It has been a rough year for a number of ASX shares. A return of 0% would seem pretty good when some names have fallen by 40%, 50%, or even more. But, a handful of names are close to their 52-week highs.
Just because something has gone up doesn't mean it's going to keep rising. But, with a few of them, I believe they could keep doing well in 2023 and potentially beyond.
So, let's get into those ideas.
Ridley Corporation Ltd (ASX: RIC)
Ridley says that it's "Australia's leading provider of high-performance animal nutrition solutions".
"Ridley has been an integral part of Australian agriculture for almost 30 years, building strong partnerships with suppliers, customers, and local communities," the company says.
It works with a variety of farmers, from the "huge pastoral farms of Northern Australia, to the backyard hobbyists, to the entrepreneurs, to the enthusiasts".
The Ridley share price has gone up by 30% in 2022 to date.
Management believes FY23 first-half earnings before interest, tax, depreciation and amortisation (EBITDA) will improve year over year thanks to positive contributions from its growth initiatives, as well as favourable product pricing.
It said being the market leader is providing scale benefits, enabling it to employ specialists and adopt technology. The ASX share said its product and customer mix means it can provide earnings resilience through "weather, diseases, and market cycles".
The company wants to provide an improved customer experience, which can help increase demand and improve margins.
According to the estimate on Commsec, it's priced at under 16x FY23's estimated earnings.
Qantas Airways Limited (ASX: QAN)
The Qantas share price has managed to produce a rise of 15% over 2022.
I think the airline has done very well in terms of making profit and improving its balance sheet position.
However, the ASX share is expecting yet more capacity to return, which could be very useful in capturing more passenger demand. Don't forget, not all of its international capacity has returned to pre-COVID levels yet.
The oil price has been drifting lower over the last few months. It's close to pre-Ukraine war levels, which could improve Qantas' operating costs in the year ahead. The cheaper it is to fly, the more this helps the airline's profit margins.
China's reopening could lead to more Chinese tourists using Qantas planes as well, which could be a further boost.
In the first half of FY23, Qantas is expecting to make between $1.35 billion to $1.45 billion of underlying profit before tax.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk is a leading infant formula company. The A2 Milk share price has risen by around 25% since the start of the year. It's up almost 60% over the past six months.
The ASX share is expecting revenue and profit growth in FY23, as it passes on price increases to customers.
But, news of a return of Chinese tourists could be a useful boost for the ASX share in time. Daigou buyers could return, as well as stronger demand for A2 Milk products.
