The S&P/ASX 200 Index (ASX: XJO) has been in fine form recently thanks to optimism over the development of potentially effective COVID-19 vaccines.
While this leaves the ASX 200 trading at its highest levels in nine months, some shares are doing even better.
Two ASX shares that have just hit new 52-week highs are listed below. Here's why they are on fire:
Costa Group Holdings Ltd (ASX: CGC)
The Costa share price hit a 52-week high of $4.16 on Wednesday. When the horticulture company's shares hit that level, it meant they had gained an impressive 66% since the start of the year. Investors have been fighting to get hold of its shares this year after it finally turned around its performance after a very disappointing 18 months filled with underperformance and countless earnings guidance downgrades.
During the first half of FY 2020, Costa posted a 6.8% increase in revenue to $612.4 million and a 12% lift in net profit after tax to $45.8 million. This was driven by a very strong performance from its international business. In addition to this, improving trading conditions in the domestic market appear to indicate that the worst is now behind the company.
Vocus Group Ltd (ASX: VOC)
The Vocus share price continued its positive run and climbed to a 52-week high of $4.32 yesterday. This stretched its year to date gain to a sizeable 49%. The catalyst for this strong share price performance was a solid result in FY 2020 despite the pandemic and its positive guidance for the year ahead.
In FY 2020, Vocus recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of $360.5 million, which was up slightly year on year. Pleasingly, management recently confirmed at its AGM that the company is on track to achieve its guidance of EBITDA in the range of $382 million to $397 million in FY 2021. The high end of its guidance range represents 10% growth year on year.
