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Why Fisher & Paykel Healthcare, Helloworld, Janus Henderson, & ResMed are charging higher

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. In late morning trade the benchmark index is down 3.3% to 5,339.3 points.

Four shares that have not let that hold them back are listed below. Here’s why they are charging higher:

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is up 3.5% to $26.18. Investors have been buying the medical device company’s shares after its rival ResMed released a strong third quarter update. One of the key drivers of ResMed’s growth during the quarter was demand for ventilators because of the coronavirus pandemic. Fisher & Paykel Healthcare is likely to be also experiencing heightened demand.

The Helloworld Travel Ltd (ASX: HLO) share price is up 1.5% to $1.77. Investors have been buying the travel company’s shares after the release of a trading update. During the third quarter Helloworld reported a 17.6% decline in total transaction value to $1.28 billion. This led to a sharp reduction in quarterly EBITDA to $2 million. Positively, the company revealed that its net cash operating costs have been progressively reduced to approximately $2 million per month. Given its total cash of $150 million at the end of April, it appears very well-placed to ride out the storm.

The Janus Henderson Group plc (ASX: JHG) share price has jumped 10% to $27.07. This follows the release of its first quarter update after the market close on Thursday. The fund manager reported an operating loss US$332.4 million for the quarter. However, operating income adjusted for the goodwill and intangible asset impairments and one-time, acquisition and transaction related costs, was US$164.5 million. This was up 15% on the prior corresponding period.

The ResMed Inc. (ASX: RMD) share price is up 5% to $24.58. Investors have been buying ResMed’s shares after it smashed expectations in the third quarter. Strong performances across the business led to ResMed reporting quarterly revenue of US$769.5 million and diluted earnings per share of US$1.12. This was a 16% and 53% increase, respectively, over the prior corresponding period. Strong demand for ventilators was a key driver of its growth.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. 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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