As of close on Friday, 29 companies in the S&P/ASX 100 (INDEXASX: XTO) enjoyed a share price boost, while 9 held their position and the remainder went in the wrong direction. While daily spikes are like candy for day traders, long-term investors may take a slightly more conservative approach. Regardless, it's still worthwhile investigating reasons behind those spikes to see how it may form part of a wider case for investment. Here are two star ASX 100 performers from last week that are worth a closer look.
JB HiFi Limited (ASX: JBH)
Current investors in JB Hi-Fi are having an excellent July with the share price rising around 15% from the July 1 close to this afternoon's current price of $30 per share. Looking at Friday's 1.44% increase in share price in a wider context, we might conclude that it was driven by month long upward momentum and investors hedging their bets on a modest boost for retailers.
Some analysts believe that the current price is somewhat overvalued, but I think we'll get an even clearer picture when Australia's retail trade data is released for June and July. I'm keen to see if the lower- and middle-income tax offset gave retailers a welcome boost, or if we stashed the bonus away for a rainy day.
Treasury Wine Estate (ASX: TWE)
Treasury Wine Estate is one of the largest wine companies in the world. Aside from making a range of highly recognisable Australian wine brands like Penfolds and Wolf Blass, the company has vineyards in most of the world's great wine growing regions.
Like JB Hi-Fi, Treasury Wine Estate had a very good day on Friday, lifting its share price 1.84% over the day to close at $17.70, where it has stayed during today's trade. That price is still short of the twelve month high of $18.55 before the share price dropped to a twelve month low of $13.52 in November. Since then the share price has rather laboriously headed back into the growth zone.
At Treasury Wine Estate's half year update, the good news just kept on rolling. Net sales revenue is up 16.4%, EBITS is up 17.8% on a constant currency basis, net profit after tax is up 17% and earnings per share is up 19% to 30.5 cents per share. The full-year results will be announced on 15 August.
This is a well run company that makes great wine and has a world-class marketing team to move those many brands to market.
Foolish takeaway
While I can appreciate a daily spike in share price as we saw last week, I prefer to take a step back a look at the big picture – I'm looking for a company that has shown real growth over the long term and has a sound plan to keep it going. I'd consider both JB Hi-Fi and Treasury Wine Estate in my balanced retirement portfolio.
