Enero (ASX:EGG) share price leaps 22% to 52-week high. Here's why

A positive update from the marketing and communications company is exciting ASX investors today.

| More on:
A businessman in a suit and holding a briefcase jumps into the sky celebrating the rising share price.

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

sdf

The Enero Group Ltd (ASX: EGG) share price has a new 1-year high. The positive price movement comes after the company released a trading update for this financial year.

At the time of writing, shares in the marketing and communications services company are trading for $3.45 – up 11.65%. Earlier today, the Enero share price hit a 52-week high of $3.76, up 21.7% on yesterday's closing price.

Let's take a closer look at today's news.

Enero company profile

Enero Group is a creative technology company operating a global collective of marketing and communications specialist agencies.

Its portfolio includes:

  • Digital agency Orchard
  • Creative agency BMF
  • Brand, marketing and PR comms consultancy Hotwire
  • Programmatic marketing platform OBMedia
  • Issues management comms advisory CPR
  • Strategic data consultancies The Leading Edge and The Digital Edge.

Enero share price up as revenue increases nearly 23%

In its investor presentation, Enero provided the following update:

These results are clearly encouraging for investors, at least judging by the rising Enero share price today.

What's the outlook and is this affecting the Enero share price?

Looking forward, Enero says it continues "to see a strong pipeline of new business opportunities", especially in the healthcare, technology, and consumer business-to-business markets.

The company goes on to say that inorganic growth continues to be a strong focus for Enero. Inorganic growth is a result of mergers and acquisitions rather than an expanding customer base.

Finally, Enero says ongoing uncertainty relating to COVID-19 may place pressure on the company's bottom line. Enero cites possible wage growth cost pressures and increasing discretionary travel expenses as borders open up.

Despite these headwinds, the Enero share price is rising today.

Enero share price snapshot

Over the past 12 months, the Enero share price has increased 89.5%. Year to date, shares in the company are up 62%.

Enero has a market capitalisation of approximately $303 million.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Communication Shares

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Communication Shares

Why this fundie sees 'a potential turning point' for Seek shares

Blackwattle Investment Partners says Seek management appears to be refocused on shareholder returns.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Communication Shares

Up 100% in a year, can the Superloop share price continue to deliver solid returns?

Superloop continues to generate momentum as its customer base expands.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Communication Shares

Is the Telstra share price a buy right now?

Telstra shares have steadily risen over the last few months. Are they still good value?

Read more »

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Dividend Investing

Up 38% in a year, is it too late to buy Telstra shares for the dividends?

A leading expert gives his verdict on Telstra’s passive income appeal following the stock's 38% 12-month share price gains.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Why Macquarie forecasts this ASX All Ords media company is set to surge 19%

Up 42% in 2025, here’s why this ASX All Ords media stock could keep racing higher into 2026.

Read more »

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Communication Shares

Where will Telstra shares be in 3 years?

How much business growth can Telstra shareholders look forward to?

Read more »

Magnifying glass in front of an open newspaper with paper houses.
Communication Shares

Should I buy News Corporation or REA Group shares?

News Corporation is the majority owner of REA Group.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Communication Shares

Own Telstra shares? Here's what brokers are saying about its new strategy

Let's see what they are saying about this telco giant's bold new plans.

Read more »