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Is it too late to buy these high-flying ASX shares?

Although the market has dropped lower on Friday, this hasn’t stopped a large number of shares from storming higher. Several shares have even managed to climb to 52-week highs or better today.

Three that caught my eye are listed below. Is it too late to invest?

The Costa Group Holdings Ltd (ASX: CGC) share price raced to an all-time high of $8.07 on Friday. Incredibly, this gain means that the horticulture company’s shares have risen over 76% in the space of just 12 months. This leaves its shares changing hands at 32x estimated full-year earnings, which is a little too expensive for my liking. However, there’s no doubt that changing consumer tastes and management’s medium-term plans are very favourable for its growth prospects in the long-term. So it could be worth holding on for the long haul if you own them.

The Megaport Ltd (ASX: MP1) share price touched on an all-time high of $4.35 this morning. I’m a big fan of this provider of elasticity connectivity and network services and can’t say I’m overly surprised to see its shares race higher given the rise of cloud computing. Megaport’s software is in demand as it is able to streamline the internet connection between its customers’ data centres and major cloud service providers. One broker that still sees meaningful upside from here is UBS which placed a buy rating and $5.20 price target on its shares this week. I think it is worth a closer look even at these levels.

The Supply Network Limited (ASX: SNL) share price reached a new all-time high of $4.27 today. Investors have been fighting to get hold of the shares of the after-market parts supplier to the commercial vehicle industry following its impressive half-year results and positive guidance. The company then went on to upgrade its guidance recently to earnings before interest and tax (EBIT) of approximately $11.5 million in FY 2018. This will be a 19% increase on FY 2017’s EBIT and means its shares are trading at approximately 20x estimated full-year earnings. I think this looks to be reasonably cheap in comparison to industry peer Bapcor Ltd (ASX: BAP) which is trading at ~23x estimated full-year earnings.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor, COSTA GRP FPO, and Supply Network 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.

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