Why Fortescue and these ASX 200 shares are at record highs

Here's why Fortescue Metals Group Limited (ASX:FMG) and these ASX 200 shares are trading at record highs right now…

| More on:
Chalk-drawn rocket shown blasting off into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher.

A good number of shares were on the rise yesterday, with a handful even managing to hit record highs.

Three ASX 200 shares that have just reached this milestone are listed below. Here's why they are flying high:

Coles Group Ltd (ASX: COL)

The Coles share price was on form again on Thursday and climbed to a record high of $18.54. Investors have been buying the supermarket giant's shares in anticipation of the release of a strong full year result in August. Coles has experienced a strong increase in sales this year because of the pandemic. This appears to have positioned it to deliver a solid lift in its earnings and dividends. And given the recent outbreak in Victoria, FY 2021 could be equally as strong.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price continued its positive run and hit a record high of $17.59 yesterday. The iron ore producer's shares stormed higher after the release of its fourth quarter update. During the quarter, Fortescue shipped 47.3 mt of iron ore. This took its FY 2020 total shipments to 178.2mt, which was ahead of its guidance. This was achieved at a low C1 cost of US$12.94 per wet metric tonne, despite increased expenses relating to the COVID-19 pandemic. This compares to its average realised selling price of US$81 a dry metric tonne. In FY 2021, Fortescue is aiming to ship 175mt to 180mt with C1 costs of US$13.00 to US$13.50 per wet metric tonne.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price hit a record high of $46.30 on Thursday. Investors have been buying the retailer's shares after its sales surged during the pandemic. This appears to have positioned JB Hi-Fi to deliver a very strong full year result next month. Goldman Sachs, for example, expects the company's earnings before interest and tax to come in 34.8% higher in FY 2020. Though, it is worth noting, that after its strong share price gain, the broker rates JB Hi-Fi's shares as neutral on valuation grounds.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.

More on Record Highs

A smiling woman puts fuel into her car at a petrol pump.
Energy Shares

How has this ASX 200 energy stock just hit another new record high?

This energy stock can't stop clocking new highs.

Read more »

ETF spelt out with a rising green arrow.
ETFs

4 top ASX exchange-traded funds smashing record highs on Wednesday

If you own any of these popular ETFs, congratulations!

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Record Highs

ASX 200 soars to another new all-time high on Friday!

Exuberant investors just sent the ASX 200 to another new all-time high.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
Share Market News

The ASX 200 just hit another new record high on Monday

The ASX 200 just breached Friday’s record to set a new all-time high today.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Technology Shares

The Nasdaq just hit a fresh all-time high. What could it mean for Aussie investors?

With the Nasdaq at fresh highs, ASX tech shares are reaping the benefits.

Read more »

ETF written in gold with dollar signs on coin.
ETFs

4 hot ASX ETFs smashing all-time highs on Thursday

ETFs are on fire this Thursday.

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Record Highs

How did the Brickworks share price just hit an all-time high?

This stock is building up investor excitement.

Read more »

rising asx share price represented by drone flying in the air
Technology Shares

How has the DroneShield share price gained 90% in a month?

DroneShield shares are once again at a new record high today.

Read more »