The S&P/ASX 200 index has started the year on a very positive note. Despite a few jitters late in the month, the benchmark index recorded an impressive monthly gain of almost 5% in January.
Four shares that vastly outperformed the index last month are listed below. Here’s why these were the best performers on the S&P/ASX 200 index in January:
The PolyNovo Ltd (ASX: PNV) share price was the best performer on the index in January with a gain of 42.1%. Investors were buying the medical device company’s shares after a couple of positive developments in Europe for its NovoSorb BTM product. NovoSorb BTM is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery or burn. In January PolyNovo revealed that it has received its first orders from PMI for use in Germany, Austria and Switzerland. It also revealed that the product has just been applied to its first two patients in the UK. One patient was treated for Necrotising Fasciitis in an English NHS hospital, whereas a second patient was treated for a scalp defect.
The Afterpay Ltd (ASX: APT) share price was an impressive performer last month with a gain of 31.7%. The catalyst for this appears to have been a broker note out of Goldman Sachs. Goldman has tipped Afterpay to deliver an exceptionally strong first half result. According to the note, it suspects that customer additions and gross merchandise value (GMV) could exceed its estimates by around 10%. Goldman Sachs believes that Afterpay’s customer base could have reached as high as 7.2 million globally at the end of December. This compares to the broker’s estimate of 6.6 million. It also suggested that its GMV could be ~A$4.8 billion for the half. Goldman has previously forecast GMV of $4.3 billion for the half. The broker has a conviction buy rating and $42.90 price target on its shares.
The Silver Lake Resources Limited (ASX: SLR) share price recorded a solid 21.3% gain in January. Investors were buying the gold miner’s shares after the release of its December quarterly update. That update revealed that Sliver Lake achieved record production of 68,519 ounces gold and 691 tonnes copper during the quarter. This led to the company upgrading its full year sales guidance and lowering its costs guidance.
The Saracen Mineral Holdings Limited (ASX: SAR) share price wasn’t far behind with a 19.3% gain last month. As well as getting a boost from increasing demand for safe haven assets due to the coronavirus outbreak, investors responded positively to the gold miner’s quarterly update. Saracen reported record quarterly gold production of 120,127 ounces for the period ended December 31 2019. It also revealed that its production guidance for FY 2020 and FY 2021 is more than 500,000 ounces and 600,000 ounces, respectively.
The post These were the best performing ASX 200 shares in January appeared first on Motley Fool Australia.
Looking for strong gains in February. My money would be on these highly rated ASX shares.
Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020