Why the WiseTech Global Ltd (ASX:WTC) share price has soared 41%

The WiseTech Global Ltd (ASX:WTC) share price has been a top-performer this past month

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The WiseTech Global Ltd (ASX: WTC) share price has been the top-performing share from the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the past month, according to data from S&P Global Market Intelligence.

That will come as great news for long-term shareholders who remained faiuthful to the business following WiseTech's interim results announcement in February.

From a high of $16.27, the shares dipped as low as $9.22 in April. Since then they have rebounded more than 53%, with a 41% gain in the past 30 days alone.

WiseTech, which has a market capitalisation of $4.3 billion, is a software-as-a-service (SaaS) business that provides mission-critical software to the logistics services industry. Its core product, CargoWise One, is designed to drastically increase a logistic service provider's productivity and improve their document management, whilst also helping to ensure they remain compliant with global customs regulations.

The company has recorded impressive growth since its initial public offering (IPO) in April 2016 and made a number of recent acquisitions. While it's possible that many of these acquisitions won't add a meaningful amount to WiseTech's top or bottom lines in the near future, they are designed to enhance the value of the product in the long run.

However, the catalyst behind WiseTech's stunning run-up in share price of recent was likely its revenue guidance update on 1 May 2018. The company made a slight upgrade to its previous revenue guidance and now expects its top-line to grow somewhere between 37% and 43%, within a range of $210 million and $220 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) is also expected to be between $71 million and $75 million, up from $53.9 million in FY2017.

WiseTech is an attractive founder-led business with lots of opportunity for growth. If you haven't already, it may be worth adding this one to your watchlist.

Motley Fool contributor Ryan Newman owns shares of WiseTech Global. The Motley Fool Australia owns shares of WiseTech Global. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »