Why Iluka, JB Hi-Fi, Megaport, and Zip shares are racing higher

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.8% to 6,762.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up 8% to $9.30. Investors have been buying this minerals sands producer’s shares following the release of its second quarter update and first half update. For the first half of FY 2022, the company sold 421,000 tonnes of zircon, rutile, and synthetic rutile. While this was lower than the second half of FY 2021, stronger prices meant that revenue still jumped 29% half on half.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 4% to $43.52. This appears to have been driven partly by a bullish broker note out of Citi this morning. According to the note, the broker has upgraded JB Hi-Fi’s shares to a buy rating with a $47.00 price target. This follows the release of a fourth quarter update on Tuesday that was well ahead of the broker’s expectations.

Megaport Ltd (ASX: MP1)

The Megaport share price has jumped 20% to $7.77. Investors have been buying this network-as-a-service provider’s shares following the release of a strong quarterly update. According to the release, Megaport reported a 13% increase in monthly recurring revenue (MRR) to $10.7 million and its first quarterly operating profit of $1 million.

Zip Co Ltd (ASX: ZIP)

The Zip share price has surged 10% higher to 65 cents. This is despite there being no news out of the buy now pay later (BNPL) provider. However, it is worth noting that the tech sector is booming on Wednesday following a strong night of trade on Wall Street’s NASDAQ index. This saw rival BNPL provider Affirm jump 9% during overnight trade.

The post Why Iluka, JB Hi-Fi, Megaport, and Zip shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• 3 ASX tech shares rocketing by over 15% today
• Zip share price jumps 14% ahead of tomorrow’s update
• ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally
• Iluka share price leaps 6% on increased mineral sands production
• Megaport share price explodes 38% on June quarter profit

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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