These 3 ASX shares smashed the market in January

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) didn’t have a great start to the year and finished the month lower by about half a percent at 6,037 points.

Three shares in particular didn’t let this hold them back. Here’s why they smashed the market and posted strong gains in January:

The Auscann Group Holdings Ltd (ASX: AC8) share price finished the month with a gain of almost 104%. AusCann was given a major boost early on in the month when the Federal Government changed regulations to allow companies to export medicinal cannabis. Many believe that AusCann will be a big winner from the change due to its growing capabilities and strong ties with Canadian cannabis giant Canopy Growth Corp. I can’t say I’m surprised by this gain, AusCann is arguably the best-positioned medicinal cannabis company in Australia. Though it is early days.

The Bellamy’s Australia Ltd (ASX: BAL) share price ended January with a gain of 42%. On January 15 Bellamy’s surprised the market with yet another profit guidance upgrade, sending its share price surging higher. The infant formula company increased its revenue growth guidance from between 15% and 20% to an improved revised target of 30% to 35%. Furthermore, it increased its EBITDA margin guidance from the old target of 17% to 20% to the new range of 20% to 23%. I’ve been very impressed with the Bellamy’s turnaround and think it could still be a great investment option even after its strong run.

The Lovisa Holdings Ltd (ASX: LOV) share price climbed over 14% during January thanks to a positive trading update. That update revealed that first-half sales for the six months ended 31 December 2017 were up 18.8% on last year and up 7.4% on a comparable store basis. In light of this, the company expects first-half EBIT to be in the range of $34.5 million and $35 million. This will be a lift on the prior corresponding period of between 22% and 24%. Lovisa would arguably be my favourite retail share at the moment and one that I believe has significant growth potential. Especially if its expansion into the United States is a success.

Looking for February's market-beaters? These high-flying blue chip shares could be them.

Top 3 ASX Blue Chips To Buy In 2018

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Motley Fool contributor James Mickleboro has no position in any of the 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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