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The S&P/ASX 200 Index (ASX: XJO) finished a very positive month in a disappointing fashion. The benchmark index fell 0.5% over the five days to end the period at 7,025.8 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price was the worst performer on the ASX 200 last week after crashing 23.7% lower. Almost all of this decline came on Friday following the release of its quarterly update. That update fell short of expectations due largely to issues at the Western Flank oil and gas operation. Unfortunately, these issues aren’t going away in a hurry. As a result, management has downgraded its FY 2021 production guidance to between 25.2 MMboe and 25.7 MMboe from between 26.5 MMboe and 27.5 MMboe. It has also withdrawn its five-year outlook.

St Barbara Ltd (ASX: SBM)

The St Barbara share price was out of form and sank 11.3% over the five days. This appears to have been driven by a softer than expected quarterly update by the gold miner. According to the release, St Barbara reported third quarter gold production of 82,303 ounces and an all-in sustaining cost (ASIC) of A$1,649 per ounce. This compares unfavourably to 89,670 ounces and an ASIC of A$1,517 per ounce during the second quarter.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price wasn’t far behind with a decline of 10.2% last week. This was driven by the release of a disappointing quarterly update. For the three months ended 31 March, Nickel Mines reported quarterly production of 10,067.5 tonnes of nickel. This was down 12.7% from the December 2020 quarter. In addition, higher costs and lower sales volumes led to the company reporting a 29.2% decline in EBITDA to US$50.7 million.

Nuix Ltd (ASX: NXL)

The Nuix share price continued its slide and sank 10.2% lower last week. This was despite there being no news out of the investigative analytics and intelligence software provider. However, the Nuix share price has been under significant pressure after downgrading its guidance around six weeks after reaffirming it. The Nuix share price hit a record low during the week.

More reading

• ASX 200 drops 0.8%, Pointsbet jumps, Beach sinks
• How the Commonwealth Bank (ASX:CBA) share price moved this week
• ASX copper shares are sliding…buy the dip?
• 2 quality ASX 200 tech shares to buy for May
• Nufarm (ASX:NUF) share price rises ahead of next month’s profit results

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Looking for a Mother’s Day gift with a difference? How about some ASX shares!

With the Autumn leaves well and truly gathering, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in May.

Here is what the team have come up with…

Tristan Harrison: Kogan.com Ltd (ASX: KGN) 

Short-term market selloffs can lead to long-term opportunities. The recent sell-down of Kogan shares was caused by inventory problems, higher costs and slower growth. The business is now cycling against strong sales a year ago during the worst of COVID-19. 

But today’s lower share price may more than make up for the current issues. Revenue continues to climb nicely, and the company is investing in initiatives that will grow profit margins in the future.  

In the shorter term, investors will benefit from the solid dividend that Kogan continues to pay to shareholders.  

Motley Fool contributor Tristan Harrison does not own shares of Kogan.com Ltd. 

Bernd Struben: Cochlear Limited (ASX: COH)

Share market investors seeking to add to their holdings in May might like to consider Cochlear. Based in Sydney, the company produces and sells implantable hearing devices across more than 20 nations.

The Cochlear share price remains down around 9% from its pre-pandemic highs of 7 February 2020. But the long-term price chart reveals a lengthy track record of growth dating back to 1999. And this ASX share has been rebounding strongly. Year to date, the Cochlear share price is up by around 18%.

In February 2021, the company offered underlying net profit guidance for the full financial year of $225 to $245 million, a 46% to 59% increase over its 2020 profits.

Motley Fool contributor Bernd Struben does not own shares of Cochlear Limited

Mitchell Lawler: Megaport Ltd (ASX: MP1)

Simplistically, Megaport is a technology company that offers software for managing network connections. With a network spanning 741 enabled data centres worldwide, the company delivers on-demand connectivity to hundreds of global services.

Most recently, Megaport reported third-quarter revenue growth of 25% year on year to $19.58 million. Despite the double-digit growth, the company remains one of the most heavily shorted shares on the ASX, with 6.8% of short interest.

Analysts over at UBS have a buy rating on the company’s shares, along with a $17.10 price target. At the time of writing, Megaport shares are swapping hands at $14.29 apiece.

Motley Fool contributor Mitchell Lawler does not own shares of Megaport Ltd.

James Mickleboro: CSL Limited (ASX: CSL)

The CSL share price has been out of form in 2021 and is down approximately 20% from its pre-COVID highs.

This has been driven by concerns over plasma collection headwinds. As plasma is a core ingredient in many of the company’s therapies, it appears inevitable that margins will be impacted in the near future. However, the good news is that this headwind should only be temporary.

In fact, Citi believes collections in the United States will return to 2019 levels during the second half of 2021. For this reason, the broker recently put a buy rating and $310.00 price target on its CSL shares.

Motley Fool contributor James Mickleboro does not own shares of CSL Limited.

Brendon Lau: Sandfire Resources Ltd (ASX: SFR)

Sandfire’s March quarter production update arguably puts the ASX copper miner in a good position to outperform. Sandfire managed to do what many of its peers could not – control costs. Costs came in 8% better than what Morgan Stanley was expecting, and the broker reiterated its “overweight” recommendation on the stock with a 12-month price target of $7.50 a share.

The high copper price and the tight supply outlook for the commodity could also provide extra tailwinds. At the time of writing, the Sandfire share price is trading at $6.62 after falling by around 5% on Friday.

Motley Fool contributor Brendon Lau owns shares of Sandfire Resources Ltd.

Sebastian Bowen: VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

This ASX ETF has only been listed since September last year. But it has already returned more than 11% in price appreciation since. ESPO focuses on the eSports and gaming space, an area highly underrepresented on the ASX.

Gaming and eSports are a booming industry, and its growth could still have plenty of runway yet. ESPO holds some of the world’s largest gaming giants, such as Tencent, Activision Blizzard and Electronic Arts Inc. As such, this ETF could be a great way to diversify a portfolio for a high-growth future.

Motley Fool contributor Sebastian Bowen does not own shares of VanEck Vectors Video Gaming and eSports ETF.

More reading

• 3 stellar ASX growth shares for investors in May
• ASX copper shares are sliding…buy the dip?
• How to find the best ASX shares on the share market
• Only 40% of Australians want the AstraZeneca vaccine. What could this mean for CSL (ASX:CSL)?
• Is there still upside to the JB Hi-Fi (ASX:JBH) share price?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Activision Blizzard and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Electronic Arts. The Motley Fool Australia has recommended Activision Blizzard, Cochlear Ltd., Kogan.com ltd, MEGAPORT FPO, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top ASX shares to buy in May 2021 appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) dropped by around 0.8% to 7,026 points.

Here are some of the highlights from the ASX:

Pointsbet Holdings Ltd (ASX: PBH)

Pointsbet saw its share price rise by 7.4% after releasing its update for the quarter ending 31 March 2021.

Total turnover increased 236% to $905.2 million. Pointsbet’s gross win, being the profit of client’s losing bets against the clients who won bets, saw growth of 275% to $100.5 million.

The net win, which includes promotional costs, saw growth of 246% to $64.9 million.

Pointsbet’s number of active clients rose 169% to 285,500.

It was the best performer in the ASX 200.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price plunged 24.1% after releasing a business update. It was the worst performer in the ASX 200.

A review of 2P reserves across the Western Flank oil and gas field, including the Bauer oil field, has been undertaken following recent declines in oil production and recent drilling results.

There was an 18.4 million barrel of oil equivalent (MMboe) downgrade to 2P reserves across the Western Flank oil and gas assets.

The FY21 pro forma production guidance was downgraded to a range of 25.2 MMboe to 25.7 MMboe. This was down from 26.5 MMboe to 27.5 MMboe.

The five-year outlook has been withdrawn and Beach said it will no longer provide a five-year outlook in its current form.

Beach Energy managing director and CEO Matt Kay said:

The past five years has seen the Western Flank outperform our expectations, but we are now witnessing material decline from a number of fields.

Previous reserves assessment across the complex Western Flank oil and gas fields have proven to be optimistic following recent drilling results. The team has developed new reservoir models to optimise field development. We also enlisted the support of three independent reserve consultants, including Beach’s external reserves auditor RISC, to confirm our approach.

ResMed Inc (ASX: RMD)

ResMed released its result for the third quarter of FY21.

It said that revenue was down 3% on a constant currency basis to $768.8 million.

The non-generally accepted accounting principal (GAAP) gross margin contracted 40 basis points to 59.6%.

Net operating profit increased 3%, whilst the non-GAAP operating profit rose by 2%.

ResMed Mick Farrell explained what happened, as well as talking about the outlook:

Our March 2021 quarter results reflect the ongoing recovery of core patient flow across our business, while we anniversary the $35 million of incremental COVID-19 revenue in the same quarter last year. Excluding the COVID-19 revenue from the March 2020 quarter, we achieved positive growth on both a headline and constant currency basis.

Going forward, we see accelerated awareness of the importance of respiratory health, growing adoption of digital health, and an increased focus on the importance of healthcare delivered at home. We are confident in accelerated growth in patient flow, and ongoing progress toward our goal of improving 250 million lives in out-of-hospital healthcare in 2025.

More reading

• How the Commonwealth Bank (ASX:CBA) share price moved this week
• ASX copper shares are sliding…buy the dip?
• 2 quality ASX 200 tech shares to buy for May
• Nufarm (ASX:NUF) share price rises ahead of next month’s profit results
• How to find the best ASX shares on the share market

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 and recommends Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 drops 0.8%, Pointsbet jumps, Beach sinks appeared first on The Motley Fool Australia.

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Are you look for a growth share to buy next month? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer. It has been growing very strongly during the pandemic. So much so, it almost tripled its operating earnings to $5.2 million during the first half of FY 2021. Despite this, the Adore Beauty share price recently hit a record low. This has been driven by broad weakness among ecommerce shares. One broker that believes it has a long runway for growth and sees this weakness as a buying opportunity is UBS. Earlier this month it put a buy rating and $6.20 price target on its shares.

Megaport Ltd (ASX: MP1)

Another growth share to look at is Megaport. It is an elasticity connectivity and network services company. Its increasingly popular service allows businesses to increase and decrease their available bandwidth in response to their own demand requirements. Demand has been strong, leading to Megaport growing at a rapid rate over the last few years. Pleasingly, this has continued in FY 2021. Earlier this month it released its third quarter update and revealed an 8% quarter on quarter increase in monthly recurring revenue (MRR) to $6.8 million. This went down well with UBS, which retained its buy rating and lifted its price target to $17.10.

Xero Limited (ASX: XRO)

A final growth share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution. It has been growing strongly over the last few years thanks to its international expansion, acquisitions, and the transition to the cloud. Positively, all these drivers are still in place and should be supported by its burgeoning app ecosystem. If the company can monetise this ecosystem and continue its international expansion, it could support decades of strong revenue growth according to Goldman Sachs. The broker currently has a buy rating and $153.00 price target on its shares.

More reading

• The Xero (ASX:XRO) share price is smashing the ASX 50 this month
• 2 outstanding ASX growth shares that could be great buy and hold options
• The Credit Clear (ASX:CCR) share price lower on third quarter update
• The Tyro Payments (ASX:TYR) share price has gained 30% in 12 months
• Why the Adore Beauty (ASX:ABY) share price is charging higher 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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Nearly two-thirds of Australian businesses are being negatively affected by COVID-19 restrictions, while 30% are experiencing supply chain disruptions.

These findings are a part of the Australian Bureau of Statistics’ (ABS) monthly Business Conditions and Sentiments report, released today.

Of the businesses surveyed by the ABS, more than half have reacted to supply chain disruptions in April. Of those, 15% chose to switch from Australian suppliers, sourcing goods from overseas instead.

CreditorWatch’s chief economist Harley Dale has commented on the findings, saying Australian businesses still have a long way to go to recover from the global pandemic.

COVID-19 challenges for Australian businesses

The latest ABS report has found 64% of Australian businesses are being impacted by COVID-19 induced restrictions.

It found the worst affected are those providing accommodation and food services, which are likely to struggle with venue capacities, cleaning and disinfection requirements, and providing staff with personal protective equipment (PPE).

Education and training services are also struggling, juggling all of the above requirements while physically distancing from students and customers.

“[These findings] should be seen as a prescient warning that we are not out of the woods,” warned Dale.

Also worrying are supply chain disruptions that continue to wreak havoc on small businesses — 37% of Australian small businesses reported experiencing COVID-19 induced supply chain disruptions. Only 30% of medium sized businesses and 25% of large businesses reported supply chain disruptions. 

Manufacturing was the industry hardest hit by the disruptions, while 60% of wholesale businesses reported being severely affected.

“Supply disruptions highlight the risk of recoveries in these sectors progressing to a slower extent than we would like to see,” said Dale.

Good news

On a more positive note, April’s report found businesses revenues were at their best since the ABS began compiling the monthly report in July last year.

Only 18% of businesses reported a decline in revenue in April. That’s a large improvement from the 47% of Australian businesses that experienced decreased revenue in July 2020, the height of COVID-19.

Not to mention, it’s only the third time the report has found businesses experiencing revenue increases outnumber those with revenue decreases.

In further good news, working from home looks be to going well for Australian businesses and workers.

The report found 30% of businesses still have staff working from home. Of those businesses, 60% don’t expect to be welcoming employees back to the office.

One in four businesses with employees working from home said their productivity has increased, while 45% said their employees’ wellbeing has benefitted.

More reading

• The Lefroy (ASX:LEX) share price has been on a wild ride recently
• Will the Freedom Foods (ASX:FNP) share price sink even further after its Q3 update?
• How the Commonwealth Bank (ASX:CBA) share price moved this week
• Why the Eagers Automotive (ASX:APE) share price lifted today
• The Cleanaway Waste (ASX:CWY) share price is at a new 52-week high

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lefroy Exploration Ltd (ASX: LEX) share price rebounded strongly today after tanking 23% yesterday, following the company’s announcement of its recent drilling results.

The Lefroy share price closed the day up 13.83% to $1.07. Two days ago Lefroy shares were at $1.30, and two months ago they were at 20 cents. 

Lefroy is a small-cap greenfield explorer, meaning it uses predictive digital modelling to try and strike gold where others haven’t looked. It’s been releasing near-constant market updates about its Copper-Gold Zones near Kalgoorlie in West Australia, where it’s targeting “multi-million-ounce gold discoveries”.

Given its share price recently jumped 237% in one day on these intercepts, here’s a closer look at what the fuss is about.

Lefroy extends its mining region in all directions

The company has just completed its 28-hole reverse-circulation and diamond tail drilling program in Kalgoorlie and continues to be bullish about future prospects.

It’s expanded its potential drilling region in all directions and identified an additional three targets with copper-gold mineralisation, one with high-grade results.

These are the current mineralisation highlights from open-pit depths:

48 metres at 0.39g/t Au (gold) and 0.41% Cu (copper) from 146 metres. 29.1 metres at 2.64g/t Au and 0.18% Cu from 277.4 metres. This includes 0.5 metres at 81.7g/t Au and 1.44% Cu from 279 metres.

One possible reason the Lefroy share price dropped substantially yesterday was that the company published intersection results from four-metre composites. This can create a grade-smearing effect, skewing the accuracy of the results.

The company’s report maintained these results affirm the continued expansion of its operation.

The compilation and assessment of the results from the Jan-Mar 2021 drilling program at Burns support, reinforce and significantly extend the Cu Au mineralisation at Burns. The drilling has discovered the Eastern Porphyry zone which now has a strike length of approximately 200m and which is open, plus three new zones of Cu Au mineralisation in the western basalt zone. These new zones are based on single drill holes and provide additional target areas to be followed up.

Lefroy share price snapshot

The Lefroy share price has fallen 13% this week against gains of 409% in 2021 and 568% over the past year.

More reading

• 64% of businesses negatively affected by COVID restrictions, says ABS
• Will the Freedom Foods (ASX:FNP) share price sink even further after its Q3 update?
• How the Commonwealth Bank (ASX:CBA) share price moved this week
• Why the Eagers Automotive (ASX:APE) share price lifted today
• The Cleanaway Waste (ASX:CWY) share price is at a new 52-week high

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Lefroy (ASX:LEX) share price has been on a wild ride recently appeared first on The Motley Fool Australia.

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The Freedom Foods Group Ltd (ASX: FNP) share price was out of form on Friday.

The diversified food company’s shares ended the day 4.5% lower at 41 cents.

This leaves the Freedom Foods share price trading a whopping 91% lower than its 52-week high.

Will next week be better for the Freedom Foods share price?

Whether or not the Freedom Foods share price performs better next week will depend upon the reaction to its third quarter update.

This update, that was released after the market close, reveals that the company had a tough quarter.

According to the release, for the three months ended 31 March, Freedom Foods reported total revenue of $141.6 million. This was down $17 million or 10.7% quarter on quarter.

Management advised that this was broadly in line with company expectations and due to seasonal factors.

How did its businesses perform?

The main drag on its performance during the quarter was its key Dairy and Nutritionals business.

For the three months, the company reported Dairy and Nutritionals revenue of $91.5 million. This was down $16.7 million or 15.4% on the prior quarter.

Also underperforming the previous quarter were its smaller Specialty Seafoods and Cereals and Snacks businesses. The latter has now been sold to The Arnott’s Group, whereas the former is being reviewed.

This offset a positive performance by its Plant-based Beverages business, which recorded revenue of $37.3 million. This was an increase of $2.4 million or 7% quarter on quarter.

What about cash flow and debt?

Possibly weighing on the Freedom Foods share price next week will be its cash flows.

For the three months, the company recorded an operating cash outflow of $25.6 million. This was partially offset by an $18 million asset disposal, leaving it with a cash balance of $20 million at the end of the quarter.

This cash balance is dwarfed by its debt. The company ended the period with $331.9 million of drawn finance facilities.

More reading

• What’s happened to the Freedom Foods (ASX:FNP) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is joining the broader selloff on the S&P/ASX 200 Index (ASX: XJO) today.

In late afternoon trading, the Commonwealth Bank share price is down 1.2%, while the ASX 200 has slipped 1%.

That makes 3 days of losses for CBA shareholders this week, with shares posting gains only on Tuesday and Wednesday. Tallied together the Commonwealth Bank share price has slipped 0.8% this week.

Commonwealth Bank share price hit new 52-week high

Still, the past 12 months have been far from painful for CBA shareholders. Last Friday, 23 April, the Commonwealth Bank share price closed up 0.3% to trade for $89.39 per share, a 52-week high.

At the current $88.92 per share, CBA has a market cap of $157.9 billion, making it Australia’s largest bank.

Only 12 months ago you could have bought CBA stock for $62.69 per share. Meaning you’d be sitting on a 41.8% gain today. By comparison, the ASX 200 has gained 27% in that same time.

CBA has also edged out the ASX 200 so far in 2021. Year-to-date the Commonwealth Bank share price is up 6.2% while the ASX 200 has gained 5%.

What’s new with CBA this week?

Commonwealth Bank looks to have upped its game in the battle for market share with the growing crowd of buy now, pay later shares.

Last year CBA launched NEO, a zero-interest credit card allowing users to repay their purchases in instalments for a fixed monthly fee. Now the banks have expanded that offer to small businesses, for amounts up to $3,000.

As news.com.au reports, CBA’s head of small business banking Claire Roberts said “the card would assist businesses and start-ups gain access to quick and cheap funds for their operations”.

According to Roberts:

A dedicated business credit card with no interest, no late fees and no foreign currency fees ticks the boxes for small businesses who want more flexibility with short-term cash flow to make purchases for their operations. Further, the fixed monthly fee provides small business owners with some level of financial certainty, which will help with their budgeting.

More reading

• ASX copper shares are sliding…buy the dip?
• 2 quality ASX 200 tech shares to buy for May
• Nufarm (ASX:NUF) share price rises ahead of next month’s profit results
• How to find the best ASX shares on the share market
• Why supply and demand is the enemy of ASX resources shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Eagers Automotive Ltd (ASX: APE) share price is in the green today, while the most of the ASX is firmly in the red. This comes after the company provided an update on the sale of its Daimler operations.

The automotive company’s shares closed today’s trade at $15.66, up 1.62%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,025 points, down 0.8%.

What did Eagers announce?

Investors pushed the Eagers Automotive share price higher after digesting the latest news from the company.

In its announcement, Eagers Automotive advised it has completed the sale of its Daimler Truck Operations to Velocity Vehicle Group.

Based in the United States, Velocity Vehicle Group operates as an automotive retailer. The group provides aftermarket parts and services for trucks, diesel engines and transmissions. In addition, the company offers rental and leasing services to its customers across California, Hawaii and Arizona.

Eagers Automotive also noted that the sale of the Milperra property to Velocity Vehicle Group remains on track. It is expected that the transaction will be completed sometime within the first half of this year.

Eagers Automotive estimates it will receive roughly $108 million from both sales. Profit before tax is forecasted to come in between $32 million and $36 million. This excludes transaction costs and the impact of AASB16 leases, while subject to external audit and final adjustments.

Eagers Automotive share price summary

The Eagers Automotive share price has been charging higher over the past 12 months, up more than 200%. Surprisingly, the company has performed well despite COVID-19 affecting the automotive market and supply chain logistics.

It’s worth noting that the Eagers Automotive shares are within reach of their all-time high of $17.67 achieved earlier this month.

Based on today’s share price, Eagers Automotive has a market capitalisation of around $4 billion, with 256.9 million shares outstanding.

More reading

• Why retailers are stepping up as top performing ASX shares this week
• Brokers think these shares can outperform the ASX 200
• Why brokers think these 3 top performing ASX 200 shares can beat the market
• Why Eagers Auto, Orocobre, Sims, & Titomic shares are storming higher
• The Eagers (ASX:APE) share price is near all-time highs

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cleanaway Waste Management Ltd (ASX: CWY) share price has today made a new 52-week high. Cleanaway shares opened at $2.77 this morning after closing at $2.78 yesterday. But following a short dip soon after open, Cleanway rocketed higher and hit the new benchmark of $2.84 a share. The shares are still trading roughly at that level at the time of writing at $2.83, up 2.17% for the day.

Cleanaway Waste has had an extremely good month, and year, which has culminated in today’s news. The company was going for just $1.87 a share 12 months ago, and $2.20 at the start of the month. That puts the Cleanaway share price gains at 51% and 28.6% respectively. Over the past 5 years, the performance has been even more rewarding for shareholders. Since May 2016, Cleanaway shares are up more than 258%, not including dividend returns.

So what’s been going so right for Cleanaway of late?

Cleanaway share price cleans up 

It was only back in January that Cleanaway was facing some leadership disruption. Its long-time CEO and managing director, Vik Bansal, resigned after facing some workplace misconduct allegations last year. Mr Bansal’s permanent replacement has not yet been named, but CEO duties have been assumed in the meantime by the company’s chair Mark Chellew. 

But that has all been forgotten in light of more recent developments. Earlier this month, Cleanaway announced that it was acquiring the Australian recycling and recovery business of the French waste management company Suez. 

Just this week, we got an update on this deal, which has now been terminated and will not go ahead. However, a part of the deal will still proceed – the acquisition of Suez’s portfolio of Sydney-based post‐collection assets. The deal will result in Cleanaway paying $501 million. Investors didn’t really like all of this uncertainty at the time. But now all seems to be forgiven, judging by the new highs today.

It also seems fitting to mention that Cleanaway’s rival Bingo Industries Ltd (ASX: BIN) has been enjoying some share price success as well. This is a result of the company receiving an acquisition offer of its own from Macquarie Infrastructure and Real Assets of $3.45 per share. 

On the current Cleanway share price, the company has a market capitalisation of $5.83 billion. At this level, Cleanway has a price-to-earnings (P/E) ratio of 40.22, and a trailing dividend yield of 1.54%. 

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Cleanaway Waste (ASX:CWY) share price is at a new 52-week high appeared first on The Motley Fool Australia.

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