With the market flying higher this month, it will come as no surprise to learn that a large number of shares have just hit 52-week highs or better.
Three shares that have just achieved this milestone are listed below. Here's why they are racing higher:
Aristocrat Leisure Limited (ASX: ALL)
The Aristocrat Leisure share price rose to a record high of $36.16 yesterday. Investors have been buying the gaming technology company's shares over the last 12 months thanks to its strong performance in FY 2019 and its positive long-term outlook. In FY 2019 Aristocrat reported a 22.7% rise in revenue to $4.4 billion and a 22.6% increase in normalised profit after tax to $894.4 million. This was driven by strong demand for its pokie machines and a jump in digital revenues. Pleasingly, more of the same is expected in FY 2020. In light of this and its attractive valuation, I think its shares could still go higher from here.
Domain Holdings Australia Ltd (ASX: DHG)
The Domain share price climbed to an all-time high of $3.97 on Wednesday. The property listings company's shares have been racing higher in recent months thanks to major improvements in the Australian housing market. This was particularly the case in the December quarter when the value of Australian houses grew by the most over a three-month period in a decade. Investors appear confident that this will bring more houses onto the market and drive strong demand for listings.
Megaport Ltd (ASX: MP1)
The Megaport share price hit an all-time high of $11.20 yesterday. Investors have been fighting to get hold of the shares of the global leader in elastic interconnection thanks to its strong start to FY 2020. Megaport followed up its impressive performance in FY 2019 with a very strong first quarter. It reported Monthly Recurring Revenue (MMR) of $4.1 million. This was a 13% quarter on quarter increase and a 71% increase over the prior corresponding period. This was driven by the continued expansion of its network footprint to new markets while deepening its reach within existing metros. Due to the cloud computing boom, I expect more of the same over the remainder of FY 2020 and beyond.
