It's been a fast start to the month of June for several ASX stocks.
Stocks hitting 52-week highs after big gains on Tuesday included:
- Alcoa Corporation (ASX: AAI)
- Electro Optic Systems Holdings Ltd (ASX: EOS)
- Develop Global Ltd (ASX: DVP)
- SRG Global Ltd (ASX: SRG).
Many holders of these companies will likely be considering profit taking after considerable gains, while those on the outside looking in might be curious if there is further value.
Here is what experts are saying.
Image source: Getty Images
Alcoa keeps steaming ahead
Alcoa is a global industry leader in bauxite, alumina and aluminium products.
It rose almost 2% yesterday to hit new yearly highs of over $110 per share.
It has been spurred on this year by healthy earnings results and a solid dividend.
In the last 12 months its share price is now up over 168%.
Based on analyst forecasts, it appears there are mixed views on how much further upside is in store.
9 analysts out of 17 still rate the stock as a strong buy, however the average 12 month forecast sits at $107.88, right around current levels.
Electro Optic Systems still generating buzz
Electro Optic Systems is an Australian company that develops and produces advanced electro-optic technologies. The company's products are used in space information and intelligence services, optical, microwave and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air.
It has benefited from global defence spending over the last couple of years, and now sits more than 500% above levels from a year ago.
When stocks explode this much in a short period, brokers and analyst ratings can lag, as markets reassess true value.
That seems to be the case here, as Electro Optic Systems still has plenty of tailwinds working in its favour.
At the same time, broker targets indicate it is fully valued.
However the team at The Motley Fool has consistently covered key contract wins and exciting updates that indicate it could continue rising.
Develop Global hits new highs
Develop Global shares rose an impressive 3% yesterday to hit fresh 52-week highs of $6.47 per share.
The mineral exploration and development company has now seen its share price rise 65% over the last year.
Bell Potter recently placed a price target of $7.10 on this ASX mining stock, indicating it still has modest upside potential.
The broker is optimistic after Develop Global won a new contract at the Finniss Lithium project with Core Lithium.
SRG Global soars 16% in single session
Yesterday, SRG Global shares rocketed 16% in a single day following an earnings guidance upgrade.
According to an ASX release, the company has secured $1.85 billion of contracts with blue-chip clients across a diverse range of sectors.
The impressive rise now takes its 12 month gain to nearly 140%.
It closed trading yesterday at $3.66 per share.
Unfortunately for prospective investors, it now appears to be fully valued.
Analysts forecasts via TradingView have an average one year price target of $3.35 on this ASX stock.
