How do you know if the bandwagon has left without you? And is it really ever too late to jump on it? These top 3 S&P/ASX 200 stocks are going gangbusters, but if you’re not already a shareholder, I don’t think now is the time to jump on board – although I admit, it looks tempting. REA Group Limited (ASX: REA) Multinational digital advertising business REA Group Limited is sitting pretty at an all-time high right now, with its share price at $89.82 at the time of writing. REA Group operates residential and commercial property websites such as the popular…
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How do you know if the bandwagon has left without you?
And is it really ever too late to jump on it?
These top 3 S&P/ASX 200 stocks are going gangbusters, but if you’re not already a shareholder, I don’t think now is the time to jump on board – although I admit, it looks tempting.
REA Group Limited (ASX: REA)
Multinational digital advertising business REA Group Limited is sitting pretty at an all-time high right now, with its share price at $89.82 at the time of writing.
REA Group operates residential and commercial property websites such as the popular realestate.com.au, with similar offerings across Europe, but if you like the fundamentals of the stock and are looking for a well-priced buy in I would argue that now is not the time.
Sentiments are high for REA Group at the moment after the company reported strong third quarter results including a 20% increase in revenue to $592 million and a 21% increase in EBITDA to $345 million.
Investors are buoyed by REA’s continued ability to outpace competitors like Domain Holdings Australia Ltd (ASX: DHG) and SEEK Limited (ASX: SEK) and with a share price rally going on at present it might be a good idea to hold fire for the time being and wait for a share price dip before you trade your hard-earned dollars for a slice of the pie.
Some brokers have sell ratings on the stock with the belief its current price is “expensive” but with stronger than expected third quarter results it’s hard not to get excited about the company going forward despite its high P/E multiple.
One to watch for a better-priced buy in.
CSL Limited (ASX: CSL)
Biopharmaceutical company CSL Limited has been kicking goal after goal in the last 12 months, with plenty of wins for its global manufacturing operations and share price gains of 32% to its May 15 close of $177.56 from $134.30 at this time last year.
CSL is up 1.2% to $179.83 at the time of writing.
CSL’s product suite includes pharmaceuticals to prevent and treat coagulation disorders, viral and bacterial diseases and bleeding disorders, so while it’s unlikely there will be a decrease in demand for its offerings, it’s unlikely the company can continue to keep pace with the growth pattern that has become the expectation of investors.
With the share price at a 52-week high at present I certainly wouldn’t be considering a buy in just yet, but it’s a tough one to resist with no real news on the announcement front to indicate any difficulties being faced by the company.
Cochlear Limited (ASX: COH)
Implantable device giant Cochlear Limited is another stock in the booming healthcare space that is hard to ignore, given its current share price of $197.98 in 52-week high territory not to mention a product offering that meets one important need of the world’s ageing population.
But I would argue now is not the time to jump on the Cochlear bandwagon.
The stock took a plunge down to $140.15 back in early August 2017, and while it has climbed steadily since, investors considering a buy in need to watch for these types of dips to jump.
Cochlear’s 5-year share price graph shows a nice steady upward movement, but the old adage of buy on a low, sell on a high still applies, even for these monster growth shares that can’t seem to put a foot wrong.
I get that a company distributing incredible products across 20 countries is highly attractive to an investor, but if this one is on your watchlist, bide your time and look for an in that you can be proud of having snagged later on down the track.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd., REA Group Limited, and SEEK Limited. 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.