WiseTech (ASX:WTC) share price surges 8% on Thursday

It was a solid session for WiseTech on Thursday, let’s take a look…
The post WiseTech (ASX:WTC) share price surges 8% on Thursday appeared first on The Motley Fool Australia. –

It was a mighty day for the WiseTech Global Ltd (ASX: WTC) share price today. Shares in the cloud-based logistics software company finished Thursday’s session as the third best performing share in the S&P/ASX 200 Index (ASX: XJO).

At the end of the day, the Wisetech share price climbed 7.17% to $53.51, putting it 6.6% away from its 52-week high. As a result, the company holds a market capitalisation of $17.39 billion.

Interestingly, the upwards move in value today comes without any announcement from WiseTech. In which case, let’s take a look at what else might have helped.

Rising tide lifts all boats

Rather than company-specific news helping the WiseTech share price today, the move appears more widespread.

For instance, the S&P/ASX All Technology Index (ASX: XTX) gained 3.11%, which would be partially thanks to WiseTech. However, other notable contributions came from Megaport Ltd (ASX: MP1), Xero Limited (ASX: XRO), and Afterpay Ltd (ASX: APT). This trend on Aussie markets followed the lead of US markets overnight, where the tech-heavy Nasdaq Composite index gained 0.7%.

Additionally, the push higher in tech shares comes as some market commentators warn of an impending period of stagflation. As the saying goes, a rising tide lifts all boats, and rising tech shares have carried the WiseTech share price with it today.

In simple terms, stagflation involves a mix of high inflation and slowing economic growth. During such periods investors tend to flee to ‘high performing’ shares — which might include some of the more profitable, high margin tech businesses.

As demonstrated in its FY21 result, WiseTech might meet that criteria to some investors. For reference, the company delivered a net profit after tax of $105.8 million, doubling its earnings from FY20.

At the same time, with supply chains being in such turmoil, software that optimises this industry might have the ability to retain customers with price increases to negate inflation.

WiseTech share price in review

The WiseTech Global share price has delivered sensational returns to shareholders compared to the benchmark index. For example, the logistics software company has experienced a 95.7% rise in its share price in the past year. Meanwhile, the S&P/ASX 200 Index has climbed 17.7%.

At present, Wisetech trades on a price-to-earnings (P/E) ratio of 112 times.

The post WiseTech (ASX:WTC) share price surges 8% on Thursday appeared first on The Motley Fool Australia.

Should you invest $1,000 in WiseTech Global right now?

Before you consider WiseTech Global, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and WiseTech Global wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why ASX 200 tech shares have outperformed today

These ASX tech shares are lighting up the ASX 200 today

Why ASX 200 tech shares are struggling this week

Why did ASX tech shares just have such a good FY22 first quarter?

5 things to watch on the ASX 200 on Friday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!