Despite yesterday's solid gain the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is still in negative territory year-to-date with a disappointing 0.3% decline.
But not all shares on the Australian market have fared as poorly. In fact, the three shares below have enjoyed a sensational start to the year. Here's why they've rocketed higher so far this year:
CSL Limited (ASX: CSL)
This biopharmaceutical giant has seen its shares rise 12.5% year-to-date thanks largely to a profit upgrade last month. Due to especially strong sales of its immunoglobulins and specialty products, CSL upgraded its full-year profit growth guidance to between 18% and 20% on last year's result. Previously the company has forecast for growth of just 11% year-on-year. Its shares may be expensive at 32x estimated FY 2017's earnings, but I believe the high-quality nature of the company and its strong growth prospects justifies the premium. CSL could arguably be the perfect buy and hold investment in my opinion.
Medical Developments International Ltd (ASX: MVP)
In 2016 Medical Developments International saw its share price gain around 20%. Pleasingly for shareholders 2017 has started just as strongly thanks to news that the company's Penthrox pain management product is gaining traction in the European market. So far this year the product has rolled out across 34 hospitals in the United Kingdom and this week launched in France and Belgium. I think the product has enormous potential and I can't say I'm surprised to see its share price 18% higher year-to-date as a result of this news. Whilst I do think it is a great long-term investment, its shares are looking quite expensive so it might be worth holding out for a better entry point.
Seven Group Holdings Ltd (ASX: SVW)
This conglomerate has seen its share price rise by a massive 14% so far this year. All of these gains came after Goldman Sachs upgraded its shares from a neutral rating to a buy this week. According to the research note its analysts believe that a normalisation in mining capital expenditure from cyclical lows will be a boost to the company. Whilst I wouldn't be a buyer of its shares, I do agree that if commodity prices stabilise Seven's WesTrac Caterpillar dealership is likely to benefit from an increase in mining capex. But whether commodity prices actually stabilise is the big question. I'm not entirely convinced that they will.
