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Highlights
- Zip Co Ltd share price has surged 348.4% since the start of 2024.
- Coles Group Ltd share price is 22.1% above its 52-week low.
- Both companies showcase strong growth potential and stability.
The financial landscape is buzzing with activity as Zip Co Ltd and Coles Group Ltd have recently made headlines for their impressive performance in 2024.
Zip Co Ltd (ASX:ZIP)
Founded in 2013, Zip Co is a prominent financial technology company that has made a name for itself in the buy-now-pay-later (BNPL) sector. The company offers consumers the convenience of making purchases immediately and repaying them through interest-free instalments. In addition to serving retail customers, Zip provides trade accounts for businesses, facilitating working capital and financing for larger purchases.
Zip operates on a global scale, partnering with over 38,500 retailers and catering to approximately 5.7 million customers. In a strategic move to expand its presence in the U.S. market, Zip acquired the BNPL company Quadpay in September 2020. This acquisition has bolstered Zip's reputation as a major player in the financial technology arena.
Coles Group (ASX:COL)
Coles Group Ltd is a leading Australian retailer, offering an extensive range of everyday products, including fresh food, groceries, general merchandise, liquor, fuel, and financial services. Established in 1914 in Victoria, Coles has a rich history and has evolved significantly since its spin-off from Wesfarmers in 2018, when it began trading as a separate entity under the ticker symbol COL.
Coles dominates the Australian grocery market with a share of approximately 28%. While often viewed as a counterpart to Woolworths, Coles has carved out its niche, managing to establish itself as a reliable dividend payer while continuing to thrive in the competitive retail landscape.
Zip Co Ltd Valuation Insights
For growth-oriented companies like Zip, examining the price-to-sales (P/S) ratio can provide valuable insights. Currently, Zip Co Ltd shares have a P/S ratio of 3.51x, notably below its five-year average of 5.81x. This trend may suggest that the share price has declined or that sales have experienced significant growth. In the case of Zip, revenue has indeed been on an upward trajectory over the past three years, indicating strong business performance.
Coles Group Dividend Yield
In assessing the value of Coles, the trailing dividend yield serves as a useful metric. Coles offers a dividend yield of approximately 3.76%, consistent with its five-year average. This stability suggests that Coles continues to reward its shareholders, with last year’s dividend surpassing the three-year average, indicating growth in dividends.
Zip Co Ltd and Coles Group Ltd exhibit impressive performance and growth potential, making them noteworthy companies to track in 2024.
