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Is it too late to buy ResMed and these high-flying ASX shares

The S&P/ASX 200 index returned to form on Monday with the majority of shares on the index pushing higher.

A number climbed more than most and some even reached 52-week highs or better. Three shares which managed to climb to all-time highs are listed below. Here’s why they reached this milestone:

The Credit Corp Group Limited (ASX: CCP) share price climbed to an all-time high of $28.49 on Monday. Investors have been scrambling to buy the debt collector’s shares this week following an acquisition announcement late on Friday. Credit Corp has agreed to acquire Baycorp Holdings for ~A$65 million. This acquisition is expected to give the company’s financial performance a major lift according to management. It said that it “will produce earnings growth in the core Australian and New Zealand debt buying business to complement strong growth from the company’s US debt buying and consumer lending segments.” In light of this, it has upgraded its net profit after tax growth guidance for FY 2020 to be in the range of 15% to 18% from its prior guidance of 7% to 10%. Whilst it isn’t my favourite share, I think it looks decent value given its outlook.

The JB Hi-Fi Limited (ASX: JBH) share price continued its positive run and hit a new all-time high of $32.06 yesterday. The retailer’s shares have been on fire since the release of its full year results last week. In FY 2019 JB Hi-Fi posted a 3.5% increase in revenue to $7.095.3 million, a 6.4% lift in earnings before interest and tax to $372.8 million, and a 7.1% lift in profit after tax to $249.8 million. This was ahead of the market’s expectations and dealt a major blow to the high number of short sellers that have been shorting its shares. Although I’ve been impressed at its performance, I think there are better value options in the retail sector now following its strong share price rally.

The ResMed Inc. (ASX: RMD) share price was on form again and rose to an all-time high of $19.90 on Monday. The sleep treatment-focused medical device company’s shares have zoomed higher this month thanks to the release of a strong full year result. In Fy 2019 ResMed delivered an 11% (13% in constant currency) increase in full year revenue to US$2.6 billion. Pleasingly, management remains confident on its outlook, which could mean another solid year of growth for the company in FY 2020. Whilst its shares look fully valued now, I would still buy them with a long-term view.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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