Interim profit reporting season over February provides ASX investors excellent insights into what companies are performing well operationally and what companies might be falling by the wayside for any number of reasons.
As such we often see huge share price moves in one direction or the other over February, as we've seen waste collector Bingo Industries Ltd (ASX: BIN) and travel operator Webjet Limited (ASX: WEB).
Let's take a look at three companies I continue to like that have really gone gangbusters this February.
This afternoon the Altium Limited (ASX: ALU) share price hit a record high of $34.99 and is now up around 26% since it handed in its better-than-expected interim profit report for the six-month period ending December 31 2019.
The software business that helps designers manufacture printed circuit boards grew net profit 58%, earnings per share 57%, and its dividend 23%. Impressive.
Revenue for the half year totalled US$78.1 million and it's targeting US$500 million in revenue by 2025 on higher gross profit margins. Over time this stock looks like it has room to run higher if it meets its targets.
Magellan Financial Group Ltd (ASX: MFG) is a Sydney-based international equities manager that grows revenues by gaining more funds from institutional or retail investors to run on their behalf.
Thanks to a combination or rising fund inflows, investment outperformance, some reasonable equity markets and a falling Australian dollar it just posted 62% profit growth to $176 million and 66% growth in its interim dividend.
No wonder the stock has climbed 12% since its interim report to $32.65, while also going without the rights to a 73.8 cents per share dividend.
The Accent Group Ltd (ASX: AX1) share price is up 12% since yesterday when the footwear retailer handed shareholders a 50% lift to its dividend on the back of net profit growth of 27%.
The dividend rose faster than profits thanks to a lift in the payout ratio as the group is confident it's on track to deliver a strong second half to fiscal 2019.
At $1.50 on Friday the stock still looks reasonable value to me given I expect it will yield at least 6% (plus full franking) while trading on around 15x estimated forward earnings with management confident of more growth over the second half.
Foolish takeaway
Of the above I'd probably prefer Accent Group and Magellan on valuation grounds, although it's possible Altium thumps their returns over say a 5-year period.
As always, all these companies also carry considerable downside risks and therefore should only make up a small part of a balanced portfolio for interested investors.
