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Why these 4 ASX stocks are soaring higher today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lifted 0.4% today, although the below companies heavily outpaced that return for a variety of reasons. Let’s take a look at what may be behind the price moves of some of today’s big gainers.

A2 MILK FPO NZ (ASX: A2M) sells milk that only contains the a2 protein that reportedly suits the digestion of certain consumers more than traditional milk that contains the a1 protein. Sales of a2 milk have been growing strongly in Australia, however, it’s the growth of the a2 infant formula business that has boosted the outlook and recently resulted in a profit upgrade. Today the stock climbed 12% as a result of its position in the middle of the baby-formula boom.

Woolworths Limited (ASX: WOW) operates the eponymous supermarkets, but it’s media reports that private equity giants might be interested in its discount retailer Big W that have sent the stock higher. The shares are up 3.9% today, although they remain down 22% over the past year and given the multiple problems the stock looks one to avoid for now.

Fortescue Metals Group Limited (ASX: FMG) is the debt-laden iron ore miner that has been working hard to reduce costs and debt in an attempt to survive tumbling iron ore prices. Today the stock climbed 4.3% to $2.18 as investors constantly reassess its potential to fly or flop with iron ore prices remaining volatile. The company plans to move down the global cost curve of iron ore miners as the reality of a lower-for-longer iron ore price kicks in and if successful it may yet have some legs in it yet.

Adacel Technologies Limited (ASX: ADA) climbed 13.1% today despite releasing no news to the ASX. The company provides aviation-related services and products used across the US, Europe and Asia, with this financial year’s profit now expected to be 50% above last year’s result. The stock has nearly increased seven-fold over the past year from 25 cents to $1.70 and looks one to watch as with a market cap around $120 million it’s still a small company with potential to fly higher.

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

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.

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