With the Australian share market on fire this week, it will come as no surprise to learn that a number of ASX shares have recorded strong gains.
Three which have climbed so much they have hit new highs, are listed below. Here’s why these ASX shares are scaling new heights right now:
Costa Group Holdings Ltd (ASX: CGC)
The Costa share price hit a 52-week high of $3.76 on Thursday. Investors have been buying the horticulture company’s shares this year after it returned to form in FY 2020. During the first half, Costa posted a 6.8% increase in revenue to $612.4 million and a 12% lift in net profit after tax to $45.8 million. This was driven by a very strong performance from its international business. In addition to this, improving trading conditions in the domestic market appears to indicate that the worst is now behind the company.
NEXTDC Ltd (ASX: NXT)
The NEXTDC share price continued its positive run and hit a record high of $12.93 yesterday. This latest gain means the data centre operator’s shares are now up a whopping 98% since the start of the year. Investors have been fighting to hold of NEXTDC’s shares following a very strong showing in FY 2020 and its ever-improving outlook. Thanks partly to the accelerating shift to the cloud because of the pandemic, NEXTDC delivered a 23% increase in EBITDA to $104.6 million in FY 2020. Similarly positive growth is expected in FY 2021 as demand for data centre capacity continues to increase.
Super Retail Group Ltd (ASX: SUL)
The Super Retail share price was on form and hit a 52-week high of $11.55 on Thursday. The catalyst for this appears to have been the Federal Budget. Super Retail and its numerous retail brands look well-positioned to benefit from the tax cuts which are putting extra funds in consumers’ pockets ahead of the key holiday season shopping period. In addition to this, the prospect of higher domestic travel in the short term should be a boost to some of its brands.
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Returns as of 6th October 2020
More reading
- Top ASX growth shares to buy in October 2020
- Why this Federal Budget is good for many ASX shares
- Why the Coles Group (ASX:COL) share price just got upgraded to “buy”
- The latest ASX small cap buy ideas from leading brokers
- Why Costa, Qantas, Santos, & Westpac shares are storming higher today
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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