Whilst today's market selloff is disappointing, it is worth remembering that even after today's sea of red, the share market is still up significantly over the last 12 months.
For example, since this time last year, the S&P/ASX 200 index has recorded a gain of approximately 12.8% excluding dividends.
And this is nothing compared to some of the gains that have been made on the benchmark index over the same period.
The three shares below, for instance, are each up more than 80% over the last 12 months. Here's why:
Afterpay Ltd (ASX: APT)
The Afterpay share price is up a massive 80% since this time last year. Investors have been fighting to get hold of the payments company's shares after its smashed expectations in FY 2019. This was driven by the increasing popularity of its buy now pay later platform in the lucrative U.S. market, continued strong growth in the ANZ market, and a very positive start to life in the UK. Pleasingly, its strong form has continued in FY 2020. Late last year Afterpay revealed that it achieved a record $1 billion of underlying sales in November. This represents the highest monthly performance since inception and brought its total underlying sales for the first five months of FY 2020 to $3.7 billion.
AVITA Medical Ltd (ASX: AVH)
The AVITA Medical share price has been the best performer on the ASX 200 over the last 12 months with a gain of 437%. Investors have been buying the medical device company's shares due to the strong sales growth of its RECELL System. The FDA-approved RECELL System is indicated for use in the treatment of acute thermal burns in patients 18 years and older. It is used to prepare Spray-On Skin Cells using a small amount of a patient's own skin, which provides a new way to treat severe burns, while significantly reducing the amount of donor skin required. Also giving its shares as boost was its inclusion into the benchmark index. This brought it onto the radar of fund managers with strict investment mandates and led to buying by index tracking ETFs.
EML Payments Ltd (ASX: EML)
Despite a recent pullback, the EML Payments share price has gained a remarkable 165% over the last 12 months. As with AVITA Medical, a small part of this gain can be attributed to the company's inclusion in the benchmark index last year. But the main catalyst has been its strong sales growth and a game-changing acquisition. Late last year the provider of payment technology solutions acquired Irish firm Prepaid Financial Services for $423 million. This acquisition has diversified its operations to include prepaid payments, digital banking capabilities, and other flexible software solutions to financial and non-financial institutions. It is expected to be significantly accretive to earnings in the future. In the meantime, excluding the new acquisition, this month management reiterated that it expects EBITDA growth of up to 43% in FY 2020.
