Are you a value investor?

Maybe you wouldn’t call yourself that specifically, but most investors are looking for a good deal.

A key element of investing is understanding value. Determining whether the current share price represents an over or undervalued proposition can really help with decision making. Furthermore, understanding value can help remove some emotion (I said some, we love what we love!)

How do you determine this value?

Analysts use financial ratios to determine value compared to the market. Once you understand financial ratios, you can use them to compare a company not only to the market, but to its competition.

One ratio that can help you to do this is the price-to-earnings (P/E) ratio. 

I should note here that analysts use many ratios to determine value. This is the one I would personally go to first.

Let’s dive in.

Price-to-earnings ratio

The P/E ratio is one of the most widely used ratios in financial analysis. Not only does it reveal whether a stock is over or undervalued, it can also be used as a benchmark. Measuring a company against its competitors, the industry or an index is very useful. 

What does it mean?

This ratio tells us what the market is willing to pay today for a share, based on its past or future earnings. High P/E ratios tend to indicate overvaluations. Low P/E ratios can represent a buying opportunity or an undervalued company. This is a broad definition.

When it comes to shares, we need to consider the type of company we are looking at, the industry it’s in and how fast it’s growing.

For example, a tech share might be growing rapidly with with huge future potential, so the P/E ratio can seem high. However if you were to dig a little deeper, you might find the reason for the high ratio. This company may be the next Facebook, Inc (NASDAQ: FB) or Afterpay Ltd (ASX: APT). If investors think this might be the case, they may be willing to pay more than ‘market value’ in the anticipation that future value will be much higher. In other words, they don’t want to miss the boat.

Calculation

The P/E ratio is calculated by dividing the market value per share by the company’s earnings per share (EPS).

P/E = share price/EPS

Example

Commonwealth Bank of Australia (ASX: CBA)

EPS – $4.31 

Share price – $69.09

P/E = 69.09/4.31

P/E = 16.03

CommBank is trading at roughly 16.03 times earnings.

Meaning and comparison

Now we have this ratio for Commonwealth Bank, we can use it to compare the banking giant to its competitors, the industry and the market.

I have done some calculations in the background.

1. National Australia Bank Ltd (ASX: NAB) – P/E = 15.3
2. Australia and New Zealand Banking Group Limited (ASX: ANZ) – P/E = 11.1
3. Westpac Banking Corp (ASX: WBC) – P/E = 12.8
4. Average of big four publicly listed banks – P/E = 13.81
5. Average of top 10 Australian publicly listed banks – P/E = 10.89

As an investor looking to buy banking shares, you now have the first indication of value.

We can see from the list above that Commonwealth Bank has a much higher P/E ratio than its major competitors and also the industry.

Does this mean that you shouldn’t buy Commonwealth Bank shares now? No it doesn’t. It means you know that they are valued higher than the relative market.

Where to find information

The ASX website is the most official source of company ratio information. However, this is a case in point worth noting. At the time of writing, the ASX website listed the P/E ratio of Commonwealth Bank to be 12.68. Upon checking the data, I discovered the correct ratio was 16.03. The ASX website may not update daily, so it’s valuable to understand the mathematics behind a ratio in case you prefer to check it manually. Many websites and software platforms readily provide ratios at the touch of a button as well.

Related ratios for determining value

The P/E ratio is the number one ratio I personally start with to determine value, however there are a number of other ratios worth exploring if you are mathematically inclined. These include:

• Price earnings growth ratio – PEG
• Next year projected P/E ratio – FPE
• Price-to-sales ratio – P/S
• Price-to-book ratio – P/B

Foolish takeaway

Ratios are by no means the only way to value a company. So many things need to be taken into consideration, however they are a great place to start. Numbers don’t lie (well, most of the time) and they can help investors to make unemotional decisions.

Comparing this process to property investment, ratios are like bench marking with price comparisons. If you love a 3-bedroom house for sale at $800,000, but every other 3-bedroom house in the area is listed at $500,000, you are going to want to know what makes this house so special.

Companies are no different. The more assessment you can do for a potential investment, the better!

More reading

• What Prospa’s share price reaction and profit results mean for ASX banks
• ANZ share price lower after announcing the retirement of Chairman David Gonski
• New to investing? Here’s how I would make my first $100,000
• Why the CBA share price could surge this morning
• ASX giants say cutting staff hours will save jobs

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. glennleese 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 Facebook. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Facebook. 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 Attention all value investors – here’s one key ratio to help you value a company appeared first on Motley Fool Australia.

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I’m a big advocate of buy and hold investing and firmly believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, every so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

With that in mind, here’s how $20,000 investments in these ASX shares in 2010 would have fared:

Cochlear Limited (ASX: COH)

Cochlear shares have been a good place to invest over the last decade. Thanks to growing demand for hearing solutions products due to the ageing populations boom, Cochlear has consistently grown its sales and earnings at a solid rate. This has led to the shares of the manufacturer and distributor of cochlear implantable devices for the hearing impaired providing investors with an average total return of 12.3% per annum over the last 10 years. This would have turned a $20,000 investment into ~$64,000 today.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Over the last 10 years the Domino’s share price has absolutely smashed the market with an average total return of 33% per annum. This outperformance has been underpinned by the pizza chain operator’s store expansion and the ongoing popularity of its pizzas. In 2010 the company had 823 stores and was generating annual sales of $694.3 million. In its recently released FY 2020 results, Domino’s revealed that its store network was now 2,668 stores and its sales had reached $3.27 billion. If you had invested $20,000 into Domino’s shares in 2010, you’d have approximately $350,000 today. The good news is that Domino’s looks like it could be a market beater again over the next 10 years. It is aiming to grow its store network to 5500 stores by 2033.

Goodman Group (ASX: GMG)

Another strong performer over the last decade has been the Goodman Group share price. This integrated commercial and industrial property group owns, develops and manages industrial real estate in 17 countries. Thanks to some smart investments and its exposure to the ecommerce boom through relationships with Amazon and DHL, among others, its shares have generated a total average return of 21.1% per annum since 2010. This would have turned a $20,000 investment into ~$136,000.

More reading

• Domino’s share price gain of 17% in August a good slice of news for shareholders
• Why I would buy these blue chip ASX shares for the long term
• Here are the highlights of this ASX reporting season
• Top brokers name 3 ASX shares to sell next week
• WiseTech and 2 more ASX shares outperforming this earnings season

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post How to turn $20,000 into $350,000 in 10 years with ASX shares appeared first on Motley Fool Australia.

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Last week the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped lower. The benchmark index lost 0.6% of its value over the period to finish it at 6,073.8 points.

Thankfully, not all shares dropped lower with the market. Here’s why these were the best performing ASX 200 shares last week:

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price was the best performer on the ASX 200 last week with a massive 32.8% gain. Investors were buying the plumbing parts company’s shares following the release of its FY 2020 results. As expected, Reliance delivered a soft result. Net sales were up 5% to $1.16 billion but reported net profit after tax fell 33% to $89.4 million. However, what got investors excited was its trading update. It advised that sales were strong in the United States in July, with other regions also performing well. This continued during the first three weeks of August.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price was some way behind as the next best performer with a solid 15% gain. The catalyst for this was the waste management company’s full year results. Cleanaway was on form in FY 2020 despite the pandemic. It reported an 8% increase in underlying net profit after tax to $152.9 million. This allowed the Cleanaway board to increase its full year dividend by 15.5% to 4.1 cents per share.

Nearmap Ltd (ASX: NEA)

The Nearmap share price was on form last week and surged 14.5% higher over the period. Investors have been buying the aerial imagery technology and location data company’s shares since the release of its full year results a week earlier. The buying was so strong it took the Nearmap share price to a 52-week high of $3.22.

Bingo Industries Ltd (ASX: BIN)

The Bingo share price wasn’t far behind with an impressive 13.3% gain last week. The waste management company’s shares were in demand with investors following its full year results release. Bingo overcame challenging trading conditions to deliver a 21% increase in revenue to $486.7 million and a 40.8% lift in underlying EBITDA to $152.1 million. A full year contribution from its recently acquired Dial a Dump business played a key role in its growth in FY 2020.

More reading

• My top 5 ASX shares to buy in 2020
• Is today’s Nearmap share price a buy?
• New to investing? Here’s how I would make my first $100,000
• ASX 200 drops 0.7%, Zip rises 27.5%
• ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints

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 Nearmap Ltd. and Reliance Worldwide Limited. The Motley Fool Australia has recommended Nearmap Ltd. and Reliance Worldwide 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 Corporate Travel Management Ltd (ASX: CTD) share price has nearly doubled in August. Despite nationwide travel restrictions, Corporate Travel shares have been flying this month. After starting the month at around $8, the Corporate Travel share price is now trading more than 90% higher at $15.60.

So, what is fuelling the company’s share price, and should you buy?

What is fuelling the Corporate Travel share price?

Corporate Travel recently reported better than expected results for FY20.

For the full year, Corporate Travel reported a statutory loss of $8 million, down from a profit of $86.2 million the year prior. Despite reporting a loss, the company beat revised market expectations for underlying earnings before interest, tax and depreciation (EBITDA). Corporate Travel reported underlying EBITDA for FY20 of $74.4 million, outperforming revised market expectations of $65 million.

The company attributed the results to a stronger than expected second half, from both a revenue and cost perspective. In addition, Corporate Travel reported that its aggressive cost cutting and provision of travel solutions for essential workers during the pandemic had positively contributed to the outcome.

As a result of Corporate Travel’s beat in expectations, management and investors remain optimistic on the company’s future. This optimism has been reflected by the strong performance of the Corporate Travel share price during August.

What is the outlook for Corporate Travel?

With travel restrictions and border closures still clouding the outlook for travel services, Corporate Travel did not provide formal guidance for FY21. However, the company alluded to its robust capital position.  

In its full year report, Corporate Travel flaunted its strong balance sheet with no debt and $92 million in cash. This has allowed to company to avoid raising emergency capital during the pandemic, unlike rivals such as Flight Centre Travel Group Ltd (ASX: FLT). Furthermore, Corporate Travel has a rich history of making acquisitions and the current, depressed state of the sector could present opportunities for the company.

Should you invest in Corporate Travel?

In my opinion, Corporate Travel is well positioned to survive and potentially outperform in the current environment.

The company has descent exposure to domestic travel, with 60% of its revenue coming from the segment. In addition, Corporate Travel has exposure to essential travel requirements which should provide significant revenue opportunities.

Corporate Travel also operates a lean business model that relies heavily on technology which helps its cost base.

Although I wouldn’t necessarily be rushing to buy at today’s Corporate Travel share price, I think it’s a key pick in a distressed sector. A prudent strategy would be to wait for a significant pullback or more clarity on travel restrictions before investing.

More reading

• ASX shares are on track for new record highs. Here’s why…
• Why Costa, Flight Centre, Polynovo, & Pointsbet shares are storming higher
• Flight Centre share price on watch after FY20 results
• 5 things to watch on the ASX 200 on Wednesday
• Is this ASX 200 market too greedy right now?

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel 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 The Corporate Travel share price has nearly doubled in August appeared first on Motley Fool Australia.

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I think that there are a number of ASX dividend shares that you should never sell.

The benefit of owning shares is that every year those businesses earn profit and then they can pass that on to shareholders with dividends (or distributions). When you’ve found a good income idea I think it makes sense to hold onto it for the long-term. 

However, just because a business pays a dividend doesn’t mean it’s automatically a buy. We’ve seen dividend cuts from ASX income shares in recent years like Telstra Corporation Ltd (ASX: TLS) and National Australia Bank Ltd (ASX: NAB).

With that in mind, here are five ASX dividend shares that would make great long-term holdings. I believe you should never sell them:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I think Soul Patts is the gold standard for ASX dividend shares. It has a grossed-up dividend yield of 4.1% at the current Soul Patts share price. It’s an investment conglomerate that has increased its dividend every year since 2000. And it has paid a dividend every year since it listed in 1903.

It’s invested in a variety of different industries like telecommunications, property, building products, pharmacies, agriculture and listed investment companies (LICs).

I think it’s a very defensive idea that can continue to fund higher dividends for shareholders as it receives bigger investment income from its holdings.

Brickworks Limited (ASX: BKW)

Brickworks is another great business for dividends. It has a grossed-up dividend yield of 4.6% at the current Brickworks share price.

The ASX dividend share hasn’t cut its dividends for over 40 years That’s wonderfully reliable. Brickworks actually owns a large chunk of Soul Patts shares, which is a large reason why its dividend has been so reliable over the past few decades because the investment provides steady earnings compared to the variable earnings of building products.

It also has a 50% stake of an industrial property trust which is steadily growing its rental profit and valuation. It will soon have Amazon and Coles Group Limited (ASX: COL) as tenants at two large distribution warehouses.

Rural Funds Group (ASX: RFF)

Rural Funds is one of the most consistent ASX dividend shares out there. It has a FY21 distribution yield of 5.1% at the current Rural Funds share price.

Rural Funds, the farmland real estate investment trust (REIT), aims to increase its distribution by 4% every year. It has achieved this thanks to the help of contracted rental growth, a diversified farm portfolio, property improvements (to unlock more rental income) and the occasional acquisition.

It has grown its distribution by (at least 4%) per annum over the past several years since it listed.

APA Group (ASX: APA)

APA is a very defensive ASX dividend share. It has a FY20 distribution yield of 4.8% at the current APA share price.

The gas infrastructure giant has steadily grown its distribution every year over the past decade and a half. It has one of the best consecutive growth records on the ASX.

There is reliable demand for its large national gas pipeline, which generates reliable annual cashflow. New projects continue to progressively come online, boosting its overall profitability. FY21 guidance seems to have disappointed investors a little, giving income investors the chance to buy at a higher starting yield.

WAM Microcap Limited (ASX: WMI)

WAM Microcap is a listed investment company (LIC), I think it’s a great ASX dividend share. It has an ordinary grossed-up dividend yield of 5.6% at the current WAM Microcap share price.

It invests in growth businesses with market caps under $300 million. WAM Microcap has performed very strongly, with gross portfolio returns of 17.8% per annum since inception in June 2017.

That investment performance has been funding growing ordinary dividends and special dividends. It now has a profit reserve big enough to fund the existing dividend for a few years.

Foolish takeaway

I think each of these ASX dividend shares will be able to provide good, hopefully growing, dividends for many years to come. I think WAM Microcap could be the one to deliver the strongest total shareholder returns due to its exciting underlying investments. However, Soul Patts could provide the most reliable dividend over the next decade.

More reading

• Why Coles is a top ASX dividend share for a post-COVID world
• Buy Coles and this quality ASX dividend share for income
• Reinvest your Coles dividends in these top ASX shares
• 3 defensive ASX shares I’d buy for safety
• 2 quality ASX dividend shares to buy

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group and 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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It was a reasonably disappointing week for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index lost 0.6% of its value over the period, ending it at 6,073.8 points.

While a good number of shares dropped lower, some fell more than most. Here’s why these ASX 200 shares were the worst performers on the index last week:

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was the worst performer on the ASX 200 last week with a 29.7% decline. The coal miner’s shares were sold off following the release of its full year results. Due to weak coal prices and labour shortage issues, Whitehaven reported a massive 95% decline in underlying net profit after tax to $30 million in FY 2020. As a result of its poor performance, the company cut its dividend down from 50 cents per share to just 1.5 cents per share.

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price was the next worst performer on the index with a 15.6% decline. Investors were selling the fintech company’s shares after the release of its FY 2020 results. Although Bravura reported a 6% increase in revenue to $274.2 million and a 22% increase in net profit after tax to $40.1 million, its outlook for the year ahead underwhelmed. Due to the negative impacts of the pandemic, management warned that its profits could be flat in FY 2021.

Blackmores Limited (ASX: BKL)

The Blackmores share price was out of form last week and recorded a disappointing 14.5% decline. This was driven by the release of a disappointing = full year result. In FY 2020 the health supplements company posted a 3% decline in revenue to $568 million and a 66% drop in net profit after tax to $18.1 million. And although the company is forecasting a return to profit growth in FY 2021, management warned that it would come predominantly in the second half.

Appen Ltd (ASX: APX)

The Appen share price wasn’t far behind with a 13.6% decline over the five days. The artificial intelligence services company’s shares came under pressure following the release of its half year results. Although Appen delivered strong sales and statutory earnings growth, investors appear to have been disappointed that management didn’t upgrade its guidance. It continues to expect full year underlying EBITDA to be in the range of $125 million to $130 million. This guidance also means a sizeable skew to the second half.

More reading

• Brokers name 3 ASX shares to buy right now
• The Appen share price is down 9% today. Here’s why
• ASX shares are on track for new record highs. Here’s why…
• ASX 200 down 0.9%: Costa impresses, Harvey Norman profits grow, Appen downgraded
• Why a2 Milk, Appen, Huon, & Newcrest shares are tumbling lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Bravura Solutions Ltd. 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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2020 continues to be a wild ride for investors in ASX tech shares. The Afterpay Ltd (ASX: APT) share price continues to surge towards the $100 per share mark.

That’s an incredible feat for a buy now, pay later company that listed in June 2017 for just $1.00 per share with a market capitalisation of $165 million.

As at Friday’s close, Afterpay now has a market capitalisation of [$25.6] billion and is trading just shy of an all-time high. However, it’s one of many ASX tech shares that I think could be worth a look despite lofty valuations.

Why I’d buy ASX tech shares at all-time highs

I think you really have to believe in the growth story and macroeconomic environment to buy ASX tech shares right now.

It’s true that the relative valuation metrics look bad. For instance, the Xero Limited (ASX: XRO) share price has a price to earnings (P/E) ratio of [4,791].

However, that hasn’t stopped investors from buying into the accounting software provider. The Xero share price is up [27.6%] this year and is steaming ahead of the S&P/ASX 200 Index (ASX: XJO).

It’s the same story for the Afterpay share price, up nearly 200% this year, and data centre operator Nextdc Ltd (ASX: NXT).

However, for all of the share price surges and lofty valuations, these ASX tech shares continue to climb higher.

I think the availability of cheap and easy credit is one factor. Companies are able to borrow cheaply and generate strong earnings despite current challenges.

There’s also the explosion of online demand which has been accelerated by the coronavirus pandemic. Afterpay has benefitted from strong retail sales, NextDC from offsite data storage demand and Xero from cloud accounting.

Strong earnings have followed which has convinced investors that ASX tech shares have further to run.

Foolish takeaway

I think there are plenty of challenges ahead for the global economy. I see the big test being when the extensive central bank and government stimulus support falls away.

However, it’s clear that the tech sector is continuing to kick goals. It’s true that some of these shares are trading at lofty valuations but I think the momentum factor will carry them higher.

Having shown promising signs in the August earnings season, I think the next big test will be in February as those economic supports are wound back.

More reading

• Bulls versus bears – two experts face off on where share prices are going
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.9%: Costa impresses, Harvey Norman profits grow, Appen downgraded
• 5 things to watch on the ASX 200 on Friday
• NEXTDC share price on watch after hitting the high-end of its guidance in FY 2020

Ken Hall has no position in any of the stocks mentioned. 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. 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 I’d buy Afterpay and other ASX tech shares at record highs appeared first on Motley Fool Australia.

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A number of ASX shares continue to rise this year, whilst others present golden opportunities.

In my view, one of the most effective investment strategies is to actively research and find undervalued businesses that have the potential to grow materially in the future.

Below, I have selected my top 5 ASX shares to buy in 2020 that I think will outgrow the S&P/ASX 200 Index (ASX: XJO) over the next 5 years.

CSL Limited (ASX: CSL)

One of the most popular shares on the ASX is global giant CSL. This biotech company manufactures and distributes life saving medicines for people suffering from serious and rare diseases, as well as providing influenza vaccinations to the public.

The CSL share price has been rising thanks to the company appeasing market concerns about its plasma collections through its FY20 results. The CSL share price is currently going for $289.89, a gain of more than 23% in the past year.

While trading below its all-time high of $342.75 (reached in February), the slight pullback presents an opportune time for bargain hunters to swoop in on this quality ASX share.

Polynovo Ltd (ASX: PNV)

Polynovo recently announced its FY20 results and it did not disappoint. Sales of its NovoSorb BTM doubled and the company is looking to continue its revenue growth trajectory in FY21.

The Polynovo share price leapt 13.4% today to $2.28, and is 78% ahead of its March low of $1.28. Over the past 24 months, the Polynovo share price has increased by more than 300%.

Investing in medical companies should always be a minimum 5-year plan, as product development and entrance to new markets can be time consuming but potentially very rewarding.

In light of this, coupled with yesterday’s share price rise, I would class Polynovo a buy and hold for the long-term.

Bingo Industries Ltd (ASX: BIN)

The waste management and recycling company surprised the market a few days ago with a number of positive achievements in its FY20 results release. The company reported solid performance with net profit jumping 196% from FY19.

The news sent the Bingo share price surging higher on the day by as much as 15%. Today, Bingo shares can be bought for $2.30. The Bingo share price is hovering around 56% above its 52-week low of $1.47.

In my opinion, the strong domestic waste services market puts Bingo in a favourable position for more growth, post-COVID-19.

For investors seeking a mid-cap company that is exposed to a booming market in the near term, Bingo shares could be a timely investment.

Newcrest Mining Limited (ASX: NCM)

Australia’s largest gold mining company has again been gaining traction over the past year. In the midst of economic uncertainty, the gold spot price has been surging near its all-time high, reached early this month.

The Newcrest share price fell to $20.70 during the onset of the pandemic, and has now recovered to $31.37, an increase of 51.5% in the space of 5 months.

I think that every portfolio should have some gold exposure to safeguard against extreme market volatility. Thus, now could be a good time to join the gold run before it reaches new highs.

WiseTech Global Ltd (ASX: WTC)

WiseTech is a leading global provider of software solutions to the logistics industry. The company has enjoyed tailwinds recently, thanks to the re-opening of global markets and strong demand for its CargoWise platform.

The WiseTech share price fell heavily in March to a low of $9.97, a drop of 74% from its all-time high reached in late 2019. Currently the WiseTech share price is fetching $28.14, up 18% year to date.

After reporting strong FY20 results this month, I believe WiseTech is poised for greater future growth and now could be an opportune time to pick up some shares in this quality company.

More reading

• Polynovo share price rockets higher on insider buying news
• Why Costa, Flight Centre, Polynovo, & Pointsbet shares are storming higher
• Why a2 Milk, Appen, Huon, & Newcrest shares are tumbling lower
• 2 top ASX tech shares to buy and hold beyond 2025
• 5 things to watch on the ASX 200 on Friday

Aaron Teboneras owns shares of CSL Ltd. and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., POLYNOVO FPO, and WiseTech Global. 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.86% today to 6,074 points.

There were a number of interesting reports and announcements today:

Costa Group Holdings Ltd (ASX: CGC)

Horticultural giant Costa reported its FY20 half-year result to 28 June 2020.

Costa reported its revenue rose 6.8% to $612.4 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 13.7% to $93.7 million and the international segment saw underlying EBITDA growth of 98%.

This helped underlying net profit increased 12% to $45.8 million. Statutory profit was $43.4 million.

Net debt was $181.7 million and the board decided to declare a fully franked 4 cents per share dividend.

The ASX 200 share said that its Australian operations has now recovered from weather and drought challenges over the past year. The financial impact of the drought in this reported first half was $15 million at the underlying EBITDA level for tomatoes and berries. Crops recovered to ‘full yield’ by May. The company said it has excellent forward security across the regions it operates.

There was strong mushroom demand throughout the half and this was helped by the fully improved Monarto facility.

There is positive momentum for the second half with good market conditions and the company expects its core product portfolio to do well against the prior period. The company thinks the rest of its FY20 looks very promising. 

Whilst the citrus volume is lower and quality has been impacted, there is strong citrus export and domestic demand and pricing with encouraging expectations for the rest of the season.

Costa was one of the best performers in the ASX 200. The Costa share price went up 11.8%.

Pointsbet Holdings Ltd (ASX: PBH)

Investors were really excited by Pointsbet today. The Pointsbet share price soared by 86.7% after reporting its FY20 result and announcing a deal. 

The betting business announced a five-year media partnership with NBC Universal. Pointsbet will become the official sports betting partner of NBC sports in the US.

Management said that this was a transformational partnership and it will provide access to national and regional television and digital assets, with the largest sports audience of any US media company with 184 million viewers.

There is a total committed marketing spend of US$393 million allocated in progressively increasing amounts over the five-year media partnership, as well as incentives payable to NBCUniversal for customer referrals.

Pointsbet announced that this alignment has been reinforced with NBCUniversal buying 4.9% of Pointsbet shares and 66.88 million options maturing in five years (conditional on shareholder approval).

The combined value of the shares and options will offset and reduce the total cash payments under the media spend (subject to terms).

Pointsbet said it has exclusive right to certain pre-game, post-game and in-game promotional enhancements and integrations on certain of NBC Sports’ national and regional television and digital platforms.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman is another retail business that has reported impressive growth in FY20, though investors sent the share price down 1.6%. 

The company said that its ‘offshore company-operated Harvey Norman retail sales revenue’ grew by 3.7% to $2.07 billion. Its ‘aggregated headline franchisee sales revenue’ went up by 8.9% to $6.16 billion.

Total aggregated company-operated and franchisee sales revenue grew by 7.6% to $8.23 billion.

Harvey Norman’s EBITDA grew by 37.2% to $944.67 million, reported profit before tax (PBT) went up 15.1% to $661.29 million and underlying PBT rose 26% to $635.6 million.

Reported profit rose 19.4% to $480.54 million and underlying profit grew 30.9% to $462.16 million.

The Harvey Norman board decided to declare a final dividend of 18 cents per share.

Harvey Norman chair Gerry Harvey said: “Pleasingly, customers continued to engage strongly with our brands and importantly, as we are in the lifestyle and home retail space, the customer was appreciative of the shopping experience, spaciousness and easy parking at the physical franchised complexes and stores, whilst embracing the ease of connection to our brands digitally and the important convenience of home delivery and click and collect. The results achieved in 2020, are a testament to the strength of our model.”

More reading

• ASX Stock of the Day: Pointsbet share price surges 77% on NBC deal
• ASX shares are on track for new record highs. Here’s why…
• ASX 200 down 0.9%: Costa impresses, Harvey Norman profits grow, Appen downgraded
• Harvey Norman share price drops despite record FY20 results
• Why Costa, Flight Centre, Polynovo, & Pointsbet shares are storming higher

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 Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Pointsbet 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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