Each state has a different school holiday period, with NSW, Queensland, and Victoria among the states commencing holidays today.

Tasmania has the latest school holiday schedule this Easter season. The school break in our smallest state runs from 18 April to 3 May.

So, here's a list of all the ASX shares due to go ex-dividend over the coming weeks through to 3 May.

In order to receive a dividend, you must own the ASX share prior to its ex-dividend date.

Ex-dividend dates give ASX investors two opportunities.

Either buy before the date to receive the dividend, or wait until ex-dividend day, when the share price will likely drop, to buy then.

ASX shares with ex-dividend dates this month

The post 21 ASX shares going ex-dividend over the school holidays appeared first on The Motley Fool Australia.

Listed below are two that it rates as buys and one that it thinks investors should be accumulating.

Let's see what it is recommending to clients:

Acrow Ltd (ASX: ACF)

This construction services company's shares have been named as a buy by Morgans with a $1.28 price target.

The broker was encouraged with its recent trading update and highlights its positive growth outlook and generous dividend yield as reasons to buy. It explains:

ACF's trading update was encouraging. While FY26 revenue and underlying EBITDA guidance was reaffirmed, management commentary pointed to improving activity levels across Australia. This was particularly pleasing in the QLD formwork division, which has experienced softer conditions over the past two years. Momentum in QLD appears to be turning, with improvement evident heading into FY27. Initial FY27 guidance was a positive surprise. While broadly in line with consensus, we view the early guidance as conservative and achievable, reflecting management's confidence in the outlook.

We maintain our positive view on ACF with a BUY rating and $1.28 target price. With formwork activity – particularly in QLD – now improving, momentum into FY27 continues to build. With Brisbane Olympics-related activity also expected to ramp up over the next 12-18 months, we see ACF's outlook as strong. Trading on 8.6x FY27F PE with a 6.0% yield, we believe the valuation remains attractive.

Beetaloo Energy Australia Ltd (ASX: BTL)

Another ASX share that Morgans is positive on is energy explorer Beetaloo Energy. The broker has a speculative buy rating and 90 cents price target on its shares.

It highlights the deep discount that the company trades on, which leaves material upside for investors. The broker said:

The INPEX/Formentera Beetaloo JV terms imply US$3,059/acre at base earn-in, escalating to US$3,547-$5,480/acre on option exercise, a 20-37x uplift on the prior Tamboran/DWE benchmark in 2025. BTL trades at an implied ~A$140/acre, a 97% discount to the INPEX base deal. Even heavy discounting for acreage quality differences leaves material upside. INPEX has committed development-scale capital (up to US$619m) to the Beetaloo as an LNG-grade resource. Farm-out leverage for BTL has stepped up materially. We maintain our Spec Buy rating, with an upgraded A$0.90 TP.

PEXA Group Ltd (ASX: PXA)

After a sharp decline this week, Morgans has reaffirmed its accumulate rating on this property settlement company's shares with a $14.31 price target.

The broker remains positive on PEXA despite concerns on future pricing following the release of a paper from IPART. It explains:

IPART has released a methodology paper outlining its proposed approach to calculating an Initial Asset Base (IAB), which has direct implications for the pricing of Electronic Lodgment Network Operators (ELNOs). While this is just a discussion paper, it certainly points to a likely more rigid structure controlling PXA's future pricing, while elements such as the potential exclusion of goodwill from IPART's proposed IAB calculation could present downside risk.

We make nominal changes to our PXA earnings of -1%-2% on some post results earnings tweaks. While it is too early to factor in the full implications of the pricing review, we now apply a 15% discount to our valuation to account for potential regulatory risk, setting our price target at A$14.31. We maintain our ACCUMULATE recommendation with >10% upside to our PT.

The post Morgans names 2 ASX shares to buy and 1 to accumulate appeared first on The Motley Fool Australia.

Shares looking cheap

The analyst teams at both Shaw and Partners and Morgans have run the ruler over the trading update and both believe Acrow shares are undervalued at the moment.

We'll get to their specific share price targets shortly.

Firstly, let's have a look at what Acrow told the market this week.

The company, which specialises in hiring out construction-related assets such as scaffolding, said it was "experiencing improving activity levels across Australia, as anticipated''.

The company added:

During March, Acrow secured new hire contracts totalling $14.3 million, representing the highest monthly value of contract wins in the Company history, exceeding the previous record by over $2.5 million. Improving activity levels have also driven a materially stronger sales pipeline, which stood at $256.0 million as at the end of March, representing an increase of 34% on pcp and another record level.

Acrow said it had a strong trajectory heading into the fourth quarter of the financial year, which it expected to be its strongest for the year.

It added:

As a result of these outcomes, together with a general improvement in trading conditions, especially within the Queensland formwork business, where hire revenue in March reached its highest level in over 12 months, the Company is confirming FY26 revenue and EBITDA guidance.

The company's guidance was for sales of $315 to $325 million and EBITDA of $80 to $84 million.

Acrow also said the strong trading performance should generate "significant momentum'' heading into FY27.

It added:

This is supported by a confirmed forward order book in the Industrial Access division and the significant uplift now evident within the formwork markets, particularly in Queensland. Collectively, these factors provide the Board with the confidence to issue early FY27 revenue and EBITDA guidance, with revenue expected to be in the range of $335 million to $350 million and EBITDA in the range of $88 million to $98 million.

Analysts like what they see

The team at Morgans analysed the expected trading for Acrow and came up with a 12-month price target of $1.28 for Acrow shares, compared with 88.7 cents currently.

Morgans said the trading update was "encouraging'' and added:

Initial FY27 guidance was a positive surprise. While broadly in line with consensus, we view the early guidance as conservative and achievable, reflecting management's confidence in the outlook. Importantly, FY27 guidance also implies an improvement in EBITDA margins, suggesting a favourable shift in sales mix toward the higher margin Formwork segment.

The team at Shaw and Partners came up with a price target of $1.25 for Acrow shares, with a buy rating on the stock.

The post After a positive trading update 2 brokers agree this stock is a buy appeared first on The Motley Fool Australia.

Earlier in the day, the stock had been trading in the red, down 0.60% to 82.5 cents.

But sentiment shifted quickly after the release, sending the shares 6.63% higher to 88.5 cents.

The sudden reversal suggests investors saw enough in the update to feel more confident about the company's growth over the next year.

Here's what appears to be driving the move.

Momentum builds after a strong March

According to today's announcement, Acrow secured $14.3 million in new hire contracts during March, making it the strongest month in the company's history.

That pushed its hire revenue pipeline to a record $256 million, up 34% on the prior comparable period.

Management said conditions have improved across Australia. Queensland has been a standout, with March revenue reaching its highest level in more than 12 months.

That strength has given the board confidence to reaffirm its FY26 guidance and provide initial FY27 guidance.

The company continues to expect FY26 revenue of $315 million to $325 million, with EBITDA of $80 million to $84 million.

Looking ahead, Acrow expects FY27 revenue between $335 million and $350 million, and EBITDA in the range of $88 million to $98 million.

Using the midpoint, that implies roughly 7% revenue growth and 13% EBITDA growth year over year.

Management commentary

Chief Executive Officer Steven Boland said the company's multi-year diversification strategy is helping build a more resilient earnings base.

Boland said Acrow had spent the past three years broadening its revenue streams to better handle ups and downs in the broader construction industry.

He noted that the strategy has positioned the company to take advantage of the next uplift in the construction cycle, particularly across civil infrastructure markets in Queensland.

Those comments are likely to have supported today's move higher, with investors focusing on both current trading momentum and clearer growth prospects into FY27.

Foolish Takeaway

Today's gain came after investors received a clearer growth outlook for both FY26 and FY27.

After trading lower earlier in the afternoon, the stock reversed course as the company pointed to record contract momentum and a stronger forward pipeline.

With early FY27 guidance now in place, the focus shifts to whether Acrow can keep turning infrastructure demand into higher revenue and profits.

That could leave the stock better placed if infrastructure demand continues to improve across key East Coast markets.

The post From red to green: Why this under-the-radar ASX stock is ripping higher this afternoon appeared first on The Motley Fool Australia.

The team at Shaw and Partners believes that this creates a buying opportunity for investors in the All Ords company, and they've issued a bullish price target on the stock, which we'll get to later.

'Firstly, why does Shaw like the look of this company?

Recent headwinds no big deal

The Shaw team said in a research note to clients that current headwinds, in the form of negative free cash flow and an increase in net debt, can be explained by project delays in Queensland and by investments for growth.

But they say a turnaround for Acrow could be rapid.

As they said:

Our forecasts assume a return to normal conditions in infrastructure spending across Australia and suggest that Acrow can generate positive free cash flow as early as 2H26. Potentially above-average margins from Olympics work represent upside to our forecasts.

Citi said the company had been investing via expenditure on equipment for leasing, working capital, and acquisitions, with Acrow buying four companies recently for a combined $75.4 million.

The Citi team said Acrow also remained exposed to strong-growth markets.

They said further:

These include the Industrial Access division's significant growth opportunities in the defence and asset maintenance sectors, and the Brisbane 2032 Olympic and Paralympic Games. Regarding the Games, staged construction on venues is expected to commence in the March Qtr 2027 with peak activity across multiple venues expected between 2027 and 2031. We expect contract awards to be announced from July 2026. The 2032 hard-close date may also provide various Engineering & Construction companies the ability to surge-price for several years.

Shares looking cheap

Citi said that despite the near-term growth drivers, Acrow was trading at a discount to its peers.

Citi has a price target of $1.25 per share for Acrow, compared to its current share price of 85.5 cents, which would represent a 46.2% return.

The company also pays a trailing dividend yield of 5.78%.

Acrow in February reported record sales revenue of $155.9 million for the first half, up 23% on the previous corresponding period, while underlying net profit was 22% lower at $12.9 million.

The company's accelerated capital expenditure during the half saw net debt increase by $28.2 million to $151.5 million, which was above the company's target range.

Acrow was valued at $266.4 million at the close of trade on Friday.

The post Which All Ords builder could benefit from Brisbane's big Olympics build? appeared first on The Motley Fool Australia.

That's because small cap ASX shares have the potential to deliver market-beating returns if you can find the diamonds in the rough.

Two potential diamonds according to Morgans are named below. Here's why the broker is tipping them to deliver returns of 20% to 45% over the next 12 months:

Acrow Ltd (ASX: ACF)

Morgans thinks that Acrow could be a small cap ASX share to buy. It is a provider of smart integrated construction systems across formwork, industrial services, and commercial scaffolding in Australia.

It thinks its shares are undervalued at less than 10x earnings and with a 5%+ dividend yield. The broker said:

ACF's strategy has focused on supplementing organic growth with complementary acquisitions, enhancing scale and enabling entry into new markets. We estimate that 58% of EBITDA growth between FY18-25A was driven organically, while 42% came from acquisitions. Over the past two years, ACF has strengthened its Industrial Access offering through four acquisitions. If ACF hadn't done these deals, we estimate that FY24A-26F underlying EPS would be between 4-18% lower.

We make no changes to earnings forecasts and maintain our BUY rating and $1.32 target price. Trading on 9.8x FY26F PE with a 5.3% yield, we continue to view ACF as an attractive investment with the company's long-term growth prospects remaining strong despite some near-term uncertainty around the commencement of key projects.

Morgans has a buy rating and $1.32 price target on the company's shares. Based on its current share price of $1.08, this implies potential upside of 22% for investors over the next 12 months.

Symal Group Ltd (ASX: SYL)

Another small cap ASX share that Morgans is positive on is Symal Group.

It describes itself as a self-performing Australian construction group focused on civil infrastructure, contracting, plant and equipment hire, material sales, recycling, and remediation via a vertically integrated project delivery model.

Morgans notes that despite its strong returns on capital, the market is valuing its shares at a significant discount to most of its peers. It feels that this has created a buying opportunity for investors. It said:

Despite SYL continuing to deliver strong returns on capital across diversified and resilient end markets, the stock is trading at a PER half its peers, and we believe investors are over discounting the risks associated with construction contracting.

For example, if we compare SYL's contingent liabilities (bank guarantees) to revenue, its exposure (along with margins) is in line (if not above) with peers. Our conviction in SYL's risk management is further supported by strong cash conversion and substantial insider ownership. On this basis, we rate SYL a BUY with a $2.40/sh target price.

The broker currently has a buy rating and $2.40 price target on its shares. Based on its current share price of $1.65, this suggests that upside of 45% is possible between now and this time next year.

The post Morgans says these small cap ASX shares could rise 20% to 45% appeared first on The Motley Fool Australia.

We might not be seeing the most well-known dividend payers, like Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA), or BHP Group Ltd (ASX: BHP), in dividend mode right now. However, there are still no fewer than four ASX All Ords shares scheduled to trade ex-dividend next week.

Remember, when a company declares a dividend, it must also nominate an ex-dividend date to precede it. This date serves as a cutoff point in deciding which shareholders are eligible for the company's coming dividend payment.

If any investor wishes to receive a particular dividend payment, they must have that company's shares against their name as of the market close on the day before that company trades ex-dividend. If an investor buys that company's shares on or after its ex-dividend date, the seller will retain the rights to receive said dividend, even if they no longer hold the shares.

4 ASX All Ords shares scheduled to trade ex-dividend next week

First up, we have ASX All Ords share and aluminium producer Alcoa Corporation (ASX: AAI). Alcoa's latest dividend payout is set to be worth 10.5 cents per share, albeit without any franking credits attached. It is set to arrive in eligible shareholders' bank accounts next month on 19 November.

However, Alcoa has nominated next Monday, 28 October, as the ex-dividend date for this payout. That means if investors wish to receive it, they must own the shares by market close tomorrow.

Next, let's talk about Hotel Property Investments Ltd (ASX: HPI). This real estate investment trust (REIT) will pay out its latest dividend distribution on 20 November next month. This distribution will be worth 6.5 cents per share. As is usual for a REIT, it will come unfranked.

Investors have a little bit longer to decide if they wish to bag this particular dividend. Hotel Property Investments is scheduled to trade ex-dividend next Wednesday, 30 October.

That ex-dividend date is shared with ASX All Ords construction share Acrow Ltd (ASX: ACF). Acrow is also scheduled to trade ex-dividend next Wednesday, 30 October. Investors are in line to receive 3 cents per share on 29 November. This dividend will come with full franking credits attached.

Finally, we come to Autosports Group Ltd (ASX: ASG), an ASX All Ords share that deals in luxury car brands. Autosports has scheduled next Thursday, 31 October, as its ex-dividend date for its final dividend of 2024.

This dividend will be worth 8 cents per share and will come with full franking credits attached. For eligible investors whose names are next to Autosport shares as of the market close next Wednesday, payment day will be 15 November next month.

The post 4 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Luckily for income investors, analysts have done a lot of the hard work for you and picked out two they think are buys.

Here's what they are saying about these dividend shares:

Acrow Ltd (ASX: ACF)

The team at Morgans thinks that Acrow could be an ASX dividend share to buy. It provides the construction sector with engineered formwork, scaffolding, and screen systems solutions.

Morgans has an add rating and a $1.43 price target on its shares. The broker likes the company due to its positive outlook, attractive valuation, and generous forecast dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong and recent acquisitions will provide new avenues for growth, especially in the more stable and less cyclical Industrial Services segment. We believe the valuation remains attractive (~7.5x FY25F PE and ~5.5% yield) with potential positive catalysts from further meaningful contract wins.

Morgans is forecasting fully franked dividends of 5.5 cents per share in FY 2024 and then 5.9 cents per share in FY 2025. Based on the current Acrow share price of $1.16, this will mean dividend yields of 4.75% and 5%, respectively.

GUD Holdings Limited (ASX: GUD)

Analysts at Bell Potter think that this auto parts company would be a good ASX dividend share to buy.

The broker has the company on its favoured list with a buy rating and a $12.80 price target on its shares. Its analysts believe the company is well-positioned to benefit from supply constraints and the resilience of the legacy auto business. It commented:

The company recently reported an impressive FY23 result with NPAT of $119 million beating Citi forecast by 3% and consensus by 14%. This was driven by the better-than-expected APG performance (the highest-quality business in GUD, in our view) and the improvement in gearing. We see GUD as well-placed to benefit from the ongoing improvement in OEM supply constraints into FY24. Overall, our Buy rating for GUD is predicated on the relative resilience of the legacy auto business and improving momentum in new car sales, which should be favourable for APG's earnings.

As for income, Bell Potter is forecasting fully franked dividends per share of 38.5 cents in FY 2024 and then 40.4 cents in FY 2025. Based on the current GUD share price of $10.57, this equates to dividend yields of 3.65% and 3.8%, respectively.

The post Analysts name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

But which small-cap ASX shares should you buy?

Listed below are three that Morgans rates very highly. Here's why it is bullish and has them on its best ideas list:

Acrow Ltd (ASX: ACF)

The first small-cap ASX share that Morgans is bullish on is Acrow. It provides the construction sector with engineered formwork, scaffolding, and screen systems solutions.

Morgans likes the company due to its positive long-term outlook, attractive valuation, and generous dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong and recent acquisitions will provide new avenues for growth, especially in the more stable and less cyclical Industrial Services segment. We believe the valuation remains attractive (~7.5x FY25F PE and ~5.5% yield) with potential positive catalysts from further meaningful contract wins.

The broker currently has an add rating and a $1.43 price target. This implies a potential upside of 25% for investors.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small-cap share that Morgans rates highly is Camplify. It is the number one player in ANZ in the peer-to-peer RV rental space.

The broker believes that Camplify has a significant growth opportunity both at home and abroad. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and a $2.85 price target on its shares. This suggests that a potential upside of almost 60% is possible from current levels.

Mach7 Technologies Ltd (ASX: M7T)

Finally, Morgans is also feeling positive about this enterprise image management systems provider and sees it as an ASX small-cap share to buy. Its analysts believe Mach7 is well-positioned to deliver very strong sales growth over the coming years. They said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker has an add rating and a $1.56 price target on its shares. This implies a massive upside of over 100% for investors.

The post Morgans rates these ASX small-cap shares as best buys appeared first on The Motley Fool Australia.

If you want to bank their upcoming passive income payouts, you'll need to own shares at market close the day before these ASX All Ords shares trade ex-dividend.

Which companies am I talking about?

I'm glad you asked!

Two ASX All Ords shares set to trade ex-dividend

The first ASX All Ords stock trading ex-dividend next week is Acrow Ltd (ASX: ACF).

The company provides construction systems across formwork, industrial services and commercial scaffolding in Australia.

And with business growing, the Acrow share price is up 31.40% over the past 12 months.

For its half-year results, the ASX All Ords share reported record sales revenue, record earnings before interest, taxes, depreciation and amortisation (EBITDA), and record underlying net profit after tax (NPAT).

Sales revenue of $101 million was up 28% year on year. EBITDA of $35 million increased by 53%. And underlying NPAT of $16 million was up 33% for the six months compared to the prior corresponding period.

This success was reflected in the record-high, fully franked interim dividend of 2.9 cents per share. At the recent Acrow share price of $1.13, that represents a yield of 2.6% from the interim dividend alone.

Acrow shares trade ex-dividend on Monday. So if you'd like to grab that passive income, you'll need to own shares at market close today. You can then expect to receive those dividends on 31 May.

Which brings us to the second ASX All Ords share trading ex-dividend next week, Bank of Queensland Ltd (ASX: BOQ).

The ASX bank stock reported its half-year results on 17 April. With those results surprising to the upside, the Bank of Queensland share price closed the day 5.2% higher.

On the surface, the bank's results didn't appear overwhelming. But they handily beat consensus expectations as the company continues its work to rebuild into a stronger business.

As for the core financial metrics, total income declined by 12% year on year to $795 million. This came alongside a 6% increase in operating expenses, which came in at $524 million for the half-year.

And with cash NPAT of $172 million down 33%, management also cut the fully franked interim dividend by 15% to 17 cents per share.

Still, at the recent Bank of Queensland share price of $6.17, that works out to a yield of 2.8% just from the upcoming interim dividend.

The All Ords bank stock trades ex-dividend on 2 May. So if you'd like to bank that passive income, you'll need to own shares at market close next Wednesday, 1 May.

You can then expect to receive that payment on 27 May.

The post Looking for passive income? These 2 ASX All Ords shares trade ex-dividend next week! appeared first on The Motley Fool Australia.

Well, the team at Morgans has been busy looking at the companies it has under coverage and has picked out a few cyclical ASX shares that it finds "interesting" right now.

These are construction services company Acrow Ltd (ASX: ACF), airline operator Alliance Aviation Services Ltd (ASX: AQZ), baby products retailer Baby Bunting Group Ltd (ASX: BBN), fund manager GQG Partners Inc (ASX: GQG), and energy producer Santos Ltd (ASX: STO).

What did the broker say about these cyclical ASX shares?

Commenting on the market and these ASX shares, the broker said:

We see the S&P/ASX 200 index rangebound in 2024. FY24 EPS is forecast to decline 5% before rebounding 5% in FY25, leaving the heavy lifting down to P/E multiple expansion, but at 16x vs the 14.5x 20-year historical average, there is limited scope for further expansion barring a sharp retreat in interest rates.

While we do not expect the index to do much at the headline level, high-level numbers conceal significant variation across sectors. Cyclicals including consumer and commercial services, media, retail and capital goods offer mid-to-high EPS growth into FY24 at lower relative valuations. Cyclical stocks that look interesting include Acrow, GQG Partners, Alliance Aviation, Baby Bunting and Santos.

What about ratings?

Morgans has price targets of $1.22 on Acrow shares, $5.20 on Alliance Aviation shares, $2.05 on GQG shares, $2.00 on Baby Bunting shares, and $7.80 on Santos shares.

For all but Santos, the broker has add ratings and valuations on these ASX cyclical shares that imply at least 10% upside from current levels.

And in the case of Alliance Aviation, its price target suggests upside of over 50% from current levels. This could make it worth watching very closely during earnings season.

The post Morgans names the ASX cyclical shares to buy for earnings season appeared first on The Motley Fool Australia.

Here are the four stocks that Moomoo market strategist Jessica Amir says are "winners" right now:

2 ASX stocks to buy now

Not much is heard about Acrow Ltd (ASX: ACF) but Amir's team is "feeling bullish" on the stock.

"This Australian business operates in industrial construction," Amir said.

"With plenty of forward contracts and government contracts secured, they're a growing business. Plus, they have a strong monopoly in the high-rise scaffolding sector."

Calling it a "hot stock", Amir noted how the share price has rocketed 54% so far this year.

"They've also recently made moves to purchase Mackay-based MI Scaffolding — strong signs of growth and executive management."

Afterpay parent company Block Inc CDI (ASX: SQ2) is more than just a buy now, pay later services provider.

"Block is the company behind Afterpay, Cash App and the Square payment terminal — a diversified company that generates its revenue through a range of high-performing retail companies."

Therefore Amir tips that Block Inc's fortunes are surprisingly decoupled from consumer discretionary sentiment, which is low at the moment.

"With a major part of its profit coming from Square transactions and Bitcoin transfers, Block is resilient to retail movements and will likely continue reaping huge potential growth in the coming years."

And 2 to buy when the price is right 

REA Group Ltd (ASX: REA) has been a darling of the Australian market for the last two decades, and has doubled its share price over the past five years.

"The owner of realestate.com.au, REA reaps 75% of its profits from property ads and has a strong stake in the online real estate platform market," said Amir.

She added that the stock surge has momentum, and the operations are expanding successfully in the Indian market.

"It's looking up for the business."

Although REA is "likely to be a winner" in the long run, Amir urged investors to look for the right entry point.

"It's worth considering selling your profits now and picking it up once the market value pulls back following the Christmas lull."

It's the same story with Xero Limited (ASX: XRO), which Amir called "a long-time favourite".

"Despite the recent pullback on profits, Xero has huge potential to globally expand and reach a new market," she said.

"For those interested in investing, consider purchasing once the stock dips back down."

The post 4 of her best: The ASX stocks this expert says are winners right now appeared first on The Motley Fool Australia.

Here's what the broker is saying about these small caps:

Acrow Formwork and Construction Services Ltd (ASX: ACF)

The first ASX small cap share that could be a buy is Acrow Formwork and Construction Services.

Acrow is a growing provider of engineered formwork, scaffolding, and screen systems solutions to the construction sector.

Morgans likes the company enough to have it on its best ideas list. This is due to its belief that it is well-placed to benefit from growing civil infrastructure activity across the east coast. It also notes its attractive valuation. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong with two earnings upgrades so far in FY23. We believe the valuation remains attractive (~7x FY24F PE and ~5% yield) with potential positive catalysts from further meaningful contract wins.

The broker has an add rating and 95 cents price target on its shares.

Maas Group Holdings Ltd (ASX: MGH)

Another small cap ASX share to consider buying is Maas. It is a growing construction material, equipment and service provider.

Goldman Sachs is a fan of Maas and believes it could be a top option right now. This is thanks to its ongoing transition, which it believes will support higher quality earnings. It explained:

We believe MGH is in a transition phase and will see higher quality real estate income become the largest source of earnings in the next 3-5 years. We believe the market is mispricing how MGH's civil and construction capabilities support the property development business to deliver best-in-class margins and asset turnover. In our view the value created through the development of quality annuity revenue from Build-to-Rent (BTR), Land Lease (potentially generating a 4.5x ROIC annuity income stream) and commercial real estate projects could re-rate the stock.

Goldman has a buy rating and $4.00 price target on its shares.

The post Brokers name 2 small cap ASX shares to buy now appeared first on The Motley Fool Australia.

But nothing comes for free, and this type of explosive growth won't just fall into an investor's lap.

Picking the right small-cap stock requires much research of businesses where information might be pretty scarce.

And because many of them are in pre-profit or even pre-revenue stages, financial fundamentals might not even necessarily reflect their future potential.

It's indeed an imprecise art.

However, there are professional investors that study small caps for a living. Listening to their favourite picks and the rationale behind them might provide some insight for your own decisions.

One of those pros is Salter Brothers portfolio manager Gregg Taylor. This week, he named one ASX stock with a bright outlook that investors may not know much about:

Dirt cheap for 'defensive growth'

Acrow Formwork and Construction Srvc Ltd (ASX: ACF) provides services and formwork solutions for the civil construction industry.

Those in the know have flocked to the stock, seeing the share price rocket more than 39% over the past year.

Taylor's team reckons there's still upside in excess of 45% above the current share price over the next couple of years.

The business is "consistently growing" its revenue and earnings, as seen over the five years that it's been listed on the ASX.

"It's also generating good cash, has a good balance sheet, is quite profitable and is dividend-paying — fully franked yield of close to 6%."

Despite the rise in share price, Acrow shares are still trading at a price-to-earnings multiple of seven to eight times, which is a bargain in Taylor's eyes.

"So you're not paying a lot for that defensive growth."

The post The obscure ASX share with 45% upside one small-caps expert is backing right now appeared first on The Motley Fool Australia.

But which small cap ASX shares should you buy? Listed below are two that Morgans rates very highly. Here's why it is bullish on them:

Acrow Formwork and Construction Services Ltd (ASX: ACF)

The first small cap ASX share that Morgans is bullish on is Acrow. It provides engineered formwork, scaffolding, and screen systems solutions to the construction sector.

Morgans likes the company due to its belief that it is well-placed to benefit from growing civil infrastructure activity across the east coast. It also highlights its attractive valuation and even more attractive dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long-term, especially on the east coast. We believe the valuation remains attractive (~7x FY23F PE and ~6.5% yield) with potential positive catalysts from further meaningful contract wins.

The broker has an add rating and 84 cents price target on its shares. This suggests potential upside of 23% for investors over the next 12 months based on the current Acrow share price.

Mach7 Technologies Ltd (ASX: M7T)

Morgans is positive on this enterprise image management systems provider. It believes Mach7 is well-positioned to deliver strong top line growth over the coming years. It explained:

Mach 7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker currently has an add rating and $1.34 price target on its shares. So, with the Mach7 share price currently fetching 73 cents, this implies potential upside of 83% for investors over the next 12 months.

The post Broker says these small cap ASX shares offer big returns potential appeared first on The Motley Fool Australia.

Here's what the broker is saying about these small caps:

Acrow Formwork and Construction Services Ltd (ASX: ACF)

The first small cap ASX share that Morgans is tipping as a buy is Acrow Formwork and Construction Services. It is a leading provider of engineered formwork, scaffolding, and screen systems solutions as well as in-house engineering and industrial labour supply services to the construction sector.

Last month, Acrow released its full year results and revealed a 40% increase in revenue to $148.3 million and the doubling of its net profit after tax to $17.8 million.

Morgans was impressed and believes the company is well-placed for further growth. It also highlights that its shares trade on very low multiples despite this positive form. The broker commented:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long-term, especially on the east coast. We believe the valuation remains attractive (~6x FY23F PE and ~6.5% yield) with potential positive catalysts from further meaningful contract wins.

Morgans has an add rating and 80 cents price target on Acrow's shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share that the broker is a fan of is Mach7. It is a medical imaging systems provider that develops innovative image management and viewing solutions for healthcare organisations.

As with Acrow, it was in fine form in FY 2022. For the 12 months, Mach7 reported a 42% increase in revenue to $27.1 million and a 253% jump in EBITDA to $2.8 million.

The good news is that Morgans expects this solid growth to continue in the coming years. The broker commented:

Mach 7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

Morgans has an add rating and $1.34 price target on Mach7's shares.

The post Broker names 2 small cap ASX shares to buy now appeared first on The Motley Fool Australia.

Record contract wins

Investors are scrambling to pick up Acrow shares after the company updated the ASX with its latest performance report.

According to its release, Acrow advised it has achieved a record month of secured hire contract wins. During March, the company also attained $5.9 million in new hire contracts. Furthermore, this figure represents a 92% increase on the prior corresponding period. In addition, this was an 18% improvement on its previous best month record accomplished in November 2020.

Acrow highlighted that the 3 largest months in terms of new hire contracts have occurred within the past 5 months.

For the March quarter, the company reported $11.2 million in new contract win, reflecting a 50% jump on Q3 FY20. Underpinning the strong result, Queensland saw strong growth across all sectors.

Acrow stated that the robust March quarter performance has indeed set itself up for a strong start to the financial year. June hire revenue is set to come in around $4.5 million which is likely to lead to another exceptional result. The company however decided to maintain its earnings before interest, tax, depreciation and amortisation (EBITDA) guidance for FY21. It is forecasting EBITDA to come between $23.5 million to $24.5 million.

What did the CEO say?

Acrow CEO, Steven Boland hailed the robust performance, saying:

I expect 1Q22 will see this momentum continue as we reap the benefit of the great successes, we are achieving in securing new contracts. The results we are seeing are a testament to the innovative, customer solutions focus of our market-leading engineering team as well as the strong ability of our sales teams to convert opportunities into revenue.

Acrow remains very well positioned to benefit from the substantial infrastructure development program earmarked over the next 3-5 years in Australia and most likely beyond.

About the Acrow share price

The Acrow share price has gained over 50% in the past 12 months but is relatively flat year-to-date. The company's shares are within sights of its 52-week high of 41 cents reached in early December.

Based on the current share price, Acrow presides a market capitalisation of roughly $83.9 million, with 222.8 million shares outstanding.

The post Why the Acrow (ASX:ACF) share price is running higher today appeared first on The Motley Fool Australia.

While day traders may delight in the opportunities for quick gains in these volatile conditions – and lament the equally quick losses – it can be a trying time for buy to hold investors.

By that I mean investors who buy shares in quality businesses with good management and growing revenues, and hold onto those shares for many years. Generally, until their original investment thesis changes substantially enough to alter the long-term outlook for share price gains and/or dividend streams. Only then (barring any urgent needs for funds) is there good reason to sell.

Buy to hold investing, with the right diversification among shares, is a historically proven way to grow your wealth over time. But it can be vexing when the share prices of your carefully chosen businesses fall on rumours of a 'hard Brexit', then rise on news of a promising COVID-19 vaccine, only to fall again when the United States' president is stricken by that same virus.

But fear not. (Noise alert!)

The latest headlines across the financial media inform us that Australian and Asian share markets are swinging higher again today and US markets should follow.

Why?

Because Donald Trump may be released from hospital as soon as today (tonight Aussie time).

As I said, if you're day trading you could lock in some quick gains if you guess the market direction on these kinds of short-term announcements correctly. Or book some quick losses if you guess wrong.

But if you're holding onto quality shares that look set to perform well during the COVID-19 recovery period and beyond, then your best bet is to tune out the noise. Or at least take it all in with a big grain of salt.

Focus on what matters

Not to diminish Trump's physical battle to recover from the coronavirus. I wish him, and everyone infected with COVID-19, a full and rapid recovery. But at the end of the year, or next year, this will have no bearing on the share prices of your ASX holdings. Even if this event serves to tip the November election for a Joe Biden victory.

You may have heard that Biden has pledged to raise the US business tax rate. The same rates Trump slashed to the delight of corporate America, helping send US share markets to new highs. But there's no guarantee Biden will use up the political capital needed to try and follow through with this pledge. And even less certainty that his Democratic party will take control of the US Senate to enable raising the corporate tax rates in either case.

There's enough uncertainty already that buy to hold investors should readily ignore this as noise. Topping it off, increasing corporate tax rates in the US would likely drag on US share markets, but the longer-term impact on ASX shares would be mixed… and minimal.

Yes, some Aussie companies would have to pay more taxes in the US, should this all come to pass. But at the same time, many ASX shares would get a boost as global investors re-rate their potential returns in an environment of higher US taxes.

Here comes the stimulus

What we do know for certain is that, following the COVID-19-led market panic in February and March, record levels of central bank and government stimulus measures were rolled out across the developed world.

And we know that share markets rallied at historic paces.

The S&P/ASX 200 Index (ASX: XJO) rocketed 35% higher from 23 March through to 9 June. And the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) posted an incredible 76% gain from the 23 March lows through to 2 September.

Today, both indexes are still trading below those highs as investors await details of the next stimulus measures.

In the US, Democrats are still pressing their US$2.1trillion (AU$2.9 trillion) package. While Republicans continue to balk at that, Trump spoke out from hospital to urge both sides to reach an agreement and pass a new spending package. As a long-term investor, it doesn't much matter if that passes this week or next month. What matters is the US government will most assuredly open the fiscal taps wide once more.

Here in Australia, we'll get the full details of the new budget tomorrow. From everything we've seen so far, it's going to be huge, with personal and business tax cuts, home buying incentives, and a big splash on manufacturing and state infrastructure programs.

That's a good reason to hold onto your infrastructure plays. And perhaps buy or add more of these two shares.

Two ASX shares to buy today

First up is Transurban Group (ASX: TCL). With a market cap of $38.6 billion, Transurban is not only one of the world's largest toll road operators, it also designs and builds new road projects.

When lockdown measures began to sink in earlier this year, Transurban's share price took a big hit, falling 39% from 19February through to 19 March. It's gained 42% since that low, leaving the share price down 4% in 2020. But as Victorians emerge from their travel restrictions and begin paying tolls once more, and with new road construction highly likely to ramp up with the coming wave of stimulus, Transurban is well positioned to offer significant mid to long-term share price growth. 

Second up is small-cap share Acrow Formwork and Construction Srvc Ltd (ASX: ACF). With a market cap of $78 million, Acrow manages more than 50,000 tonnes of formwork and scaffolding equipment across Australia.

Acrow's share price was smashed during the COVID-19 panic selling, falling 63% from 21 February through to 23 March. Since then the share price has soared 177% higher, putting it up 6% year-to-date.

But even after that phenomenal run, Acrow shares could have a lot further to run as the next big rounds of pandemic recovery stimulus spur new construction projects.

The post Ignore the noise and focus on these ASX shares instead appeared first on The Motley Fool Australia.