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Why Bapcor Ltd & Challenger Ltd are among 3 stocks soaring on the S&P/ASX 200 today

Positive quarterly results have helped to lift the Australian market higher today and these three stocks are kicking goals on the S&P/ASX 200 gains list.

Here’s why.

Bapcor Ltd (ASX: BAP)

Australian automotive parts trade company Bapcor Ltd is at the top of the S&P/ASX 200 gainers list at the time of writing with its shares up 6.1% to $6.35.

The company has been attracting attention from all the right places in recent times with Morgan Stanley placing an overweight rating on the stock with a $7.00 price target earlier this month, as Bapcor asserts itself as resilient to overall economic uncertainty due to a stability in demand for its products.

Bapcor has announced it will open its first store in Asia this month with four others expected in the Asian market before the end of the calendar year, with its share price jumping more than 17% in the last 12 months from $5.35 at this time last year.

It is thought Bapcor’s sales results will remain strong regardless of the threat of electric cars on the horizon as electric cars require less parts, but as the growth rate of registered vehicles continues to rise so too should demand for aftermarket parts that Bapcor can provide.

There have been few share price slumps from Bapcor of late for investors looking for an entry opportunity, but the company still appears to have plenty of growth left on the horizon for the time being.

Challenger Ltd (ASX: CGF)

Investment management firm Challenger Ltd is enjoying its time on the top of the S&P/ASX 200 gainers list today with shares up almost 7% to $12.20 at the time of writing after a steady downturn for the stock in the last 6 months.

Challenger yesterday gave a presentation at a Macquarie Group Ltd (ASX: MQG) conference detailing how its assets under management (AUM) grew by 3% over the recent quarter to $78.6 billion, with the company focused on leveraging the superannuation space and growing number of ageing Australians with demand for its services.

Challenger’s life net book experienced growth of 74% on the previous quarter to $629 million, but total life sales were down 13% on the previous corresponding period to $1.1 billion.

There’s no doubt Challenger has some good momentum at the moment as it pushes forward with its business diversification strategy and with an increase of $12 billion AUM in the past year shareholders look to be in good hands for netting decent returns.

Bellamy’s Australia Ltd (ASX: BAL)

Shares in Tasmania-based baby food and formula company Bellamy’s Australia are back in the familiar territory of the S&P/ASX 200 gains list today, after a downturn in share price from its March high of $22.56 to sit at a high of $19.19 at the time of writing – up 3.2%.                                                                                                                            

Bellamy’s is right at home on the gainers list, after the unprecedented growth over the past 12-months, with today’s share price up 241% on its $5.63 share price at this time last year.

Several other ASX-listed companies are attempting to ride the baby formula boom with A2 Milk Company (ASX: A2M) seeing plenty of success in the space of late, as more speculative players like Chinese-focused trader Jatenergy Ltd (ASX: JAT) tries its hand, with Clover Corporation Ltd (ASX: CLV) the new kid on the block.

If you’ve not done your due diligence into the infant formula market, now might still be a good time to buy, with plenty of big-name brokers still backing the investment theme for some time to come yet.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor and Challenger Limited. The Motley Fool Australia owns shares of A2 Milk. 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 Scott Phillips.

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