On Thursday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) raced higher and finished the day up 0.7% at 6,142.4 points.
This latest gain means the local market has risen almost 9% since the start of the year. Whilst this is impressive, it pales in comparison to some of the gains being made on the index.
Three shares that have rallied significantly higher this year and raced to 52-week highs on Thursday are listed below. Is it too late to invest?
The A2 Milk Company Ltd (ASX: A2M) share price is up 36% this year and hit an all-time high of $14.23 on Thursday. Investors have been fighting to get hold of its shares after the release of an impressive half year result. In the first half of FY 2019 the dairy and infant formula company posted a 41% increase in revenue to NZ$613.1 million and a 55.1% jump in net profit after tax to NZ$152.7 million. Infant formula sales were the key growth driver, increasing 45.3% to NZ$495.5 million. I thought this was a very strong result and believe the company's investment in brand building will set it up nicely for long term growth. However, I'd say its shares are probably about fair value now after this stellar gain.
The Altium Limited (ASX: ALU) share price has risen a whopping 56% since the start of the year and reached an all-time high of $34.26 yesterday. Investors have responded incredibly positively to the electronic design company's half year results which were released after the market closed on Monday. During the six months ended December 31, Altium posted half year revenue growth of 26% to US$78 million and net profit after tax growth of 58% to $23.4 million. In addition to this, management advised that it is well on its way to hitting its 2020 US$200 million revenue target and revealed an aspirational US$500 million revenue target for 2025. I think there's a good chance that the company will achieve its aspirational target due to the quality of its product and the significant market opportunity. In light of this, I think Altium could be a great buy and hold option even after this gain.
The BHP Group Ltd (ASX: BHP) share price is up 10.5% this year and reached a 52-week high of $38.20 on Thursday. The mining giant has been a strong performer this year thanks to favourable commodity prices and its better than expected half year result. In the first half of FY 2019 BHP posted underlying EBITDA of US$10.5 billion, net debt of US$9.9 billion, and an interim dividend of 55 U.S. cents per share. I believe there will be more of the same in the second half, potentially making it a good option for investors looking for exposure to the resources sector.
