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Summary
- Tech and gold stocks have been creating a buzz in the global financial markets, on the back of recent favourable developments.
- Tech stocks like Afterpay Limited, Xero and Nearmap have recently registered fresh highs in their share prices.
- Gold stocks like Newcrest Mining and Saracen Mineral have performed strongly due to their robust operational as well as financial performance during FY20.
- It looks like investors are responding positively to the developments across tech and gold companies.
A lot of buzz has been doing rounds across financial markets worldwide regarding the spellbinding growth in tech and gold stocks. The sky-high prices of gold and growth across tech businesses have resulted in thick and fast growth in several ASX 200 darling shares, knocking everybody’s socks off.
Recently, tech giant, Apple Inc. (NYSE:AAPL) cracked the $2 trillion market capitalisation, becoming the most valuable tech company across the globe. In another big news, Tesla share price crossed $2,000 per share for the first time, ahead of its planned stock split.
Moreover, gold prices have been setting fresh records, on the back of strong net-inflows in gold-backed ETFs by investors looking for safe haven.
On 21 August 2020, when S&P/ASX 200 slipped by 0.14%, S&P/ASX 200 Information Technology (Sector) gained 0.32%, defying the uncertainty surrounding COVID-19.
Let us look at few ASX 200 Market Darling Shares from the tech and gold sectors.
Afterpay Limited (ASX:APT)
For the past few months, ASX-listed BNPL giant, Afterpay Limited (ASX:APT) has been one of the favourite stocks of investors. Moreover, the exciting growth achieved by APT in the times dominated by COVID-19 shows that the Company holds all the aces.
On 20 August 2020, APT share price zoomed to record fresh 52-weeks high price of $82.000, primarily on the back of its updated guidance.
- As compared to expectations at the time of July trading update of up to 0.55% of underlying sales, unaudited net transaction loss for FY20 as a percentage of underlying sales is now anticipated to be around 0.38%.
- Unaudited FY20 net transaction margin as a percentage of underlying sales (at approximately 2.25%) and EBITDA (excluding significant items) (at approximately $44 million) is anticipated to be greater than the July Trading Update.
On 21 August 2020, the APT share price was noted at $78.950 with a market capitalisation of $ 22.4 billion. During the last one year, APT has delivered a return of more than 228%.
Interesting Read: ASX 200 Corner: Why investors can't get enough of Afterpay share price bump
Xero Limited (ASX:XRO)
Another tech player that registered fresh high was Xero Limited (ASX:XRO).
During the day on 21 August 2020, the stock surged to a high of $97.150 and settled at $97.000, up 2.331% intraday. XRO has a market capitalisation of $13.49 billion and has returned 54.93% gains to its shareholders in the last one year.
Despite the headwinds due to COVID-19, XRO’s operating revenue increased by 30% to NZ$718.2 million for FY20 ended 31 March 2020 as compared to FY19. There was a modest impact of COVID-19 on Xero’s operating and financial performance for the year, as the restrictions eased late in FY20.
In addition to this, net profit improved by NZ$30.5 million over a net loss of NZ$27.1 million and stood at NZ$3.3 million for FY20 and EBITDA of NZ$137.7 million represented an improvement of 88% compared to FY19.
Related: Did you Miss the Tremendous Boost in Value for this ASX 200 Tech Star – WiseTech Share Price
Nearmap Ltd (ASX:NEA)
Perth-based ASX 200 technology company, Nearmap Ltd (ASX:NEA) is a junior online start-up that aims to emerge as a next-gen digital content leader.
The share price of NEA recorded fresh 52-weeks high of $3.140 on 20 August 2020, on the back of announcement regarding financial results for FY20.
NEA reported 25% growth in its statutory revenue that stood at $96.7 million on pcp, and highlighted that the Company is well-positioned to progress robust growth trajectory in FY21.
Notably, Nearmap’s unique technology and subscription business model has not been reproduced by any other aerial imagery company at scale. This offers NEA a lucrative opportunity to emerge as a worldwide leader in offering subscription-based location intelligence, according to CEO and Managing Director, Dr Rob Newman.
The rally continued, and NEA share prices zoomed by 10.246% and last quoted at $2.690 with a market capitalisation of $1.11 billion on 21 August 2020. During the last three months, NEA increased by 45.01%.
Related: Gold Rush and Gold Outperformers- Northern Star, and Newcrest Mining
Saracen Mineral Holdings Limited (ASX:SAR)
All-Australian gold growth company, Saracen Mineral Holdings (ASX:SAR) reported 47% growth in gold production to a record 520,414oz for the year ended 30 June 2020. Moreover, underlying NPAT was up by 173% to a record A$257.5 million on pcp while EBITDA was up 104% to a record A$447.6 million.
At an average price of A$2,138/oz, gold sales increased to 528,693oz and AISC remained relatively steady at A$1,101/oz.
Notably, 93% growth was noted in revenue to A$1,074 million, and SAR believes that the results indicate the successful transition of the Company to the big league of ASX gold producers. Moreover, the cashflow and strong balance sheet are expected to support growth through exploration and development and aid forthcoming increases in production.
SAR share price was noted at $5.400 with a market capitalisation of $6.06 billion on 21 August 2020. Since 02 January 2020, SAR shares have delivered more than 62% returns to its shareholders.
Interesting Read: ASX 200 Gold Stocks on Bourses Supporting Gold Rally
Newcrest Mining Limited (ASX:NCM)
One of the world's largest gold miners listed on ASX, Newcrest Mining Limited (ASX:NCM) has the Wilki Farm-in Project with Antipa Minerals Limited, which released an update concerning the Wilki Farm-in Project 2020 Exploration Programme, consisting of two phases of greenfield exploration.
AEM surveys have led to several significant discoveries in the Paterson Province by identifying conductors representing gold and/or copper mineralisation. Moreover, three high priority targets have been identified through preliminary processing and review of initial AEM survey.
The Phase 2 greenfield exploration programme is expected to be completed during the current calendar year, upon receiving appropriate approvals.
During FY20, NCM delivered a solid performance and produced 2.2 million ounces of gold at an AISC of $862 per ounce with free cash flow generation remaining strong at $670 million.
Notably, NCM also increased its dividends to shareholders for the fifth consecutive year, on the back of strong operational and financial performance, robust balance sheet and outlook.
Related: ASX 200 Stocks and the Play around Dividends: WES, PPT and CHC share prices
NCM share price quoted at $33.020 with a market capitalisation of $27.15 billion on 21 August 2020.
Bottomline
Overall, we are witnessing robust performance across key ASX 200 tech and gold stocks. The strong operational as well as financial performance of these companies seems have gained attention of investors and looks like investors are defying the uncertainty surrounding COVID-19.
(All currencies in AUD unless or otherwise stated)
