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4 stocks soaring on the ASX today

Credit: Jim Frazier

The ALL ORDINARIES (Index: ^AXJO) (ASX: XJO) has closed down 0.6% at 5,245.20, its second losing day in a row as most of the top 20 stocks ended in the red.

However, a number of companies saw their share prices surge higher today. Here’s our view on four of them.

Netcomm Wireless Ltd (ASX: NTC) saw its share price rocket up more than 31% to $3.49, after announcing that it had signed an agreement with an undisclosed ‘large USA-based telecommunications carrier’. Netcomm will supply the fixed wireless devices for the rural broadband network being built by the US carrier. The company had touted the promise of its devices, describing the outlook as ‘extremely good’ at its recent AGM. Despite the 600% plus gains since the start of this year, more could be on the way.

Lynas Corporation Limited’s (ASX: LYC) share price gained 20% to $0.12, as the rare earths producer continues to enjoy a rare period of positive news flow. Several factors have led the company to report its first quarter of positive cash flow, despite record-low commodity prices. We covered the factors in more detail here.

Technology One Limited (ASX: TNE) saw its share price jump 8.2% to $4.36, after posting a record profit result for the 2015 financial year yesterday. Not only was it a record, but it was also the twelfth consecutive year of record revenue. Technology One has clearly had an outstanding year, and is one of Australia’s highest-rated software companies – no wonder it boasts a P/E ratio of around 42x!

McMillan Shakespeare Limited (ASX: MMS) share price gained 7.6% to $13.37, after the salary sacrifice, fleet management, and insurance company was raised to ‘Buy’ by investment bank Goldman Sachs. Analysts say that McMillan is cheap trading on a P/E ratio of 12x 2016 financial year earnings – and a 20% discount to its peers – despite offering strong earnings growth of 12% over the next two years.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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. 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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