The Transurban Group (ASX: TCL) share price has been out of form today.

In afternoon trade the toll road operator’s shares are down over 1% to $13.99.

This follows the release its annual general meeting presentation and quarterly update this morning.

In light of the large amount of information that it released today, I thought I would summarise what I’ve learned into three key takeaways. They are as follows:

Traffic volumes are improving.

During the first quarter of FY 2021, Transurban’s Average Daily Traffic (ADT) decreased by 25.2% compared to the prior corresponding period. Management notes that impacts across each of its markets varied depending on the level of government restrictions in place in response to COVID-19. Positively, during the quarter, Sydney’s ADT increased by 1.5% on the prior corresponding period to 847,000 trips. This appears to demonstrate that volumes will recover quickly once restrictions in other markets ease.

Transurban is well-placed for the future.

In his address, Transurban’s Chief Executive, Scott Charlton, spoke positively about the future and noted that the company is well-placed for growth. Mr Charilton commented: “With $19 billion of critical infrastructure projects across Australia and North America in our pipeline, it is safe to say we still have a busy few years ahead of us.”

He then added: “The five regions we operate in all have large populations, and despite the temporary impacts from COVID-19, they are all expected to continue to grow substantially over the medium and long term. And this growth will require continued infrastructure investment to ensure these cities continue to have efficient and productive transport networks.”

Looking for US equity partners.

Another interesting takeaway from today’s update was that the company is looking to strengthen its capital position by taking on equity partners for its Greater Washington Area assets. It revealed that it has commenced a process for the potential introduction of equity partners and expects a successful agreement to release significant capital into the business. In addition to this, it notes that if it is successful on the Elizabeth River Crossings opportunity, management would look to bring a partner into that asset as well.

More reading

• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets
• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• Why the Federal Budget is good for the Transurban (ASX:TCL) share price
• Ignore the noise and focus on these ASX shares instead
• 5 things to watch on the ASX 200 next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban 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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Some of the hottest ASX shares right now are e-commerce businesses.

COVID-19 has been a really difficult period for many parts of the economy. However, businesses that service customers through e-commerce in some way have adapted and seen a rapid increase in demand.

Some businesses have simply cannibalised their own sales from bricks and mortar stores and replaced them with online sales. But online-only businesses have done very well and could keep growing if their recent updates are anything to go by.

Kogan.com Ltd (ASX: KGN)

Kogan.com aims to offer customer low-costing products across a wide range of areas.

Its platform sells a wide array of electronics like phones, computers, cameras and drones. It also sells various home items like appliances, furniture, games, shoes and clothing, sports equipment and so on.

I think one of the most compelling parts of the e-commerce ASX share is that it sells a variety of other services including Kogan Mobile, internet, energy, credit cards, insurance, cars, superannuation and home loans. The more customers it can attract, the more add-on services the business can provide, and the more valuable that customer is for Kogan.com.

Kogan.com has been doing very well. Gross sales in FY20 climbed 39.3% to $768.9 million and gross profit rose 39.6% to $126.5 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 57.6% to $49.7 million and net profit after tax (NPAT) rose by 55.9% to $26.8 million.

July 2020 saw gross sales rise by 110%, gross profit went up 160% and Kogan.com made over $10 million of adjusted EBITDA in just one month. In August 2020, gross sales grew 117%, gross profit went up by 165% and adjusted EBITDA soared 466%.

Based on the rising number of customers, I think the e-commerce ASX share has very promising growth prospects. Over August, Kogan.com grew its active customers by 152,000 to 2.46 million.

At the current Kogan.com share price, it’s trading at 37x FY23’s estimated earnings. I also like that the company is growing its dividend for shareholders. 

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an online-only retailer of furniture and homewares. It has grown at a very strong rate since COVID-19 started impacting Australia.

The e-commerce ASX share generated positive cashflow in FY20, with annual revenue jumping by 74% to $176.3 million and EBITDA rocketing 467% higher to $8.5 million.

It was the last FY20 quarter that particularly caught my attention – FY20 fourth quarter revenue went up by 130%. I believe that FY21 will be another strong year with financial year to date (to 27 August 2020) revenue growing by 161% and EBITDA of $6 million. Remember FY20’s entire EBITDA was $8.5 million.

I believe there has been a permanent shift to online shopping for some consumers. It has brought forward the adoption of e-commerce and this can help businesses like Temple & Webster expand and invest faster than it would have.

The business is expanding very well and it could make bolt-on acquisitions as time goes on with some competitors struggling in the current environment.

At the current Temple & Webster share price it’s trading at 58x FY23’s estimated earnings. However, it was announced today that a director recently sold around $1.4 million of shares, so that’s not exactly a positive sign.

Foolish takeaway

When looking out three to five years, I think these two could be two of the best performing ASX shares because of their e-commerce models. They’re doing a great job at attracting new customers and winning market share.

At the current share prices I’d probably go for Kogan.com because of the nature of its network effects. It could convert some of its one-time customers into repeat customers who sign up for membership and use various other services. This would mean much more profit, at a higher margin, for Kogan.com. 

More reading

• Why IAG, Mayne Pharma, Mesoblast, & Temple & Webster shares are tumbling lower
• With even Kogan (ASX:KGN) eyeing a return to the office, where next to invest?
• 4 stellar ASX growth shares to buy right now
• 3 ASX tech shares to buy and hold for the next decade
• Meet the ASX 200 stock with a dividend yield that’ll hit ~14% in FY22

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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 share price of brick and mortar retailers, and their landlords, have been some of the hardest hit by the lockdowns and social distancing measures put in place to contain the pandemic.

Retail developer and owner Aventus Group (ASX: AVN) is no exception.

The Aventus share price plummeted 54% from its 19 February all-time high through to its all-time low on 27 March. Although it’s gained strongly since that low, up 71% at time of writing, the Aventus share price is still around 22% down from its 19 February peak.

Year to date, shareholders are nursing losses of 17%. By comparison the S&P/ASX 300 Index (ASX: XKO) is down 8% in 2020.

But according to Macquarie Group Ltd (ASX: MQG) analysts, the outlook for Aventus’ shareholders is looking far brighter in the light of this week’s federal budget proposal.

What does Aventus Group do?

Aventus Group owns, manages and develops large format retail centres in Australia. Its portfolio is comprised of 20 retail centres valued at $2.2 billion. That portfolio encompasses 536,000sq m in gross leasable area.

The company’s 70 in-house professionals provide their expertise in investment management, asset management and corporate services. Aventus boasts consistently high occupancy, positive leasing spreads and low incentives across its portfolio.

Aventus has a market capitalisation of $1.3 billion and pays an annual dividend yield of 4.9%, unfranked.

Why could the Aventus share price be set for some big gains?

The new federal budget, outlined by Treasurer Josh Frydenberg on Tuesday, opens wide the fiscal spending taps. Among the new measures, pensioners will receive an additional $2.6 billion in support payments, and Australian workers will receive almost $18 billion in tax cuts.

The budget also contains novel measures to reimburse businesses employing young people by up to $200 per week. This, and other spending measures, should see more consumers open their wallets and spend big.

Combined with the new business investment tax breaks, I believe Aventus can expect most of the tenants at its 20 retail centres to see a marked uptick in their turnover heading into Christmas. As such, this should mean Aventus can expect to see rents coming in reliably and on time.

Although the Aventus share price is down 0.4% in early afternoon trading, I agree with Macquarie that the mid to longer-term outlook for shareholders appears promising.

More reading

• Buy Fortescue (ASX:FMG) and this ASX dividend share for income
• 2 top ASX dividend shares for income investors to buy today
• Buy these ASX dividend shares if the RBA cuts rates
• 2 high yield ASX dividend shares to buy next week
• Not sure about Westpac (ASX:WBC)? Buy these ASX dividend shares instead

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 Ampol Ltd (ASX: ALD) share price is pushing higher today as the company provided an update regarding the performance of the Lytton refinery. The fuel and convenience giant also announced it would be undertaking a review of the refinery. At the time of writing, the Ampol share price is trading 1.72% higher at $24.77.

What does Ampol do?

Ampol, formerly known as Caltex, is a fuel supplier and convenience retailer. The company is involved in the purchase, refinement and sale of petroleum products and the operation of convenience stores. Ampol operates throughout Australia and on the north island of New Zealand.

Ampol’s roots track all the way back to 1900 and the company has been listed on the ASX in its current form since 1980. The fuel provider is an established part of the S&P/ASX 200 Index (ASX: XJO).

How has the refinery performed?

As expected, the refinery made an unaudited loss of $82 million in Q3, which takes the total loss for the year to $141 million. Furthermore, the impact of COVID-19 has already largely been priced in to the Ampol share price and, as such, the loss is of no surprise. It’s quite likely that the bounce in the Ampol share price today reflects the fact that shareholders were expecting a worse outcome.

Lytton refinery is now back in operation with production for Q4 expected to be 1.3 billion litres (BL). This will take the full year production for 2020 up to 3.4 BL, down from 5.8 BL for FY2019.

Refinery review

Due to the challenging conditions experienced as a result of the pandemic, Ampol will commence a comprehensive review of the Lytton refinery and its related supply chains to determine the best operating model over the medium term.

The review will consider options for the facility’s operations and the markets it serves. These options may involve closure, with permanent transition to an import model or the continuation of existing refining operations among other alternate models of operation.

Ampol Managing Director and CEO, Matt Halliday, said:

The review will consider all relevant strategic, economic and operational factors, including the recent measures announced by the Australian Government to support refining and bolster fuel security, and the potential impacts on employees, suppliers and other stakeholders.

About the Ampol share price

With the Ampol share price up 1.72% in trading today, shareholders are clearly beginning to see the light as the refinery’s large loss has not stopped investors bidding up the price today.

However, the Ampol share price is still trading around 27% down for the year so far, with the decline in oil prices slashing its margins.

More reading

• Macquarie says ASX value shares will outperform growth stocks from here
• Meet the ASX sector that is cum-consensus upgrade for FY21

Motley Fool contributor Daniel Ewing 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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Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares are surging today and have just hit a new 52-week high. The SOL share price has been on a tear over the past week, rising 9.4% from around $23.30 last Friday to $25.48 today at the time of writing. Earlier today, Soul Patts shares hit their new high of $25.49, a level not seen since April 2019. It’s been a slow but steady rise for the company in recent weeks too. The SOL share price is also up more than 21% over the past month and more than 46% over the past 6 months.

So what’s behind this extraordinary rally?

What does Washington H. Soul Pattinson do?

Soul Patts is a pretty special company. It has a rather unusual structure, functioning more as a listed investment company (LIC) today than its original structure as a pharmacy chain (although it still maintains its pharmacies). As such, it owns large stakes in a diversified portfolio of ASX companies.

Some of its top holdings are as follows:

• a 25.3% stake in TPG Telecom Ltd (ASX: TPG)
• a 43.9% stake in Brickworks Limited (ASX: BKW)
• a 50% share of New Hope Corporation Limited (ASX: NHC)
• a 19.3% stake in Australian Pharmaceutical Industries Ltd (ASX: API)
• an 8.6%  share of BKI Investment Co Ltd (ASX: BKI)
• a 22.6% stake in Clover Corporation Limited (ASX: CLV)

In addition to these positions, Soul Patts also owns a portfolio of unlisted assets. These range from a mining company to a corporate advisory firm.

Why is the Soul Patts share price at a new 52-week high?

It’s not immediately clear what has triggered the surge in the SOL share price this week to a new 52-week high. Just yesterday, however, the company did tell the markets that two of its directors have picked up additional shares. Thomas Millner reportedly picked up an additional 40,000 shares between 30 September and 5 October, while Robert Millner picked up 45,000 shares over the same period. This obviously tells us that the directors are bullish on their company at the current share price and are willing to put their money where their mouths are, so to speak.

Additionally, some of the shares in Soul Patts’ portfolio have also been rising in value in recent weeks, helping to increase the value of the company’s holdings. These include New Hope, which is up nearly 13% in the past month, and Brickworks, up 11.5%.

All of these factors combined are, in my view, what is behind this new 52-week high for Soul Patts shares.

More reading

• My 3 favourite ASX dividend shares to buy this year
• 2 ASX shares that every investor should own
• Where I’d invest $10,000 into ASX dividend shares
• Forget the tech boom, these ASX shares are primed for the recovery trade
• 2 ASX shares to buy for rock solid retirement income

Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 Xero Limited (ASX: XRO) share price has hit a new all-time high today. XRO shares started the day at $111.46, but, at the time of writing, have climbed 4.89% to a new high of $112.74. This move caps off a stellar week, month and 6 months for Xero shares. Over those periods, the Xero share price has climbed 8.66%, 17.4% and 53.33% respectively.

So what’s going in with this WAAAX company?

Who does Xero do?

Xero is a New Zealand-based online accounting software company that has made a name for itself as one of the ASX’s hottest growth shares in recent years. This distinction has earned Xero a place in the WAAAX club – the ASX’s hottest tech growth shares. Along with the other WAAXers like Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC), Xero has impressed in recent years with its scalable business model and rapid acquisition (and retention) of customers.

In its FY2020 earnings report that the company released back in May, Xero reported a 30% increase in revenue for the year, alongside an 88% increase in earnings (EBITDA) and a 26% rise in subscribers to 2.285 million. Looking at these numbers, it’s not hard to see why investors are attracted to Xero right now, especially since subscriber numbers have now hit 2.38 million since May. Not bad for a year with a global pandemic as well as a severe recession.

Why is the Xero share price ballooning?

Despite the strong rises in the Xero share price in recent days and weeks, there has been no real news coming out of the company to elicit such a reaction.

Saying that, the company did tell investors on 1 October that it has put the finishing touches on the acquisition of private Australian invoice lending company Waddle. First announced back in August, the Waddle acquisition is something that Xero CEO Steve Vamos is very excited about. Here’s some of what he had to say at the time:

The acquisition of Waddle is an important step in our strategy to help small businesses better manage cash flow and gain access to working capital. Waddle’s lending platform has the potential to enable a wide range of banks, fintech and other lenders to better support small business financial needs. We’re excited about the benefits Waddle can bring to many of our customers and banking partners.

In my view, the acquisition news, as well as general positive sentiment surrounding this growth company are what’s behind the new all-time high for the Xero share price. This is a company with undeniable strength and a long growth runway. That is exactly the kind of investment that investors find extremely appealing in a year of uncertainty.

More reading

• Top ASX growth shares to buy in October 2020
• Why the Xero (ASX:XRO) share price just hit a record high
• 2 outstanding ASX tech shares to buy for the long term
• 5 things to watch on the ASX 200 on Monday
• 2 of the best ASX 200 shares to buy in October

Sebastian Bowen 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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. 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 Perenti Global Ltd (ASX: PRN) share price was higher today, up 2.2% to $1.16 at the time of writing. This came after the mining services company updated the market on its successful debt refinancing.

What was in the update?

Perenti announced that it had successfully issued US$450 million of unsecured notes in the US bond market. The initial offer of US$350 million was oversubscribed and the issue upsized by US$100 million.

The notes issue has not affected Perenti’s debt levels as proceeds will be used to repay existing borrowings. The notes are unsecured and have an interest rate of 6.5%. The company’s existing notes are secured and have a higher interest rate at 6.625%. The repayment profile has also been lengthened with repayment due in October 2025.

According to Perenti, the notes issue further strengthens its strong liquidity position. The company expects to maintain leverage of 1.3x, positioning it for growth and helping it to deliver on its 2025 strategy.

US$350million will be used to redeem senior secured notes issued by Perenti subsidiary Barminco Finance. The additional US$100 million will pay down amounts drawn under the company’s revolving credit facility.

Perenti currently has a BB rating with a positive outlook from Fitch ratings. It is rated BB by Standard and Poor’s and Ba2 by Moody’s.

About the Perenti share price

The mining services company offers services for underground and surface mining in 13 countries. It has been listed on the ASX since 1994 and was previously known as Ausdrill.

In the 2020 financial year, Perenti had record revenue of $2.04 billion, up 3.8%. The company had record underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in FY2020 of $443.8 million, up 6.8%. The company had work in hand of $5.4 billion at 30 June 2020. $1.7 billion of this was secured revenue for the 2021 financial year.

The Perenti share price is up 158% since its 52-week low of 45 cents. However, it has fallen 27.5% since the beginning of the year. The Perenti share price is down 46.79% since this time last year.

More reading

• 5 things to watch on the ASX 200 next week
• Why the Perenti (ASX:PRN) share price is up today
• ASX 200 Weekly Wrap: ASX 200 snaps 4 week losing streak… just
• These were the best performing ASX 200 shares last week
• ASX 200 falls slightly, miners surge higher

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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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Magellan Financial Group Ltd (ASX: MFG)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted the price target on this fund manager’s shares to $66.00. This follows the release of its latest monthly update which revealed a further increase in funds under management. While the broker acknowledges that its shares trade at premium, it appears to believe it deserves to and remains positive on both its flows and performance outlook. Although I think Magellan is a quality company, I would prefer to buy shares at a much lower price.

Northern Star Resources Ltd (ASX: NST)

Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted the price target on this gold miner’s shares to $17.90. This follows its announcement of plans to merge with Saracen Mineral Holdings Limited (ASX: SAR). The broker appears pleased with the merger and notes that it offers significant synergies. I agree with Credit Suisse and feel Northern Star would be a good option if you’re looking for exposure to gold.

Wesfarmers Ltd (ASX: WES)

A note out of the Macquarie equities desk reveals that its analysts have upgraded this conglomerate’s shares to an outperform rating with an improved price target of $51.00. Its analysts believe Wesfarmers is well-placed to benefit from the Federal Budget. This is particularly the case for its key Bunnings business, which looks likely to profit from increased spending on renovations and home improvements. I agree with Macquarie and would be a buyer of Wesfarmers’ shares.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes 1.3% higher after federal budget
• Here’s why the Magellan (ASX:MFG) share price is pushing higher today
• Will the Newcrest (ASX:NCM) share price fall after the Saracen merger?
• ASX 200 rises on mixed day, big gold merger

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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Predictably unpredictable? Or unpredictably predictable?

Trying to guess the next direction of daily share price moves on the ASX is like trying to guess whether the next roulette spin comes up black or red. You’ll get it right sometimes, but never for long.

Trying to guess US President Donald Trump’s next policy move is a different story.

Trump has long prided himself on his unpredictable negotiating style. Whether its international trade deals, historic peace negotiations, or domestic budget proposals, one day he appears open to compromise only to slam the door the next day before once more cracking that door open.

The idea is to keep your opponents on the back foot, consumed by doubt. And it’s a tactic that’s clearly served Trump well.

But here’s the thing.

If you base your style on unpredictability, the unpredictable become predictable.

Let me reach back to an article I penned yesterday to show you what I mean. (You can read that article here.)

Yesterday I pointed out how our modern 24/7 connected world has handed big name politicians a larger impact on daily share price swings than at any time in history. I used 2 headlines from the Sydney Morning Herald to illustrate that point.

Here’s the first one, published on Tuesday, ‘ASX set for more gains as Wall Street bounces higher on Trump, stimulus’.

And here’s the second one which was published Wednesday, ‘Wall Street dives as Trump orders halt to stimulus talks until after election’.

In light of that, yesterday I wrote:

If you’re prone to motion sickness, you may want to reach for the Dramamine. With the last 3 years as a guide, President Donald Trump’s policy backflips have a penchant for repeating themselves.

Indeed, we didn’t have to wait long.

This morning I ran across this headline in the Australian, ‘Markets rise after Trump flip on stimulus’.

Yesterday (overnight Aussie time) Trump tweeted, “The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support & 123 Billion Dollars for Paycheck Protection Program for Small Business.”

Predictable or not, it’s important for investors to have a plan they’re comfortable with when dealing with today’s constant stream of coronavirus news, and the accompanying political wrangling over central bank and government stimulus packages.

Stay nimble or stay the course?

If you’re happy to monitor your portfolio on a daily basis and potentially sell in and out of shares based on your expectations of coming share price moves, then you may like this advice Bloomberg reports from Terence Wu:

Assuming that Trump doesn’t flip-flop on his stance on the fiscal stimulus package, we think remnant hopes of reviving the risk-on, reflation trade may be put to rest for now.

Wu, a currency strategist in Singapore at Overseas-Chinese Banking Corp., warned investors should “stay nimble on shifting political winds”.

Tracie McMillion, global head of asset allocation strategy at Wells Fargo Investment Institute, takes a different view. One more closely aligned with us Fools.

Addressing the barrage of coronavirus headlines warning of the rapid new spread across Europe and the Americas, McMillion told Bloomberg:

It’s important to look through those headlines and the disruption that they’re causing and look to the potential for better growth next year and the potential for market gains possibly through the end of this year and into next year.

Turning our attention to the S&P/ASX 200 Index (ASX: XJO), the potential candidates for share price gains this year and into next year are myriad.

Tracking the budget’s likely gainers

One area that analysts are particularly keen on in the wake of the Government’s new budget is the industrial sector.

The federal budget contains $1.5 billion to spur the Australian manufacturing sector, as well as $14 billion in new infrastructure spending. That should offer a welcome tailwind for the share prices of well-run logistics property owners.

One share that’s still trading well below its February levels is Stockland Corporation Ltd (ASX: SGP). Stockland’s 31 logistics properties total 1.3 millionsq m, with an ownership interest valued at $2.9 billion.

Stockland isn’t uniquely invested in logistics. In fact, its residential footprint in considerably larger. But the new budget, relaxed lending rules and continued record low interest rates should help the residential side of its business as well.

Stockland’s share price reached 11-year highs on 20 February. From there, the share price crashed 67% through to 23 March. It’s come roaring back from that low, up 124% at time of writing.

But that still leaves Stockland’s share price down 27% from the 20 February peak.

If it can regain that high in 2021, which I believe is quite possible, that represents a 37% gain from today’s share price.

Of course, Stockland is just one of many strong ASX shares likely to see share price gains as the Australian and global economies soak up record government stimulus and get back up to speed.

Happy investing.

More reading

• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets
• 5 things to watch on the ASX 200 on Thursday
• Why you should wait another month to invest in ASX shares
• Has the Afterpay (ASX:APT) share price stalled?
• ASX 200 finishes 1.3% higher after federal budget

Motley Fool contributor Bernd Struben 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 early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 1.15% to 6,105.5 points.

Four shares that have climbed more than most today are listed below. Here’s why they are storming higher:

The Downer EDI Limited (ASX: DOW) share price is up 3% to $4.88. This gain appears to have been driven by a broker note out of Morgan Stanley this morning. Its analysts have upgraded Downer’s shares to an overweight rating with an improved price target of $5.60. It believes the company is well-positioned to benefit from the Federal Budget.

The ELMO Software Ltd (ASX: ELO) share price has jumped over 10% to $5.81 after announcing a major new acquisition. ELMO is acquiring UK-based Breathe for an initial payment of 18 million pounds (A$32.4 million) using a combination of cash and scrip. Breathe is a fast-growing, scalable human resources platform for small businesses. Its annualised recurring revenue (ARR) as of 31 August 2020 stood at 3.6 million pounds (A$6.5 million) and has been growing at over 30% annually.

The Netwealth Group Ltd (ASX: NWL) share price has surged 6.5% higher to $17.01 following the release of its first quarter update. During the three months ended 30 September, Netwealth recorded an 8% or $2.5 billion increase in funds under administration (FUA). This was driven by net inflows of $1.9 billion and favourable market movements of $0.6 billion.

The Sezzle Inc (ASX: SZL) share price has stormed 7% higher to $8.55. This follows the release of its third quarter update. For the three months ended 30 September, the buy now pay later provider reported a sizeable 231.5% year on year increase in underlying merchant sales (UMS) to US$228 million (A$318 million). This was driven by a 178.1% year on year increase in active customers to 1.79 million, a 178.3% lift in active merchants to 20,890, and strong repeat customer growth.

More reading

• BNPL ASX shares are running hot today
• This is why the Netwealth (ASX:NWL) share price just jumped 9% to a record high
• Why the Sezzle (ASX:SZL) share price is surging 11% higher today
• Why the ELMO Software (ASX:ELO) share price is on watch today
• Are these the best small cap ASX shares to buy for FY 2021?

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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Elmo Software 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.

The post Why Downer, ELMO, Netwealth, & Sezzle shares are storming higher today appeared first on Motley Fool Australia.

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