Why Harvey Norman, Propel, REA Group, & Zip Co are charging higher

REA Group Limited (ASX:REA) and Zip Co Ltd (ASX:Z1P) shares are two of four charging higher on Friday. Here's why…

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very positive note. At the time of writing the benchmark index is up 1.1% to 5,423.6 points.

Four shares that are climbing more than most today are listed below. Here's why they are charging higher:

The Harvey Norman Holdings Limited (ASX: HVN) share price is up 5.5% to $3.00. The catalyst for this gain appears to be a broker note out of Goldman Sachs this morning. Its analysts have upgraded the retailer's shares to a buy rating with an improved price target of $3.85. While the broker notes that the outlook into FY 2021 remains extremely uncertain, the better than expected containment of COVID-19 in Australia is softening the downside to earnings it previously anticipated.

The Propel Funeral Partners Ltd (ASX: PFP) share price has jumped over 10% to $2.96 after the release of a trading update. This morning the funeral company revealed that its performance in April was reasonably solid, all things considered. It advised that it didn't experience a material impact on funeral volumes and the average revenue per funeral only dropped 10% compared to the same period last year.

The REA Group Limited (ASX: REA) share price is up 6.5% to $94.16. Investors have been buying the property listings company's shares following the release of its third quarter update. REA Group posted a 1% increase in revenue to $199.8 million and an 8% lift in EBITDA to $119.6 million. This was despite a 7% decline in listings during the quarter. And while national listings were down 33% in April, the company is aiming to offset this with a 20% reduction in fourth quarter operating expenses.

The Zip Co Ltd (ASX: Z1P) share price has jumped 13% to $3.24. Investors have been fighting to get hold of the buy now pay later provider's shares after the release of a strong trading update. During April, Zip Co's monthly revenue increased 81% on the prior corresponding period to $15.1 million. The company also reported an 86% lift in monthly transaction volume to $181.6 million and net bad debts of 1.99%. Management notes that the latter is significantly outperforming the market average.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Propel Funeral Partners Ltd and REA Group Limited. 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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