WiseTech Global Ltd (ASX: WTC) shares have been surging higher after a strong full-year earnings result. The ASX tech share rocketed 34% higher on Wednesday, but it’s not the only one impressing investors this month.
Here’s why I’m a big fan of WiseTech and 2 more ASX shares as we pass the halfway point of the August earnings season.
Why I like WiseTech and 2 more ASX shares this August
Let’s start with WiseTech. WiseTech is a supply chain software provider with strong market share around the globe.
The ASX tech share rocketed higher after posting a bumper earnings result headlined by a 197% surge in net profit after tax. Revenue from recent acquisitions totalled $166.4 million, up 29% from FY19 figures.
Just as important as the FY20 result was the outlook for the year ahead. WiseTech is anticipating FY2021 revenue growth of 9-19% with earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 22–42%.
Those are some strong numbers that I think could justify WiseTech’s current 55.49 price to earnings (P/E) ratio.
It’s not just the tech sector that impressed me last week. I had my eye on the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price, which was on the move.
Domino’s posted a solid FY20 result despite the coronavirus pandemic and associated uncertainty, with free cash flow up 90.6% to $161.8 million.
The ASX share hit a new record high after impressing investors with strong earnings. That was underpinned by strong same-store sales growth across Japan, Europe, Australia and New Zealand.
I think the outlook looks good for Domino’s in the near term. The business has been resilient despite several store shutdowns and other challenges around the globe.
Finally, the Corporate Travel Management Ltd (ASX: CTD) share price also caught my eye.
The ASX travel share is now up 57.85% in August despite posting an $8.2 million statutory net loss after tax. That included a better than expected earnings result in Q4 2020 to round out the year.
Clearly, there are plenty of challenges ahead for the ASX travel share. However, I’m bullish on Corporate Travel – looking at the medium term, I’d still expect the business sector to pick up before leisure numbers return.
That means the Corporate Travel share price may continue to climb higher and outperform its peers in the coming months.
Foolish takeaway
These just a few of the ASX shares that caught my eye this week. It’s been a broad week for earnings with WiseTech, Domino’s and Corporate Travel spanning many sectors.
The August earnings season is arguably a great time to buy. Investors have a great look at company financials and management forecasts for the year ahead.
There are no guarantees when investing, but I think these 3 are shaping up as high-quality ASX shares to hold for the long-term.
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More reading
- These were the best performing ASX 200 shares last week
- Why the Corporate Travel share price is up 57% in August
- Why I’d buy the Domino’s share price at an all-time high
- The latest ASX 200 stocks hit by broker downgrades
- After a 35% jump, is the WiseTech share price overvalued?
Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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