Much to the delight of Australian investors, a good number of shares have just hit new highs. Below are three others which caught my eye, is it too late to snap up shares?
The Cochlear Limited (ASX: COH) share price hit a new all-time high of $149.33 on Wednesday. Investors have been fighting to get hold of the hearing implant manufacturer’s shares following a business update at its analyst day earlier this week. Despite a spot of weakness in the China market, management reiterated its full-year earnings guidance of between $210 million and $225 million. This will be an increase of between 10% and 20% on last year’s result. Whilst I think Cochlear is one of the highest quality companies on the ASX, at 41x trailing earnings I would suggest investors hold out for a better entry point at a cheaper price.
The SEEK Limited (ASX: SEK) share price climbed to a 52-week high of $18.24 yesterday. Like Cochlear, SEEK’s shares have had a strong start to the month after management reiterated its full-year earnings guidance. For FY 2017 management expects earnings of between $215 million and $220 million, a solid increase on a year earlier. Furthermore, management advised that its China-based Zhaopin business continues to go from strength to strength. In my opinion it is the significant potential of this business that still makes it a great buy and hold investment option today.
The Treasury Wine Estates Ltd (ASX: TWE) share price rose to an all-time high of $12.98 this week, which means that the global wine company has seen its shares rise a massive 21% year-to-date. Investors appear to have been very impressed with its half-year results which revealed a stunning 132% increase in net profit after tax to $132 million. Much like Cochlear, I think Treasury Wine Estates is a fantastic company, but after such a strong rally I would be hesitant to buy its shares today. I think investors may be better off waiting for a better entry point.
Here are three more shares which I think could be destined to make new highs later this year. Do you own them?
For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..
But knowing which blue chips to buy, and when, can be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."
Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.
If you’re expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you’ll be sorely disappointed. Not only are their dividends growing at a snail’s pace, their profits are under pressure too due to the increasing competitive environment.
The contrast to these “new breed” blue chips couldn’t be greater… especially the very real prospect of significant share price gains, something that’s looking less likely from the usual blue chip suspects.
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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.