WiseTech Global Ltd (ASX: WTC) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed yesterday trading for $119.25. In afternoon trade on Tuesday, shares are changing hands for $120.90 apiece, up 1.3%.
For some context, the ASX 200 is up 0.8% at this same time.
As the above chart shows, today is not the first day that WiseTech stock has outpaced the benchmark.
Twelve months ago, you could have picked up shares in the ASX 200 tech stock for $73.58 each. Meaning the stock has gained 64.3% in a year, or more than five times the 12.0% gains posted by the ASX 200. And this doesn't include the 16.9 cents a share in fully franked dividends that WiseTech paid out over the year.
Now, as you can also see on the chart, it hasn't exactly been a smooth ride higher.
WiseTech shares came under some heavy, brief selling pressure in October amid widely reported allegations against CEO Richard White concerning inappropriate behaviours. The stock also caught headwinds after management downgraded guidance in late November.
Yet none of this has derailed the company's strong 12-month returns.
And Ord Minnett's Tony Paterno sees more potential outperformance ahead (courtesy of The Bull).
Image source: Getty Images
A positive view on WiseTech shares
"WiseTech develops and provides software solutions to the global logistics industry," said Paterno, who has a buy recommendation on WiseTech shares. "We hold a positive view on WiseTech's products and its strong presence in the logistics industry."
Paterno pointed to WiseTech's strong FY 2024 results (released on 21 August) as reasons for his bullishness.
According to Paterno:
At its fiscal year 2024 results, WiseTech announced it had had rolled out its core CargoWise product to 52 large global freight operators, including more than half of the world's top 25 freight forwarders.
CargoWise revenue was up 33% in fiscal year 2024 when compared to the prior corresponding period. The company lifted total revenue by 28% in fiscal year 2024.
The 28% year on year increase in WiseTech's total FY 2024 revenue that Paterno refers to came in at $1.04 billion.
Other core financial metrics included a 28% year on year increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $496 million, and a 15% boost in underlying net profit after tax (NPAT) to $284 million.
WiseTech shares closed up 18.4% on the day the company reported its full-year results.
