Up 29% in 6 months, buy this ASX 200 growth stock that 'continues to extend its competitive advantage'

Wilson Asset Management forecasts more strong growth from this booming ASX 200 share.

| More on:
Man smiling at a laptop because of a 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

On the hunt for an S&P/ASX 200 Index (ASX: XJO) growth stock with the potential to keep on giving?

Then you may wish to run your slide rule over WiseTech Global Ltd (ASX: WTC).

The WiseTech share price has been on a tear since the company reported its half-year financial results in February.

Despite closing down 2.10% at $93.46 a share yesterday, shares in the ASX 200 growth stock remain up a blistering 29% over the past six months.

Created with Highcharts 11.4.3WiseTech Global PriceZoom1M3M6MYTD1Y5Y10YALL1 Feb 202430 Jul 2024Zoom ▾Feb '24Mar '24Apr '24May '24Jun '24Jul '24Mar '24Mar '24May '24May '24Jul '24Jul '24www.fool.com.au

And according to the analysts at Wilson Asset Management (WAM), the company is well-placed to deliver further earnings and revenue growth.

Here's why.

ASX 200 growth stock cornering the logistics market

WiseTech is a founder-led, leading global software as a service (SaaS) provider to the logistics services industry.

The company has more than 18,000 customers in 165 countries. As WAM explains, WiseTech's core product is CargoWise One, a cloud-based logistics execution platform that enables freight forwarders to manage their businesses more efficiently.

Noting that the ASX 200 growth share is a WAM Leaders Limited (ASX: WLE) holding, WAM said:

WiseTech's investment thesis is predicated on a multifaceted growth outlook, supported by structural tailwinds from digitisation of the global logistics industry with growing cloud adoption, industry consolidation, and the network effect.

More than half of the world's 25 largest global freight forwarders are rolled out on CargoWise One.

WAM's analysts said they remain positive on the ASX 200 growth stock as the tech company "continues to extend its competitive advantage through expansion into new product verticals and continued reinvestment and innovation".

They added:

These factors have historically proven to be revenue and earnings growth accretive. The company is priced at a premium, which we see as justified given its position as one of few high-growth companies on the ASX, with a strong history of execution.

What's been happening with WiseTech shares?

As mentioned up top, investors have been bidding up WiseTech shares since the ASX 200 growth stock released its half year results on 21 February. The company expects to release its full year FY 2024 results on 21 August.

As for the most recent batch of financials, there was a lot to like in the first half.

Highlights included a 32% year on year increase in revenue for the half year of $500 million. And underlying net profit after tax (NPAT) came in at $128 million, up 5% from the prior corresponding period.

And while the dividends on offer are still relatively small, the ASX 200 growth stock did increase its fully franked interim dividend to 7.7 cents a share, up 17% from the previous interim dividend.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A smiling man take a big bite out of a burrito
Growth Shares

Looking for ASX growth shares? I rate these 2 as buys

I’m backing these investments to deliver big returns.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Growth Shares

Macquarie says these ASX 200 growth shares can rise 20% to 35%

Let's see what the broker is saying about these growing companies.

Read more »

Growth Shares

Why Zip shares and this ASX 200 stock are a buy according to this fund manager

These stocks could be leading contenders to deliver returns in the ASX 200.

Read more »

A man working in the stock exchange.
Growth Shares

Buy these 2 impressive ASX 300 shares in July: experts

Experts are bullish on these stocks.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Growth Shares

1 of the best ASX growth stocks to consider buying in July

I’m calling this stock one of the leading growth opportunities.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Growth Shares

3 of the best Australian stocks to buy and hold forever

These high-quality shares are rated as buys by brokers for a reason.

Read more »

$100 Australian notes on top of each other.
Growth Shares

Where to invest $10,000 into ASX shares in July

Analysts are raving about these shares. But why are they buys?

Read more »

Four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX growth shares to buy this month: experts

These stocks are expected to have a strong next few years…

Read more »