Last week I had a look at the worst performing shares on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the last 12 months.
While those shares have been a big disappointment for their respective shareholders, the shares listed below have certainly made their shareholders smile.
Here's why they are the best performing shares on the benchmark S&P/ASX 200 over the last 12 months:
The a2 Milk Company Ltd (Australia) (ASX: A2M) share price rose to $5.67 today, bringing its 12-month return to an impressive 217%. Strong demand for its a2 Platinum infant formula in China has been largely to thank for this stellar performance. Strong sales into China led to a 55.8% jump in full-year company sales in FY 2017. Impressively, EBITDA grew at the even quicker rate of 158%. While I think a2 Milk could be a great buy and hold investment, I would suggest investors wait for an opportunity to get in at a better price.
The Costa Group Holdings Ltd (ASX: CGC) share price is up 73% in the last 12 months. The catalyst for this gain was an exceptionally strong result in FY 2017 from Australia's leading grower, packer, and marketer of fresh fruit and vegetables. Net profit after tax before SGARA and material items increased 37.3% to $60.7 million in FY 2017 thanks to a strong performance from its core produce segments and its avocado acquisitions. But with management expecting profit growth of circa 10% in FY 2018, I feel Costa's shares are a little expensive at 26x earnings. In light of this, I believe there are better opportunities elsewhere on the market.
The Qantas Airways Limited (ASX: QAN) share price has soared 82% higher since this time last year. This strong gain has been driven by a combination of factors ranging from low oil prices, bullish broker notes, and significant cost savings. I've been very impressed with Qantas' turnaround and believe it could still be a good option for investors, especially with tourism into Australia growing strongly. However, there is one key caveat. That is that oil prices remain favourable for the foreseeable future.
