If you have room in your portfolio for a growth share or two, then you might want to take a look at the ones listed below.

Here’s why I think these ASX shares could be market beaters over the long term:

Appen Ltd (ASX: APX)

The first growth share to look at is Appen. It is the global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. Through its team of 1 million+ crowd-sourced workers, it collects and labels high volumes of image, text, speech, audio, and video data used to build and improve artificial intelligence models. Given the growing importance of artificial intelligence and machine learning and the company’s leadership position in its field, I believe it is perfectly positioned to continue growing its earnings at a strong rate over the 2020s.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX growth share to consider buying is actually an exchange traded fund (ETF). But not just any old ETF, this one gives investors access to a group of the most promising technology companies in the Asian market. The BetaShares Asia Technology Tigers ETF is invested in a total of 50 of the largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan). This means you’ll be buying a slice of tech giants such as Alibaba, Baidu, JD.com, and Tencent Holdings. According to BetaShares, due to its younger and tech-savvy population, Asia is surpassing the West in respect to technological adoption. In light of this, this area of the economy is anticipated to remain a growth sector for a long time to come.

NEXTDC Ltd (ASX: NXT)

A final growth share to consider buying is NEXTDC. It is one of the world’s leading data centre operators and a company I believe is perfectly positioned to capitalise on the cloud computing boom. Last year research firm Gartner predicted that 80% of all organisations will shift their workloads to third-party data centres by 2025. This compares to an estimated 10% that had already done so in 2019. I suspect that the pandemic might have even accelerated this shift, which could underpin very strong demand for its services over the coming years.

More reading

• Where to invest $20,000 into ASX shares right now
• The 10 ASX stocks worst hit by a Biden US presidential election win
• 2 no-brainer ASX shares to buy immediately
• Are these shares the next Afterpay (ASX:APT) and Appen (ASX:APX)?
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of Appen 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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Several ASX stocks have been trying to unlock value by divesting assets and we are likely to see more. The question is who’re next in line to try to trigger a share price rally.

The Boral Limited (ASX: BLD) is one of the most recent and obvious examples. Management announced the sale of half of USG Boral for around $1.4 billion as it put its US businesses on the auction block.

Citigroup reckons the US assets could fetch as much as $2 billion, reported the Australian Financial Review.

Divestments create value for ASX stocks

Divestmenting is usually a good way to score a re-rating for ASX stocks, although that has yet to play out for Boral.

However, most analysts view potential divestments of underperforming assets in a positive light. The Link Administration Holdings Ltd (ASX: LNK) share price is one example, while the Deterra Royalties Ord Shs (ASX: DRR) spin-off from Iluka Resources Limited (ASX: ILU) is another.

There are plenty of other examples where spin-offs and divestments have created extra shareholder value, including for the Coles Group Ltd (ASX: COL) share price and Wesfarmers Ltd (ASX: WES) share price.

Divorce is better than marriage

In fact, history has shown that a divestment strategy is a more reliable way of generating superior returns for ASX stock than mergers and acquisitions (M&A).

This is why some experts are trying to predict which S&P/ASX 200 Index (Index:^AXJO) stock could be next to unlock value.

AMP share price on watch list

It appears there are a number of divestment ASX stock candidates. Bell Potter’s high-profile trader Richard Coppleson ventured a guess and the AMP Limited (ASX: AMP) share price is on the list.

It’s no secret that the embattled wealth manager is looking to shed more assets after selling its life insurance business in July this year. Shareholders were rewarded with a 10-cents a share fully franked dividend as a result.

The AMP share price has since slipped back to near record lows. I think it’s looking good value despite the risks of repositioning the business as there are multiple levers management could pull.

Not only could management trigger a rally with more asset sales, I suspect potential suitors are running the ruler over the group.

Other ASX stocks looking to cut and run

Other stocks on Coppleson’s list include the Suncorp Group Ltd (ASX: SUN) share price, Incitec Pivot Ltd (ASX: IPL) share price and Perpetual Limited (ASX: PPT) share price.

Among the small caps, the AMA Group Ltd (ASX: AMA) share price looks to be a possible candidate too. The panel beating and auto services group is struggling to return to its glory days and streamlining its divisions might just do the trick.

More reading

• Beat low interest rates with these 2 ASX dividend shares
• After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy?
• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
• What do you do when your ASX 200 shares are falling?
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt

Brendon Lau owns shares of AMP Limited and Iluka Resources Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended Link Administration Holdings 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 Medical Developments International Ltd (ASX: MVP) share price is pushing higher on the day of its annual general meeting.

In afternoon trade the healthcare company’s shares are up 2.5% to $5.44.

In case you missed the event, I thought I would summarise three key takeaways from the annual general meeting. Here’s what you missed:

Frustration but optimism over FDA delays.

The company’s Chairman, David Williams, noted that it has been a wild ride for the Medical Developments share price over the last 12 months. And while it is up around 10% since the time last year, it is trading more than 50% below its 52-week high.

Mr Williams suspects the “market was impatient for a faster roll-out in Europe and for results from the process we are going through with both the FDA and the Chinese regulator.” While he acknowledges that this is frustrating, he explained that “this is the nature of the pharmaceutical industry” and he is confident the company is “doing the right things.”

New CEO brings a lot of experience.

The company’s chairman believes the recent appointment of Brent MacGregor as its CEO is a big positive. Especially given its need to find a new leader that better matched where the company is in its lifecycle. Mr MacGregor was most recently commercial lead at Seqirus for CSL Limited (ASX: CSL).

Mr Williams commented: “The success of Seqirus in three short years was breathtaking and Brent played a big role in that success. It is very exciting to have Brent on board as his achievements in international markets is exactly what MVP needs. Better still he has worked and lived in Australia before so gets our culture and work ethic.”

FY 2021 update.

The company stopped short of providing a trading update, but revealed that Penthrox sales continue to grow strongly globally and its respiratory business is performing well.

In respect to the latter, management notes that it delivered its first private label spacer order for Walmart in August, which is being rolled out in approximately 4,600 pharmacies. This means its US footprint now totals in excess of 20,000 pharmacies.

In addition to the US, the company has also commenced the expansion of its footprint into Europe. It believes by continuously improving the quality and efficacy of its devices whilst expanding its geographic footprint, the long-term potential of this business remains very positive.

Finally, management commented on its partnership with CSIRO. It advised that it remains very strong and what started as a successful program for the company, is now showing great potential for advanced manufacturing across many industries. Especially in a new COVID effected world of decentralised manufacturing.

More reading

• Here’s why Medical Developments (ASX: MVP) share price has soared 12% today

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 Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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 Dampier Gold Ltd (ASX: DAU) share price surged a massive 87.5% today to a high of 12 cents before dropping back to 7.6 cents at the time of writing. This came after the company announced a high grade strike at its Zuleika gold project, ending a trading halt that started on Monday.

What was in the announcement?

Dampier Gold said it had received spectacular results from its phase 2 aircore drilling program at Paradigm East. The drilling program consisted 21 holes and returned results including 24 metres at 6.39 grams per tonne of gold inclusive of 4 metres at 34.74 grams per tonne of gold. The drilling also identified 8 metres at 2.20 grams per tonne of gold inclusive of 4 metres at 3.25 grams per tonne of gold. 

The drilling extended the existing mineralised footprint a further 400 metres with a further 2km to be tested. The company said confirmation of the mineralised zone was highly encouraging for the system to produce high grade gold zones.

Dampier Gold has identified 40 advanced targets within the Zuleika project which it plans to test in the coming months. 

About the Dampier Gold share price

Dampier Gold is a gold exploration company with projects in Western Australia. Dampier Gold has been listed on the ASX since 2010.

Earlier in October, the company announced that it had discovered a new gold zone in the Browns Dam area of the Zuleika project. Results included 5 metres at 3.10 grams per tonne of gold inclusive of 1 metre at 6.6 grams per tonne of gold.

In the quarter to 30 June 2020, Dampier Gold spent $541,000 and had $2.18 million cash on hand at the end of the quarter, up from $1.71 million at the end of the previous quarter.

The Dampier Gold share price is up 471.43% since its 52-week low of 1.4 cents, it is up 300% since the beginning of the year. The Dampier Gold share price is up 300% since this time last year.

More reading

• 3 key takeaway from the Medical Developments International AGM
• Beat low interest rates with these 2 ASX dividend shares
• 2 ASX exotic ETFs I would buy today
• Vocus (ASX:VOC) share price drops lower despite positive AGM update
• Why the Blackmores (ASX:BKL) share price is rocketing 12% higher today

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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Right now in Australia, interest rates have never, in history, been as low as they are today at just 0.25%. The Reserve Bank of Australia (RBA) has cut rates this low as a result of the severe economic recession the country (and the world) is currently going through as a result of the coronavirus pandemic. Although some of us are benefitting from these cuts by paying rock-bottom interest rates on the mortgage, savers and retirees are concurrently suffering. That’s because a cash rate of 0.25% means it’s very hard for banks to offer any decent, inflation-beating interest rates on savings accounts and term deposits. These days, it’s hard to get an interest rate above 1% on a savings account.

It’s a diabolical problem. But that’s why I think a great possible solution is investing in ASX dividend shares. Dividend-paying shares can help your portfolio produce a cash yield vastly superior to ‘safer’ investments like cash and bonds. So here are 2 ASX dividend shares I believe should be considered over term deposits for income today.

2 ASX dividend shares for income

Coles Group Ltd (ASX: COL)

Coles is a name I’m sure we’d all be fairly familiar with. However, I have admired what this company has pulled out of its hat in 2020 for its shareholders. Coles has been able to actually grow its dividend in 2020, partly thanks to the record sales it has seen in light of the pandemic (which Coles reaffirmed this morning). Since Coles sells groceries and other household essentials, I think the stability and defensiveness it can bring to a dividend portfolio is of great value.

On current prices, Coles is now offering a trailing dividend yield of 2.24%, which grosses-up to 4.63% with Coles’ full franking. Not bad for a 2020 blue chip share, in my view.

Telstra Corporation Ltd (ASX: TLS)

I believe Telstra is another top ASX dividend share to consider today. This company — the ASX’s largest telco — has been having a rough time of late, with the Telstra share price currently (at the time of writing) near an all-time low at $2.72. Investors have been fleeing Telstra, worried about its post-nbn growth prospects and whether declining earnings will lead to a dividend cut.

Even so, I think Telstra is a top income share today. The company has paid 16 cents per share in dividends in 2020, and has recently all-but-confirmed it will do so again in 2021. If that does come to pass, it means Telstra is offering a forward dividend yield of 5.88% today, or 8.4% grossed-up with Telstra’s full franking.

More reading

• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• Why Resmed, Coles, Afterpay and one other have made early share price gains
• Coles (ASX:COL) share price on watch after beating Q1 expectations
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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Exchange-traded funds (ETFs) are some of the most interesting investments to look through in my opinion. The index funds variety, exemplified by the Vanguard Australian Shares Index ETF (ASX: VAS), are certainly the most popular. But many investors think index funds like VAS are a little ‘vanilla’. Sure, they have important roles to play, and are great long-term investments. But there are some more exotic ETFs out there that do offer a bigger slice of pizazz, let’s say. So here are 2 exotic ETFs that I think all investors should consider today.

2 exotic ETFs for an ASX share portfolio

BetaShares Global Cybersecurity ETF (ASX: HACK)

This ETF from BetaShares does what its name implies. It tracks a basket of global shares involved in the provision of cybersecurity. I really like this ETF because it comprehensively covers an area seeing strong growth, which I think will last for decades to come. Think about how important cybersecurity is today, for individuals, companies and governments. Then think about how important it will be into the future as more and more commerce, communications and government services are done online. I’m sure you’ve reached a similar conclusion than I have.

HACK is heavily weighted towards the United States, with 89% of its holdings listed in the US. However, Britain, Israel and Japan also feature. Some of HACK’s top holdings include CrowdStrike, ZScaler, Okta and Cisco Systems. This ETF has returned an average performance of 21.04% over the past 3 years, which I think could well happen again over the next 3 and beyond.

ETFS FANG+ ETF (ASX: FANG)

This ETF is a highly concentrated fund tracking a basket of US shares known as the FANG+ stocks. FANG (sometimes FAANG) is an old acronym referring to Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google parent company Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Apple Inc (NASDAQ: AAPL) is the other A in FAANG.

This ETF tracks all 5 of these US tech titans, plus another 5 extras. These include Tesla Inc (NASDAQ: TSLA), Twitter Inc (NASDAQ: TWTR) and Alibaba Group (NYSE: BABA) as well.

These are some of the best tech companies in the world, and I like that this ETF puts them all together in one easy investment. This ETF was only created in February this year, but since then it has already returned 54.7% (despite the March share market crash). If you want a strong, US-based and growth-orientated investment, then I don’t think you need to look any further than FANG.

More reading

• 2 high-quality ETFs to buy for any portfolio
• Top ASX growth shares to buy in October 2020

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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Baidu, Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Baidu, Facebook, Netflix, Tesla, and Twitter and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Netflix. 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 Vocus Group Ltd (ASX: VOC) share price is trading lower on Wednesday following the release of its annual general meeting update.

At the time of writing the telecommunication company’s shares are down 0.5% to $3.61.

What did Vocus announce at the meeting?

This morning Vocus released its annual general meeting presentation which included an update on its performance so far in FY 2021.

According to the release, almost four months into the new financial year, management notes that it has started well across all three businesses.

The company’s Vocus Network Services business has seen key growth trends across revenue, margin, and EBITDA continue. Furthermore, its pipeline of opportunities is strong, even after winning a key contract with the Australian Tax Office to provide secure national data and internet services. Management notes that this was a competitive flagship customer win, executed well in a new virtual environment.

Across the ditch, the New Zealand business has also had a strong start to the year. The Stuff Fibre acquisition has been fully integrated ahead of plan, and the company is seeing continued organic growth in key segments.

In addition to this, management notes that its New Zealand brands recently dominated their industry awards leading categories. This includes NZ Service Provider of the Year, Best Value Broadband Provider, and Best Fibre Broadband Provider.

Finally, the Retail business is steadily improving, with the Consumer segment on track to return to growth before the end of this financial year. Management advised that cash collections are strong, and it is seeing a good performance in its energy operations as it seeks to bundle energy, broadband, and mobile for retail customers. Earlier this week, its Dodo brand won the award for Best MVNO at the CommsDay Edison Awards. It feels this is another indicator that this business is being positively recognised in market.

Outlook.

Management advised that it is on track to achieve its FY 2021 guidance that was issued with its results in August.

It expects Vocus Network Services to deliver revenue growth of at least 5% in FY 2021, which exceeds the 3% growth in the key Data and IP Networks segment in the prior period.

It also expects Vocus Network Services to deliver underlying EBITDA growth in the 8% to 12% range, which it believes will be a market leading performance in this segment.

For the overall company, management is guiding towards underlying FY 2021 EBITDA in the range of $382 million to $397 million. This excludes a benefit of $22 million from a change in accounting standard AASB16.

In respect to capital expenditure, Vocus is guiding towards $160 million to $180 million, which is down from $200 million in FY 2020.

Lastly, the Vocus Board revealed that it is focused on reducing the financial leverage in the business over the coming 12 months.

More reading

• 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 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 Blackmores Limited (ASX: BKL) share price is surging today, up 12.2% is late afternoon trading.

This puts it firmly at the top of the S&P/ASX 200 Index (ASX: XJO) big gainers board today. The ASX 200 itself managed to shake off the losses from earlier today and is currently up 0.3%.

Today’s gain will come as welcome news to shareholders, who’ve suffered a turbulent year.

Blackmores hit a 1-year high on 5 February of $94.95 per share. From there it plunged 32% through to 28 February. And the share price has seen some big swings higher and lower from there.

Year-to-date. Blackmore’s share price is down 15%.

What does Blackmores do?

Blackmores is Australia’s leading natural health company. It provides a range of vitamins, herbal and nutritional supplements to markets around the world. The company was founded way back in 1931 by Maurice Blackmore.

Blackmores’ shares first traded on the ASX in 1985.

Why is Blackmore’s share price up 13% today?

Investors appear optimistic on a string of the company’s ASX releases, all announced yesterday.

Blackmore’s annual general meeting update sounded some optimistic notes about the near term outlook. Among the highlights stirring optimism, the company is forecasting profit growth for the full 2021 financial year.

As Blackmores’ CEO Alastair Symington wrote in a letter to shareholders yesterday, “We are currently projecting first half FY21 Net Sales growth in the mid-single digits range compared to prior year. Both of our Asian regions will be the primary drivers of this growth.”

Symington went on to note, “As we have highlighted before, year on year cost variances linked to the October 2019 acquisition of Braeside will negatively impact gross margin in the first half of FY21.”

He also noted several untapped opportunities for the all the company’s markets, including pet health and mental well being. Symington said the pet health supplement market in Australia is forecast to grow by 9% CAGR over the next 4 years, reaching $100 million. Blackmores also expects to restore future dividends.

In a separate announcement yesterday, Blackmores reported its agreement to sell its Global Therapeutics business to McPherson’s Ltd (ASX: MCP) for $27 million.

Global Therapeutics, acquired by Blackmores in May 2016, includes the Fusion Health and Oriental Botanicals brands.

Judging by today’s strong share price gains, the divestment of Global Therapeutics and the company’s positive forward looking statements have revived investor interest.

More reading

• Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• The ASX 200 sank almost 2% today
• Why Alcidion, Blackmores, Boral, & CogState shares are pushing higher
• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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West African Resources Ltd (ASX: WAF) provided the market with a very positive quarterly activities report today which is sending the company’s shares shooting higher. The miner reported gold production increased by 40% to 45,719 ounces. In addition, unhedged gold sales averaged US$1,868 per ounce. Consequently, the West African share price has rocketed up by 9.38% at the time of writing. 

What’s moving the West African share price?

Investors are today sending the West African share price higher after the company announced it was able to operate continuously through the September quarter, unhindered by the COVID-19 pandemic. Moreover, it was able to process the first underground ore in late September. Consequently, underground ounces mined were up 16% over the previous quarter. The ramp up of production will continue through December.

The Sanbrado mine ramp-up progressed in Q3 with mined open pit ounces up 84% versus the previous quarter. Gold produced was up 40% to 45,719 ounces at an all-in sustaining cost (AISC) of US$1,009/oz. This is US$168 less than Q2 and aligns with some of the cheaper ore bodies to mine in the world. As production levels increase, the AISC will decrease even further. 

Lastly, the company is continuing with its deep drilling beneath M1 South. This has revealed further underground reserves including 15.5m at a very high grade of 20.5 g/t gold, and 32m at 4.9 g/t gold. 

Management commentary

West African Executive Chairman and CEO, Richard Hyde, commented:

The Sanbrado mine showed solid production improvements during Q3 2020 while dealing with the challenges presented by COVID19, which is a credit to the commitment of our in-country team of staff and contractors.

Further important milestones are expected for the Company in Q4 with stope production ramping up at M1 South, continuation of deep drilling to extend underground Reserves, and a Resource and Reserve and 10-year production to be updated for the group late in the quarter.

Future planning

Over the last quarter of 2020, West African intends to focus on a range of areas. In terms of mining activities, this will include ramping up the underground and increasing stoping tonnes. In terms of physical growth, the company will continue to drill the M1 South pit and recommence the Sanbrado regional exploration program. Early debt repayment and updating reserves will be the company’s financial focus. 

West African share price performance

In year-to-date trading, the West African share price has risen by more than 144%. Currently, it has a market capitalisation of $924 million, and is trading at a very high price-to-earnings (P/E) ratio of 374 due to the early stage in its ramp up. In addition, the company has achieved an AISC that is well within the top 17 gold mines. 

More reading

• Here’s why the Super Retail (ASX:SUL) share price is zooming higher today
• After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy?
• How did ASX gold shares perform in the last quarter? 
• Warren Buffett has this advice for investing in a volatile market
• Why the Tinybeans (ASX:TNY) share price is jumping 16% today

Motley Fool contributor Daryl Mather 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 Super Retail Group Ltd (ASX: SUL) share price has been a strong performer on Wednesday.

In afternoon trade the retail company’s shares are up 6% to $11.83.

Why is the Super Retail share price racing higher?

Investors have been fighting to get hold of the company’s shares today following the release of a very positive trading update this morning.

According to the release, Super Retail has started FY 2021 in sensational form and recorded strong sales growth across the majority of its brands.

For the first 17 weeks of FY 2021, the company has delivered 25% growth in both total and like-for-like sales. This is despite the impact of COVID-19 restrictions, which include lockdowns in Melbourne and Auckland.

Management advised that it has maintained strong momentum in its digital channels, with online sales growth of 132% and Click & Collect sales growth of 123%. The latter represents 44% of year to date total online sales.

Pleasingly, the company has also experienced a widening of its gross margin thanks partly to the benefits of reduced promotional activity. Management advised that its gross margin was 200 basis points higher than the prior corresponding period.

How are its brands performing?

The Supercheap Auto business continues to perform very strongly, reporting 22% growth in sales and 21% growth in like-for-like sales. It also reported a 132% increase in online sales during the period.

The Rebel business reported a 16% increase in both total and like-for-like sales during the 17 weeks. This was supported by a sizeable 184% lift in online sales.

Another very strong performer was the BCF business. It delivered a whopping 63% increase in sales over the period. This was driven by a 61% increase in like-for-like sales and a 140% jump in online sales.

Finally, the struggling Macpac business significantly underperformed, with a 2% decline in sales. This was despite the business recording a 121% lift in online sales.

Super Retail’s Managing Director and Chief Executive Officer, Anthony Heraghty, commented: “We are pleased with the positive start to the financial year. We are continuing to see robust growth in both in-store and online sales and our active club membership base has increased to over 6.85 million members.”

“Our considered approach to promotional activity in response to strong levels of consumer demand – to help manage inventory in the leadup to Christmas and optimise gross margin – and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line.”

Outlook.

Given the uncertain environment, no guidance has been provided for the first half or full year. Nor does it believe that its year-to-date performance should be treated as an indicator of full year performance.

However, management appears cautiously optimistic on the future.

Mr Heraghty said: “As Australia and New Zealand begin to re-open, we are looking forward to inspiring our customers to live their passion as they look to get outdoors, be more active and enjoy the summer holiday season.”

“The Group’s four core brands operate in attractive lifestyle categories and are well positioned to benefit from increased demand for domestic tourism and leisure as well as the acceleration of the health and wellbeing trend,” he concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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.

The post Here’s why the Super Retail (ASX:SUL) share price is zooming higher today appeared first on Motley Fool Australia.

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