Why A2 Milk, Bubs, Evolution, and Zip shares are rising despite the selloff

These ASX shares are rising on Friday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a disappointing decline. At the time of writing, the benchmark index is down 2.2% to 6,447.6 points.

Four ASX shares that have avoided the selloff today are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up almost 4% to $4.16. This gain appears to have been driven by optimism that the company could still have a chance of benefiting from shortages in the United States market. This follows news that a major infant formula manufacturing facility has been shut down just two weeks after reopening. This has been driven by flooding on this occasion.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 6% to 64 cents. This morning this infant formula company upgraded its FY 2022 guidance to reflect its deal with the US government. Bubs was previously expecting “modest” half on half growth from the $38.5 million gross revenue it recorded during the first half. Whereas it now expects gross revenue to be over $100 million for FY 2022, subject to scheduled operations occurring without disruption. Possibly holding its shares back a touch was a lack of operating leverage.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is up 5% to $3.67. This has been driven by a rebound in the gold price and a broker upgrade by UBS. The latter saw Evolution upgraded to a buy rating with a $4.05 price target. The former has led to the S&P/ASX All Ords Gold index storming 2.6% higher today.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 3.5% to 52.3 cents. This is despite there being no news out of the buy now pay later (BNPL) provider. However, it is worth noting that a number of BNPL shares are storming higher on Friday. Investors may believe that this area of the market has been oversold in recent weeks.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. 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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