Why the ALS share price leapt 29% higher in July

Global testing and inspection company ALS Ltd's share price gained 29.4% in July to $8.49 per share. Here's what drove the share price gains.

| More on:
man leaping from one cliff to another against sunset backdrop

Image source: Getty Images

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

Global testing and inspection company, ALS Ltd (ASX: ALQ), saw its share price gain a whopping 29.4% in July. That puts the share price near the top of the list of best performing earners on the S&P/ASX 200 Index (ASX: XJO) for the month. The ASX 200, by comparison, gained 0.5% in July.

The ALS share price was hammered earlier in the year during the huge coronavirus-inspired share market selloff. From 20 February to 24 March, the ALS share price lost more than half its value, plummeting 53%.

Since the 24 March low however, ALS' share price has been trending strongly higher, gaining 83% by the end of July to close the month at $8.40 per share.

Year to date, the company's share price hasn't quite recovered from its viral plunge. But it's getting close, down less than 2.7% since 2 January, giving it current a market capitalisation of $4.3 billion.

What does ALS do?

ALS Ltd is a global testing, inspection and certification company. ALS' early history was focused on servicing the mineral exploration industry. Since then, the company has broadened its exposure into a wide range of sectors including agriculture, pharmaceuticals and construction.

ALS — Australian Laboratory Services — dates back to 1863, when it began as a small chemical company. It went on to list on the local Australian stock exchange in 1952. Today, ALS is a global company with operations in Asia, South America, North America, Africa, Europe and, more recently, the Middle East.

The company employs more than 13,000 staff in over 65 countries. Its dividend yield sits at 2.0%.

Why did ALS Ltd's share price soar in July?

Some top name brokers favoured ALS in July, with both Morgan Stanley and Macquarie likely helping boost the share price with their overweight and outperform ratings.

ALS' move to refocus a new effort on COVID-19 safety also looks have paid off.

According to the company's website, its 'Safe by Choice' platform helps enable customers to reopen and operate their businesses safely. Its new services include COIVD-19 surface sampling as well as testing and facility hot spot mapping.

With the coronavirus again spreading rapidly in Victoria and re-emerging in other Australian states, the demand for testing and hot spot mapping also likely helped the ALS share price gain a further 5.4% so far in August.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »