The Splitit Ltd (ASX: SPT) share price is racing higher today after the buy now, pay later (BNPL) provider released a trading update for the month of May.

At the time of writing, Splitit shares are sitting 20.15% higher for the day after rallying as much as 42.54% in early trade.

What did Splitit announce?

The BNPL small-cap reported record monthly merchant sales volume (MSV) of US$25.8 million in May, representing increases of 321% compared to May 2019 and 39% compared to April 2020. 

Breaking this down in terms of geography, MSV growth in North America and Europe jumped 336% and 548%, respectively, compared to May 2019. This has been supported by partnerships with global e-commerce retailers such as Purple, Nectar Sleep and Canyon Bicycles.

Splitit also announced a notable increase in total unique shoppers, with the number of shoppers successfully making a purchase using its platform surpassing 290,000 in May. The last 2 months alone have seen the addition of 45,000 new shoppers transacting through Splitit’s platform.

On the merchant front, Splitit now has 964 merchants offering its payment solution. This is up 12% from 862 at the end of March 2020.

Splitit’s average order value also improved in May, increasing to US$939 from US$737 in the first quarter of FY20 ending 31 March 2020.

On the whole, the company attributed these strong results to the onboarding of new large merchants in 2020, the growing shift to e-commerce, and customers increasingly using its payment solution to manage their cash flow.

Commenting on Splitit’s performance, CEO Brad Paterson said:

“We continue to see strong merchant demand as eCommerce expansion accelerates, while merchants are actively pursuing strategies to improve their conversion rates during and beyond the Coronavirus pandemic. Splitit is seeing growth in its share of checkout with merchants as it helps them meet changing consumer needs for greater flexibility and longer payment plans.”

More reading

• Should you ever buy into an ASX IPO?
• Why ASX payments shares might be the biggest winners of the 2020s

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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These 3 large caps have beaten the S&P/ASX 200 (INDEXASX: XJO) year to date despite the highly uncertain economic climate. Drawn from 3 different sectors, these shares demonstrate the resilience of Australian equities. 

Discretionary consumer

The consumer discretionary sector has experienced one of its more difficult years, in my experience. Unlike consumer staples like Woolworths Group Ltd (ASX: WOW) or Inghams Group Ltd (ASX: ING), the discretionary sector is one of choice. 

Despite the challenging conditions, however, there have been several companies that have thrived during the coronavirus pandemic. A stand out performer year to date in this sector is Domino’s Pizza Enterprises Ltd. (ASX: DMP). The Domino’s share price is 26.7% higher than it was at the start of the calendar year. In fact, since its low point on 19 March the Domino’s share price has risen by nearly 60%. As a great growth share, Domino’s has not only outperformed the ASX 200 over the past 12 months, it has beaten it over the last 5 years.

Information Technology

Also considered part of the financials sector as an emerging fintech company, Xero Limited (ASX: XRO) has also beaten the ASX 200 this year as well as over 5 years. Xero’s share price is up by nearly 12% year to date. Xero is carving a pathway to becoming a complete accounting platform. Starting with online accounting software, the company has expanded into bank feeds, payroll, inventory and the app marketplace. 

Xero has an almost astonishingly high price to earnings ratio. But, having said that, this is a growth company. Xero announced its first profit recently and some investors were upset that management hadn’t spent every cent acquiring new users.  

Communications

REA Group Limited (ASX: REA) has been a pioneer of online classified ads in the real estate space and is most widely known for its realestate.com.au business. The company’s share price is marginally up since the start of the year, but has still clearly outperformed the ASX 200. 

Since its inception 25 years ago, REA Group has branched out considerably. Today the company offers home loans, commercial real estate listings and innovative services such as shared work spaces. REA Group owns websites that operate in Indonesia, Malaysia, the United States and many other countries. 

Foolish takeaway

These 3 large cap shares have all outperformed the ASX 200 this year so far. And I believe each of them is poised for future growth. Although REA Group reported a 33% reduction in residential listings at the height of the lock down, restrictions are starting to ease. I believe as the economy emerges from hibernation, trading conditions will improve for the company. Furthermore, I feel all 3 of these Aussie large caps are well managed businesses with solid financials to back them up.

Personally, I particularly like Domino’s as a possible buy. I believe it is currently trading at a discount and has a proven track record of solid earnings. 

More reading

• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Where to invest $2,000 in cheap shares

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited and Xero. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and REA 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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The Nufarm Limited (ASX: NUF) share price is the worst performer on the S&P/ASX 200 Index (Index:^AXJO) this morning despite its efforts to hide its trading update.

Shares in the crop products group plunged 10.8% to $4.90 when the top 200 stock benchmark gained 0.5%.

The only other ASX shares on the worst performer list were gold producers like Silver Lake Resources Limited. (ASX: SLR) and Northern Star Resources Ltd (ASX: NST) as the gold price fell. But even then, these stocks “only” slumped around 6% each.

Nothing to see here

It’s funny how Nufarm didn’t think it was appropriate to mark its latest announcement to the ASX as “market sensitive” when the share price reaction says otherwise.

An oversight maybe? I would be more forgiving if not for the fact that management buried the update in its announcement titled “Presentation to Credit Suisse Conference”.

It that didn’t smell bad enough, the company lodged it after the market closed at 4.10pm yesterday.

Wrong way to release bad news

Happy coincidence? Call me a conspiracy theorist, but it looked like the company went out of its way to bury the news.

Now Nufarm doesn’t only have to contend with the negative update but questions about management’s credibility, in my view.

Unfortunately, the subterfuge (international or otherwise) didn’t work as at least two brokers downgraded the stock on the back of the update.

Europe is a sore point

The analysts at Macquarie Group Ltd (ASX: MQG) cut its recommendation on Nufarm to “underperform” (meaning a “sell) from “neutral”.

The downgrade was done on the back of management’s comments that the COVID-19 pandemic is creating uncertainties and challenges, such as product demand and exchange rates.

Macquarie noted that the last quarter of the financial year is usually the group’s largest seasonal quarter.

“Europe is experiencing both cyclical and structural headwinds,” said the broker.

“Whilst COVID impacts have exacerbated this, Europe is likely to remain challenging in the medium term given a tougher regulatory backdrop and competitive market conditions.”

The broker cut its 12-month price target on Nufarm to $4.85 from $5.10 a share.

Ahead of fundamentals

Meanwhile, Morgans also downgraded its rating on the stock to “reduce” from “hold”.

“COVID-19 has started to have a greater impact in the 4Q20,” said Morgans.

“As well as dry conditions, Europe’s 2H20 earnings outlook has been materially revised. Finance costs are also now expected to be significantly higher.”

The broker’s price target on Nufarm is $4.76 a share.

More reading

• 3 large cap shares beating the ASX 200 this year
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Why Austal, Ecofibre, Northern Star, & Nufarm are dropping lower

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Nufarm Limited (oh no!). Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie 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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