Why these 4 shares are surging higher today

Credit: Yoshi Mohri

The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has today broken its recent winning streak to trade 0.42% lower to 5349 points.

Weak offshore leads haven’t been enough to stop these four shares though:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat shares have surged more than 11% today after the company released a better-than-expected first half earnings update. The poker machine maker expects to report net profit after tax and amortisation (NPATA) of around $183 million – an increase of 66% over the prior corresponding period (pcp). The better-than-expected result has been driven by ‘significant share and profit growth across core markets and segments’. The company expects profits in the second half of FY16 to be broadly in line with the first half.

Shares of Aristocrat have performed extremely well over the past 12 months and have risen by nearly 44%.

Myer Holdings Ltd (ASX: MYR)

Myer shares are enjoying a positive day today with a 7.5% gain to $1.20 per share. The department store operator announced better-than-expected third quater sales with same-store-sales growth of 3.4% over the pcp. Its year-to-date same-store-sales also showed improvement and increased by 3.3% over the first nine months. Despite improving sales, Myer also warned of weakening consumer sentiment as a result of the lengthy Federal election campaign and subdued sales as a result of warmer than normal weather. Myer did, however, re-affirm its FY16 full year profit guidance of $66-$72 million.

Myer shares have fallen 14% over the past 12 months.

Credit Corp Group Limited (ASX: CCP)

Shares of Credit Corp have gained more than 5% today after the company provided updated guidance to the market. Although the debt collector re-affirmed its earnings per share (EPS) guidance of 95-97 cents for FY16, many investors would have been pleased with the improved growth outlook for FY17 and beyond. The company expects consumer-lending volumes to increase and anticipates further purchasing of debt ledgers in both Australia and the US. Importantly, Credit Corp expects its US operations to become monthly breakeven by mid-FY17 if it can continue to buy debt ledgers at current prices.

Shares of Credit Corp have gained nearly 3% over the past 12 months.

Fairfax Media Limited (ASX: FXJ)

Shares of Fairfax have jumped 8% today to trade at 93 cents a share. Credit Suisse has upgraded the media company and slapped a $1.10 price target on it. The shares have now gained around 15% since media speculation began regarding a merger between the New Zealand operations of Fairfax and APN News and Media Limited (ASX: APN). The potential merger was confirmed yesterday and the broker believes this could set a path for Fairfax to completely exit New Zealand and reduce its print exposure, which could then potentially unlock the value of its successful Domain business.

Despite the recent rally, Fairfax shares have lost more than 9% over the past 12 months.

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Motley Fool contributor Christopher Georges has no position in any stocks mentioned. 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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