The S&P/ASX 200 (INDEXASX: XJO) is back above 5,600 after a few buoyant days in the market this week. A number of market watchers have opined that the index is set to trade above 6,000 by the end of the year and, given that we went as high as 5,980 in April, I wouldn't bet against them.
Here are three of the latest stocks to reach their highest point this year:
McMillan Shakespeare Limited (ASX: MMS) – last traded at $14.14, up 55% for the year
Salary packaging, fleet management and consumer finance company McMillan Shakespeare has been making the news recently with some strong half-year results, returning to profit growth after a below-average 2014.
Another acquisition announced this week will further increase McMillan's finance and insurance offering and looks likely to deliver a meaningful increase to earnings per share in 2016 and beyond.
Like Netcomm, below, investors look to be bidding heavily for McMillan shares in the lead-up to its full-year report, anticipating a bumper result. With the stock trading on a Price to Earnings (P/E) ratio of 19, it doesn't look super expensive and a 3.8% fully-franked dividend is quite appealing.
I'm not a buyer at today's prices, but I expect McMillan shares will rise further over the next 12 months or so.
Netcomm Wireless Ltd (ASX: NTC) – last traded at $0.88, up 18% for the year
Netcomm Wireless has been a small-cap favourite among several Foolish contributors due to its exposure to a growing industry, its strong performance and a comparatively moderate share price.
Of course, shares are only up 18% in the past year because Netcomm trades on a P/E ratio of over 100. Given that net profit grew 287% in 2014 and by another 125% in the first half of 2015, it's perhaps no surprise investors are bidding the stock higher.
Netcomm recently rose as high as $0.95 per share recently in what looks to be a case of investors buying in advance of the annual report. As contributor Brendon Lau noted in his article here, Netcomm has a lot going for it and I would not be surprised to see it rise further over the near to medium term.
iSelect Ltd (ASX: ISU) – last traded at $1.79, up 41% for the year
Insurance aggregator iSelect has experienced a bumpy ride since listing in 2013, trading below its launch price for much of that time.
(You can find out more in Mike King's recap of the company's woes here)
Shares have since recovered their lost ground, with the most recent result delivering a 47% increase in profit, while the stock soared most recently after the company announced the resolution of its loan with NIA Health – resulting in a $42.1m cash settlement for iSelect.
Even so, with iSelect operating a business model that a number of competitors are attempting to replicate, I'm not sure the company is great value right now. It is an effective business model that delivers great outcomes for consumers, but it is a simple business and a number of colourful competitors are attempting to muscle in.
I don't believe iSelect's share price will rise much further over the near term.
