ASX 200 shares show no signs of exhaustion in the new financial year, with the benchmark S&P/ASX 200 Index (ASX: XJO) nudging past its record high last week.
In Tuesday's session, four individual ASX 200 shares have also notched 52-week highs at some point during the day. These are, including share price at the time of publication:
- Wesfarmers Ltd (ASX: WES) at $71.64 per share
- CSL Ltd (ASX: CSL) at a new high of $313.42
- JB Hi-Fi Ltd (ASX: JBH) fetching $67.52 apiece
- Zip Co Ltd (ASX: ZIP) at $1.81 per share.
Let's dive into what's driving these gains and what investors can expect next.
Wesfarmers shares extend rally
Wesfarmers shares surged to an all-time high today, continuing a trend that's been in situ since July 1.
The retail conglomerate, known for owning Bunnings, Kmart, and Officeworks, has climbed nearly 26% year to date.
Currently, Wesfarmers is trading at a price-earnings ratio (P/E) of 31 times, which is significantly higher than the general market average. This high valuation is likely driven by expectations of continued strong financial returns from its key brands.
Despite the premium valuation, analysts are mixed on Wesfarmers' future. In May, Goldman Sachs downgraded the shares to hold with a price target of $68.
It is also rated a hold by consensus, according to CommSec. However, the company's diversified portfolio and strong financial performance may justify the current price for long-term investors.
ASX 200 share CSL drives north
CSL shares reached a new 52-week high of $313.50 just before midday and have since cooled off that mark slightly at $313.20 apiece.
The biotech giant's share price has risen 9% in 2024 and 17% over the past 12 months.
And despite near-term challenges, CSL remains a favourite among brokers.
Bell Potter views CSL as an attractive buying opportunity, citing a "margin recovery phase" expected to drive "above-market earnings growth".
Macquarie also rates CSL as a buy, with a 12-month price target of $330. Both brokers see substantial potential for earnings growth.
Perhaps the infamous $500 per share target for this ASX 200 share isn't so bombastic after all.
JB Hi-Fi shares soar
JB Hi-Fi shares climbed to yearly highs of $67.52 right before noon and have faded from this mark to rest at $67.46 currently.
This is despite a legal stout with the ACCC. As my colleague Mitch reported on July 11, the company's subsidiary, The Good Guys, faces allegations of misleading promotions.
The ASX 200 share is up 3.5% since then with investors showing no signs of slowing the trend today.
Interestingly, the uptrend is against the grain of brokers. According to CommSec, the consensus of analyst opinion rates it a hold.
Goldman Sachs even rated it a sell in May "given softer growth in the Electronics category as well
as rising competition….". The competition is "most noticeably" from Wesfarmers' Officeworks business.
Zip shares stretch higher
Zip shares raced to 52-week highs straight from the open, with the stock fetching $1.84 per share by 10:30 am.
The moves follow Zip's $217 million equity placement completed last week. As my colleague Bernd reported, the buy now, pay later (BNPL) company plans to use the funds to repay debt and pursue growth opportunities, particularly in the US market.
The successful capital raise and strategic focus on debt reduction and growth have boosted investor confidence, with the stock up another 3.3 cents since then.
RBC recently raised Zip to a buy with a price target of $1.90 per share, still a potential 4.5% upside from the current share price.
In the last 12 months, the ASX 200 share has rallied over 317% at the time of writing.
ASX 200 shares in form
These ASX 200 shares hitting new highs reflect strong underlying business performances and positive market sentiment.
Whether it's Wesfarmers' diversified portfolio, CSL's growth prospects, JB Hi-Fi's resilience, or Zip's strategic capital raise, each company offers unique investment opportunities.
As always, conduct your own due diligence and consider your personal financial circumstances before making any investment decisions.
