After a turbulent year so far, May provided some relief for the S&P/ASX 50 Index (ASX: XFL), which rose more than 3%.
There were three ASX 50 stocks in particular that influenced this rise:
- Pro Medicus Ltd (ASX: PME) rose 22.93% in May
- Qantas Airways Ltd (ASX: QAN) rose 19.89%
- WiseTech Global Ltd (ASX: WTC) rose 21.05%
Image source: Getty Images
What influenced the May bounce back?
According to Macquarie, the ASX rose 4.2% in May, supported by the US-China tariff pause.
In a report released on Monday, the broker said the market has now rebounded nearly 18% from the April low after Trump announced a 90-day pause for reciprocal tariffs, including a China pause in May.
The broker noted that defensive shares fared the worst during the month of May.
Consistent with the market rally. Utilities (+0.3%) were the worst performer, followed by Staples (+1.2%) and Health (+1.4%).
Meanwhile, technology shares saw the biggest rise of any sector, up 18.8% on the back of solid earnings updates, a return of the AI trade, and RBA rate cuts.
According to Macquarie, despite a rebound, Australia underperformed global equities in May, with the S&P 500 Index (SP: .INX) +6.5%.
However, Australia had performed better in April as it is often a safe haven in a period of volatility. Australia also has lower tech exposure, and this was the main sector driving the global equity rally in May.
Can these ASX 50 top 3 continue to rise?
Pro Medicus provides radiology information technology software and services to hospitals, imaging centres, and health care groups.
The ASX 50 company operates in Australia, the United States, and Europe.
The stock price hit a 6-month low in early April, trading at $176.88 a piece. Since then, it has increased almost 60% to its current price of $282.55.
At the end of April, Goldman Sachs put a buy rating and $309.00 price target on its shares.
In terms of its growth potential, there seems to be good news there too. Its market share in the US diagnostic images services sits at 9%.
The Motley Fool's Laura Stewart reported on Monday that Fortune Business Insights estimates the total addressable market could grow by US$76 billion by 2030.
With 9% market share, Pro Medicus could continue to see rapid earnings growth.
Qantas rose around 20% in May.
The Motley Fool's James Mickleboro covered on Monday the sentiment around the upside for the ASX 50 airline's share price.
Most brokers currently rate the stock price as a hold after doubling in less than two years.
However, Morgan Stanley and Goldman Sachs still believe there could be a 5% to 8% upside for those considering buying at its current price.
Finally, WiseTech, a logistics software company, flew 21% higher in May.
It is currently trading at $105.38 per share; however, brokers seem bullish that it has yet to peak.
Bell Potter currently has a buy recommendation and $122.50 price target on this ASX 50 stock – indicating a 16.25% upside.
Similarly, Goldman Sachs has a 12-month share price target of $126.
