It has certainly been a disappointing year for the S&P/ASX 200 Index (ASX: XJO). Since the start of 2020, the benchmark index has fallen almost 20%.
However, that doesn't mean that all shares on the index are underperforming.
Some ASX 200 shares have achieved very strong gains in 2020 despite the coronavirus crisis.
Three shares that are up around 30% since the start of the year are listed below. Here's why they are surging higher this year:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk Company share price has jumped 29.7% higher in 2020. Investors were buying the infant formula and fresh milk company's shares on the belief that it was experiencing even stronger than normal demand for its products during the pandemic. This ultimately proved correct, leading to a2 Milk Company upgrading its guidance for FY 2020 in April. It now expects revenue in the range of NZ$1,700 million to NZ$1,750 million and an EBITDA margin in the range of 31% to 32%. This compares to its previous guidance of "strong revenue growth" and an EBITDA margin of 29% to 30%.
Afterpay Ltd (ASX: APT)
The Afterpay share price is up 36% since the start of the year. This is especially impressive considering its shares were down as much as 74% year to date in March. Investors have been buying Afterpay's shares for a couple of reasons. The first was a business update which revealed that the company has been performing very strongly during the pandemic. During the third quarter, Afterpay's underlying sales reached $7.3 billion year to date. This was a 105% increase on the prior corresponding period. It also reported stable margins and net losses. The second driver of its share price gain was news that Chinese tech giant Tencent Holdings has become a substantial shareholder. The market appears to believe the WeChat owner could help Afterpay expand into Asia in the future.
Appen Ltd (ASX: APX)
The Appen share price has been a strong performer this year and is up 28.9% in 2020. As with the others, investors have been buying Appen's shares after the release of a business update revealed that its strong form has continued during the pandemic. The artificial intelligence company's update revealed that it remains on target to achieve its guidance for FY 2020. This will mean full year underlying EBITDA in the range $125 million to $130 million. Which represents a 23.8% to 28.7% year on year increase.
