Despite the negative impact of the COVID-19 pandemic on the share market this year, a good number of shares have recorded very impressive gains.
Three that have even managed to double in value in 2020 are listed below. Here's why they are on fire this year:
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Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price is up a sizeable 120% since the start of the year. Investors have been buying the mining giant's shares following a sharp rise in the iron ore price. Due to supply concerns in Brazil and robust demand for the steel making ingredient in China, the iron ore price recently hit a nine-year high of US$176.90 a tonne. This compares to the company's C1 production cost of just US$12.74 per wet metric tonne.
Galaxy Resources Limited (ASX: GXY)
The Galaxy share price has rocketed 122% higher in 2020. This has been driven by a recovery in lithium prices after a couple of years of weakness. Traders are becoming increasingly positive on the battery making ingredient due to the rise of electric vehicles. This follows an incredible year for Tesla which revealed that the appetite for its electric vehicles is extremely strong.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price has recorded a stunning 283% gain since the start of the year. Investors have been fighting to get hold of the online homewares and furniture retailer's shares after the pandemic led to a shift to online shopping and a surge in its sales. This has continued into FY 2021, with Temple & Webster reporting a 138% increase in revenue financial year to date (as of 19 October 2020). This strong top line growth led to its earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at $8.6 million for the first quarter. This is more than the entire EBITDA it generated in FY 2020.
