The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) pushed notably higher on Thursday and stretched its 12-month return to almost 9.5%.
While this is undoubtedly a great return, it pales in comparison to some of the gains being made on the market.
Three shares that have doubled in value in the space of 12 months are listed below:
The A2 Milk Company Ltd (ASX: A2M) share price has jumped 110% over the last 12 months. This certainly is an impressive gain considering the dairy and infant formula company’s shares are down by almost a third from their 52-week high. The catalyst for the gain has been the explosive growth in demand for its infant formula products from Chinese consumers. Whereas the pullback from its high is largely because the market got a little ahead of itself and expected even stronger growth. The good news is that I feel the market has sold its shares down to an attractive level that offers a compelling risk/reward.
The Atlas Iron Limited (ASX: AGO) share price has risen a massive 110% since this time last year. The iron ore producer has caught the eye of investors this year after it was able to pay down debt and lower its costs. This has many believing that it is going to be another Fortescue Metals Group Limited (ASX: FMG) turnaround story. In addition to this, the miner has been a takeover target for a number of mining heavyweights including Gina Rinehart. They appear to be attracted to the company due to its Port Hedland access rights. An offer from Rinehart’s Hancock Prospecting looks to be a done deal so I would focus elsewhere now.
The WiseTech Global Ltd (ASX: WTC) share price has rocketed 113% over the last 12 months. The logistics platform provider has been one of the best performers in the tech sector over the period thanks to its strong growth and a series of small acquisitions. In fact, just today WiseTech Global acquired Taric, a customs management solutions provider in Spain. WiseTech paid $25 million up front with potential performance related earn-outs of up to $21.9 million. Whilst I’m a big fan of the company, I think its shares are getting a touch expensive now and there are risks around the integration of its acquisitions.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and 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.
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