Reporting season in Australia is in August, so lets take a look at which companies came out on top!
Fresh off the back of the Olympics and Paralympics, we’re still feeling the competitive spirit - just maybe not for breakdancing.
But definitely for the stock market.
While investing on the whole is a long term game, there are always market leaders that climb the ranks faster than others.
But to understand why certain stocks dominate the stock market, we’ve got to look deeper into what information has come out about the company, the industry and economic climate it’s operating in.
Let’s take a look at the 5 best performing stocks on the ASX in August 2024.
WiseTech is a global software company that operates in the logistics space and it was the top performer on the ASX 200 in August, with its share price jumping 24.3%.
A large part of this is thanks to its strong full year results, where it reported a 28% jump in revenue to $1.04 billion and a 28% jump in underlying EBITDA.
Zip Co is the Buy Now Pay Later platform that was launched in 2013, and listed on the ASX in 2015.
You might be thinking “Wasn’t Zip struggling with losses across its business?”. And if you asked that, you’d be right.
But since these testy times, Zip has shut down its global operations and focused solely on Australia and the US.
As a result, it released a strong fourth quarter update at the end of July, revenue of $868 million, up 28.2% from FY 2023.
And EBTDA (earnings before tax, depreciation, and amortisation) of $6.9 million - up a whopping $243.2% from FY 2023.
As a result, Zip’s seen a 23.6% jump in its share price.
Orora Group is a global packaging and visual communication solutions company.
In August, Orora received a takeover offer from Lone Star at a 33.9% premium to the stock’s last close.
Orora rejected the offer because its board believed it wasn’t in the best interest of shareholders.
On top of that, Orora also released its full year results, which revealed $4.7 billion in revenue, up 9.5% year over year, and underlying net profit up by over 10%.
And these two good pieces of news caused investors to re-value Orora Ltd’s share price.
As a result, its share price jumped 22% thanks to some very juicy news.
Charter Hall is a property development and fund management company that’s been around since 1991.
In fact, Charter Hall is the largest real estate investment manager in Australiasa based on funds under management.
In August, its share price jumped 21.6%, largely due to the release of its 2024 results.
While Charter Hall did report a loss of $222 million, its operating earnings were strong, and it paid its shareholders a dividend of 45.1 cent per share.
Breville is the home appliance company that’s probably made the toaster or kettle in your kitchen.
Its shares went up 18.1% in August, following the release of its FY24 results.
Breville saw a 3.5% jump in revenue to $1.53 billion and a 7.5% jump in net profit.
Interestingly, the hero of Breville’s success was its coffee machines, which hit double digit revenue growth, particularly in the US.
It’s reporting season baby!
Noticing a pattern amongst these top performers?
They all reported an earnings update in August, which drove the jump in their share price.
Reporting season in Australia is in August, with many ASX listed companies releasing their annual results across, where they recap their financial performance from the previous year and provide guidance on how they think they’ll fare in the year ahead.
Now, an earnings update don't always lead to a share price jump. If shareholders are disappointed in how a company has performed, they’ll make it known!
But August is often where significant moves are made because investors are able to understand a company’s performance across the 12 month period.
As an investor, it’s important to deep dive into the stocks you’re personally interested in, but it’s equally important to get a broader picture of the market, and what information other investors might be reacting to.
This helps us separate news from noise, and make better decisions with our own investments.
If you’d be interested in a monthly update on the top-performing stocks on the ASX200, let us know in the comments!
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