If I'd put $5,000 into Zip shares on 9 October, here's what I'd have now!

The stars have been aligning for Zip shares.

| More on:
A happy girl in a yellow playsuit with a zip gives the thumbs up

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

I didn't buy Zip Co Ltd (ASX: ZIP) shares on 9 October.

But I sure wish I had.

Shares in the All Ordinaries Index (ASX: XAO) buy now, pay later (BNPL) stock have taken off over the past six months.

Here's what's been boosting ASX investor sentiment.

Zip shares have been rocketing

Although Zip shares remain well down from their February 2021 highs, the stock has enjoyed a remarkable rebound over the past six months.

Stock markets are often said to be forward-looking.

And while the market doesn't always get it right, in the case of Zip shares, the steady march higher that began in October looks prescient.

Zip's half-year results for the six months to 31 December showed increased customer engagement and boosted revenues.

Total transaction volume (TTV) for the half-year increased by 9.6% from the prior corresponding half-year to $5 billion, with TTV in Zip Americas notching a record half-year after growing by 33.3%.

Cash profits were up 45.9% year on year to $176 million. And the company's revenue margin of 8.5% was up 1.30% year on year.

Zip CEO Cynthia Scott also painted an optimistic picture for Zip shares for the year ahead.

"We remain firmly focused on our three strategic pillars for FY24 – driving sustainable, profitable growth, product innovation and operational excellence," she said.

Scott added, "Zip is very well-positioned to capitalise on the near and medium-term opportunities in our core markets of ANZ and the Americas and deliver greater value for our customers and merchants."

And boom!

Now, the day before those half-year results were released on 27 February, Zip shares were already trading for 94 cents apiece.

But if I'd bought shares on 9 October, less than six months ago, I could have picked them up for 25.5 cents apiece.

Meaning my $5,000 would have netted me 19,607 Zip shares and some pocket change.

At market close on Friday, the ASX 200 BNPL stock was trading for $1.25 a share.

So, my $5,000 investment would be worth an enviable $24,508.75 today!

Motley Fool contributor Bernd Struben 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 Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

a miner holds his thumb up as he holds a device in his other hand.
Share Gainers

These 2 ASX 200 shares smashed the benchmark this week. Here's how

Investors sent these two ASX 200 companies flying higher this week. But why?

Read more »

healthcare worker overseeing group of aged care residents at table
Share Gainers

This ASX All Ords share has sneakily climbed 128% over the past year

Investors have sent this under-the-radar ASX All Ords stock flying higher. But why.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Gainers

Why BHP, IDP Education, Northern Star, and Woodside shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Woman attached to rocket flies into the air
Share Gainers

Why is the Appen share price leaping 18% without a word today

ASX investors are sending Appen shares soaring on Thursday. But why?

Read more »

View of a mine site.
Share Gainers

Here's why ASX uranium shares are going on an explosive run today

Investors are sending ASX uranium shares rocketing on Thursday. But why?

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Dimerix, Paladin Energy, Pilbara Minerals, and Resolute Mining shares are storming higher today

These shares are catching the eye with strong gains on Thursday. But why?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserable hump day for ASX shares...

Read more »

Two fists connect in a surge of power, indicating strong share price growth or new partnerships for ASC mining and resource companies
Materials Shares

Why are ASX lithium shares receiving a jolt of energy today?

These stocks are dramatically surging today...

Read more »