Earnings beats, surging commodity prices and rare earths are the highlights helping these ASX 200 shares lift to new 52-week highs.
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Reporting season surprises and the continued surge in commodity prices has helped tip these ASX 200 shares into record territory. Here are the ASX 200 shares that have been breaking out to 52-week highs lately.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Domino’s delivered a ripper of a result with all regions performing at or above expectations. The half-yearly result saw network sales increased 16.5% to $1.84 billion, while underlying NPAT soared 32.8% to $96.2 million.
The Domino’s share price ran to an all-time record high of $115.97 on Thursday, and has since cooled down to $104.94 at the time of writing. Nonetheless, brokers are impressed with the company’s results and medium to long-term outlook, with Bell Potter upgrading the company to a buy rating with a $122.00 price target.
Inghams Group Ltd (ASX: ING)
On Friday, Inghams reported that its FY21 first-half revenue increased 4.6% to $1.363 billion versus the prior corresponding period (pcp) while underlying NPAT improved 10.7% to $46.5 million. The results sent the Inghams share price to a new, 52-week high of $3.93 during intraday trading.
Goldman Sachs has commented that the operating environment for Inghams is steadily improving following the disruption caused by COVID-19 in the 2020 calendar year. The broker has updated its coverage on Inghams shares with a 12-month target price of $4.25, representing an upside of approximately 15% at the time of writing.
The broker noted that the biggest near-term risk for the company is its Woolworths Group Ltd (ASX: WOW) supply contract which is due to expire in August 2021. Goldman estimates that this contract accounts for approximately 50% of Inghams’ Australian poultry volumes. As such, retaining the contract in full and under similar terms and conditions is the key to medium-term production and profit stability for the poultry producer.
OZ Minerals Limited (ASX: OZL)
The OZ Minerals share price is currently ripping to 13-year highs, coinciding with the surge in copper prices. The price of copper has doubled from its lows last March and soared to 9-year highs. Underpinning the copper rally is the demand from China, expectations of tight supply and a wider belief in a commodities ‘super cycle’.
OZ Minerals delivered a record full-year result last Thursday, with NPAT increasing 30% to $213 million, thanks to higher copper and gold prices.
Lynas Rare Earths Ltd (ASX: LYC)
Rare earths is making headlines as China is making moves to limit the export of its rare earth minerals to the United States. Rare earth minerals are used in many applications including computing equipment, batteries, petroleum refining, medical imaging, and defence.
Lynas has a number of growth initiatives underway including a new rare earths processing facility in Kalgoorlie, Western Australia and a new facility in Texas, US. As the world’s second-largest producer of separated rare earths, and the only significant producer outside of China, Lynas is in an ideal position to support supply chain diversity.
The Lynas share price has gone from strength to strength, surging by around 50% this year, and hitting a new all-time record high of $6.18 at the time of writing.
Rio Tinto Limited (ASX: RIO)
Iron ore prices have continued to sit at elevated levels of more than US$150 per tonne. Higher commodity prices have helped ASX 200 shares in the mining sector maintain strong cash flows, and even better dividend payments.
After the mining giant’s bumper FY20 performance which included a 22% increase in net earnings of US$9,769 million, it announced a final dividend of US$4.02 (A$5.19) per share. This comprises an ordinary dividend of US$3.09 (A$3.99) and a special dividend of US93 cents (A$1.20) per share.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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