Thanks to a solid run since Christmas Eve, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has narrowed its 12-month decline to 1.7% excluding dividends.
While this is positive, some ASX shares have bounced back even stronger than the index in recent weeks.
Three that have bounced back so strongly they are trading at all-time highs today are listed below. Here's why they have been on fire:
The Appen Ltd (ASX: APX) share price hit an all-time high of $16.08 on Monday. Investors have been fighting to get hold of the language technology data and services provider's shares after market volatility died down. This isn't a surprise in my opinion as I felt Appen was the best value WAAAX share in the group after last year's tech selloff. Especially considering management's profit guidance upgrade late last year. It advised that full year underlying EBITDA for FY 2018 is expected in the range of $62 million to $65 million, up from its previous guidance of $54 million to $59 million and 120% to 131% higher than a year earlier. While its shares are looking about fair value now, I still think they have the potential to be market beaters over the coming years.
The IDP Education Ltd (ASX: IEL) share price touched on an all-time high of $11.75 this morning. The provider of international student placement services and English language testing services was given a boost last week when a broker note out of the Macquarie equities desk revealed that its analysts had retained their outperform rating and lifted the price target on its shares to $11.50. The broker made the move after the latest student visa data showed that strong growth trends had continued. This is expected to put the company in a solid position to build on its impressive result in FY 2018 when it posted a 24% increase in revenue to $487 million and a 30% lift in EBITDA to $89 million. I think its shares are approaching fair value now but see them as a good buy and hold option.
The Technology One Limited (ASX: TNE) share price reached an all-time high of $6.85 on Monday. The software company's shares have been on a strong run since late last year when it released its full year results. In FY 2018 Technology One posted a 9% increase in revenue to $299 million and a 15% lift in profit before tax to $66.5 million. Management also forecast strong growth in FY 2019 thanks to further growth in its software-as-a-service business. At 35x estimated forward earnings I think Technology One's shares are looking a bit expensive now and see more value in Appen's shares.
