Category: Stock Market

There’s a rising ASX growth stock that I believe has the potential to rival Nvidia Corporation (NASDAQ: NVDA).

Not Nvidia’s global dominating size, mind you. But the kinds of outsized share price gains the United States-based generative artificial intelligence company has been delivering to shareholders.

Unless you’ve been living under a rock, you’ll have been hearing plenty about Nvidia this past year.

And for good reason.

The Nvidia share price has surged 206% over the past 12 months. That gives the AI chip maker an eye-popping market cap of US$2.35 trillion (AU$3.53 trillion).

And, to be sure, you’ll be hearing a lot more about Nvidia tomorrow. The company reports its first quarter results in the US on Wednesday (overnight Aussie time).

But it’s not Nvidia I want to focus on here.

Rather, it’s ASX growth stock NextDc Ltd (ASX: NXT).

Here’s why.

ASX growth stock riding the AI wave

Nvidia’s remarkable growth story, and that of many international and ASX tech companies, is closely linked to the rapid rise of AI.

Now, we like to say that all of the phenomenal and ever-growing processing power and data required by AI technology resides in the cloud. But, of course, this really refers to data centres.

Indeed, analysts have flagged that Nvidia could reap a whopping US$200 billion in data centre revenue in 2025.

Which offers some strong and ongoing opportunities for ASX growth stock NextDC.

You see, AI-enabled data centres require far more energy and upgraded technologies than traditional facilities.

And S&P/ASX 200 Index (ASX: XJO) listed NextDC is the largest listed developer and operator of data centres in Australia.

In April, NextDC successfully conducted a $1.3 billion capital raising to accelerate the development and fit-out of its key data centre assets in Sydney and Melbourne.

NextDC CEO Craig Scroggie said, “NextDC continues to see significant growth in demand for its data centre services underpinned by powerful structural tailwinds.”

As new shares were issued significantly below market price, that initially saw the share price sink. But shares have since recovered and the company is now well capitalised.

Indeed, shares in the ASX growth stock are up 49% over the past 12 months, giving the company a market cap of $10.6 billion.

While I can’t foresee the stock overtaking Nvidia’s $3.53 trillion market cap, I believe the ongoing AI-fuelled demand for more and better data centres should set NextDC up for a long period of growth.

What are the experts saying?

Earlier this week, Jun Bei Liu, a lead portfolio manager at Tribeca Investment Partners, noted, “We believe AI will be a mega investment trend that permeates every part of human life via business and household adoption.”

She said that demand for Nvidia’s generative AI chips was “projected to double again in the next six years”.

She also named ASX growth stock NextDC one of two of the “best-listed players that we believe directly participate in this megatrend here in Australia.”

Morgans is also bullish on the outlook for NextDC.

According to the broker:

Structural demand for cloud and colocation remains incredibly strong. NXT’s new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months… Sales should drive the share price higher.

Morgans has a 12-month target for the NextDC share price of $19.00. That represents a potential 8% upside from the current $17.59 a share.

But I believe Morgans is being conservative here.

I don’t make specific share price predictions.

However, while there are no guarantees, I think that forward-looking, long-term investors who watch this booming mega-trend could send the ASX growth stock significantly higher than $19.00 a share by year’s end.

The post Forget Nvidia: This ASX growth stock is poised for its own bull run appeared first on The Motley Fool Australia.

More reading

• Here’s why Nvidia stock could sustain its stunning bull run after May 22
• History says an Nvidia stock-split announcement might be coming on May 22
• These are the 2 ‘best’ ASX 200 stocks to buy now for the AI megatrend: expert
• 2 highly rated ASX growth shares to buy before it’s too late
• 5 stellar ASX growth shares to buy for strong returns

Motley Fool contributor Bernd Struben 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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts have upgraded this appliance manufacturer’s shares to an outperform rating with an improved price target of $28.60. The broker was impressed with what the company had to say at its recent investor conference. This is particularly the case with its distribution expansion opportunity. Macquarie highlights that there are a number of countries that it is distributing to indirectly but could change to direct distribution and boost its earnings. With that in mind, the broker has lifted its earnings estimates for the near term. The Breville share price is trading at $26.66 this afternoon.

James Hardie Industries plc (ASX: JHX)

Another note out of the Macquarie equities desk reveals that its analysts have upgraded this building materials company’s shares to an outperform rating with a reduced price target of $55.00. Macquarie acknowledges that James Hardie’s fourth quarter update and guidance for FY 2025 was notably weaker than expectations. And while this is understandably disappointing, it believes the selloff of its shares was severely overdone. Particularly given its belief that the company’s competitive position is not weakening. In light of this, the broker believes that investors should be taking advantage of the selloff by snapping up shares while they are down in the dumps. The James Hardie share price is trading at $47.22 at the time of writing.

Telstra Group Ltd (ASX: TLS)

Analysts at Goldman Sachs have retained their buy rating on this telco giant’s shares with a reduced price target of $4.25. According to the note, the broker was a touch disappointed with Telstra’s guidance for FY 2025. Its analysts note that Telstra’s underlying EBITDA guidance of $8.4 billion to $8.7 billion was below expectations. It was also not a fan of management’s decision to scrap its inflation-linked price increases. However, even after reducing its earnings and dividend estimates to reflect the above, it still sees plenty of value in the telco’s shares at current levels. As a result, it has reaffirmed its buy rating today. The Telstra share price is trading at $3.45 on Wednesday afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• What are brokers saying about the Telstra share price after this week’s update?
• 5 things to watch on the ASX 200 on Wednesday
• Why this beaten down ASX 200 stock can jump 24%
• Why Infratil, James Hardie, Sonic Healthcare, and Star Entertainment shares are sinking today
• Which ASX 200 stock just plunged 12% despite record full-year earnings?

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 Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors have been buying Commonwealth Bank of Australia (ASX: CBA) shares for the sole purpose of receiving meaningful dividend income for decades.

That’s fair enough. Ever since CBA shares were first floated on the ASX back in the 1990s, this ASX 200 bank stock has paid out healthy and fully-franked dividend payments.

Over the past few years, this passive income from CBA shares has generally increased, aside from the understandable blip during the COVID pandemic. In 2019, CBA shares doled out $4.20 in dividend income per share. By 2023, this had risen to $4.50.

However, the CBA share price has risen far faster than its dividends have in recent years.  Since May of 2019, investors have enjoyed more than 55.5% in capital gains alone from CBA shares.

Whilst this has been fantastic for long-term shareholders, it has also had a deleterious effect on the CBA dividend yield. Remember, when a company’s share price increases, the running dividend yield on new share buys goes down.

So today, let’s talk about how much dividend income one can expect if one buys 1,000 CBA shares at current pricing.

How much dividend income would 1,000 CBA shares get you?

So at the time of writing, Commonwealth Bank stock is trading at $121.64 a share, down 0.13% for the day so far. This price is only a whisker from the new all-time high of $122.55 that we saw CBA shares clock only last week.

At the current price, CBA is trading on a trailing dividend yield of 3.74%. That’s far lower than CommBank’s big four peers. For example, ANZ Group Holdings Ltd (ASX: ANZ) shares are presently boasting a far larger 6.18% yield today. But we digress.

This 3.74% CBA dividend yield comes from the bank’s last two dividend payments. The first was the final dividend worth $2.40 per share that shareholders bagged back in September last year. The second, was the interim dividend of $2.15 a share that was paid out back in March. Both payments came fully franked, as is CBA’s habit.

That’s an annual total of $4.55 per share in passive income. If an investor owned 1,000 CBA shares today (worth $121,640 at current pricing), they would have received $4,550 in dividend income over the past 12 months.

Past and future passive income

Saying that, this just represents what investors would have received over the past 12 months, not what the will receive going forward. No one knows what kinds of dividends any company will pay out in the future until the said company makes the announcement. As such, no one should bank on CBA shares continuing to pay out $4.55 in annual dividends per share going forward.

However, this is the likeliest scenario, at least according to one ASX expert.

As my Fool colleague covered earlier this month, ASX broker Goldman Sachs is expecting CBA shares to continue to pay out an annual $4.55 in dividends per share over the coming 12 months. In fact, Goldman has pencilled in $4.55 in dividends per share for FY2024, as well as both the 2025 and 2026 financial years.

We’ll have to wait and see if Goldman’s predictions prove prescient. But if this expert is on the money, investors can continue to expect to receive $4,550 in dividend income for every 1,000 CBA shares they own for the foreseeable future.

The post If I buy 1,000 CBA shares, how much passive income will I receive? appeared first on The Motley Fool Australia.

More reading

• Would I be crazy to buy CBA shares at $121?
• Why is the CBA share price setting a new all-time high today?
• Here’s what Wilsons is saying about ANZ, CBA, NAB, and Westpac shares
• Is the CBA share price heading back to $100?
• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)

Motley Fool contributor Sebastian Bowen 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 Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain on Wednesday. In afternoon trade, the benchmark index is up 0.1% to 7,858.8 points.

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

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 4.5% to 93 cents. Investors have been buying the counter drone technology company’s shares after it announced a new major contract win. Droneshield advised that it has received a repeat order of A$5.7 million from a U.S. Government customer for a number of its CUxS (Counter-UxS) systems. The delivery, involving multiple DroneShield product lines, is expected to be completed in several stages throughout the remainder of the year.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 8% to $18.06. This enterprise software provider’s shares have been on fire since the release of its half year results on Tuesday. One broker that was impressed was Bell Potter. In response, the broker retained its buy rating and lifted its price target on the company’s shares to $19.00. It said: “The positive surprise of the result was the full year guidance of 12-16% PBT growth whereas Technology One historically has typically provided guidance of 10-15% growth.”

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 4.5% to $16.09. This follows the release of the radiopharmaceutical company’s annual general meeting presentation. At the event, Chairman, Kevin McCann, said: “Despite all that we have achieved, there is plenty more to come. Indeed, it is the view of Management that 2024 is going to be the biggest year yet for Telix. By the end of the year, we expect to have launched new products and territories, reported several key development milestones for our therapy programs and progressed some of our very exciting “next generation” assets – such as TLX592 and TLX300.”

Webjet Ltd (ASX: WEB)

The Webjet share price is up 8% to $9.14. Investors have been buying the online travel agent’s shares following the release of its full year results. Webjet reported a 29% increase in revenue to $472 million and a 40% jump in underlying EBITDA to $188 million. A key driver of this growth was the WebBeds business, which reported a 26% increase in booking volumes and a 39% jump in EBITDA to $162 million. The company also revealed that it is looking to unlock value by demerging its WebBeds business into a separate ASX listing.

The post Why Droneshield, TechnologyOne, Telix, and Webjet shares are rising today appeared first on The Motley Fool Australia.

More reading

• Guess which 7 ASX 200 shares are smashing new 52-week highs today
• Up 246% in a year, here’s why the Droneshield share price is racing higher again today
• Webjet share price rockets 14% on record earnings and demerger announcement
• Is this ASX 200 tech stock in the buy zone following its results?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in Technology One and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Technology One, and Telix Pharmaceuticals. The Motley Fool Australia has recommended Technology One and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Insurance Australia Group Ltd (ASX: IAG) share price is nearing a new multi-year high today.

It’s shaping up to be a good day for the financials sector as we head into the final hours of Wednesday trading. One of the positive performers is Sydney-based IAG, the insurance giant behind well-known names such as NRMA Insurance.

Shares in the company are within shooting distance of a four-year high after announcing a new product this morning.

At the time of writing, the IAG share price is fetching $6.47 apiece, only 7 cents away from its highest price since before the COVID crash, as depicted in the chart above.

Covering a multibillion-dollar market

Insurance Australia Group, or IAG, has launched Cylo today, a new specialist cyber underwriting agency. The brand-spanking new offering is backed by IAG’s CGU Insurance, a leading commercial, rural, and personal lines insurer with more than 165 years of history.

On its website, Cylo describes itself as a ‘holistic risk management approach to the growing threat of cyber incidents.’ In essence, Cylo is an amalgamation of insurance and protection. By partnering with UpGuard, a cybersecurity risk management software provider, customers will be assisted in managing vulnerabilities.

From there, CGU partnered with claims management firm Crawford & Company to carry out the incident response side of the equation.

However, this new offering has limitations. Big businesses will need to look elsewhere, as Cylo’s protection is only available to small businesses turning over less than $10 million in a year. While those eligible can elect for either first-party or third-party cover.

As mentioned in the official announcement, the Insurance Council of Australia estimates that cybercrime costs the Australian economy $42 billion a year. Small businesses are the recipients of 43% of those costly attacks, averaging $39,000 in damages per cyberattack.

Is the IAG share price undervalued?

With the market approaching a four-year high, is there still enough meat on the bone for a buyer? As my colleague Bronwyn Allen discussed last week, Nigel Pittaway of Citi seems to think so.

The Citi analyst believes IAG presents better value than Suncorp Group Ltd (ASX: SUN). Sticking a $6.75 price target on IAG shares, Pittaway thinks cost-cutting is an avenue for more upside. Meanwhile, analysts at UBS prefer QBE Insurance Group Ltd (ASX: QBE) in the general insurance domain.

IAG shares trade at a price-to-earnings (P/E) ratio of nearly 21 times. However, with earnings forecast to grow over the next 12 months, the forward P/E ratio is sitting at 17 times, which would still value the company at a premium compared to QBE and Suncorp.

The post IAG share price teases 4-year high amid cyber expedition appeared first on The Motley Fool Australia.

More reading

• What this top broker is saying about IAG shares
• Here are the top 10 ASX 200 shares today
• Here is the earnings forecast out to 2026 for IAG shares

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up slightly to 7,857.2 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here’s why they are falling:

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is down 14% to $10.51. This follows the release of an update at the auto retailer’s annual general meeting on Wednesday. The company said: “Given the current market and business dynamics, and with a cautious lens on consumer sentiment, we expect to achieve an underlying trading performance for the first half of 2024 that is approximately 85% of the underlying profit before tax for the first half of 2023.”

Inghams Group Ltd (ASX: ING)

The Inghams share price is down almost 14% to $3.29. Investors have been rushing to the exits today amid reports that bird flu was detected at a farm in Victoria. According to the ABC, this is the first time in four years that bird flu has appeared in Australia and has sparked concerns of a global outbreak. Given how quickly it can spread, investors appear to be fearing that Inghams could soon be impacted. This would likely be very disruptive to poultry sales and supplies.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 9% to 90.2 cents. This morning, this lithium developer announced a C$75 million capital raising. Patriot decided to raise funds in response to the current advantageous flow through financing conditions in Canada. The placement received strong demand from existing and new institutional, professional and sophisticated investors. Existing substantial investors also maintained their pro-rata in the placement, which included committing to a four month hold on new securities. Proceeds from the flow through capital raise will be used exclusively on exploration at the Corvette Lithium Project.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price is down 6.5% to 49.5 cents. This is despite the lithium explorer announcing drilling results on Wednesday. Wildcat announced high-grade lithium results from its Luke Pegmatite discovery. It believes this highlights the growing potential of the Tabba Tabba Lithium Project, near Port Hedland, in the Pilbara region of Western Australia. Managing Director, AJ Saverimutto said: “These latest broad mineralised zones at the Luke Pegmatite are exceptional. We are very excited, as the new results confirm the discovery has broad, high-grade zones sitting directly beneath our Leia Pegmatite body. Luke has potential to have a significant positive impact on the overall system.” Some investors may have been expecting even stronger results.

The post Why Eagers Automotive, Inghams, Patriot Battery Metals, and Wildcat shares are sinking appeared first on The Motley Fool Australia.

More reading

• Why this $3.2 billion ASX 200 stock just crashed 19%
• 3 ASX 200 dividend stocks for investors to buy
• With its 8% yield, I think this undervalued ASX 200 stock is an opportunity not to miss
• Why AIC Mines, Bendigo and Adelaide Bank, Patriot Battery Metals, and Vulcan Energy are racing higher today
• Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals shares are rising today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Paladin Energy Ltd (ASX: PDN) share price has been on quite the run of late. Today, this ASX 200 uranium stock is trading at $17.40, down a hefty 2.28% for the day thus far.

But even so, Paladin shares still remain up a huge 72.2% over just 2024 to date. This company has also put on a whopping 163.5% over just the past 12 months.

Longer-term investors have done better again still. It was only back in March of 2020 that Paladin shares were as low as 39 cents a pop. This means that investors who have held this company since then have enjoyed a gain worth a jaw-dropping 4,400% or so.

Check all of that out for yourself here:

It’s probably fair to say that Paladin’s gains, particularly over the past year or two, have been fuelled by a surge in the price of uranium itself, as well as a belief that prices could go higher still as the world looks for low-carbon sources of energy in the coming years.

But all of these gains for the Paladin share price, massive as they may be, are now in the past. So after this extraordinary runup to the share price we see today, some investors might be wondering whether Paladin shares might be a little overcooked. After all, these kinds of explosive rises are rare on the ASX, and all commodity-based companies are notoriously cyclical in nature.

Is the Paladin Energy share price overcooked at current levels?

Unfortunately for Paladin bulls, at least one ASX expert reckons this is indeed the case today.

According to reporting in the Australian Financial Review (AFR) this week, Dawn Kanelleas of First Sentier Investments is telling investors that her funds are avoiding uranium stocks, and Paladin Energy in particular.

Kanelleasis is worried about the fundamental quality of Paladin and thinks its valuation has become stretched. Here’s some of what she said:

We don’t have comfort around the cost structure of both [Boss Energy Ltd (ASX: BOE)] and particularly Paladin, given its history – it makes it hard to confidently invest at this point…

[Paladin] has a $5 billion market cap and no earnings right now. Even though prices might be high, contracted prices are much lower … we’re very wary of that mine.

Kanelleasisis is instead more interested in another commodity that has boomed in recent months – gold. She named gold miner Capricorn Metals Ltd (ASX: CMM) as one of her picks right now.

Unfortunately for Paladin Energy investors, the pessimism doesn’t end with First Sentier Investments. Earlier this month, my Fool colleague James covered the views of several ASX brokers on the Paladin Energy share price. He found that “most brokers now believe that the Paladin Energy share price has peaked or is close to peaking”.

These brokers didn’t have as much of an issue with Paladin’s underlying quality, as Kanelleasisis did. However, their collective share price targets on the company don’t imply much upside from where the shares are currently trading.

The post Is the Paladin Energy share price overcooked at $17.40? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why BHP, Boss Energy, Domino’s, and Renascor shares are racing higher
• ASX 200 uranium stock Boss Energy surges on copper news
• Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today
• Will ASX uranium shares run higher on this ‘historic’ supply ban?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its directors.

If they are buying, it could be a sign that they are confident in the direction the company is heading and see value in its shares.

With that in mind, let’s take a look at one ASX All Ords stock that has reported some major insider buying this week.

Which ASX All Ords reported insider buying?

The company in question is clinical stage biotechnology company PYC Therapeutics Ltd (ASX: PYC).

According to a change of director’s interests notice, the company’s non-executive chair, Alan Tribe, just snapped up 50 million shares through an off-market transfer on 17 May. This increased Tribe’s holding in PYC Therapeutics to approximately 1.537 billion shares.

The release reveals that the biotech’s chair paid a total of $5.25 million for the shares. This equates to an average of 10.5 cents per share. This is in line with where the ASX All Ords stock is currently trading.

Should you invest?

One leading broker that would likely approve of this purchase is Bell Potter.

Earlier this week, the broker initiated coverage on the ASX All Ords stock with a speculative buy rating and 17 cents price target.

Based on its current share price, this implies potential upside of 62% for investors over the next 12 months.

Commenting on its bullish view, the broker said:

PYC Therapeutics (PYC) is a clinical-stage biotech company harnessing its differentiated RNA drug development platform to treat rare inherited diseases. PYC is actively progressing three drug candidates through clinical development, each of which has first-in-class and/or best-in-class potential. In May 2024, PYC reported highly encouraging first clinical data for its lead drug candidate (called VP-001) in patients with a rare form of blinding eye disease, called retinitis pigmentosa type 11 (RP11).

We initiate coverage of PYC with a speculative BUY recommendation and $0.17 valuation. Pro-forma cash balance was ~$84m as at 31 March 2024, providing runway into 2H CY25 to achieve the above-mentioned Phase 1/2 clinical trial readouts. PYC have multiple shots on goal with three highly promising drug candidates for rare diseases. We also see value in the company’s internal platform and potential to continually generate differentiated RNA therapeutics for inherited diseases.

The post Guess which ASX All Ords insider just bought 50 million shares in their company appeared first on The Motley Fool Australia.

More reading

• Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a bit of a mixed day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Wednesday. At the time of writing, the ASX 200 is barely in the green, up 0.025% for the day thus far after surging higher earlier this morning. But let’s talk about the A2 Milk Company Ltd (ASX: A2M) share price. 

The A2 Milk share price is having a far better day today. This ASX 200 dairy share closed at $6.79 yesterday afternoon but opened at $6.81 this morning before rising up to the $6.92 it is currently trading at. That’s a gain worth a healthy 1.99%.

But it was even better for this company earlier this morning. Just before midday, the A2 Milk share price got as high as $6.95 – a new 52-week high for A2 Milk.

Today’s gain is just the latest in what has been a very lucrative few months for A2 Milk stock. Remember, this is a company that was asking just $3.70 a share as recently as November last year.

As it currently stands, A2 shares are now up a whopping 63.2% year to date. The company is also up 28.4% over the past 12 months, and has put on a happy 87% since November’s 52-week low of $3.70.

Check all of that out for yourself below:

But how has this company managed to stage such an enthusiastic comeback in 2024? After all, A2 Milk has been a bit of a fallen star in recent years, dropping from over $20 a share in 2020 to last year’s lows of under $4.

Why has the A2 Milk share price just clocked a new 52-week high?

Well, today’s new high seems to have come unprovoked. There haven’t been any news, developments or announcements out of the company itself today, or indeed in quite a while.

However, today’s gains are just the latest in a long string of wins for this company. Momentum seems to have been building ever since A2 Milk reported some very impressive numbers back in its half-year results in February.

As we covered at the time, these results revealed that A2 Milk brought in NZ$812.1 million in revenues for the six months to 31 December 2023, an increase of 3.7% over the previous year’s numbers for the same period. 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) ticked up 5% to NZ$113.2 million, which enabled A2 Milk to increase its net profits after tax (NPAT) by a healthy 15.6% to NZ$85.3 million. The company also revealed at the time that its cash balance was up 12% to NZ$792.1 million.

Investors were very impressed by these numbers, sending the A2 Milk share price up 12% upon their release.

This goodwill has continued ever since, with A2 shares now up 37% since the day before these earnings were made public.

So this momentum from February’s earnings appears to have resulted in the new 52-week high we see for A2 Milk today. Let’s see how much further this company can climb going forward.

The post Up 63%: The A2 Milk share price just hit a new 52-week high appeared first on The Motley Fool Australia.

More reading

• Guess which 7 ASX 200 shares are smashing new 52-week highs today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Seven S&P/ASX 200 Index (ASX: XJO) shares are leaping to 52-week highs today.

Yep, seven!

Their strong performance is helping lift the benchmark index 0.3% in early afternoon trade.

Any guesses?

Keep those in mind and read on.

ASX 200 shares charging to 52-week highs or more

The first ASX 200 share reaching new 52-week highs on Wednesday is Technology One Ltd (ASX: TNE).

The Technology One share price is up 6.3% at $17.80 a share. That’s not just a new 52-week high for this tech stock but would also mark a new all-time closing high.

Technology One shares closed up 4.6% yesterday after the company reported some strong half-year results. Those included a 16% year on year increase in profit after tax to $48 million.

The second ASX 200 share hitting fresh one-year highs is Webjet Ltd (ASX: WEB).

The Webjet share price is up 9.1% at $9.21 a share. That represents a new post-pandemic high.

Webjet shares are soaring today following the company’s full year results. Highlights included a 29% year on year revenue boost to $472 million. Webjet also announced a potential demerger of its two travel divisions, which would each be listed separately on the ASX.

The third ASX 200 share hitting new 52-week highs today is Emerald Resources (ASX: EMR).

The Emerald Resources share price is up 1.6% at $3.94 a share. This also marks a new all-time high for the gold mining stock, which is now up 103% over 12 months.

With no recent price sensitive news out from the company, the share price looks to be benefiting from the soaring gold price.

The fourth ASX 200 share reaching new 52-weel highs today is A2 Milk Co Ltd (ASX: A2M). A2 Milk shares are up 1.9% trading for $6.92 apiece.

That sees the A2 Milk share price up 63% in 2024.

There’s no recent news out from the company. Investor excitement was roused by management’s forecast of low to mid-single digit revenue growth for FY 2024 when the company released its half-year results in February.

The fifth ASX 200 share notching fresh 52-week highs today is Telix Pharmaceuticals Ltd (ASX: TLX).

The Telix Pharmaceuticals share price is up 6.2% at $16.34 a share. That’s also a new all-time high for the ASX healthcare stock. Investors have been buying the stock amid a series of strategic acquisitions and rising revenues.

Shares are getting a boost today on the back of the company’s AGM.

Which brings us to the sixth ASX 200 share hitting new 52-week highs on Wednesday, Alumina Ltd (ASX: AWC).

The Alumina share price is up 5.0% at $1.83 a share, the highest level in two years.

Investor enthusiasm was kindled yesterday when the company released an update on Alcoa’s proposed acquisition of all of its shares.

Rounding off the list, the seventh ASX 200 share smashing new 52-week highs today is CSR Ltd (ASX: CSR).

Shares in the building products company are up 0.3%, trading for $8.93 apiece. If CSR shares can hold onto this slender gain by market close this will also mark a new five-year high.

CSR is also an acquisition target. The company provided its last update on the proposed acquisition by Saint-Gobain for $9.00 a share in cash a week ago, on 15 May.

So, did you guess all seven ASX 200 shares hitting new 52-week highs or more?

Give yourself a virtual gold star!

The post Guess which 7 ASX 200 shares are smashing new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Up 63%: The A2 Milk share price just hit a new 52-week high
• Webjet share price rockets 14% on record earnings and demerger announcement
• Is this ASX 200 tech stock in the buy zone following its results?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben 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 Technology One and Telix Pharmaceuticals. The Motley Fool Australia has recommended A2 Milk, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.