The Megaport Ltd (ASX: MP1) share price is on watch this morning after the network-as-a-service provider announced the upcoming release of Megaport Virtual Edge. The product innovation will allow customers to tap into Megaport’s platform to deploy and extend network functions in real time, without deploying hardware. 

What does Megaport do? 

Megaport has more than 1,800 customers that rely on its products to power their digital businesses. The company provides bandwidth which allows users including Facebook, Amazon, and Tesla to connect to cloud services and data centres. Monthly recurring revenues have increased more than four-fold since FY17 as ecosystem richness drives greater service connection opportunities. 

What did Megaport announce?

Megaport says the development of Megaport Virtual Edge marks a transformation point for the company. The new technology empowers customers to build a unified, multi cloud network architecture that scales as business needs grow. SD-WAN (software defined–wide area network) capabilities are a feature of Megaport Virtual Edge, which allows companies to build higher performance wide area networks using lower cost, commercially available internet access. This allows more expensive wide access network technologies to be replaced. 

“By creating a platform that will bridge various network access types directly to Megaport’s SDN, we have effectively made it possible to connect to our leading ecosystem of service providers and data centres from anywhere in the world,” said Bevan Slattery, founder and chair of Megaport.

“This will put the power of elastic interconnection in the hand of more businesses around the globe,” he added.

How has Megaport been performing? 

Megaport is due to release its full-year result this Wednesday. Investors will be expecting big things from the company – the Megaport share price is up 70% over the past year. Revenue in the June quarter was $17 million, a 12% increase quarter-on-quarter and 66% increase year-on-year. 

Megaport has been expanding its network footprint to new markets while also deepening reach within existing metros. The company established a presence in Denmark and Spain during the fourth quarter, which brings the Megaport platform to 23 countries and 128 cities globally. 

Megaport CEO Vincent English commented: “Megaport has continued its strong growth momentum, with solid revenue results throughout Fiscal Year 2020. Quarterly revenue was up 12% on the previous quarter to $17 million, and monthly recurring revenue reached a new high of $5.7 million, driven by existing customers.” 

Foolish takeaway 

Megaport has now delivered 17 consecutive quarters of growth in annualised revenue, and the release of this latest product should support continued revenue growth. All eyes will be on the Megaport share price as investors digest today’s news and await full-year results tomorrow.

More reading

• How investing in ASX shares could help you grow $10,000 into $100,000
• 4 ASX shares to buy now for a post-coronavirus world
• Where to invest $500 into ASX shares immediately
• Why I would buy Megaport and this exciting mid cap ASX share
• 3 quality ASX tech shares to buy in August

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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. Kate O’Brien owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Facebook, MEGAPORT FPO, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon, Facebook, and MEGAPORT 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.

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The Coles Group Ltd (ASX: COL) share price will be in focus on Tuesday after the supermarket giant released its eagerly anticipated full year results.

How did Coles perform in FY 2020?

For the 12 months ended 30 June, Coles reported sales revenue growth of 6.9% to $37.4 billion. This was driven by growth across all segments and particularly strong comparable store sales growth across the Supermarkets business. The fourth quarter represented the business’ 51st consecutive quarter of comparable store sales growth.

During the year Coles achieved Smarter Selling cost savings in excess of $250 million. Though, these savings were offset by a one-off increase in investment in COVID-19 related expenses.

In respect to earnings, Coles delivered earnings before interest and tax (EBIT) of $1,387 million and a net profit after tax of $951 million. This represents a 4.7% and 7.1% increase, respectively, over the prior corresponding period.

As a comparison, a recent note out of Goldman Sachs reveals that it was forecasting total sales of $37.5 billion and EBIT of $1,392.4 million. This means Coles’ result was broadly in line with expectations.

In light of its strong performance, a fully franked final dividend of 27.5 cents per share was declared. This was an increase of 14.6% on the prior corresponding period and lifts its full year dividend to 57.5 cents.

What were the drivers of its result?

Over the period the key Supermarkets business posted a 6.8% increase in revenue to $32,993 million and a 10.7% increase in EBIT to $1,310 million. This was driven largely by increased demand during the third and fourth quarters during lockdowns and the closure of restaurants and cafes.

The Liquor segment had a strong year for sales but delivered flat profits. Sales increased 8% over the 12 months to $3,308 million, but EBIT remained flat at $120 million.

It was a similar story for its Express stores, which reported a 5.6% increase in sales to $1,107 million but a loss of $16 million. The latter was down from a $50 million profit in FY 2019.

Management commentary.

Coles Group CEO, Steven Cain “In June 2019, Coles set out a refreshed strategy to transform our business and lay the foundations to succeed in our second century. Since that time, we have been presented with a number of unforeseen challenges including drought, devastating bushfires, and of course the ongoing COVID-19 global pandemic.”

“This has provided the greatest test of our lifetime and we are experiencing things we never thought we would see in a supermarket, or for that matter Australia. Coles for its part has become a designated “essential service”, playing an important support role during these crises, and it will also play an important role as the nation recovers and returns to growth,” he added.

FY 2021 outlook.

Management notes that it is operating in a highly uncertain environment, but believes the company is in a strong position to take advantage of opportunities as they arise.

Especially after starting the new financial year in a positive fashion. It explained: “In the first six weeks of the first quarter of FY21, Supermarkets comparable sales remain broadly in-line with the levels achieved in the second half. There is significant variation between states and between stores locations within states as a result of the continuing impact of COVID-19 restrictions around Australia.”

Online sales have also been growing strongly. Following a significant increase in capacity in the second half, they are up 60% in the first six weeks of FY 2021. This growth is being driven largely by consumers in Victoria.

As for margins, they have remained consistent with what the company achieved in FY 2020 despite incurring “significant incremental COVID-19 costs in the early part of FY21 in relation to additional safety.”

Liquor sales have remained elevated and Express fuel volumes are broadly in line with the June exit rate.

Finally, having made a strong start to the Smarter Selling program in FY 2020, Coles continues to target its $1 billion cost-out goal between FY 2020 and FY 2023. In FY 2021, the company will continue to focus on realising cost-out opportunities. Though, the timing will be dictated, in part, by COVID-19.

More reading

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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 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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ASX tech shares seem to be all the rage right now. The Nextdc Ltd (ASX: NXT) share price has been surging higher in 2020 to lead the S&P/ASX 200 Index (ASX: XJO) outperformers.

But it’s not just the Aussie data centre operator that I’ve got my eye on. I like a few of the top ASX tech shares right now but the key is to find those that are still good value.

Here are a few of my top picks that I like even at their current prices.

Nextdc and 2 other ASX tech shares to buy

I really like ASX tech shares with a strong underlying story. For Nextdc, I think that’s the spectacular growth in demand for off-site data storage and security.

Australia is transitioning towards a semi-permanent work from home setup. That means more companies are going to look to use data centres as a core part of their business operations.

Nextdc is an incumbent in the industry and is well-placed for future growth. The company already provides connectivity and data centre services alongside technical support.

With the growth of cloud connectivity and collaboration tools, I think the ASX tech share may continue to climb in 2021.

Nextdc aside, I like the look of Xero Limited (ASX: XRO).

The Xero share price has jumped 15.3% higher this year and isn’t far off its all-time high.

Google Finance suggests the ASX tech share currently trades at a price-to-earnings (P/E) ratio of 4,309.9. We won’t get to see the Kiwi accounting software group’s earnings until November. 

That means it’s something of a gamble but I wouldn’t consider Xero a relative value play. Xero to me has long-term potential to transform the business world with simple accounting.

I think strong customer retention and acquisition is the key here. If Xero can continue to land big clients and deliver strong earnings, it could crack the $100 per share barrier.

Finally, Altium Limited (ASX: ALU) is on my watchlist after its full-year earnings result yesterday.

Altium reported strong revenue growth of 10% to $189 million and continues to be a printed circuit board software leader.

The ASX tech share increased its subscriber base by 17% and posted a record earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 40%.

I think this strong growth profile underpins the future potential of the Altium share price despite its lofty valuation.

Foolish takeaway

These are just a few of the ASX tech shares that I like at their current prices. 

I’m sure we’ll see more volatility in the years ahead, but I think a solid underlying business is the key to long-term success.

More reading

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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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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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Construction giant Lendlease Group (ASX: LLC) reported its results yesterday, posting a net loss of $310 million in FY20. Like most companies with international operations, this has been partly due to its exposure to markets with mandated coronavirus shutdowns. However, the company also posted a $368 million cost for the planned exit from its engineering division. In addition, its investment portfolio also suffered a reduction in valuation due to market conditions. 

Lendlease financials

While the company did post a $310 million dollar statutory loss after tax, $212 million was in 2HFY20. This underlines the impact from the coronavirus. In addition, about 207 workers had tested positive to the virus but fortunately none had died. However, its core business delivered a profit after tax of $96 million. The company’s core business is the construction, investment and development of real estate properties.

Impacts to production came mainly due to mandated shutdowns, reduced productivity in construction, and delays in conversion to new projects. Moreover, some of these impacts will affect 1HFY21. In particular the exit costs for the sale of the engineering business are likely to blow out to $550 million, which is the top end of previous guidance estimates. 

Despite the poor conditions, the company managed to complete several large scale projects and initiatives. For example, it completed the development of Paya Lebar Quarter, Singapore, adding $3.3 billion of funds under management. It also listed the Lendlease Global Commercial REIT in Singapore. It will also retain 3 engineering projects: NorthConnex, the Melbourne Metro Tunnel, and Kingsford Smith Drive. 

At the time of writing, the company has a very strong balance sheet. Its 5.7% gearing is very low for any company in the real estate sector. Moreover, it has a total liquidity of $5.8 billion, which is $1.6 billion in cash, and $4.2 billion in undrawn facilities

Strategic position

The company has been able to fortify its core business during the year. Its development pipeline is up by 48% to $113 billion, with 2 additional major urbanisation projects secured. These projects have a total estimated end value of approximately $37 billion. They are Thamesmead Waterfront in London for $15.1 billion, and the San Francisco Bay area project for $21.8 billion. 

The company has also secured investment partner initiatives including the entire precinct for the Milano Santa Giulia in Milan. In addition, it has secured partnerships for the Victoria Cross over station development in Sydney, and Barangaroo South: One Sydney Harbour Tower 1. The estimated development end value of these projects is $7 billion.

Lastly, Lendlease has withdrawn its services business from sale until such time as the market improves. Even though this is part of its non-core business, it has also secured new work worth $1.4 billion.

Lendlease managing director and CEO, Steve McCann said:

Notwithstanding the challenging environment, the Group advanced its strategic agenda in FY20. Significant progress was made on growing and converting the development pipeline, including securing additional major urbanisation projects, achieving important planning milestones and creating new investment partnerships to support projects moving into delivery. The Group has made good progress in finalising the sale of the Engineering business.

Foolish takeaway

Lendlease is truly one of the world’s giant construction companies. The mandatory shutdowns that followed the rapid onset of Covid-19 caught the company unprepared. Nevertheless, it has strengthened its balance sheet, filled up its development pipeline, and secured new work worth billions. I think the company is likely to see a recovery of its business, rather than a prolonged downturn. 

With a current market valuation of $8.04 billion it is selling at approximately book value per share. However, this doesn’t take into account the healthy pipeline of work it has in front of it. The current Lendlease share price is selling at a price-to-earnings ratio of 8.62, and has a trailing 12-month dividend yield of 5.14%, I think Lendlease is an attractive opportunity for solid dividend payments and moderate share price growth over the next 3–5 years. 

More reading

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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 Netwealth Group Ltd (ASX: NWL) share price is one to watch after reporting strong earnings growth in its FY20 annual results.

What did Netwealth announce?

The Netwealth share price could be on the move in early trade after today’s full-year results announcement.

For the year ended 30 June 2020 (FY20), Netwealth’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 24.8% to $64.8 million.

The group’s EBITDA margin totalled 52.3% for the year while underlying net profit after tax (NPAT) surged 21.7% to $43.8 million.

Total income increased by 25.5% to $123.9 million with Platform revenue of $121.3 million, up 25.9% on FY19 numbers.

The group’s operating expenses jumped 26.2% as part of Netwealth’s strategic investments in IT infrastructure, people and software to support further growth.

That includes adding 68 more employees to its team with a total headcount of 339 as at 30 June 2020.

Paying dividends

The Netwealth share price is one to watch this morning after announcing a fully-franked final dividend of 7.8 cents per share.

The group’s funds under administration (FUA) rocketed 35.0% higher to $31.5 billion. That included record FUA inflows of $9.1 billion during the year.

Funds under management (FUM) totalled $7.3 billion with Managed Account FUM of $5.8 billion at year-end.

Transaction fee revenue increased from 6% to 9% during the year as the group looks to diversify its earnings streams.

Platform revenue as a percentage of average FUA was down 4.4 basis points to 0.437% for the year. Average account size increased to $385,000 in FY20, up from $323,000 in FY19.

Looking ahead

In terms of outlook, Netwealth will launch the first of two new active funds on its wealth management platform. Those are the Magellan Global Specialist Series Infrastructure Fund and Magellan Global Specialist Series Global Fund.

Netwealth also noted transaction revenues may soften depending on market volatility and investor behaviour in FY21.

There were no firm updates on the coronavirus pandemic with Netwealth to “continue to assess and monitor any further impacts”.

How has the Netwealth share price performed this year?

It’s been a good year for shareholders as the Netwealth share price has surged 65.2% higher to $13.00 per share.

That’s a good result given the S&P/ASX 200 Index (ASX: XJO) has slumped 9.0% lower.

The wealth management platform provider has a market capitalisation of $3.1 billion and is trading just shy of its $13.44 all-time high.

More reading

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• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Netwealth. 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 BHP Group Ltd (ASX: BHP) share price is on watch this morning after the Aussie miner slashed its final dividend by 29.5%.

What were BHP’s key takeaways?

The BHP share price will be worth watching after posting a broadly stable result across its various business units.

BHP reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 5% to US$22.1 billion. The Aussie miner’s underlying EBITDA margin came in at 53% for FY20.

In terms of segment performance, iron ore remains clearly the strongest contributor. Iron ore contributed US$14.6 billion (64%) of group EBITDA while copper (US$4.3 billion, 19%) was another strong contributor.

Metallurgical coal (US$1.9 billion, 9%) and petroleum (US$2.2 billion, 10%) edged lower compared to FY19 numbers due to cost, maintenance and pricing impacts.

Underlying EBIT fell 7% to US$15.9 billion with net profit totalling US$8 billion for the year. That saw underlying basis earnings per share edge 2% higher to US 179.2 cents while dividend per share fell 10% to 120 US cents.

The BHP share price will be worth watching in early trade following the dividend cut. The Aussie miner slashed its final dividend payment by 29.5% to US 55 cents per share.

Free cash flow totalled $8.1 billion with a return on capital employed (ROCE) of 17% for FY20. That was largely driven by the iron ore earnings which recorded a ROCE of 56% for the year.

Net debt of US$12.0 billion was at the lower of BHP’s target US$12–17 billion range. 

The group continues to reinvest in future projects with US$5.7 billion earmarked for organic development across efficiency management, exploration and major projects.

How has the BHP share price performed this year?

All eyes will be on the BHP share price following this morning’s full-year results announcement.

The Aussie miner still managed an FY20 total dividend of US 120 cents (A$1.66) per share. Based on yesterday’s closing price of A$39.86, that represents more than a 4% dividend yield at present.

Shares in the Aussie iron ore miner are up 2.3% for the year while the S&P/ASX 200 Index (ASX: XJO) is down 9.2%.

More reading

• Is the Beach Energy share price a buy?
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• Netwealth share price on watch as net profit surges 22%
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%

Motley Fool contributor Ken Hall 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 Cochlear Limited (ASX: COH) share price will be on watch on Tuesday following the release of its full year results for FY 2020.

How did Cochlear perform in FY 2020?

For the 12 months ended 30 June 2020, the hearing solutions company reported sales revenue of $1,352.3 million, which represents a 6% decline on a reported basis or 11% in constant currency. This revenue comprises Cochlear implants revenue of $817.9 million (down 3%), Services revenue of $395.5 million (down 7%), and Acoustics revenue of $138.9 million (down 20%).

Management advised that this decline was caused by difficult trading conditions in the second half because of COVID‐19‐related surgery deferrals. Cochlear implant unit sales fell 7% over the 12 months, having been up 13% during the first half.

On the bottom line Cochlear reported an underlying net profit after tax of US$153.8 million, which was down 42% year on year. This follows a collapse in its profits during the second half because of the aforementioned surgery deferrals. Second half profit fell 84% on the prior corresponding period.

On a reported basis, Cochlear recorded a net loss of $238.3 million. This includes $416.3 million in patent litigation expenses and $24.2 million in innovation fund gains after‐tax.

In light of the above, the company has unsurprisingly decided against declaring a final dividend in FY 2020.

Trading update.

Management advised that while elective surgeries have resumed, there is still a risk that second waves could result in new restrictions, complicating recovery plans and timing.

It also recognises that the surgeries currently occurring, particularly for adults and seniors, include a catch up of delayed surgeries from March to May. And while the majority of clinics have re‐opened, many are still running below capacity as they recommence operations carefully and follow social distancing disciplines.

As a result, the company expects there to be some impact on the number of patient assessments for cochlear and acoustic implants until clinic throughput normalises.

Nevertheless, the company’s direct‐to‐consumer activities have been aimed at providing additional support to candidates, and potential candidates. It hopes these activities may assist in more quickly rebuilding the candidate pipeline once things normalise.

Outlook.

Due to the uncertain timing of a global recovery from the pandemic, management acknowledges that it cannot reliably estimate its FY 2021 revenues. As a result, it will not be providing guidance at this stage.

However, it intends to provide a trading update with its annual general meeting in late Octover.

Until then, the company “will be focused on market growth activities and strengthening our competitive position, while continuing to limit non‐essential spending until we have greater confidence in the outlook. There are a number of cost base considerations for FY21, which may be adapted if trading conditions materially change.”

Looking further ahead, management is confident on the future prospects of the company.

It commented: “As we look to the future, we remain confident about the opportunity to grow our markets. There remains a significant, unmet and addressable clinical need for cochlear and acoustic implants that is expected to continue to underpin the long‐term sustainable growth of the business.”

The company also notes that the arrival of telehealth solutions during the pandemic could be a big positive for its business.

“The pandemic has also driven the rapid adoption of telehealth and telemedicine which may lead to faster than expected structural changes in healthcare delivery. We experienced this first hand with the FDA fast‐tracking the approval of our Remote Check solution in the US.”

“We have been investing in connected care solutions for many years and believe they provide the opportunity to open up access to our products and optimise outcomes for recipients by transforming the care model while delivering efficiencies to clinics,” it added.

More reading

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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. 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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Yesterday’s market reaction to a 90.5% drop in the profits of BlueScope Steel Limited (ASX: BSL) was to send the Bluescope share price up by 2.32%. Yes, you read that correctly. Investors sent a strong vote of confidence in the company’s strategy and ability to execute it, even after Bluescope posted a FY20 net profit after tax of $97 million, $919 million lower than in FY19.

Largely this was due to damage from the coronavirus. Specifically, a 2-month shutdown in US automakers, mandated closures throughout Asia, and the government enforced shutdown in New Zealand. The company also highlighted low steel prices, high energy costs, and a $197 million write-down of its New Zealand division. 

However, the company also unveiled a lot of good news for the coming financial year, including results from current cost cutting and its plans for the future, which could bode well for the Bluescope share price moving forward.

Bluescope Steel’s future

The company is well positioned for the post-covid world in a number of ways, including the swing to local supply chains. Bluescope remains focused on serving Australian markets first. However, it also has local steel production capability in the USA, Asia and New Zealand. There are a number of areas where Bluescope’s managing director and CEO, Mr Mark Vassella believes the company will benefit. 

First, Bluescope Steel believes that people will move away from public transport towards cars. This will drive an increased steel demand, particularly in North America where car manufacturing takes up 14% of all production.

Second, the company is likely to benefit from Australian stimulus spending. This will also apply to stimulus spending in Asia and the United States. In fact, US construction accounts for 23% of all production, while Australian construction accounts for 32% of all production. 

Thirdly, Mr Vassella is on record talking about the increase in demand for housing, likely because discretionary funds previously used for travel are being used for home renovations. Moreover, he noted that this spending has increased in detached or low density housing, a core area of the company’s product focus.

Additionally, the company plans to invest in its US operations to increase capacity to meet the growing demand. For instance, many high-cost legacy blast furnaces are reducing output within 215 miles of its US operations. This will leave a current deficit of 5.75 million tonnes a year, without factoring in stimulus growth.

Cost controls

Bluescope Steel also plans to exit loss-making products in New Zealand. Accordingly, this is likely to cause a large number of roles become redundant. The one-time cost here is likely to be between $30–$50 million. This will continue as the company reviews costs against carbon policy uncertainty, and excessively high electricity costs. Total group operating cash flow for the year, after capital expenditure, was $238 million. In addition, at 30 June 2020, Bluescope held $79 million net cash on the balance sheet.

Foolish takeaway

The coronavirus pandemic has hit Bluescope Steel pretty hard. Nevertheless, it stands to benefit in the post-covid world from trends such as the move away from public transport, the move towards detached housing, and government stimulus spending. Moreover, the company is spending approximately $700 million to expand its US operations. This is at a time when steel production within its immediate vicinity is reducing due to obsolete manufacturing technologies.

The current Bluescope share price gives the company a market capitalisation of $6.21 billion, and a price-to-earnings ratio of 11.3. I believe Bluescope Steel presents an interesting opportunity for steady share price growth over the next 2–3 years. 

More reading

• The next ASX stocks to beat expectations during this reporting season
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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 S&P/ASX 200 Index (ASX: XJO) may have been out of form on Monday, but that didn’t stop some ASX shares from pushing higher.

In fact, some shares even managed to climb to new 52-week highs or better.

Three that achieved this feat are listed below. Here’s why they are flying high right now:

Codan Limited (ASX: CDA)

The Codan share price stormed to a new record high of $9.13 on Monday. Investors have been fighting to get hold of the electronic products manufacturer’s shares in 2020 after a spike in the gold price. This is expected to support the very strong demand Codan has been experiencing for its metal detectors. This certainly was the case in the first half of FY 2020 when Codan delivered revenue of $171 million and EBITDA of $54 million. This was a 33% and 42% increase, respectively on the prior corresponding period.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price continued its positive run and hit a new all-time high of $51.33 yesterday. Investors were buying the retail giant’s shares after the release of a strong full year result for FY 2020. During the 12 months, JB Hi-Fi delivered an 11.6% increase in total sales to $7.9 billion and a 33.2% lift in underlying net profit after tax to $332.7 million. This led to JB Hi-Fi increasing its full year fully franked dividend by 33.1% year on year to 189 cents per share. Strong demand for household goods during the pandemic underpinned its growth in FY 2020.

Kogan.com Ltd (ASX: KGN)

The Kogan share price hit a record high of $22.15 on Monday before tumbling lower. The catalyst for this was the ecommerce company’s full year results release. For FY 2020, Kogan reported a 39.3% increase in gross sales to $768.9 million and a 57.6% increase in adjusted EBITDA to $49.7 million. This was driven by the accelerating shift to online shopping during the pandemic which underpinned a 35.7% increase in active customers to 2,183,000. Management notes that a “retail revolution [is] taking place” and believes Kogan is well-positioned to benefit.

More reading

• ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%
• What recession? These ASX retail shares are raking it in
• What experts are saying about JB Hi-Fi’s profit results as the stock surges to record
• These 3 ASX stocks just got upgraded by top brokers to “buy” today
• ASX 200 down 0.85%: JB Hi-Fi impresses, Altium shoots higher, Bendigo and Adelaide Bank sinks

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a very disappointing fashion. The benchmark index fell 0.8% to 6,076.4 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound.

The benchmark ASX 200 looks set to rebound on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.55% higher this morning. This follows a positive start to the week on Wall Street, which saw the Dow Jones fall 0.2%, but the S&P 500 rise 0.3% and the Nasdaq jump 1%. The latter could be good news for locally listed tech shares which tend to follow its lead.

Westpac quarterly update.

All eyes will be on the Westpac Banking Corp (ASX: WBC) share price this morning when it releases its latest quarterly update. The main focus will be on its loan deferrals and impairment charges. These metrics were not as bad as many expected when two of its big four rivals released updates this month.

Oil prices jump.

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices jumped higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$42.84 a barrel and the Brent crude oil price has risen 1.2% to US$45.33 a barrel. News that China is planning to boost its U.S. oil imports helped drive prices higher.

Gold price surges higher.

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) are likely to be on the rise on Tuesday after the gold price surged higher. According to CNBC, the spot gold price is up 2.2% to US$1,993.40 an ounce. Weakness in the U.S. dollar and robust sentiment have given the precious metal a big boost.

Coles FY 2020 results.

The Coles Group Ltd (ASX: COL) share price will be in focus this morning when it releases its highly anticipated full year results. According to a note out of Goldman Sachs, its analysts expect Coles to deliver total sales of $37.5 billion in FY 2020. This will be a 7.1% year on year increase. It is also forecasting Coles to report EBIT of $1392.4 million. This represents a 5.1% year on year increase.

More reading

• ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%
• If you invested $10,000 in Afterpay shares in March, this is how much you’d have now
• Telstra share price hit by broker downgrade today
• The Starpharma share price jumps on new partnership deal
• What experts are saying about JB Hi-Fi’s profit results as the stock surges to record

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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