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Highlights
- HUB24 Ltd has experienced significant growth in 2024.
- Pilbara Minerals Ltd is off its 52-week low by 14.7%.
- Lithium demand remains strong, boosting PLS prospects.
The share prices of HUB24 Ltd and Pilbara Minerals Ltd have been attracting attention in 2024. HUB24, a major player in the wealth management software space, has seen impressive growth in its share price, while Pilbara Minerals has remained resilient despite fluctuating market conditions. Let’s dive into how these companies are performing and what their key business activities are.
HUB24 Ltd has seen its share price rise by 83.8% since the beginning of 2024. Founded in 2007, HUB24 offers software and platform services for financial advisers, superannuation funds, and investment managers. The company’s core products include HUB24, Class, and myprosperity, each catering to different aspects of wealth management.
HUB24 is designed for financial advisers and their clients, offering access to a wide variety of managed funds and investment products. Class is primarily used by self-managed superannuation funds (SMSFs) for portfolio management and compliance, while myprosperity provides accountants and advisers with tools to enhance client experiences through digital portals.
One of the key factors behind HUB24's growing share price in 2024 is its recognition for quality service. It has received multiple accolades this year, such as being named Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report and achieving high satisfaction ratings in the Wealth Insights Platform Service Level Report.
Pilbara Minerals Ltd (ASX:PLS)
Pilbara Minerals Ltd, a leading lithium company, has been a major player in the electric vehicle and renewable energy supply chains. The company owns and operates the Pilgangoora project, the largest hard-rock lithium operation in the world, fully acquired in 2014.
While Pilbara Minerals' share price is currently 14.7% above its 52-week low, the company continues to benefit from the global surge in demand for lithium. This demand is primarily driven by advancements in electric vehicles and green energy technologies. Pilbara’s core business involves mining and selling spodumene concentrate, a key source of lithium used in battery manufacturing. The company secures sales through long-term offtake agreements with major clients, including Great Wall Motors and POSCO.
However, Pilbara’s revenue remains vulnerable to the volatile nature of global spodumene prices, which can fluctuate based on market demand and supply conditions. Despite this, the long-term outlook for lithium remains strong due to its critical role in the transition to renewable energy.
HUB24 Valuation (ASX:HUB)
When evaluating the HUB24 Ltd share price, one metric often considered is its price-to-sales ratio. As of 2024, HUB24’s shares have a price-to-sales ratio of 16.32x, higher than its five-year average of 13.32x. This could indicate that HUB24 shares are trading at a premium, possibly due to increased revenue growth over recent years. However, it's important to note that relying solely on this metric without considering broader market conditions may not provide a complete picture of HUB24's valuation.
Both HUB24 and Pilbara Minerals have made significant strides in their respective sectors, with HUB24 benefiting from its innovative platform offerings and Pilbara Minerals capitalizing on the growing demand for lithium.
