3 Stocks To Watch - RMD, WEB And BAL

3 min read | December 10, 2018 11:40 PM AEDT | By Team Kalkine Media

Resmed Inc. (ASX:RMD)

World-leading connected health company, Resmed Inc. (ASX:RMD) recently announced a distribution of $0.037 per share for the September quarter which will be paid on 13 December 2018. In the first quarter of FY19, Resmed earned a revenue of $588.3 million which was 12 percent higher than the previous corresponding period (pcp). The net income of the company increased by 23 percent to $105.7 million and diluted earnings per share of the company increased by 22 percent to 0.73 cents as compared to pcp. Meanwhile, in the last 1 year, the share price of the company increased by 42.75 percent as on 7 December 2018 and the stock traded at a PE ratio of 51.690x. RMD’s shares traded at $15.050 (-2.652% intraday) with a market capitalization of circa $22.03 billion as on 10 December 2018. As the company has performed very well in the last quarter and the past share performance of the company is also good, investors should keep a close watch on this stock. Â

Webjet Limited (ASX:WEB)

Digital travel business company, Webjet Limited (ASX:WEB) recently completed the retail component of its fully underwritten 1 for 9 accelerated non-renounceable entitlement offer which represents the second stage of Webjet's A$153 million equity raising which was earlier announced on 5 November 2018. In the month of November, Webjet also completed its acquisition DOTW Holdings Limited, a leading independent B2B player of scale. In FY 2018, the Total Transaction Value (TTV) of the company increased by 54 percent to $3 billion, and the revenues of the company also increased by 54 percent to $291 million. In FY 2018, the company also completed the transformational acquisition of JacTravel. In FY 2018, the company witnessed growth in the total flight bookings which grew more than 3 times the market. In the last 6 months, the share price of the company decreased by 8.93 percent, however, in the last one year, the share has increased by 13.73 percent as on 7 December 2018 and traded at a PE ratio of 32.010x. WEB’s shares traded at $11.270 with a market capitalization of circa $1.56 billion as on 10 December 2018 (AEST 4:00 PM).

Bellamy’s Australia Limited (ASX:BAL)

Leading infant nutrition company, Bellamy’s Australia Limited (ASX:BAL) witnessed an increase of 37 percent in its product sales in FY 2018. The company also reported a 65 percent increase in the EBITDA of the company. However, in FY 2019, the company is expecting slower category growth and a more competitive trading environment which will impact the financial performance of the company. Further, there will also be a short-term trade-off to sales and profit in the first quarter of 2019. However, the company is expecting stronger performance in the second half of FY19 as the company is expected to return to normal trading and will implement key revenue initiatives in the second half.

Meanwhile, in the last six months, the share price of the company decreased by 55.66 percent as on 7 December 2018 and traded at a PE ratio of 19.390x. BAL’s shares traded at $7.350 with a market capitalization of circa $861.6 million as on 10 November 2018 (AEST 4:00 PM).


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