The Motley Fool

Why these 4 ASX shares crushed the market in January

It has been a bit of a mixed start to the year for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). As of yesterday’s close the benchmark index had declined by 0.3% since the start of the year.

Despite this the four shares listed below haven’t let it stop them from pushing higher. Here’s why they’ve smashed the market so far this year:

Bega Cheese Ltd (ASX: BGA)

This dairy company has seen its share price rise by a massive 26% year to date thanks largely to the market’s positive reaction to the acquisition of a number of brands including the iconic Vegemite brand from Mondelēz. The $460 million acquisition is expected to be significantly accretive to earnings by contributing between $40 million and $45 million in EBITDA in the next 12 months. At around 10.2x EBITDA, I feel Bega has paid a fair price.

Liquefied Natural Gas Ltd (ASX: LNG)

This LNG producer’s share price has climbed a remarkable 33% so far this year. Although the majority of these gains came earlier in the month without explanation, its shares were given an additional boost yesterday after a major announcement. The company has signed a long-term agreement to supply the Indian market with 4 million metric tonnes of LNG per annum.

Saracen Mineral Holdings Limited (ASX: SAR)

Year to date this gold producer has gained 18%. As well as receiving a boost from the recovery in the gold price, Saracen’s share price jumped after it announced record quarterly gold production. Not only did the company report that it is on course to smash its production guidance for the year, but it also managed to reduce all-in sustaining costs by 4% to A$1,095 an ounce. If the gold price holds steady then Saracen could be a great option for investors. But that is a big if in my opinion.

Think Childcare Ltd (ASX: TNK)

Last year this childcare operator saw its shares rise by an astonishing 127%. With its shares already up 17% year to date, the momentum appears to have carried over into 2017. I can’t say I’m too surprised considering its strong half-year result which saw earnings per share increase 42% over the prior corresponding period. With its shares trading at 15x trailing earnings Think Childcare appears to be great value. However, with the majority of its earnings generated in the second half, investors may want to hold off an investment until those results are announced next month.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro 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.

Related Articles...

Latest posts by James Mickleboro (see all)