The S&P/ASX 200 (ASX: XJO) index has made a good start to the year with a solid gain of almost 4%. Beyond this gain, there is still a cloud of uncertainty among investors surrounding the US and China trade tensions and the housing downturn.
Despite these uncertainties, some ASX shares surge ahead and are outperforming the index at the time of writing.
These ASX shares are on the rise:
Harvey Norman Holdings Limited (ASX: HVN)
Last week, a strong momentum drove the Harvey Norman share price higher, and while it's since faltered – falling 3.44% to close at $3.37 today – the Harvey Norman share price is up 6.65% since the start of the year.
Harvey Norman is one of Australia's largest electrical, entertainment and furniture retailer in Australia and has more than 250 stores globally. As reported in FY2018 annual report, Harvey Norman has executed its flagship strategy by creating more flagship stores and complexes that include a larger range of quality brand products and interactive customer experience.
Amid stiffer competition from the increasing online shopping of electrical appliances and furniture, Harvey Norman is evolving its approach to engage customers by offering a better and more holistic shopping experience in their stores.
Harvey Norman is currently trading at 10.9 times of its earnings. This is significantly below its 5-year average of around 16 times. I foresee its share price to rise further in the mid-term.
Bellamy's Australia Ltd (ASX: BAL)
Bellamy's had a challenging 2018 but since the start of this new year, its share price has risen by an impressive 19%.
Despite the increasing global competition, Bellamy's has an established distribution network that enables it to penetrate into new markets such as Vietnam.
Currently, Bellamy's organic products are still experiencing strong demand in China. Though the recent licence extension from General Administration of Customs China (GACC) permits Bellamy's to manufacture infant formula to export to China, it is still awaiting a permit to sell directly in China stores.
I believe that Bellamy's investors will be able to benefit from higher dividends payout and growth in its share price as it penetrates into more new markets. At the moment, Bellamy's is trading at around 19.6 times its earnings.
Other ASX shares that are on the rise include Altium Limited (ASX: ALU), Afterpay Touch Group Ltd (ASX: APT), and Origin Energy Ltd (ASX: ORG).
