The S&P/ASX 200 index was on form in 2019 and recorded a gain of over 20% excluding dividends.
Whilst this is incredibly positive, some shares on the index managed to thoroughly outperform it.
Three shares that more than doubled in value in 2019 are listed below. Here's why they smashed the market last year:
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price was on fire in 2019 and recorded a stunning 178% gain. Investors were fighting to get hold of the iron ore producer's shares following a sharp rise in the price of the steel making ingredient. This was driven by a combination of solid demand from China and supply disruptions in Australia and Brazil. Also catching the eye of investors was the grade of its iron ore. Traditionally, Fortescue has been a producer of low grade ore, but was steadily increasing its grade in 2019. This has allowed Fortescue to benefit even more from the higher prices. Which has ultimately led to the company generating significant free cash flows, allowing it to pay down debt and reward shareholders with very generous dividends.
Nanosonics Ltd (ASX: NAN)
The Nanosonics share price was on form again in 2019 and rocketed 123% higher. The catalyst for this strong gain was an impressive performance in FY 2019. During the 12 months Nanosonics posted record full year sales of $84.3 million and a record operating profit before tax of $16.8 million. This was a 39% and 120% increase, respectively, on the prior corresponding period. The good news is that further strong growth is expected in FY 2020. After which, the release of several new products in the near future are expected to bolster its growth from FY 2021 onwards.
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price posted a sizeable 105% gain in 2019. Investors were buying the health imaging company's shares thanks largely to its stellar profit growth in FY 2019. During the 12 months Pro Medicus posted a profit of $19.1 million, which was up 91.9% on the prior corresponding period. Also supporting Pro Medicus' shares was its inclusion in the benchmark S&P/ASX 200 index at the June quarterly rebalance. This brought the company onto the radar of fund managers with strict investment mandates and index tracking ETFs.