Author: therawinformant

The New Hope Corporation Limited (ASX: NHC) share price is falling today, down 2.45% at the time of writing to $1.20. This comes after the company announced a restructure of its corporate office.

What was in the announcement?

New Hope Corporation advised it had offered voluntary redundancies to workers at its corporate office. The coal and oil producer plans to make 75% of its corporate office staff redundant by the end of November 2020. The restructure will see the majority of executive positions removed.

The company will adopt what it refers to as a more ‘streamlined’ management structure. 

New Hope Corporation CEO Reinhold Schmidt said with ongoing uncertainty around approvals for the New Acland coal mine, management has had “to refocus and put the business in the best position to go forward”.

We have had to make some very difficult decisions but, in reality, even if we were granted approvals for stage 3 today, we are in for a tough couple of years as we ramp up again.

About the New Hope Corporation share price

New Hope is a coal and oil producer with assets in Australia. The company has been listed on the ASX since 2003. 

In the year to 30 June 2020, New Hope had revenue of $1.08 billion, down 17% compared to the year to 30 June 2019. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $290 million in FY2020, down 44% from FY19. Earnings per share (EPS) before non regular items were 10 cents.

The New Hope share price is up 17.65% since its 52-week low of $1.02, however, it is down 42.03% since the beginning of the year. The New Hope Corporation share price is down 47.60% since this time last year.

More reading

• Why Dubber, New Hope, Pro Medicus, & Rio Tinto shares are dropping lower
• New Chinese government threat leaves these ASX mining stocks on tenterhooks
• Why you may not need ASX REITs for dividends
• Top brokers name 3 ASX shares to sell next week
• Is the Soul Patts (ASX:SOL) share price a buy?

Motley Fool contributor Chris Chitty 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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The prospects for many cheap shares continue to be relatively uncertain. The coronavirus pandemic has continued over recent months, and may persist over the short run.

While this may mean that investors experience paper losses in the coming months, buying undervalued shares now could be a shrewd move.

Their low prices, track record of recovery and the presence of major stimulus packages may boost their returns in a post-pandemic world.

Buying cheap shares today

The ongoing threat of a second share market crash means that there are many cheap shares available to buy today. Investor risk aversion has continued to be relatively high of late, with many sectors facing a continued period of weak sales and profit growth.

Buying such companies now may be viewed as a risky move by some investors. And, while there is scope for paper losses in the short run, their long-term prospects appear to be bright. Low share prices mean that a wide margin of safety may be included in their valuation. This may provide greater scope for capital growth, which could catalyse your portfolio in the long run.

Furthermore, many cheap shares are undervalued because of weak investor sentiment towards the wider equity market. Therefore, some high-quality businesses may be trading on unjustly low valuations that do not reflect their future potential. They may offer scope for high capital returns as the economy recovers.

Track record of recovery

Even though cheap shares may deliver disappointing performances in the short run, their long-term prospects appear to be sound. The share market has a strong track record of recovering from even its very worst downturns to post new record highs. Therefore, investors who purchase shares when they are trading at a low ebb can benefit from its turnaround prospects.

For example, indexes such as the FTSE 100 Index (INDEXFTSE: UKX) and S&P 500 Index (INDEXSP: .INX) have experienced numerous bear markets over recent decades. They include the dot com crash, the global financial crisis and the 2020 market crash. They have still been able to produce high single-digit annualised returns that appear to be very achievable over the coming years.

Stimulus packages

Another reason why cheap shares can surge in the next decade is the stimulus packages being implemented in major economies across the world. Policymakers across North America, Europe and many other parts of the world are seeking to support the economy through a variety of measures, including low interest rates and asset purchase programmes.

Such programs have a solid track record of stimulating asset prices, as was evidenced in the decade-long bull market that followed the global financial crisis. Therefore, even if the economic outlook is tough at the present time, buying undervalued shares today could be a means of benefitting from favourable policy action over the long run.

More reading

• Why the New Hope Corporation (ASX:NHC) share price is down
• Why Dubber, New Hope, Pro Medicus, & Rio Tinto shares are dropping lower
• How the US election and COVID-19 vaccine will hit ASX shares
• The Recce (ASX:RCE) share price has surged up today. Here’s why
• Zip (ASX:Z1P) share price slumps 10% this week: is it a buying opportunity? 

Motley Fool contributor Peter Stephens 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week with a small decline. At the time of writing the benchmark index is down 0.15% to 6,201.8 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The Dubber Corp Ltd (ASX: DUB) share price is down 5.5% to $1.18. This follows the completion of an institutional placement which raised $35 million at a 12% discount of $1.10 per share. Dubber will now look to raise a further $6 million via a share purchase plan. These funds will be used to meet accelerating demand globally through the expansion of its sales, marketing and product development efforts. It also intends to pursue merger and acquisition opportunities.

The New Hope Corporation Limited (ASX: NHC) share price has fallen 3% to $1.19. This morning the coal miner announced that it has offered voluntary redundancies to workers in its corporate headquarters. The company advised that it will undergo a significant restructure, with up to 75% of the workforce at the corporate office to be made redundant by the end of November. New Hope blamed uncertainty around approvals for its New Acland operation for the redundancies.

The Pro Medicus Limited (ASX: PME) share price is down almost 2.5% to $30.49. This appears to have been driven by profit taking after a strong gain on Thursday. Investors were buying the healthcare technology company’s shares yesterday after it announced a major new contract with Germany’s LMU Klinikum.

The Rio Tinto Limited (ASX: RIO) share price has dropped almost 1% to $95.48. This follows the release of its third quarter update. For the three months ended 30 September, Rio Tinto delivered Pilbara iron ore shipments of 82.1Mt. This was a 5% decline on the second quarter and fell a touch short of expectations.

More reading

• ASX 200 flat: Rio Tinto Q3 update, big four banks higher, GUD impresses
• Rio Tinto (ASX:RIO) share price in focus following Q3 update
• Should you stay invested in an ASX share after a strong run?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Pro Medicus (ASX:PME) wins another global contract

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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 two big question marks currently for share markets are the United States Election next month and how soon a COVID-19 vaccine will arrive.

The Australian market, like it or not, is heavily influenced by the movements in the US, because it’s a far bigger pond containing companies with global reach.

Helpfully one fund manager has worked out the likely outcomes for ASX shares in each probable scenario.

T. Rowe Price Group Inc (NASDAQ: TROW) Australian equities head, Randal Jenneke, told investors this week that there were three key situations to consider.

First is a split Congress — this is when the presidency and the senate majority are won by different parties. Second is a ‘blue wave’, where the Democrats will sweep to power in both. And the third is the arrival of a breakthrough coronavirus vaccine.

Scenario 1: shared power 

If a split Congress is seen, Jenneke’s bet is on growth shares.

“No one party controls all the arms of government — if that’s the case, while we will see greater stimulus… it’s going to be lower than it would otherwise be,” said Jenneke.

“In that scenario, we think that growth stocks will continue to do well and outperform value stocks.”

Scenario 2: blue wave

If the left-leaning Democrats win power in both executive and the legislature, America will become a very different place.

“Here we see the prospect for much bigger fiscal stimulus and spending,” Jenneke said.

“In that environment we think that [growth] cyclicals and value stocks will do well.”

He explained that while government debt will climb, interest rates would remain low.

Scenario 3: vaccine release

Jenneke thought that the influence of COVID-19 would “fade over time”, though a safe vaccine, effective treatments or because society “learns to live with it”.

“As the impact fades, we do think that growth is going to improve.”

But the importance of a vaccine — or, at the very least, an effective treatment — can’t be understated. 

Jenneke took the assumptions in the Australian federal budget as an example.

“If you look at the base case for the forecast for FY2021, the budget numbers forecast a GDP growth [of] 4.75%. And that’s with an assumption that we have a vaccine by the end of 2021 and it’s widely deployed across the Australian economy.”

So if a vaccine came a bit earlier than that assumption, it would help growth. If it was later than the government’s guess, then it would harm the nation’s position.

“This goes to show the importance of what a vaccine means.” 

How T Rowe Price has balanced ASX shares 

Because both scenarios 1 and 2 favour growth stocks, T Rowe Price showed how it has weighted growth subcategories among ASX shares.

Jenneke said that it was currently 38% invested in cyclical growth stocks, 33% in defensive growth, 16% in recovery growth and 9% in extreme growth.

“We think it’s really important to hedge your bets a little bit and make sure you’re positioned in as many of those 3 key scenarios as you possibly can.”

Growth stocks have outperformed value stocks simply because of fundamentals, according to Jenneke.

“A lot of people would highlight the change in multiples caused by low rates, and I’d say, yes, there’s been a benefit from that,” he said.

“But the fundamentals around sales growth, earnings growth and cash flow growth — this is the key reason.”

Despite the bull run before and after the COVID-19 crash, Jenneke said the share market is still an excellent bet compared to other investment options.

“To us, equities still look quite attractive. Valuations don’t look stretched. And there’s still a good risk premium in the equity market.”

More reading

• Why Dubber, New Hope, Pro Medicus, & Rio Tinto shares are dropping lower
• The Recce (ASX:RCE) share price has surged up today. Here’s why
• Zip (ASX:Z1P) share price slumps 10% this week: is it a buying opportunity? 
• 3 outstanding ASX shares to buy with $10,000 right now
• The Medibank (ASX:MPL) share price rockets on broker upgrade

Motley Fool contributor Tony Yoo 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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The Recce Pharmaceuticals Ltd (ASX: RCE) share price is rocketing higher today following an update on its Recce 327 product.

In early trade, the medical company’s share price hit an intra-day high of $1.19, but has since retreated to $1.12, up 6%.

What does Recce do?

Recce is involved in the advancement of synthetic antibodies designed to address the global health challenge of antibiotic resistance superbugs. The pharmaceutical company’s flagship drug, Recce 327, is being developed to treat blood infections and sepsis.

The group operates solely in  research and development, and is located in both Australia and the United States.

Start of trials

Recce announced it had received an ethics approval to start clinical trials of its broad-spectrum antibiotic Recce 327 drug. The Human Research Ethics Committee (HREC) assessed the anti-viral formula and deemed it met ethical studies and guidelines.

Start of the phase I/II study will assess the efficacy of Recce 327 against infectious bacteria on burn wounds. The trial will involve up to 30 patients before expanding to a comparative effectiveness study based on the data. Over the 14 days, 10 patients will receive Recce 327 daily while a further 20 patients will receive treatment three times per week.

Once the trial period is completed, investigators will review the results and decide upon the best standards of care for future programs. In addition, burn wound specialists will oversee the delivery of Recce 327 via a spray-on-formulation.

The Health Department’s South Metropolitan Health Service in Western Australia is expected to sponsor the trial. The Fiona Stanley Hospital (Burns Unit) in Perth is the nominated location.

Recce chair Dr John Prendergast  said:

Human ethics approval is another milestone for Recce and the clinicians seeking effective treatments to combat the scourge of antibiotic resistant bacteria. Achieving this goal speaks to the dedication of our clinical and research team as we continue to build on our clinical and commercial potential.

Should you invest?

I think that Recce has a promising future. If the company can deliver on its Recce 327 and Recce 529 compounds, then its share price could reach higher. It was only last month, the company updated the market on its fight against COVID-19.

At a market capitalisation of $194 million, the Recce share price has jumped 322% since this time last year. However, it is sitting almost 40% below its all-time high achieved in mid-September.

More reading

• Why the Recce Pharmaceuticals (ASX:RCE) share price is jumping 10% higher
• Why Corp Travel Management, EOS, Evolution, & Recce shares are charging higher
• Why the Recce Pharmaceuticals (ASX:RCE) share price crashed 15% lower today
• Why Kathmandu, New Hope, Recce, & Ramelius shares are dropping lower today
• These 4 ASX shares have grown more than 100% this year

Motley Fool contributor Aaron Teboneras 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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Zip Co Ltd (ASX: Z1P) shares have had a rough week following the company’s announcement of its much anticipated Q1 FY21 trading update. With the Zip share price falling more than 10% this week (at the time of writing), could it be a bargain ASX 200 tech share buy? 

What caused the Zip share price to sell off? 

More broadly speaking, buy now, pay later (BNPL) shares bottomed in late September followed by a strong rally into mid October. BNPL shares such as Afterpay Ltd (ASX: APT), Openpay Group Ltd (ASX: OPY), Sezzle Inc (ASX: SZL), Splitit Ltd (ASX: SPT) and Laybuy Holdings Ltd (ASX: LBY) all rallied between 10% to 25% during this period. 

In the case of the Zip share price, it rallied some 30% from September through to its October peak. However, without the backing of any announcements or material news, this suggests that much of the anticipated announcement had already been priced in. Unless the Q1 FY21 trading update contained some extraordinary updates, I believe the market treated it as news to sell into. 

Q1 FY21 trading update 

At face value, the Q1 FY21 trading update was well rounded and highlighted Zip’s strong growth in the United States, maturity in Australia and New Zealand, and expansion of the company’s strategic partnerships and products. 

The US business is hitting its stride following the completed acquisition of US BNPL company, QuadPay. Its US revenue soared 409% on Q1 FY20 or 50% on Q4 FY20 to $23.4 million, representing a third of the company’s revenue. Momentum continues to grow for the QuadPay app with more than 7,000 customers joining on average each day and increasing web traffic, with unique visitors growing 42% QoQ. 

The only reason I can see why the Q1 FY21 update may have failed to live up to expectations was the fact that there was no ‘new’ business updates. The QuadPay acquisition and anticipated strong growth figures in the US have been known for months. The ANZ market is arguably reaching its maturity and growth figures will no longer be triple digits. Zip’s new partnerships and products such as its strategic partnership with Visa Inc (NYSE: V) and its SME loans via Pocketbook and the Australian arm of eBay Inc (NASDAQ: EBAY) are not yet significant revenue contributors.

Foolish takeaway

Notwithstanding the dip in the Zip share price, I believe the company delivered a strong Q1 FY21 business update. It is good to see the US business growing strongly despite the fears regarding PayPal Holdings Inc (NASDAQ: PYPL) entering the BNPL space. I believe more time is needed for the business to explore new market opportunities. Personally, I’ll be watching the Zip share price closely at its current level as it could represent a good entry point.

More reading

• Top brokers name 3 ASX shares to sell today
• Why IDP Education, WiseTech, Zip, & Zoono shares are tumbling lower today
• ASX 200 finishes lower, Afterpay (ASX:APT) shares rise
• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Zip (ASX:Z1P) share price lower despite explosive Q1 growth

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and Sezzle Inc and recommends the following options: long January 2021 $18 calls on eBay, short January 2021 $37 calls on eBay, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and Sezzle Inc. 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 outlook for interest rates in Australia and globally over the coming few years is looking very bleak.

In light of this, if I had $10,000 sitting in a savings account, I would be looking to put it to work in the share market.

But where should you invest $10,000? Three outstanding ASX shares I would buy are listed below:

Altium Limited (ASX: ALU)

The first ASX share to look at buying is Altium. It is the electronic design software company behind the popular Altium Designer and Altium 365 platforms. It also has a number of other related businesses such as the NEXUS team-based PCB workflow solution and the Octopart electronic parts search engine. Due to its exposure to the rapidly growing Internet of Things (IoT) and artificial intelligence (AI) markets, I believe Altium is perfectly positioned to deliver strong long term earnings growth. This could make it a great place to invest $10,000 today.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another option to consider investing $10,000 into is the BetaShares Asia Technology Tigers ETF. This exchange traded fund provides investors with exposure to a large number of the fastest growing tech companies in the Asia market. These companies are revolutionising the lives of billions of people and appear well-positioned for robust long term growth. Among the fund’s largest holdings are the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner, Tencent. Overall, I feel confident their positive growth outlooks could lead to the BetaShares Asia Technology Tigers ETF providing strong returns for investors during the 2020s.

SEEK Limited (ASX: SEK)

A final ASX share to look at investing $10,000 into is job listings giant SEEK. While the pandemic means that trading conditions in the ANZ market are tough at present, I believe the Federal Budget will help create jobs and give listing volumes a big boost in 2021 and beyond. However, that’s not the key reason I would invest. The main attraction to the company for me is its growing Chinese operation. I believe this business has the potential to underpin strong growth and help SEEK achieve its aspirational revenue target of $5 billion later this decade. This compares to FY 2020’s revenue of $1,577.4 million.

More reading

• Should you stay invested in an ASX share after a strong run?
• 3 ETFs every ASX investor should consider today
• How top ASX tech shares like Afterpay (ASX:APT) have performed in 2020
• This is how you can become a millionaire with ASX shares
• Are Seek (ASX: SEK) shares a good pick for long term investors?

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended SEEK 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 Medibank Private Ltd (ASX: MPL) share price jumped to a near two-month high this morning after a broker upgraded the stock. But it isn’t the only ASX stock that got up upgraded to “buy”.

Shares in the private health insurer leapt 4.9% to $2.78 at the time of writing. This makes it the third best performer on the S&P/ASX 200 Index (Index:^AXJO) after the Unibail-Rodamco-Westfield CDI (ASX: URW) share price and GUD Holdings Limited (ASX: GUD) share price.

Medibank share price upgraded on healthy outlook

The strong showing by Medibank follows a period of underperformance. Morgan Stanley reckons this is an opportune time to buy a bargain and upped its rating to “overweight” from “equal-weight”.

“MPL performed well to grow policy holders 0.6% in FY20 amid the pandemic,” said the broker.

“This may provide confidence that MPL’s target for at least 1% growth in FY21 is achievable (we estimate retaining 100% of suspended policies in an overall flat system is sufficient to meet that target).”

Margin expansion opportunity

Further, an expected premium increase will further bolster earnings in 2021. Like other insurers, Medibank deferred the scheduled 3.27% rate increase to policies due to COVID‐19 by six months. Morgan Stanley believes management will add a further 2% increase by April next year.

It’s also worth noting the recent update by hospital operator Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC). It suggested a benign claims environment.

Morgan Stanley increased its price target on Medicare to $3.10 from $2.70 a share.

Sweet sounding upgrade for Audinate share price

Another stock that enjoyed a broker upgrade is the Audinate Group Ltd (ASX: AD8) share price.

Credit Suisse lifted its recommendation on the audio networking solutions group to “outperform” from “neutral” as it believes sales are about to accelerate.

“Monthly sales have been steadily improving sequentially, with the worst of the COVID-19 impact appearing to have passed,” said the broker.

“We continue to look favourably on the long-term opportunity for the business, with Dante increasingly appearing to be the de-facto networked audio standard.”

Benefitting from COVID structural change

There is another reason to feel bullish towards the Audinate share price. Structural changes pushing more people to work from home as a result of the pandemic is a positive for the group.

“Corporate (not live events) is the biggest end market for pro AV,” said Credit Suisse.

“We believe flexible/remote working and reduced business travel are accelerating structural growth in corporate audio/video requirements.”

The broker upgraded its 12-month price target on Audinate to $8 from $5.30 a share.

More reading

• ASX 200 flat: Rio Tinto Q3 update, big four banks higher, GUD impresses
• Why Beacon Lighting, Medibank, Redbubble, & Tyro shares are racing higher today
• How to use cash in an ASX share portfolio for maximum returns
• GUD (ASX:GUD) share price on watch after strong Q1 growth
• 5 things to watch on the ASX 200 on Friday

Brendon Lau owns shares of AUDINATEGL FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO. 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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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is fighting hard to end the week in positive territory. The benchmark index is currently flat at 6,206.1 points.

Here’s what is happening on the market today:

Rio Tinto lower after third quarter update.

The Rio Tinto Limited (ASX: RIO) share price is trading lower on Friday following the release of its third quarter update. For the three months ended 30 September, Rio Tinto reported Pilbara iron ore shipments of 82.1Mt. This was a 5% decline on the prior quarter and a touch lower than expectations. However, it is worth noting that the mining giant has reaffirmed its full year production and cost guidance for iron ore and copper.

Big four banks push higher.

The big four banks are doing their part on Friday and are pushing higher. All four banks are in positive territory at lunch, with the National Australia Bank Ltd (ASX: NAB) share price leading the way with a 0.5% gain. Investors may be pleased with the latest COVID-19 data out of Victoria this morning. Just two new cases were recorded during testing yesterday.

GUD update impresses.

The GUD Holdings Limited (ASX: GUD) share price is storming higher today after investors responded positively to its first quarter update. The products company had a very positive quarter and experienced strong sales growth across both its Automotive and Water divisions. This led to GUD reporting a 14% increase in first quarter group sales. However, due to the uncertainty caused by COVID-19, management hasn’t been able to provide any guidance.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Friday has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 13% gain. Earlier this week the shopping centre operator announced a deal to sell its SHiFT office building in Paris for 620 million euros. Going the other way, the worst performer has been the Atlas Arteria Group (ASX: ALX) share price with a 3% decline. Last night the toll road operator revealed that the Hearing Examiner has recommended no increases to peak tolls on the Dulles Greenway in the United States.

More reading

• How to use cash in an ASX share portfolio for maximum returns
• Rio Tinto (ASX:RIO) share price in focus following Q3 update
• GUD (ASX:GUD) share price on watch after strong Q1 growth
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Pro Medicus (ASX:PME) wins another global contract

Motley Fool contributor James Mickleboro 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a small decline. At the time of writing the benchmark index is down 0.2% to 6,199.7 points.

Four shares that have not let that hold them back are listed below. Here’s why they are racing higher:

The Beacon Lighting Group Ltd (ASX: BLX) share price has jumped 12% to $1.59 following the release of its first quarter update. That update revealed that the retailer has started FY 2021 in fine form. For the three months ended 30 September, Beacon Lighting’s sales were up 24.3% on the prior corresponding period. Things were even better on the bottom line with first quarter underlying net profit after tax (excluding Beacon Energy Solutions) almost tripling to $8.4 million.

The Medibank Private Ltd (ASX: MPL) share price is up over 4% to $2.76. Investors have been buying the private health insurer’s shares after analysts at Morgan Stanley upgraded them to an overweight rating with an improved price target of $3.10. It believes the company’s policyholder growth target is achievable in FY 2021.

The Redbubble Ltd (ASX: RBL) share price has risen a further 2.5% to $5.49. Investors have been buying the ecommerce company’s shares after brokers responded positively to its first quarter update. One of those brokers was Morgans, which retained its add rating and lifted its price target to $6.31. It was pleased with the company’s strong sales growth and widening margins during the first quarter.

The Tyro Payments Ltd (ASX: TYR) share price is up almost 7% to $4.19. This follows the announcement of a partnership with Australia’s fifth biggest retail bank, Bendigo and Adelaide Bank Ltd (ASX: BEN). The two companies have agreed to a 10-year merchant acquiring alliance which will see Tyro deliver its leading card-present and card-not-present payments solutions to Bendigo Bank’s merchant acquiring customers. This is expected to add 26,000 Tyro terminals in 2021, increasing its terminal fleet to just above 89,000 terminals.

More reading

• Tyro (ASX:TYR) share price shoots higher on Bendigo and Adelaide Bank (ASX: BEN) deal
• How this fund manager’s 60% UP in the year of COVID-19
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• Should you stay invested in an ASX share after a strong run?
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. 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.

The post Why Beacon Lighting, Medibank, Redbubble, & Tyro shares are racing higher today appeared first on Motley Fool Australia.

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