Author: therawinformant

In morning trade the CIMIC Group Ltd (ASX: CIM) share price is storming higher following the release of its third quarter update.

At the time of writing the engineering company’s shares are up 6% to $21.50.

How did CIMIC perform in the third quarter?

For the nine months ended 30 September, CIMIC reported a 13% decline in revenue to $9.3 billion and a 17.3% reduction in net profit after tax to $474 million.

However, after COVID-19 led to a slowdown of revenues across both domestic and international operations in the first half, CIMIC returned to form in the third quarter. It recorded an 8% increase in quarterly revenue compared to the second quarter.

Pleasingly, there could be more of the same in the quarters that follow. Despite the near term challenges posed by the pandemic, CIMIC won some major new contracts worth $1.4 billion during the third quarter.

And looking further ahead, the company has work in hand of $35.5 billion, which is the equivalent to more than two years of revenue. It also advised that its pipeline remains strong and its outlook is positive across its core businesses.

Trading update.

CIMIC’s Executive Chairman, Marcelino Fernández Verdes, advised that the company is experiencing improved operating conditions at present.

He said: “We are seeing improved operating conditions, which is providing momentum as we enter the last quarter of the year. Governments have announced numerous stimulus packages in our core construction and services markets, with additional opportunities through the strong PPP pipeline, and the mining market is proving resilient.”

“Looking ahead, infrastructure investment will be a valuable contributor to the economic recovery from COVID-19 and we are encouraged by the substantial investment programs in the regions where we operate,” added Mr Fernández Verdes.

Thiess update.

The company also revealed that it has made a lot of progress with its Thiess transaction and that a deal could be imminent.

Its chairman explained: “The transaction with a new equity investor for Thiess is well progressed, with due diligence completed and negotiations expected to be finalised in the coming days. The introduction of an equity partner into Thiess capitalises on the outlook for mining, provides capital for Thiess’ continued growth and enables CIMIC to strengthen its balance sheet.”

More reading

• Cimic (ASX:CIM) share price flat on new market updates

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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ASX shares have a long track record of innovation, and of punching above their weight. For example, Avita Therapeutics Inc (ASX: AVH) is pioneering spray on skin for treating burns. However, Afterpay Ltd (ASX: APT), with no technological advantages, is also a good example. This company is blitzkrieging the globe and creating an entire industry in its wake. 

Right now, I believe there are many unique ASX shares positioned for years of growth. Below I have included three of these that I have been watching for a while. 

Financial ASX shares

Magellan Financial Group Ltd (ASX: MFG) presents investors with the rare opportunity of investing in a large cap company which, I believe, is likely to experience a period of significant growth. Magellan is an investment management company with over $100 billion in funds under management. It has managed to achieve an average annual growth in earnings per share of 50% since 2011. Moreover, the company’s share price has grown by an average of 53% per year since 2011. 

In FY20, racked by drought and the pandemic, the company managed to increase its net profits after tax (NPAT) by 20%. However, I believe its near-term growth strategy sets it apart from other investment managers. Magellan recently announced it had taken a 40% stake in Barrenjoey Capital Partners, an unlisted, full service, investment bank planned for Australia. Not only that, but in a sector filled with competition, Barrenjoey has already secured some of the best talent in the industry. 

Semiconductors on the ASX

Brainchip Holdings Ltd (ASX: BRN) is the world’s largest listed, pure-play artificial intelligence (AI) company. Moreover, I like the fact that the founder and chief technology officer is an intelligent fanatic who has been working to create this technology for most of his storied career. Not only that, but this company is currently prototyping a first-of-a-kind artificial intelligence technology. The Akida System on a Chip is a neuromorphic technology, designed to mimic the brain and nervous system. 

It is already the subject of several partnership agreements in a range of sectors. These include space exploration, gaming, smart cities and autonomous vehicles. I believe the potential for this technology is very significant and beyond what is currently possible with artificial intelligence. Personally, I think this is a rare chance to buy into a semiconductor ASX share that is providing the market with a new technology.

A stand alone BNPL company

In my view Zip Co Ltd (ASX: Z1P) provides investors with unique exposure to a financial services company. It is not only a solid buy, now pay later (BNPL) ASX share, but also a global alternative finance company.

We are all aware now of the stellar growth of this company over the past twelve months. This became particularly apparent when it purchased QuadPay to expand its growth into the gigantic United States market. Nonetheless, after Paypal Holdings Inc (NASDAQ: PYPL) announced it would enter the market, many BNPL shares stumbled. 

However, this is where I believe Zip Co is different. The company already had an additional credit offering for larger purchases. Moreover, it has already secured very lucrative deals with Amazon.com, Inc. (NASDAQ: AMZN) and deals with Cotton On, Bunnings, and PetBarn. Lastly, the Zip Co share price was set ablaze again by the deal with the Australian arm of eBay Inc (NASDAQ: EBAY). In my view, this marks it clearly as a non-bank lender like Resimac Group Ltd (ASX: RMC).

More reading

• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• Why growth investors still have a lot to like about the Magellan (ASX:MFG) share price
• Brokers name 3 ASX shares to buy right now
• BNPL ASX shares are running hot today
• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daryl Mather 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 Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: long January 2021 $18 calls on eBay, short January 2021 $37 calls on eBay, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon and Avita Medical 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Few companies have experienced greater long-term success than Amazon.com Inc (NASDAQ: AMZN). It was a darling of the dot-com boom, but its shares briefly fell into the single digits after the tech bubble burst.

However, over time, Amazon orchestrated a recovery as it dramatically increased its merchandise selection and made an early move into cloud computing. These shifts helped to make Amazon one of the largest public companies in the world. Consequently, its market capitalisation has grown to about $1.6 trillion, and its current share price of about $3,200 per share is a far cry from its low point in the dot-com bust.

Indeed, this retail stock has a history of defying its naysayers. While it’s difficult to accurately predict the state of Amazon in 2030, its financials and continuing growth in cloud computing bode well for the company’s future.

Amazon’s financials

With the company firing on all cylinders, Amazon appears to remain a buy. The question is whether it can place itself in a better position 10 years from now?

Amazon trades at a forward price-to-earnings (P/E) ratio of about 60. Despite this multiple, Amazon stock is not that expensive, especially considering that analysts forecast 38% earnings growth this year and 40% in 2021. Still, multiples and growth rates tend to contract over time, so investors should expect these numbers to fall.

Also, contrary to what casual observers might assume, most of this growth does not come from its retail arm. Yes, retail made up more than $78 billion of the company’s $88.9 billion in sales in the previous quarter. However, the company retained less than $2.5 billion of that revenue as operating income. In contrast, the $10.8 billion in revenue Amazon Web Services brought in last quarter generated more than $3.35 billion in operating income.

Putting Amazon’s success into perspective

Much like retail’s profit picture indicates, Amazon investors should also not count on “retail dominance” from a business standpoint.

Yes, Amazon is probably the most successful retailer operating today. Nonetheless, the term “retail dominance” has a history of becoming laughably overblown. Walmart Inc (NYSE: WMT) appeared unstoppable when Amazon was just an upstart bookseller. Go back enough decades, and the market power of Sears stoked fear. I expect Amazon to continue growing for the foreseeable future, but given the influence of other retailers, it must remain vigilant to retain its competitive edge.

I would also anticipate AWS’s head start in the cloud to continue serving the company well. Pioneering the cloud was a visionary decision on the part of Jeff Bezos.

Nonetheless, like retail, the cloud is too large for one company to truly dominate. Microsoft Corporation (NASDAQ: MSFT) has emerged as its largest competitor. Also, Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), IBM (NYSE: IBM), and many others are also building a significant position in the cloud infrastructure business. Additionally, the cloud has also left room for the likes of Twilio Inc (NYSE: TWLO), Snowflake Inc (NYSE: SNOW), and others to carve out niches.

Considering these successes, it is easy to understand why Grand View Research forecasts a 15% compound annual growth rate (CAGR) for the cloud industry through 2027. This bodes well for a stock like Amazon, even 10 years out. 

Amazon in 10 years

Amazon shows no signs it will lose its influence anytime soon. Moreover, even if growth rates slow over time, its AWS division leads an industry expected to maintain double-digit growth for at least the next seven years.

This also points to AWS becoming more important to the company than it is now. Retail has long remained a competitive, low-margin business. This probably means success in retail will only translate into so much success for Amazon stock. The cloud should also remain competitive. However, with double-digit growth predicted for that industry, AWS should see proportionately higher profits. 

These increased earnings point to likely growth in the stock for at least most of the next ten years. It will probably also mean more maturing for Amazon, which could lead to cash returns for stockholders. Amazon is the largest company to not pay a dividend. With $71 billion in cash and equivalents on its balance sheet, the company has the ability to offer a payout. Adding a dividend would open Amazon to income-oriented investors.

A 10-year time period is too long to make any firm predictions. Nonetheless, Amazon’s financials and business success indicate that it can prosper for a long time to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Amazon (NASDAQ:AMZN) is going all out to dominate this bustling e-commerce market
• This is my favourite ASX share right now
• ASX investors were buying Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) shares last week
• Which ASX REITs are still worth buying in a post-COVID-19 world?
• Here are the 10 most popular ETFs on the ASX

Will Healy owns shares of IBM. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Microsoft, and Twilio. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Snowflake Inc and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Twilio. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Coca-Cola Amatil Ltd (ASX: CCL) share price could be undervalued according to one leading broker.

This morning analysts at Goldman Sachs reiterated their buy rating and increased their price target on the beverage company’s shares to $10.60.

Including dividends, this price target implies a potential return of just over 10% over the next 12 months.

Why is Goldman Sachs positive on Coca-Cola Amatil?

Goldman notes that, unlike many other Australian Consumer Staples stocks, Coca-Cola Amatil has been negatively impacted by COVID-19 due to its exposure to the on-the-go channels.

While this is disappointing, the broker believes the market is under-appreciating how quickly the company can recover once the crisis passes.

It commented: “CCL appears to have been less resilient to the pandemic in comparison to the other staples due to its significant exposure to the On-the-go channel. However, the current discount of -2.4x on the distressed FY20 earnings (-18.2% vs. FY19) is unwarranted in our opinion, especially given our expectations for earnings recovery hereafter.”

Goldman has been looking at other markets in which Coca-Cola operates and observes that volumes in countries which were more open as normal during the crisis, such as the United States, have fared well.

Whereas volumes in countries with significant mobility restrictions, such as Australia and New Zealand, have fallen.

The broker believes this data “suggests the return to normality should be more rapid for these regions once the mobility restrictions are removed.”

In addition to this, the broker notes that Coca-Cola Amatil has made significant cost savings, some of which will be permanent. It believes this could be a big boost to its earnings in the near term.

Goldman explained: “Overall, this implies that if CCL was to deliver on the A$120mn of permanent cost outs, our earnings offer significant upside risk.”

“We plan review our forecasts as border openings progress in Australia and once we have more guidance on the strategy to achieve this cost savings. We expect these details to be discussed during the investor day in November,” it added.

Should you invest?

While I would sooner buy Coles Group Ltd (ASX: COL) ahead of Coca-Cola Amatil for exposure to consumer staples, I think Goldman Sachs makes some great points.

Though, it might be worth waiting until its investor day event next month before making a move.

More reading

• Coca-Cola forced to reveal secret source of Mt Franklin water

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Credit Corp Group Limited (ASX: CCP) share price jumped 5.5% higher on Thursday to close at $19.11 per share. That’s still around half of its $37.99 per share 52-week high set in mid-February.

So, what’s going on with the Aussie debt collector’s shares and why could they rocket higher in 2021?

Why the Credit Corp share price is surging higher

Credit Corp is a leading consumer debt collector. The company makes its money by purchasing debt from financiers like the major banks or other lenders for a discounted price and chasing that debt.

One key feature of businesses like Credit Corp is they often have fixed agreements with particular financiers like banks or telcos. Those agreements frequently require the collector to purchase a particular percentage of the financier’s bad debts each period.

It’s certainly not everyone’s cup of tea, but Credit Corp currently has a market capitalisation of $1.3 billion and sits within the S&P/ASX 200 Index (ASX: XJO).

The Credit Corp share price was smashed in the March bear market as investors feared a recession would mean lower debt collectability and profitability.

There were no ASX announcements yesterday to move the Credit Corp share price. However, the Federal Budget announced on Tuesday may have some important implications for Credit Corp’s business.

Strong fiscal spending is the key as the Federal Government looks to go hard and go early to stimulate the economy. Significant tax cuts and wage subsidies are good news for a company looking to collect on its debts.

Why 2021 could be a good year for Credit Corp

A strong economy should certainly be good news for Credit Corp. It would mean less financial distress and more spare money available for debt collection.

If the economy hits a really bad recession, a lot of loans can go bad quite quickly. That means a debt collector like Credit Corp could be overwhelmed with bad loans that it can’t make a good return on.

That’s why I think 2021 could hold good things for the Credit Corp share price.

Government stimulus and favourable business policies could boost employment and keep loan quality intact. That could mean steady portfolio growth with a higher chance of collection.

Foolish takeaway

The Credit Corp share price has been smashed this year. However, I think the favourable Federal Budget and recent stock momentum is good news for the company moving forward.

More reading

• 3 cheap ASX shares in the buy zone today
• Why Beach, BrainChip, Cleanaway, & Credit Corp shares are sinking lower

Motley Fool contributor Ken Hall 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 Newcrest Mining Limited (ASX: NCM) share price will be one to watch this morning after the release of an update by the gold mining giant.

What did Newcrest announce?

This morning Newcrest announced that its board has approved two projects moving to the execution phase. These are Stage 2 of the Cadia Expansion Project and the Lihir Front End Recovery Project.

Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas, believes these projects will add a lot of value.

He commented: “It is an exciting time at Newcrest as we advance our growth pipeline with both of these projects adding value to our existing large scale, long life operations while we pursue the development of Red Chris and Havieron and exploration opportunities globally.”

What will the projects add?

The Stage 2 Cadia Expansion Project will increase its plant capacity from 33mtpa to 35mtpa. This will lead to an increase in gold and copper recoveries, an increase in production, and a reduction in unit costs.

Life of Mine gold recoveries are forecast to increase by 3.5%, with Life of Mine copper recoveries increasing by 2.7%. Cadia’s all-in sustaining cost (AISC) will reduce by an estimated $22 per ounce.

The estimated capital cost for Stage 2 is $175 million, with completion expected in late FY 2022.

Mr Biswas explained: “Cadia is one of the largest, lowest cost, long life gold mines in the world due to the application of Newcrest’s industry leading block caving technology, and this investment helps Cadia maintain this industry leading position.”

Newcrest expects the Lihir Front End Recovery Project to deliver additional production through an improvement in gold recoveries over the life of the mine.

The chief executive believes that “Lihir’s long reserve life makes this improvement in gold recoveries particularly valuable” to its shareholders.

Overall, Mr Biswas appears confident on the company’s outlook and believes it is well-positioned for growth.

He concluded: “Both projects demonstrate how we are using innovation and our technical expertise to continually improve our operations. With a strong balance sheet, low cost production, a range of organic growth options and a strong exploration portfolio, Newcrest is well positioned for the future.”

More reading

• Top ASX growth shares to buy in October 2020
• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses
• Why BHP, Estia Health, Newcrest, & Starpharma shares are dropping lower
• Will the Newcrest (ASX:NCM) share price fall after the Saracen merger?
• 5 things to watch on the ASX 200 on Tuesday

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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If you’re looking to make an investment in the Australian share market, then I think CSL Limited (ASX: CSL) shares would be a great option.

Three key reasons that I rate the company highly are listed below:

Australia’s highest quality business?

The first reason to consider buying CSL is its quality. In fact, I would argue that the biotherapeutics giant is Australia’s highest quality business. It is made up of two businesses – CSL Behring and Seqirus. CSL Behring is a global biotechnology leader which offers the broadest range of quality plasma-derived and recombinant therapies in the industry. Whereas Seqirus is one of the world’s leading vaccines developers with a focus on influenza. It is also supporting the efforts to develop and manufacture a COVID-19 vaccine. Combined, I believe these two businesses have positioned CSL perfectly for growth over the long term.

Attractive valuation.

Although the CSL share price has recovered from its lows, it is still trading some distance from its 52-week high. I think this has left its shares trading at an attractive level for a long-term focused investor. And while the pandemic is having a negative impact on its plasma collections, which are a key ingredient to its immunoglobulin products, I’m optimistic that this will be partly offset by increased demand for seasonal flu vaccines because of the pandemic. This could make now an opportune time to pick up shares.

Research and development pipeline.

Did you know that every year CSL invests approximately 10% to 11% of its sales into research and development (R&D) activities? So, with sales revenue in FY 2020 hitting US$8,797 million, the company is now investing almost US$1 billion each year into its R&D. This high level of investment ensures that the company has some of the most talented scientists in the industry working for it. It also means that its R&D pipeline is filled to the brim with therapies and vaccines that have the potential to generate significant revenues in the future.

Foolish Takeaway.

The CSL share price has smashed the market over the last 10 years. Due to the three reasons listed above, I’m confident it will do the same again over the next decade.

In light of this, I would class CSL shares as a strong buy.

More reading

• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets
• CSL (ASX:CSL) share price higher on COVID-19 vaccine update
• 3 ASX shares to buy in a US election selloff
• Federal Budget: What it means for the CSL (ASX:CSL) share price

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 CSL Ltd. 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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Have you looked at the interest rate you’re receiving on your savings recently? You might be surprised to learn that there is barely even a rate to speak of.

For example, the Commonwealth Bank of Australia (ASX: CBA) NetBank Saver account is offering a standard variable rate of just 0.05%. This is broadly in line with what the other big banks are offering.

This means that even if you had $1 million in one of these accounts, you would receive just $5,000 of interest each year.

If you’re an income investor, I’m sure you would agree that this is nowhere near sufficient to live from.

But don’t worry, because there are a number of quality ASX dividend shares on offer on the Australian share market to save the day. Two that I would buy for income are listed below:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. Accent has continued its positive form in 2020 despite the pandemic. This is being driven by the popularity of its brands, its strong market position, and growing online business.

Pleasingly, I believe there’s still a lot more to come from Accent over the coming years. This is thanks to its strong online offering, expansion plans, and its focus on active and casual wear. Another positive is the tax cuts that have been promised with the Federal Budget. This will put money in consumers’ pockets and support the retail sector. 

In FY 2021, I’m expecting the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this equates to a 5.3% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider buying is Rural Funds. It is an agriculture-focused property company which owns a portfolio of property assets which are leased to some high quality producers. One of the main attractions to the company for me is its lengthy tenancy agreements. At the end of FY 2020, Rural Funds had a weighted average lease expiry of ~11 years.

And given that the company has rental increases built into these leases, I believe it is perfectly positioned to deliver on its distribution growth target of 4% per annum over the long term. It has already committed to this in FY 2021 and plans to lift its distribution to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 4.95% yield.

More reading

• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• Buy these ASX dividend shares to smash low interest rates
• Where I’d invest $10,000 into ASX dividend shares
• 3 alternative ASX shares to buy for defensive income
• 3 strong and reliable ASX dividend shares for October

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Accent Group. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and charged notably higher once again. The benchmark index rose 1.1% to 6,102 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise again.

The ASX 200 index could end a spectacular week with another gain on Friday. According to the latest SPI futures, the benchmark index is expected to rise 14 points or 0.25% at the open. This follows another positive night of trade on Wall Street. In late trade the Dow Jones is up 0.4%, the S&P 500 is 0.8% higher, and the Nasdaq has risen 0.5%. The Dow Jones is now trading at its highest level in over a month.

Oil prices storm higher.

It could be a good day for energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 3.2% to US$41.23 a barrel and the Brent crude oil price is up 3.35% to US$43.48 a barrel. Disruption from a storm in the Gulf of Mexico and strikes in Norway have hit supply and sent prices charging higher.

Gold price pushes higher.

Gold miners Newcrest Mining Limited (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price pushed higher. According to CNBC, the spot gold price has climbed 0.35% to US$1,897.50 an ounce. Traders were buying gold amid election uncertainty.

Domino’s on watch.

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price will be on watch today after its U.S. parent sank lower overnight following the release of its latest quarterly update. However, while the US pizza giant’s earnings fell short of the market’s expectations, it did surprise to the upside with its international operations. Domino’s Pizza Inc reported International same store sales of 6.2%, compared to consensus estimates of 1.9%. This could be good news for the locally listed Domino’s.

Platinum update.

The Platinum Asset Management Ltd (ASX: PTM) share price could come under pressure today after the fund manager revealed further fund outflows during September. Platinum’s funds under management fell almost 1% since the end of August to $21,472 million. As a comparison, earlier this week rival Magellan Financial Group Ltd (ASX: MFG) revealed further strong fund inflows during the month of September.

More reading

• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• Which ASX ETFs offer the most diversification?
• Brokers name 3 ASX shares to buy right now
• Look through short-term unpredictability for long-term ASX share price gains
• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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With the Australian share market on fire this week, it will come as no surprise to learn that a number of ASX shares have recorded strong gains.

Three which have climbed so much they have hit new highs, are listed below. Here’s why these ASX shares are scaling new heights right now:

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price hit a 52-week high of $3.76 on Thursday. Investors have been buying the horticulture company’s shares this year after it returned to form in FY 2020. During the first half, Costa posted a 6.8% increase in revenue to $612.4 million and a 12% lift in net profit after tax to $45.8 million. This was driven by a very strong performance from its international business. In addition to this, improving trading conditions in the domestic market appears to indicate that the worst is now behind the company.

NEXTDC Ltd (ASX: NXT)

The NEXTDC share price continued its positive run and hit a record high of $12.93 yesterday. This latest gain means the data centre operator’s shares are now up a whopping 98% since the start of the year. Investors have been fighting to hold of NEXTDC’s shares following a very strong showing in FY 2020 and its ever-improving outlook. Thanks partly to the accelerating shift to the cloud because of the pandemic, NEXTDC delivered a 23% increase in EBITDA to $104.6 million in FY 2020. Similarly positive growth is expected in FY 2021 as demand for data centre capacity continues to increase.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price was on form and hit a 52-week high of $11.55 on Thursday. The catalyst for this appears to have been the Federal Budget. Super Retail and its numerous retail brands look well-positioned to benefit from the tax cuts which are putting extra funds in consumers’ pockets ahead of the key holiday season shopping period. In addition to this, the prospect of higher domestic travel in the short term should be a boost to some of its brands.

More reading

• Top ASX growth shares to buy in October 2020
• Why this Federal Budget is good for many ASX shares
• Why the Coles Group (ASX:COL) share price just got upgraded to “buy”
• The latest ASX small cap buy ideas from leading brokers
• Why Costa, Qantas, Santos, & Westpac shares are storming higher today

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Super Retail 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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