriculture reported a 17.0% year on year increase in revenue to $195.5 million and a statutory net profit after tax of $23.6 million, up from a loss of $105.5 million in H1 FY 2024. However, with operating profit margins sliding from 18.1% to 10.3%, operating profits fell 32.9% year on year to $20.2 million.

Rounding off the list of ASX shares shrugging off today's market sell-down to hit new 52-week highs is New Murchison Gold Ltd (ASX: NMG), formerly known as Ora Gold.

The New Murchinson Gold share price is up 7.7% to 1.4 cents a share, giving it a market cap of just over $108 million. This puts the share price up 40% in a year.

The ASX share closed up 33.3% on Monday following a promising exploration update from the Garden Gully Gold Project in Western Australia.

Commenting on the exploration results earlier this week, New Murchison Gold CEO Alex Passmore said:

While we caution that assays are awaited …we are pleased to report the strong visual indications of mineralisation in a key extensional area for the Crown Prince resource.

The post 3 ASX shares leaping to new 52-week highs in today's sinking market appeared first on The Motley Fool Australia.

Consumer staples lifted by 0.08%, and materials shares rose by 0.01% over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.99% to finish the week at 8,296 points.

Technology dragged the index down, with the sector falling by a hefty 5.73% after weeks of big gains.

Historically, December is usually a strong month for shares, but this has not been the case in 2024 so far.

The month started well, with the ASX 200 resetting its record high on 3 December at 8,514.5 points.

The benchmark has since fallen 2.34%.

Overall, the ASX 200 has dipped by 1.66% in December so far after a very strong 3.38% gain in November.

A surprisingly strong labour report released on Thursday contributed to the market's poor performance last week. The unemployment rate fell in November, stoking fears of sticky inflation and delayed interest rate cuts.

Let's review what happened last week.

Consumer staple shares led the ASX sectors last week

First to the ASX supermarket shares.

The sector's largest stock, Woolworths Group Ltd (ASX: WOW), gained 0.46% to finish at $30.42 per share on Friday.

The Coles Group Ltd (ASX: COL) share price lost 1.37% to close at $18.70.

IGA network owner Metcash Ltd (ASX: MTS) tumbled 3.73% to close at $3.23 per share.

Among the ASX 200 wine shares, Treasury Wine Estates Ltd (ASX: TWE) lifted 1.78% to $11.74.

Endeavour Group Ltd (ASX: EDV) shares fell 1.05% to $4.26.

A2 Milk Company Ltd (ASX: A2M) fell 1.64% to $5.71 last week.

Synlait Milk Ltd (ASX: SM1) shares were steady at 37 cents by the close on Friday.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) fell 3.25% to finish the week at $7.44.

The Elders Ltd (ASX: ELD) share price rose by 0.6% to $7.56.

Inghams Group Ltd (ASX: ING) lifted 1.61% to $3.16 per share.

Bega Cheese Ltd (ASX: BGA) rose by 0.95% to $5.30 per share.

Stock feed producer Ridley Corporation Ltd (ASX: RIC) declined 3.27% to $2.66 per share.

Cobram Estate Olives Ltd (ASX: CBO) shares fell 0.5% to $2 apiece.

The Australian Agricultural Company Ltd (ASX: AAC) share price rose 0.36% to $1.39.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

AMP Ltd (ASX: AMP) Head of Investment Strategy and Economics, Dr Shane Oliver, said markets were now in a "seasonally strong period of the year".

He commented:

Our overall assessment remains that the trend is still up, including for Australian shares, but expect a more volatile and constrained ride.

Dr Oliver said the market was buoyed last month by Republican Donald Trump's decisive presidential election win in the United States.

Many of Trump's policies are seen as business-friendly, including his promise to lower US corporate taxes from 21% to 15% and to deregulate parts of the US tech sector.

He also plans to introduce tariffs on all nations, which partly contributed to a divergent performance across global markets last month.

Dr Oliver noted that the S&P 500 Index (SP: .INX) rose by 5.73% and ASX All Ords shares rose by 3.29%.

But Eurozone shares fell 0.1% and Japanese shares fell 2.2%, partly due to concerns over how the new tariffs may affect exports.

Meantime, various brokers made adjustments to their ASX stock ratings.

Here are eight ASX All Ords shares that market analysts on the CommSec trading platform upgraded to a consensus strong buy rating last month.

8 ASX All Ords shares lifted to 'strong buy' status

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price closed at 22 cents on Tuesday, down 2.22%.

It's interesting that market analysts on CommSec raised the ASX All All Ords graphite stock to a strong buy rating while in the same week it was also one of the most shorted stocks on the market.

My colleague Seb recently discussed whether Syrah Resources shares are cheap following a 67% fall in 2024.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price closed at $2.09 yesterday, up 3.47%.

Goldman Sachs has a buy rating on the stock with a 12-month share price target of $3. This implies a potential 44% upside for investors in 2025.

In a new note, analysts Julian Braganza and Brian Kim discussed the impact of the Adani saga:

GQG shares fell 19% following news that US prosecutors have charged senior Adani executives, including the chairman, in connection with an alleged bribery scheme.

GQG, which holds stakes in Adani entities through its funds, said they are monitoring the situation and assessing if any actions will be taken on their portfolios.

GQG noted that in aggregate in excess of 90% of client assets are invested in issuers unrelated to Adani Group, implying at most ~10% of FUM is exposed to Adani.

The ASX All Ords financial share is up 24% in the year to date.

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price closed at $1.69 on Tuesday, up 0.6%.

PYC released a new investor presentation on its Polycystic Kidney Disease Program last week.

Canaccord Genuity has a buy rating on PYC shares with a 12-month share price target of $2.40. This implies a potential 42% upside for investors in 2025.

The ASX All Ords healthcare share is up 1,590% in the year to date (yep, you read that correctly!)

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price closed at $2 on Tuesday, down 1.96%.

Goldman Sachs has a buy rating on the stock and raised its 12-month share price target to $2.35.

In a new note, the broker said there was a potential positive for Gold Road if De Grey Mining Limited (ASX: DEG) shareholders approve the proposed takeover by Northern Star Resources Ltd (ASX: NST).

Gold Road owns about 17% of De Grey Mining shares and holds neighbouring leases to De Grey's Hemi gold project.

Goldman said the deal could potentially add about $800 million to Gold Road's already net cash balance sheet.

The broker added:

Furthermore, we see potential support for GOR to re-rate on its own fundamentals, with the stock currently trading at a significant discount to peers…

The ASX All Ords gold share is up 2% in the year to date.

Smartpay Holdings Ltd (ASX: SMP)

The Smartpay share price closed at 62 cents on Tuesday, up 0.81%.

The company released its FY25 half-year report last month.

The ASX All Ords financial share is down 56% in the year to date.

Dexus Industria REIT (ASX: DXS)

The Dexus Industria real estate investment trust (REIT) closed at $7.21 on Tuesday, up 0.42%.

UBS has a buy rating on the property stock with a 12-month share price target of $8.86.

This implies a potential upside of 23% for investors.

The ASX All Ords REIT is down 5% in the year to date.

Australian Agricultural Company Ltd (ASX: AAC)

The Australian Agricultural Company share price closed at $1.38 yesterday, down 0.72%.

Australian Agricultural Company released its FY25 half-year results on 15 November.

This ASX All Ords agriculture share is steady in the year to date.

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price closed at $87.94 on Tuesday, up 0.18%.

The company held its annual general meeting last week.

This ASX All Ords technology share is up 30% in the year to date.

The post 8 ASX All Ords shares upgraded to 'strong buy' ratings in November appeared first on The Motley Fool Australia.

Today, I'd like to write to you about longevity.

Not so much about our own investment strategies — although a long-term investing timeframe is, of course, the preferred route to individual investing success.

Rather, what I wish to discuss is the actual lifespan of the businesses we invest in and whether or not they have the qualities to last for many years, decades, or even centuries.

As an investor myself — I'm now into my 31st year — I've always wondered what it would take to find a company that would suit my preferred investing timeframe of 'forever'; a period that is well beyond my own lifetime.

This leads me to ask the question: what are the core features of a business that lend it longevity?

The follow up to that question is, do we have any of these companies on the Australian Securities Exchange (ASX)?

(It's important to note here the distinction between a business and a company, which are terms used interchangeably. A business is a commercial activity — such as selling furniture — but a company is a structure which houses that business. Whilst the term 'company' is being used below, my focus will be on the business.)

It's interesting to read many of the various articles that appear online that recommend certain companies to hold for extended periods.

A good example of this is from James Gruber in March and April this year who wrote two articles titled '16 ASX stocks to buy and hold forever' and '20 US stocks to buy and hold forever'. In this article on ASX stocks he writes:

" [Investing is …] not an easy task. First, you must be confident that a company can last for a long time. After all, the average company in the S&P 500 has a lifespan of close to 20 years, and for the ASX, it's unlikely to be much different. It rules out a lot of companies. For instance, ones that rely on a single drug for their success, those which have mines with finite lives, and stocks that are so big already that it makes growth difficult …"

This statement has been backed up by author and podcaster Bogumil Baranowski who writes in his book "Crisis Investing":

"As investors, we look for long-lasting, growing streams of cash flows generated by businesses that can grow and be profitable for as long as possible. The number of companies and industries that remain somewhat immune to change is getting smaller, while the rest of the businesses are constantly fighting to stay relevant as technological change accelerates creative destruction. This leads to an ever-shorter life of a major corporation as leaders of the business world. Their tenure among the largest 500 companies is shrinking quickly from 20 years in the early 1990s to soon way under ten years (emphasis added)".

As Baranowski concludes, the above may well have negative implications for the 'buy and hold' investment philosophy we hold dear (which we can also refer to as 'buy to hold').

However, I'm not as pessimistic.

I do believe there are businesses we can invest in for many decades, despite expected variations in underlying performance.

It's important for me to emphasise here the word 'believe'.

I have no special insights as to which company can be around in 100 years, other than what I can learn from current and previous company annual reports. Hence, it's an opinion of mine that individual companies we invest in today can be around many decades into the future.

The only caveat here is that the form of particular businesses can change. They can be in a private company today, to then be listed on a public exchange. After some years, they could then be acquired or merged, or to be broken up and sold.

Just consider National Australia Bank (ASX: NAB). Its history goes back to as far as 1857 when it was established as the National Bank of Australasia. It then grew via a number of acquisitions throughout the 20th century, including the merger with the Commercial Banking Company of Sydney in 1982, which led to the modern-day National Australia Bank.

If you can accept the premise that the ownership structure of the business can change — and assuming you accept there are indeed businesses that have the hallmarks of longevity — what do we need to look for to beat the pessimistic expectations that the lifespan of the typical company is shrinking?

Fortunately, there's been some academic research on this. In her book, "Lessons from Century Club Companies: Managing for Long-Term Success", Vicki Tenhaken summarises ten years of study to find the unique characteristics of businesses that have survived for more than a century, particularly those from Japan. It's in Japan where several of the oldest continuously-operating companies in the world are known to exist.

Tenhaken's research has found the existence of five key factors within these businesses:

1. A strong corporate mission and culture
2. Has unique core strengths and change management
3. Has close relationships with business partners
4. The presence of long-term employee relationships, and
5. Are active members of the local community

Let's go through these one by one.

Mission statements emphasise what makes a particular business unique for its customers, suppliers and other business partners. Naturally, the business needs to be true to these mission statements and actually 'live' them. Values and culture are derived from this and are used to filter out those employees, customers and suppliers who are 'in' and those who aren't.

What about a business' unique core strengths and change management capability? There needs to be something that makes it stand out and, hence, provides it with a competitive advantage. It's 'DNA' perhaps? Whether it's building faster distribution capabilities, a better ceiling fan, or a cheaper way of doing business, these unique core strengths and expertise need to be fostered and passed on to the next generation within the business. If it can do this, businesses can ensure their competitive strengths are enhanced, allowing it to change with the times.

As Tenhaken writes:

'Century Club companies are not dinosaurs. They would not have survived world wars, economic depressions, globalisation, changing social and cultural mores, and quantum leaps in technology that created whole new industries (and obsoleted others) without innovation and change.'

Next up is the existence of close relationships with Business Partners.

A business can be only as good as its suppliers, distributors, customers and, indeed, the communities it serves. This is because businesses that understand they exist because of their partners will see the value of nurturing connections, especially when there's change. When there's loyalty, it's easier to survive disruption to the industry or when the business environment becomes a little rocky at certain times in the economic cycle.

Long-term employee relationships mean loyalty to the business' cause and the containment of know-how or "institutional memory" that can help the business overcome business challenges when they inevitably rear their head. Not only that, there's also the potential for some significant cost savings in not having to find and train new employees as the existing ones leave. If turnover can be minimised, the long-term benefits can be huge. The best companies will go out of their way to keep employees on the payroll, even when there isn't enough work to do, in preparation for the next upswing in demand. In my view, it's important to take note of any 'Best Companies To Work For' lists you see when researching what company to invest in next.

Finally, each business must be an active member of the community.

This could be construed as the 'S' in ESG investing (Environmental, Social and Governance). Older companies — or younger companies hoping to become old — tend to " … actively participate in their local communities, promoting them and developing local networks for mutual learning and benefit". Being socially responsible, then not only helps the community in which it works, which in turn helps the business survive, but it also can develop a strong sense of loyalty to that particular business.

One point that was only touched on lightly in Tenhaken's book was the general opposition to debt.

In a recent blog post, Morgan Housel supports Tenhaken's observation that some Japanese companies do indeed exist for a very long time. There are 140 Japanese companies that are at least 500 years old, with a few that claim to have been in existence for more than 1,000 years. The core reason, according to Housel, is that 'they hold tons of cash, and no debt'.

Additionally, whilst profit is important, the maximisation of profits isn't the end goal.

Instead, it's to be profitable enough to ensure long-term survival so as to not be reliant on debt or outside investors.

In my view, it's okay to a point to have some debt (or the occasional capital raising) but these funding arrangements should be used rather sparingly if the business is to survive.

It makes sense, doesn't it?

If there's no (or minimal) debt, then each business can't be hurt by aggressive lenders looking to call-in their loans. As Housel writes, the more debt there is, then the range of economic and political circumstances it can endure shrinks.

Which is why I think 'a clean balance sheet' is a useful addition to Tenhaken's list of attributes when looking for a business (or company) that can, perhaps, last for many decades or centuries into the future.

What Australian examples are there?

Let's cut to the chase. Are there any public companies on the ASX that could conceivably be considered as a future 'century club' member, after taking into account the six factors above? Each company will not necessarily have all of these attributes all of the time, but the existence of at least some has, in my mind, contributed meaningfully to their long-standing operations.

There are no guarantees here, but here are four ASX stocks that I think can still be around in 2124. An additional uncertainty is whether or not they will still exist in their current form.

Australian Agricultural Company (ASX: AAC)

AACo was established in 1824 (exactly 200 years ago) with the main business activity being cattle grazing and the production of beef. Whilst there are some product-substitute risks with this company, its scale of operations and ability to operate through changing climate over the last two centuries means it could have what it takes to be here in a century's time. The AA Trust owns just over 52% of the company.

Washington H. Soul Pattinson (ASX: SOL)

The seeds of this company were planted in 1872 when Caleb Soul and his son, Washington Handley, opened a pharmacy store in Pitt Street, Sydney. Rival Lewy Pattinson bought Soul's business in 1902 before listing the company on the Sydney Stock Exchange in 1903. Since then, there have been four generations of the Millner family involved in running or Chairing the company, with Rob Millner being the latest. His son, Tom Millner, is likely to be appointed Chairman one day, continuing the family's legacy of long-term investment and business building. The Millner family's stake in Soul Patts is reportedly worth more than $1 billion.

Brickworks (ASX: BKW)

Listed in 1961, it has a cross ownership with Soul Patts, which makes it difficult for any acquisitions of both companies. There's also a large Millner-family influence here, with Rob Millner also as Chairman.

Reece (ASX: REH)

The company began operations in 1920 when its founder, H.J. Reece sold hardware supplies from the back of his truck. Soon after that, the first store was opened and continued growing through to 1969 when it became a listed company. Its business partners help it to extend its own network in plumbing, bathroom supplies, civil works, irrigation and heating.

With a continuation of high inside ownership by the Wilson family, Reece is another company with the prospects of being around for another 100 years.

Foolish takeaway

In choosing four companies which could conceivably still be around into the 22nd century, there's a great deal of uncertainty here.

Hence, this is more of a thought experiment than anything scientific given how difficult (impossible) it is to predict the future.

With that said, it pays to think long term with our investing and, if we can find businesses that potentially come with a "longevity-gene", then this might help us make up our own mind in deciding whether to invest in these businesses, or not.

The post Are There Any 'Century Club' Companies On The ASX? appeared first on The Motley Fool Australia.

Book value represents a company's worth based on its assets minus its liabilities. Think about your house, for example. If your house is valued at $1 million and you have a mortgage of $300,000, the net asset value (NAV) of your house is $700,000.

When a stock's market price is below its NAV or book value, it might mean the market is undervaluing the company. 

While book value and NAV are similar in their meaning, book value refers to the value as reported in the balance sheet, whereas NAV could be based on what a company believes is the fair value based on the market value of the assets.

Before we dive in, please note this information is for idea-generation purposes only. Always do your own research or talk to a financial advisor before making an investment decision. 

The price-to-book value (P/B) ratio-based approach is easy to understand and valuable for industries like real estate, where physical assets are essential.

On the other hand, let's remember some stocks are cheap for a reason, such as poor business prospects. Also, different accounting methods can affect the calculation of book value, potentially misleading investors. 

With that caveat out, here's my list of three ASX shares trading under their book values today.  

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs is a property trust that owns and manages high-quality, convenience-based retail assets across Australia. The company focuses on neighbourhood retail and large-format retail centres. The REIT boasts over 1,200 tenants spread across 51 properties. 

The company reported a book value of approximately $3 billion in December 2023, or a book value per unit of $1.44, representing a P/BV ratio of 0.9x using today's share price.

It is a consistent dividend payer, offering a dividend yield of 6.7% using its distributions over the last twelve months. 

Morgans recently recommended HomeCo Daily Needs REIT to buy due to the resilience of its cash flows and its exposure to accelerating click and collect trends. 

Rural Funds Group (ASX: RFF)

Rural Funds Group owns and leases a diversified portfolio of high-quality farming assets. The REIT's investments span various sectors, including cattle, vineyards, cotton, and almonds, providing stable returns for its investors. 

Rural Funds is trading at approximately 0.7x P/BV ratio using its reported book value of $1.8 billion as of December 2023. Its book value represents $2.74 on a per-unit basis, having grown from $1.55 in FY19.

The P/BV ratio becomes even more attractive using what Rural Funds itself believes is the true value of its assets. The business discloses its adjusted net asset value (NAV) which includes the market value of its water entitlements. Its adjusted NAV on 31 December 2023 was $3.07 per unit, indicating an adjusted P/BV ratio of 0.66x.  

As my colleague Tristan highlighted, Rural Funds is an ASX dividend stock worth considering. The business pays an annual distribution of 11.73 cents per unit, offering a distribution yield of 5.8% at the current share price. 

Australian Agricultural Company (ASX: AAC)

As one of Australia's largest integrated cattle and beef producers, Australian Agricultural Company manages a diverse portfolio of properties across approximately 6.4 million hectares across Queensland and the Northern Territory. 

The company produces high-quality beef, catering to the domestic and international markets. 

The global cattle market has had a rocky ride over the past few years, pushing pressure on Australian Agricultural Company's valuation.

The company is valued at a P/BV ratio of 0.6x, compared to its historical range of 0.5x to 1.4x. 

This is one of the reasons why Bell Potter maintained its positive view on the company. The broker said: 

RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28%. While we are in general seeing large discounts to NAV in ASX listed farming and water assets to market NAV, the discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF.

The Australian Agricultural Company share price is trading at $1.47 at the time of writing.

The post 3 ASX shares trading below their book values appeared first on The Motley Fool Australia.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.91% to finish the week at 7,701.7 points.

Six of the 11 market sectors finished the week in the green.

Let's recap.

Consumer staple shares led the ASX sectors last week

The biggest ASX consumer staple stock Woolworths Group Ltd (ASX: WOW) moved 0.57% higher last week. Woolworths shares closed at $31.60 on Friday.

Among the other large sector players, Coles Group Ltd (ASX: COL) shares lifted 1.48% to $16.42 apiece.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lost 1.95% to finish the week at $11.33 apiece.

Endeavour Group Ltd (ASX: EDV) shares lost 0.6% over the week to finish at $4.96 on Friday.

Among the big movers in the staples sector this week was Australian Agricultural Company Ltd (ASX: AAC). The stock rose 7.8% despite no price-sensitive news to finish at $1.52 per share on Friday.

ASX 200 agricultural share Select Harvests Ltd (ASX: SHV) lifted 4.47% to $3.27. Most of those gains came on Friday after the company released its 1H FY24 results.

The almond farmer and processor reported a net profit after tax (NPAT) loss of $2.1 million. But this was an improvement on the prior corresponding period of 1H FY23 when a $96.2 million loss was recorded.

Select Harvests managing director David Surveyor said:

The operating environment for the almond industry remains challenging. In the US, almond prices have been below the cost of production since the 2020/21 season.

Through this period, Select has made strong progress on its transformational program and is ready to benefit from the cyclical upturn.

The Bega Cheese Ltd (ASX: BGA) share price increased 2.76% over the five days to $4.46 on Friday.

There was no news from Bega this week. However, my colleague Bernd says the price surge could relate to speculation that milk prices may fall over the months ahead, thereby reducing Bega's input costs.

Ridley Corporation Ltd (ASX: RIC) rose 1.94% to $2.10. There was no news from the company this week.

Top broker Goldman Sachs says its key buy calls among ASX retail shares are now skewed towards consumer staples over discretionary stocks.

Goldman has buy ratings on three of the top four consumer staple shares by market capitalisation.

They are Woolworths shares with a 12-month price target of $39.40, Treasury Wine shares with a 12-month price target of $13, and Endeavour shares with a 12-month price target of $6.30.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

But that isn't always the case. In fact, sometimes even boring ASX All Ords shares can deliver the goods for investors.

For example, Bell Potter believes that Australian beef company Australian Agricultural Company Ltd (ASX: AAC) could generate huge returns for investors.

It owns and operates Australia's largest cattle herd with around 433,000 head spread over its properties across Queensland and the Northern Territory.

Why buy this ASX All Ords share?

Bell Potter believes that the company's shares are thoroughly undervalued at the current level.

Particularly given that since reporting its latest results, its analysts "have witnessed a sharp upward movement in cattle market indicators."

This bodes well for the company and has led to the broker increasing its earnings estimates for the near term. It said:

Operating EBITDA upgrades of +1% in FY24e, +24% in FY25e and +2% in FY26e.

In response to this, the broker has retained its buy rating and lifted its price target on the ASX All Ords share to $2.00 (from $1.90 perviously).

Based on its latest share price, this implies potential upside of approximately 42% for investors over the next 12 months.

The broker highlights that Australian Agricultural Company's shares are trading at a deep discount to net asset value (NAV). It explains:

Our Buy rating is unchanged. Cattle prices have rebounded strongly and US meat pricing indicators remain fairly firm. AAC has not benefited from the same recovery in its share price to date and continues to trade at a material 40% discount to 1H24 NAV, despite a 50% rally in the heavy steer indicator and an 87% rally in the EYCI post balance date.

The post A boring ASX All Ords share offering an exciting 40% return appeared first on The Motley Fool Australia.