These 3 ASX shares have doubled, can they do it again?

These have been some of the performers on the ASX this year.

| More on:
One girl leapfrogs over her friend's back.

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

Key points

  • Terracom shares have soared this year thanks to a booming coal price and big dividends
  • MMA Offshore is benefiting from a recovery of conditions, as well as a strong outlook for projects
  • Warrego Energy has received multiple takeover bids

The ASX share market has seen plenty of volatility this year. A number of businesses have dropped 40%, 50% or even more. However, a select few have managed to go up by more than 100% over the last 12 months.

With that level of rise, past performance is definitely not a reliable indicator of future performance.

However, we have also seen in the past that some winners have kept on winning. Over the past decade, CSL Limited (ASX: CSL), Altium Limited (ASX: ALU) and Pro Medicus Limited (ASX: PME). But, that level of long-term growth is rare, requiring consistent strong growth over many years.

Let's have a look at some of the strongest performers and consider whether they could keep rising.

Terracom Ltd (ASX: TER)

One of the strongest performers on the ASX over the past year has been Terracom Ltd (ASX: TER). It has risen by more than 340%.

Terracom is a coal miner with a presence in both Australia and South Africa. It says that it's a low-cost producer focusing on delivering "exceptional outcomes".

The ASX share recently recommenced paying dividends, and its intention is to pay quarterly dividends. At the moment it's paying a quarterly dividend of 10 cents per share, which is an annualised grossed-up dividend yield of 67%. Its policy is to pay between 60% to 90% of net profit after tax (NPAT) on a quarterly basis.

It has benefited enormously from the higher coal price and the board is now considering a share buyback. The company is also considering future projects and acquisitions which the company comes across.

However, will the coal price keep rising? I'm not sure about that, but it seems that a lot of dividend income is headed investors' way.

MMA Offshore Ltd (ASX: MRM)

This ASX share describes itself as a primary contractor to oil and gas operators, providing autonomous underwater vehicle solutions to collect seafloor and sub-seafloor data to assist in the engineering design of subsea infrastructure.

Over the last year, the MMA Offshore share price has gone up by around 115%.

The company is working on capitalising on "momentum" in both traditional and new energy markets while working to maximise operating leverage through increased utilisation and rates. It continues to seek growth opportunities for acquisitions.

Its outlook for the ASX share is "positive", with significant activity forecast for oil and gas, as well as offshore wind, over the next five years. Vessel and subsea services markets are "continuing to improve".

The MMA Offshore share price is still down 30% from the pre-COVID level. But, I'm not sure if it can double again from here in a short amount of time. But, over time, it may be able to achieve more for shareholders.

Warrego Energy Ltd (ASX: WGO)

Warrego Energy describes itself as a UK and Australian-based petroleum exploration, development and production company with assets in Australia and Spain.

The Warrego Energy share price has soared this year, rising by around 145% over the last 12 months.

The ASX share is benefiting from a bidding war for the business.

It was recently announced that the Warrego board has unanimously recommended Gina Rinehart's Hancock offer of 28 cents of cash per Warrego share.

I think it's highly unlikely that the Warrego Energy share price will double again from here. Beach Energy Ltd (ASX: BPT) has already announced that it's not going to match Hancock's offer. Time will tell if there are any other bidders.

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, CSL, and Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX 200 technology stocks led the market with a 1.99% rise while the benchmark index slipped 0.24%.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 30% to 40%

Analysts are tipping these shares to generate big returns over the next 12 months.

Read more »

A female worker in a hard hat smiles in an oil field.
Broker Notes

Buy BHP and this ASX 200 share next week

Here are a couple of shares that Bell Potter rate highly this month.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Share Market News

I'd listen to Warren Buffett and invest in ASX shares with wide economic moats

It could pay to follow in the footsteps of Warren Buffett. Here's what you need to know about moats.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Best Shares

Top oversold ASX shares to buy in February 2025

Hoping to bag an investment bargain this month?

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the trading week this Friday.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
52-Week Highs

Big ASX news: 10 ASX 200 shares hit new 52-week highs today

Do you own any of these lucky stocks?

Read more »