We're not far away from Christmas now and some ASX shares might be set for a Santa rally before the end of the year.
Some retail shares like JB Hi-Fi Limited (ASX: JBH) have already had a strong performance this year, so I'm not sure we're going to see any more gains there.
So here are three shares that could see a rally:
Webjet Limited (ASX: WEB)
The travel operator's share price has fallen a lot over the past six months, particularly with the troubles that Thomas Cook was going through, leading to its collapse.
However, the rest of the Webjet's WebBeds business is going very well. Excluding Thomas Cook the total transaction value (TTV) was up 50% in the first 10 weeks of FY20.
Webjet's share price is already making a recovery and I think it could keep going higher as investors realise the longer-term value of Webjet's growth potential at the current price.
Eureka Group Holdings Ltd (ASX: EGH)
Eureka is the operator of affordable accommodation for seniors and disability pensioners. There are a number of long-term tailwinds for Eureka including a rising ageing population and an increasing percentage of people who don't own their home.
The company is now generating a solid operating profit, it started paying a dividend and is valued 13% lower than its net tangible assets (NTA) at 30 June 2019 with property prices rising.
Bingo Industries Ltd (ASX: BIN)
The waste management business has had a rollercoaster year after an earnings downgrade but the share price has been rising since then.
However, there are a few factors that are increasing sentiment and longer-term profit. The acquisition of Dial A Dump Industries should prove a clever buy with good synergies, whilst the recovering housing market is leading to higher approval activity which should be good for profit in the longer-term and the share price in the shorter-term.
Foolish takeaway
I think that all three shares have promising prospects of beating the market in the short-to-medium term. If I had to pick one it would be Webjet, its business model is very attractive to me for fast profit growth. But Eureka could continue to rise to next reporting season.
