Investors’ Best Bets Over the Week: 8 ASX Stocks that Stood Tall

Investors’ Best Bets Over the Week: 8 ASX Stocks that Stood Tall

The Australian economy, which was hit with the double whammy of bushfires and the COVID-19 pandemic in the last few quarters, is finally showing signs of recovery. However, it might take a while for the economy to get back on track. The government, through various initiatives, has managed to curb the spread of the virus, and the focus has shifted towards how to uplift the markets.

While several companies might need time to get going, some are performing quite well. In this article, we have screened some stocks that have gained decent momentum over the week.

Afterpay Limited (ASX:APT)

Afterpay Limited delivers tech-driven payments solutions to businesses with the help of Pay Now and Afterpay services. During Q3 FY20, the company reported continued strong performance throughout the business and reported underlying sales growth of 105% against the pcp.

Do Read: How Tencent’ Investment in APT will open headroom of opportunity?

The company possesses a robust balance sheet and liquidity position, which reflects that it does not require raise capital in the foreseeable future. APT held cash balance of $541.1 million and $719.2 million of total liquidity as on 31 March 2020.

At the close of the trading session on 11 May 2020, the stock of APT ended at $42.170 per share, indicating a rise of 5.742% against its previous closing price. The stock of APT has generated a return of 16.81% in the last one week.

AP Eagers Limited (ASX:APE)

AP Eagers Limited is primarily involved in the sales of new and used vehicles. In a market update on the response to COVID-19, the company stated that its dealership business is operational with the priority being the health and safety of its employees and customers. The company has decreased its employee costs by circa $6 million per month to reduce its cost base.

The company possesses cash and undrawn corporate debt facilities of $270 million. With the support of an additional $122 million OEM working capital facilities, APE’s total liquidity will increase to $392 million.

At the close of the trading session on 11 May 2020, the stock of APE ended at $5.550 per share, indicating a rise of 10.778% against its previous closing price. The stock of APE has generated a return of 28.77% in the last one week.

Webjet Limited (ASX:WEB)

Webjet Limited provides online travel booking services for flights, car hire, tours, hotels, and cruises. Recently, the company announced that UBS Group AG and its related bodies corporate had made a change to their holdings in the WEB with the current voting power of 5.10% against the voting power of 6.34%.

Do Read: Earnings story of some ASX companies

Recently, it has wrapped up its retail entitlement offer and raised capital amounting to circa $118 million. This reflected the completion of the second stage of the company’s $346 million equity raising.

At the close of the trading session on 11 May 2020, the stock of WEB ended at $3.500 per share, indicating a rise of 19.454% against its previous closing price. The stock of WEB has generated a return of 30.11% in the last one week.

Harvey Norman Holdings Limited (ASX:HVN)

Harvey Norman Holdings Limited is involved in retail activities. Considering the uncertainty about the duration of the COVID-19 pandemic and its potential impact on trading, and for an abundance of precaution, the company has cancelled its payment of an interim dividend of 12 cents per share. This would help the company in retaining cash of $149.5 million.

The company managed to close the half-year 2020 with a strong balance sheet, which was supported by real property assets and a stable working capital position.

At the close of the trading session on 11 May 2020, the stock of HVN ended at $3.020 per share, indicating a decline of 0.33% against its previous closing price. The stock of HVN has generated a return of 9.82% in the last one week.

Bubs Australia Limited (ASX:BUB)

Bubs Australia Limited is involved in the manufacturing of infant milk formula. Recently, the company has inked a new supply agreement with Coles Supermarkets Australia, wherein, Bubs Organic® Grass-Fed Infant Formula is likely to be distributed to 482 Coles supermarkets.

During Q3 FY20, the company recorded quarterly revenue amounting to $19.7 million with a rise of 36% compared to the prior quarter. Q3 experienced positive operating cashflow of $2.3 million, and it closed the quarter with a robust cash balance of $36.4 million.

At the close of the trading session on 11 May 2020, the stock of BUB ended at $1.175 per share, indicating a rise of 9.302% against its previous closing price. The stock of BUB has generated a return of 35.06% in the last one week.

Flight Centre Travel Group Limited (ASX:FLT)

Flight Centre Travel Group Limited is engaged in travel retailing in leisure and corporate travel sectors. Recently, the company has agreed on a sale deal of $62.15 million, wherein, it would be divesting its Melbourne head office property to Shakespeare Property Group. It is anticipated to complete in July 2020. The company has also completed its retail component of entitlement offer and raised $138 million.

Do Read: Difficulties and Challenges Arising From COVID-19.

At the close of the trading session on 11 May 2020, the stock of FLT ended at $11.220 per share, indicating a rise of 4.275% against its previous closing price. The stock of FLT has generated a return of 19.11% in the last one week.

Redbubble Limited (ASX:RBL)

Redbubble Limited is an innovative online marketplace for ‘print-on-demand’ goods. Amidst the current uncertainly caused by COVID-19, the company managed to report marketplace revenue growth of 20% during Q3 FY20. This growth was due to consequent fluctuations generated by immediate consumer reactions to the infectious disease and stronger than expected start to Q3. There was a favourable impact of COVID-19 on sales in April and the supply chain for the period was robust.

At the close of the trading session on 11 May 2020, the stock of RBL ended at $0.990 per share, indicating a rise of 1.02% against its previous closing price. The stock of RBL has generated a return of 28.57% in the last one week.

PolyNovo Limited (ASX:PNV)

PolyNovo Limited is in the development and sales of innovative medical devices. In the near-term, the company has addressable markets of around more than $7.5 billion. The month of March 2020 experienced record sales in the US. During Q3 FY20, it reported strong performance in Australia and New Zealand.  It has also secured a new debt facility of $9.3 million with National Australia Bank.

At the close of the trading session on 11 May 2020, the stock of RBL ended at $2.590 per share, indicating a rise of 1.569% against its previous closing price. The stock of RBL has generated a return of 25.73% in the last one week.

 


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