This August’s profit reporting has produced some big market movers with the tech sector once again shining, despite much talk from within the sell-side broker and retail investment advisory community that the resources sector was the place to be.
However, shares in the likes or mining giants BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have actually fallen over the past month, while the likes of WiseTech Global Ltd (ASX: WTC) and AfterPay Touch Group Ltd (ASX: AFT) have gone gangbusters.
But they’re not the only ones to do well, so let’s take a quick look at three more stars from profit reporting season and consider whether they have more gas in the tank.
CSL Limited (ASX: CSL) A standout result came from healthcare giant CSL which has gained around 15% since handing in a full year profit 29% above the prior year at $1.73b and ahead of analysts’ average estimates. At $102 billion it’s now worth more than all the banks except CBA and boasts stronger long term growth prospects. CSL is forecasting 10%-15% profit growth in FY 2019.
Surprisingly, I was able to pick up more shares for $202.50 on the day it reported, with the stock now looking priced for perfection at $227.80 a couple of weeks later. This is a business that should be in every ASX investor’s portfolio, but I would not pay anymore than today’s valuation for shares.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) is another impressive healthcare business that has produced 13% share price gains this August. Its financial year ends on March 31 2019, but on August 23rd it upgraded guidance for its profit to now come in around $NZ95 million on revenue of NZ$295 million for the six months ending September 30 2019. It’s also now expecting full year profit of NZ$215 million partly thanks to a softer NZ dollar. In fact the NZ dollar is sinking, which is why Fisher & Paykel hit a record high today, with room to go higher in my opinion.
Bapcor Limited (ASX: BAP) is a business I tipped to impress this August and its 32% pro forma net profit growth did not disappoint. Bapcor remains a well run business producing growth via acquisitions and organically via solid operational performance. It’s forecasting profit growth of 9% to 14% in FY 2019 which may turn out to be conservative if the cards drop nicely. Although, I already own the stock, I wouldn’t hesitate to add to my position at a record high price of $7.45 today.
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You can find Tom on Twitter @tommyr345
The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, 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.