Why the Corporate Travel Management Ltd share price just rocketed to an all-time high

The Corporate Travel Management Ltd (ASX: CTD) share price just hit an all-time high. Is it too late to invest?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the biggest movers on the market today has been the Corporate Travel Management Ltd (ASX: CTD) share price.

At the time of writing its shares are up a solid 7% to a new all-time high of $21.67.

What happened?

As many readers will be aware, this week Macquarie Group Ltd (ASX: MQG) is holding its flagship annual Australia Conference.

Well over 100 company presentations will be made this week by senior management from various sectors of the ASX.

As you might have guessed, Corporate Travel Management is one of the companies presenting. And pleasingly for its shareholders today's presentation included a full-year profit guidance upgrade.

Thanks to accelerated market share gains during the second-half of FY 2017, management now expects full-year underlying EBITDA to be a minimum of $97 million, compared to its previous guidance range of between $92 million and $97 million.

Should the company deliver on its new guidance it will mean an impressive 40.6% increase in EBITDA on the prior corresponding period.

Is it too late to invest?

With its shares up a remarkable 51% in the last 12 months, it means they are trading at approximately 44x trailing earnings.

Clearly the days of Corporate Travel Management being a bargain buy are long gone now. But that doesn't mean investors shouldn't consider making a buy and hold investment today.

The company is highly leveraged to a global recovery and has a strong and growing presence in all major corporate travel markets.

I believe this puts it in a position to continue growing its bottom line at an above-average rate for years to come.

In light of this I would put it up there with Webjet Limited (ASX: WEB) and Ramsay Health Care Limited (ASX: RHC) as one of the best growth shares on the Australian share market today.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »