In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to give back all of Monday’s strong gains. At the time of writing the benchmark index is down 1.25% to 5,392.4 points.

Four shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

The CSR Limited (ASX: CSR) share price has jumped 9.5% to $3.70. Investors have been buying the building products company’s shares after the release of its full year results. Although CSR delivered a 25.8% decline in underlying net profit to $134.8 million, this was better than the market was expecting. Furthermore, the company revealed that trading conditions have remained reasonably steady in the first six weeks of FY 2021.

The Kogan.com Ltd (ASX: KGN) share price is up 6.5% to $8.90. This follows the release of a business update from the ecommerce company this morning. During the month of April, Kogan’s sales grew by more than 100% compared to the prior corresponding period. Things were even better in respect to profits. Its gross profit grew more than 150% and its adjusted EBITDA increased by more than 200% during the month. This was despite its biggest monthly investment in marketing during the period.

The Premier Investments Limited (ASX: PMV) share price is up 2% to $15.75 following the release of a business update. According to the release, Premier Investments will reopen the balance of its Australian stores later this week. This will be a positive as its total sales for the six weeks to May 6 were down 74% on the prior corresponding period. The store closures were partially offset by a 99% jump in online sales.

The ResMed Inc. (ASX: RMD) share price is up 5.5% to $26.14. This follows a strong gain by its NYSE-listed shares during overnight trade. Investors may be betting on the company’s ventilator sales remaining strong for some time to come because of the pandemic and potential second waves.

More reading

• Premier Investments share price higher after announcing store reopenings and online sales surge
• These were the top 10 ASX 200 shares over the last year
• Kogan share price jumps after doubling its sales in April
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits
• In a post-COVID world, could Australia be the next superpower?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Premier Investments Limited. The Motley Fool Australia has recommended ResMed 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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Is the Webjet Limited (ASX: WEB) share price a buy? Investors certainly thought so yesterday when it jumped around 20%.

A bit of the gloss has been taken off as Webjet has fallen back a bit this morning, but it’s still up significantly this week.

In-fact, the last few weeks have been very good for the Webjet share price, it’s gone up 49% since 22 April 2020.

So what next for Webjet? It hasn’t really said much since the capital raising at the start of April 2020. The company raised around $350 million which is being used to strengthen the balance sheet due to the travel restrictions that are in place globally due to the coronavirus.

The capital raising proceeds are expected to be sufficient to provide for the operating costs and capital expenditure through to the end of 2020 even if severe travel restrictions continue. Despite being cashed up, Webjet is working on cost reductions where it can.

What’s the bull case for the Webjet share price?

I think there are two key points why the Webjet share price could continue to be a good performer over the rest of 2020.

The first is that the restrictions are lifting much earlier than expected. Whilst normal travel isn’t on the agenda yet, particularly international travel, the possibility of domestic travel has been brought forward with other restrictions ending. I think that’s very promising that bookings could start again sooner rather than later.

I believe the second point to consider is how Webjet delivers its service. It’s an online-only offering. It doesn’t rely on a large physical network of travel agent stores to sell services. The online model means it has lower costs and can offer a cheaper service than many of its competitors. This might be very important for cost conscious customers. Webjet’s global earnings and product lines may mean it can perform well when things start returning to normal.

How much earnings can Webjet generate over the next 12 months? Will it even be profitable? These are obviously important for the Webjet share price. I don’t know the answer to those questions, but it now seems very unlikely that going bust is on the cards.

Is it a buy today?

It’s unknowable whether there will be a second wave of infections. Are there lots of Aussies wanting to go on a (domestic) holiday as soon as they can?

At this share price, Webjet is still priced very cheaply in a scenario where domestic travel rebounds strongly. I think Webjet could be a high-risk, high-reward option today with a multi-year investment time in mind. Restrictions are lifting and that could help Webjet get back to some sort of ‘normal’. 

More reading

• Is it time to invest in shares or wait on the sidelines?
• ASX 200 starts the week strongly, up 1.3%
• Webjet share price jumps 25%: Is it good value?
• ASX 200 storms 1.2% higher: Cochlear reports 60% sales decline, Webjet jumps 22%
• ASX tourism shares on watch as government flags easing of coronavirus restrictions

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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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One area of the market that I think is a good place to look for buy and hold options is the small end of the healthcare sector.

I think here you’ll find a number of companies that have the potential to grow significantly in the future thanks to favourable tailwinds and new technologies.

Three small cap healthcare shares I am watching closely are listed below. Here’s why I like them:

Medadvisor Ltd (ASX: MDR)

The first small cap healthcare share to watch is Medadvisor. It is a growing software systems developer which is addressing gaps in personal medication adherence. The company’s app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information, and reminder system to ensure correct and reliable medication use. In addition, Medadvisor is also rolling out a medicine delivery service and a telehealth solution.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or molecularly-targeted radiation. It is developing a portfolio of clinical-stage oncology products that address significant unmet medical need in renal, prostate, and brain cancer. I believe the company has a lot of potential and could prove to be a great long term investment.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is healthcare technology company. It provides software that uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been a very strong performer in recent years due to the growing popularity of its software with radiologists. And thanks to the quality of the software, recent acquisitions, and its growing North American footprint, I expect the company to deliver further strong growth in FY 2021 and for many years to come.

More reading

• 3 exciting small cap ASX shares to invest $3,000 into right now
• 3 small cap ASX healthcare shares with enormous potential
• How to make money whilst you sleep with ASX shares
• 3 small cap ASX shares that could be stars of the future
• Why Beach, Newcrest, Volpara, & Westpac shares are dropping lower

James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MedAdvisor. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended MedAdvisor. 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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