With the market closing at a 10-year high last week it will come as no surprise to learn that a number of shares have posted strong gains over the last 12 months.
Three which have really caught the eye and more than doubled in value are listed below. Here’s why they have gone gangbusters:
The Altium Limited (ASX: ALU) share price has rocketed 162% higher since this time last year. Investors have been fighting to get hold of the printed circuit board (PCB) design software provider’s shares since the release of an impressive half-year result in February. Altium achieved record revenue growth of 30% for the first half at US$63.2 million and expanded its profit margins to record levels. This led to a 51% increase in net profit after tax to US$14.9 million. While this gain means its shares are changing hands at a significant premium to the market average, I believe the strong demand it is experiencing for its software will lead to growth that justifies this.
The Beach Energy Ltd (ASX: BPT) share price has more than triple in value in the last 12 months with a gain of 217%. Rising oil prices and the company-transforming acquisition of Lattice Energy from Origin Energy Ltd (ASX: ORG) have been the catalysts for this impressive gain. Beach Energy paid approximately $1.6 billion for Lattice Energy, of which $300 million came from an entitlement offer and the remainder from its cash reserves and debt facilities. While I think its share price gain was largely justified, I wouldn’t be a buyer of its shares now as I feel they are starting to look a little expensive.
The Praemium Ltd (ASX: PPS) share price has stormed a sizeable 141% higher since this time last year. The fintech company has caught the eye of investors thanks to a strong full-year result in FY 2017 which saw the company report a 54% increase in underlying EBITDA to $6.3 million. So far things have been just as good in FY 2018. In February Praemium reported first-half underlying EBITDA of $4.2 million, up 51% on the prior corresponding period. And with the company recently announcing a major deal with CMC Markets, things certainly look positive for the next 12 months. However, I think its shares look about fair value now, so I am tempted to wait in hope of a pullback before investing.
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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 Altium. 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.