Data analytics company Veda Group Limited (ASX: VED) has been one of the market's strongest performing stocks today, having climbed 9c or 4.4% higher. In comparison, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has risen just 0.5% for the day.
Although the company has not released any news which would explain today's pop, there are other reasons that could have caused the movement – the most obvious of which was one of the reasons I chose Veda as my top stock pick for June.
Despite the company's strong track record for increasing revenue and earnings each year, investors have chosen to turn their back on the stock in recent months, sending it plummeting almost 21% from $2.55 to just $2.02 yesterday.
Although the stock has risen today and is still trading on a P/E ratio of 28.8, I believe it still presents as excellent value for investors. With credit growth continuing to increase throughout Australia, thanks to the low interest rate environment, demand for the company's products should remain strong.
An even better ASX stock…
As strongly as I am considering buying Veda Group for my own portfolio, there is another stock I can't seem to look past – and it's one that I already own! The company's share price has fallen marginally over the last month or so and, given its excellent long-term potential and fantastic fully franked dividend, I can't help but think I should be buying more…
