SKT, PGG, MHJ: How are these 3 NZX growth stocks performing in 2022?

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SKT, PGG, MHJ: How are these 3 NZX growth stocks performing in 2022?

 SKT, PGG, MHJ: How are these 3 NZX growth stocks performing in 2022?
Image source: © Artistashmita | Megapixl.com

Highlights

  • Growth stocks are expected to grow at a rate significantly above the average growth for the market.
  • Growth stocks are likely to grow in the near future, but such investments also carry high risks.
  • Sky Network, PGG Wrightson and Michael Hill are some of the stocks that have shown growth potential.

Growth stocks are stocks that are expected to grow at a rate considerably higher than the average growth rate for the market. These stocks exhibit high potential for development and involve finding stocks based on the long-term expansion ability of the business.

These companies provide returns faster than peers, providing them a competitive advantage over others. Growth stocks can generate substantial profits in the long term and can provide an attractive investment alternative.

Amid this backdrop, let’s look at how these 3 stocks are doing.

Source: © Skypixel | Megapixl.com

 

Sky Network Television Limited (NZX:SKTASX:SKT)

Sky network is an NZ-based media firm providing sports and entertainment media services.

Sky Network registered over a 4% increase in revenue to $371 million and an NPAT of $28.3 million for the 6 months to 31 December 2021. Its customers grew 6% to 983,561 and achieved substantial permanent cost savings in the period.

Sky Network noted on 15 June that it had stopped talks to assess the possible purchase of MediaWorks Holdings. It has been searching for alternatives to give back capital to investors and fast-track organic investment to propel growth.

The Group will provide its FY22 results on 25 August. It plans to deliver revenue between $725 to $745 million and EBITDA between $150 to $160 million for FY22.

 

PGG Wrightson Limited (NZX:PGW)

NZ-based agri company PGG Wrightson posted robust results in FY22, delivering a 20% rise in operating EBITDA and an 11% rise in revenue. The Group launched a strategy reset and outlined PGW’s strategic priorities.

The Group has a positive outlook for the NZ agricultural and horticultural sectors.

On the back of strong performance, PGG lifted its operating EBITDA from $62 million to near $66 million for FY22. However, there remains uncertainty regarding future COVID-19 variants, supply chain disruptions, etc.

 

Michael Hill International Limited (NZX:MHJASX:MHJ)

NZ-based jewellery retailer Michael Hill registered a strong and resilient Q3 with store sales surging 11.1% and same store sales increasing 4.8% in the quarter compared to previous year.

It also declared the sale of its Canadian credit receivables to a Canada-based consumer credit supplier, Flexiti Financial Inc, for AU$12 million recently.

MHJ continues to place a strong emphasis on enhancing its loyalty program, exploring digital expansion prospects and plans to remain focused on delivering on its strategic priorities.

 

Bottom Line

Growth stocks are likely to grow in the near future, but such investments also carry high risks.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

 

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