The Yowie Group Ltd share price rockets 18%: Time to buy?

The Yowie Group Ltd (ASX:YOW) share price has rocketed 18% today. Is it time to buy the confectionery company's shares?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One huge mover on the Australian share market today has been the Yowie Group Ltd (ASX: YOW) share price.

In afternoon trade the confectionery company's shares are up a massive 18% to 45 cents on huge volumes.

With no meaningful news out of the company since the beginning of the month, today's move certainly comes as surprise.

But with its shares still down by around a third since the turn of the year, it would appear as though some investors think it has fallen into bargain territory.

Is it a bargain buy?

It could well be. At the start of the year I was impressed with Yowie's half-year report which revealed a 70% jump in sales to US$9.3 million.

Impressively management expects sales growth to accelerate to between 85% and 90% for the full-year.

Whilst this is slightly slower than originally forecast due to delays in shipments and products launches, it is still an incredible level of growth that even fellow fast-growing consumer staples companies a2 Milk Company Ltd (Australia) (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE) would be envious of.

A key driver of this revenue growth could be its return to the Australian market next month, just in time for Easter.

Whether or not the product makes a successful return to Australia only time will tell, but if it does then I think both sales and its share price could get a significant boost.

With that in mind I think it would be well worth adding Yowie to your watch list today.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »