On a tough day for the Australian stock market, during which the S&P/ASX 200 (INDEXASX: XJO) has tumbled more than 0.7%, not even shares in Veda Group Ltd (ASX: VED) have been spared. The stock is currently trading 5 cents or 2.1% lower at $2.34.
Today's drop can almost certainly be attributed to profit taking after six weeks of solid gains. Since bottoming out at $1.83 in mid-July, the data analytics group has risen a remarkable 28%. In fact, it has jumped 14% in the last week-and-a-half alone following a rather impressive set of full-year results.
As it stands, the company is trading on a P/E ratio of 32 with a market capitalisation just over $2 billion. Although that lofty valuation seems more than justifiable considering the strong growth prospects of the company. Not only does it maintain a monopolistic position in a fast growing market, Veda is also set to benefit from the shift to comprehensive credit reporting, which should help grow revenues considerably over the coming years.
Another great ASX growth stock – yours FREE!
Veda Group is a great option for investors wanting to buy a high-quality company trading at a reasonable price.
