Below, I discuss three mid-cap companies that have performed strongly this year, but which have suffered minor pullbacks in their share prices during the past week due to various reasons.
All of these 3 ASX shares announced strong results in 2020 and the first quarter of FY21.
FINEOS Corporation Holdings plc (ASX: FCL)
Insurance software developer Fineos is having a great year, and that’s been reflected in its share price. At the time of writing, the Fineos share price has surged by 57%, year to date (YTD). However, the share price experienced a pullback last week, declining by 11%.
Despite the challenges posed by the COVID-19 pandemic, Fineos has managed to achieve a number of milestones in 2020, including signing the largest insurance company in the United States and recently acquiring software company Limelight Health, Inc.
The company also reported solid metrics in its FY20 results, with growth in revenues of close to 40%. The company also expects that it will continue its impressive run rate in FY21, forecasting revenue growth of 20%, underpinned by 30% growth in subscription revenues.
Back in February, the company announced that it has signed up Prudential Insurance Company of America, the largest insurance company in the US – a breakthrough that the company says has opened the door to its foray into the much larger American insurance market.
At the time of writing, Fineos is trading at $4.16 with a market cap of $1.25 billion.
HUB24 Ltd (ASX: HUB)
HUB24’s share price broke though a few all-time highs in 2020, on its way to achieving a 93% increase YTD. However, it steered off-course slightly in the past week, dropping by 6%.
HUB24 Ltd (HUB, formerly Investorfirst Limited) is a fintech company that leverages technology to connect advisers and their clients through wealth management solutions. HUB24 is a fully-integrated solution for super, investment, pension, insurance and margin lending, used by advisers to serve their clients. The company first listed on the ASX in 2007.
In its last performance update in September, HUB24 revealed that its strong results have continued in the first quarter of FY 2021. For the three months ended 30 September, the company reported a significant increase of 32% in its funds under administration (FUA) to $19 billion at the end of September.
In late October, the company requested a trading halt on its shares whilst it launched a $60 million equity rising to fund stakes in three strategic investments – Xplore Wealth Ltd (ASX: XPL), the Portfolio Administration and Reporting Service (PARS), and a stake in Easton Investments Ltd (ASX: EAS).
The company believes these transactions will strengthen its position as the leading provider of integrated platforms and data to its financial services clients.
At the time of writing, the HUB24 share price is trading at $21.5, commanding a market cap of $1.42 billion.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay has had a very remarkable year, with its share price skyrocketing by 102% YTD at today’s levels. Like HUB24, this company is also a fintech player. It offers donor management tools to a niche market – religious organisations and non-profits. In addition, it sells the Church Community Builder software, a subscription-based church management platform that enables management of various church activities. Its revenue is almost derived entirely from the US.
In its FY21 results, the company reported an operating revenue increase of 53% to US$85.6 million. Pushpay said it expects to see continued revenue growth as the business executes on its strategy and gains further market share in the US faith sector. The company believes that as the world is fast moving toward a cashless society, donations will also move in that direction.
The religious donation market is estimated to be around US$100 billion in the US, with Pushpay getting 10% of this slice. This potential has turned heads of some fund managers, with fundie Eley Griffiths announcing that it recently added Pushpal to its portfolio.
As mentioned, Pushpal’s share price has risen by 102% this year, trading at $7.90 currently which brings its market cap to $2.2 billion.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- 3 great ASX tech shares to buy
- Top brokers name 3 ASX shares to buy today
- Why the Pushpay (ASX:PPH) share price could be a growth opportunity
- ASX 200 ends mixed on Wednesday
- Pushpay (ASX:PPH) share price on watch after dazzling first half profit growth
Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia has recommended FINEOS Holdings plc, Hub24 Ltd, and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post 3 mid-cap ASX shares with recent price pullbacks appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2IiCZZ7
Leave a Reply