In these uncertain times, the most common question that comes into the mind of investors is “What are the best and worst performing stocks of the year?”
If we look at S&P/NZX50, it has performed well and has increased by 5.91% as on May 17, 2020. Here, in this article, we are going to look at the best and worst performers of the year.
The fifth top performer of the year was Spark New Zealand Limited (NZX: SPK), which increased by 24.08% during the year to May 17, 2020. The company is moving towards the second half with great force and some extraordinary performances across core divisions. It has surpassed growth targets in mobile, with a shift to high value and unlimited plans. For FY20, the company has given EBITDAI guidance of $1,100 million to $1,120 million, and capital expenditure is expected to be around $370 million.
The fourth top performer of the year to May 17, 2020 was NZX Limited (NZX: NZX), which increased by 32.08%. For the quarter ended 1QFY20, the company reported annual listing fees of $2.7 million, up by 6.0% from 1QFY19. The primary listing fees and secondary issuance fees saw a major decline with both declining by -72.3% and -22.5%, respectively. Despite these factors, there was a strong growth in total secondary markets revenue, which was up by 45.9% to $5.08 million. The total operating revenue also increased by 18.0% to $18.5 million. In the release dated March 23, 2020, NZX confirmed that the capital markets, as an essential service to NZ, would be fully operational.
The third top performer of the year was Restaurant Brands New Zealand Limited (NZX: RBD), which increased by 35.87% during the year to May 17, 2020. For the first quarter of financial year, the company reported total sales of $200.1 million, an increase of $10.0 million or 5.3% as compared to corresponding period last year.
The second-best performer of the year was Pushpay Holdings Limited (NZX: PPH), which increased by 77.27% during the year to May 17, 2020. For the full year ending 31st March 2021, the company expects to achieve EBITDAF of between US$48.0 million and US$52.0 million. The company has increased EBITDAF for the year to March 31, 2020 by US$23.5 Mn from US$1.6 Mn to US$25.1 Mn, which implies a rise of 1,506%. The company has managed to achieve total processing volume guidance for the year to March 31, 2020, increasing total processing volume by US$1.4 Bn, from US$3.6 Bn to US$5.0 Bn, which reflects a rise of 39%. PPH increased the total revenue for the year to March 31, 2020 by US$31.4 Mn from US$98.4 Mn to US$129.8 Mn, which implies an increase of 32%. Notably, the company’s operating revenue rose by US$31.6 Mn from US$95.9 Mn to US$127.5 Mn, reflecting a rise of 33%.
The best performing stock of the year was Fisher & Paykel Healthcare Corporation Limited (NZX: FPH), which increased by 87.69% for the year to May 17, 2020. The demand for the company’s respiratory humidifiers and consumables has increased globally as these are directly required for treating patients with coronavirus. It has also increased its manufacturing output. FPH added that it benefited as a result of weakening of New Zealand dollar and stronger sales in Homecare product group.
Now as we now know the best performers of the year, let us talk about the five worst performers of the year to May 17, 2020.
The fifth position in the list is of New Zealand Refining Company Limited (NZX: NZR) as the stock price witnessed a decline of 62.02%. The company has recently made an announcement that it has extended as well as expanded existing bank facilities, increasing weighted average term to more than 3 years and adding $50 Mn of the additional capacity.
Tourism Holdings Limited (NZX: THL) witnessed a fall of 65.61%. The company’s rental businesses in Australia, New Zealand, and the United States, were considered as an essential service to provide motorhomes for COVID-19 related usage. The company has been serving its customers which are in lock-down situations in its vehicles. Many employees have either been placed on the discretionary leave, been furloughed, left the business or similar.
Sky Network Television Limited (NZX: SKT) fell by 71.31% in the year to May 17, 2020. The company comes under “Essential Services” provider with its news and entertainment content delivered to New Zealanders over its reliable satellite platform. The company has, however, withdrawn its Revenue and EBITDA guidance for FY20 due to uncertainty surrounding the Covid-19 outbreak. The company has been taking decisive actions like reduction of the operating expenses, deferring of non-essential capital projects and implementing travel as well as hiring freeze.
Vista Group International Limited (NZX: VGL) declined by 72.50%. Recently, the company completed its NZ$25 million underwritten placement and the institutional entitlement offer component of its fully underwritten 1 for 4.37 pro-rata accelerated entitlement offer. The company added that total of approximately NZ$65 Mn would be raised under placement as well as entitlement offer.
Gentrack Group Limited (NZX: GTK) declined by 74.78% during the year. The company has confirmed half year EBITDA guidance in between NZ$2 million to NZ$3 million and has also confirmed its decision to withdraw full year guidance due to ongoing uncertainty related to the scale and duration of the coronavirus outbreak.