Last week the Australian share market touched on a multi-year high.
Unsurprisingly, this led to a large number of shares hitting 52-week highs or better. Three that achieved this feat are listed below. Is it too late to buy their shares?
The Afterpay Touch Group Ltd (ASX: APT) share price hit an all-time high of $28.25 on Friday. When the payments company's shares reached that level, it meant they had rocketed a staggering 128% since the start of the year. Investors have been fighting to get hold of Afterpay's shares due to its early success in the massive U.S. market. Adding to the buying last week was the company's update on its upcoming launch in the UK. Investors appear confident with its UK strategy and believe it will lead to strong underlying sales growth. Whilst I'm a big fan of the company and feel it could be a great long-term investment, I think its shares are fully valued now and would suggest investors wait for a better entry point.
The Collins Foods Ltd (ASX: CKF) share price climbed to an all-time high of $8.03 on Friday. Investors have been buying the quick service restaurant operator's shares due to optimism over its European expansion and its plan to roll out Taco Bell restaurants across several Australian states. This means its shares are now trading at 20x estimated full year earnings, which I feel is fair given its solid long-term growth potential. Though, as with Afterpay Touch, it might be worth holding out for a better entry point.
The Woolworths Group Ltd (ASX: WOW) share price reached a multi-year high of $32.89 last week. A solid third quarter sales update was the driving force behind the conglomerate's push higher. In the third quarter of FY 2019 the company posted total sales from continuing operations of $14,898 million. This was a 4.2% increase on the prior corresponding period or 5.1% when adjusting for Easter. Whilst I was impressed with Woolworths' performance and feel it could be a good option for investors, I would still choose Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES) ahead of it for valuation reasons.
