THE BEST PERFORMERS FOR 1 JULY 2021 TO 30 JUNE 2022.
Written by: Russell Markham
The Financial Year in Australia has just ended, that being from 1 July 2021 to 30 June 2022. As you prepare your tax returns, you may be reflecting on the financial period that just passed. It was a period dominated by headlines pertaining to Covid and in recent times all the talk of inflation and rising interest rates. The market overall had a tough period, the Price of the VVC/AU (the average of all the stocks we track at VectorVest, that being over 2000) fell 13.6%. But we know all too well at VectorVest, having the right tools in the market gives you that edge, providing you the ability to pick the winning trades. It only takes one or two big winners to give you a very different outcome to what the market achieved overall.
We have distilled down a list of 15 stocks that we have noted to be some of the best performers in their respective categories and returned over 200% during that time. Although the old cliché of past performance is not a guarantee of future performance, it certainly is a good place to start when looking for ideas for the current financial period. Let us run through the key standout performers and then draw upon some interesting findings.
The Key performers for 1 July 2021 to 30 June 2022 are broken out as follows:
3 Best Performers – No price limits.
IKW at 844%, SMI at 723% and LIN at 471%.
3 Best Performers – Stocks over $1 (must have been greater than $1 at purchase and at sale).
AVR at 309%, YAL at 172% and WHC at 148%.
3 Best Performers – Stocks over $10 (must have been greater than $10 at purchase and at sale).
CPU at 46%, ZIM at 23% and WTC at 19%.
3 Best Performers – Stocks over $20 (must have been greater than $20 at purchase and at sale).
ZIM at 23%, WTC at 19% and EBO at 17%.
3 Best Performers in the ASX 200 – No price limits.
AVZ at 387%, CXO at 306% and WHC at 148%.
3 Best Performers – Dividend Yield 3% or better at purchase and sale and where price is above $1 at purchase and sale.
KOV at 41%, BIS.AX at 40% and TGR at 35%.
Pulling out all the stocks, we have the following list:
AVR, AVZ, BIS.AX, CPU, CXO, EBO, IKW, KOV, LIN, SMI, TGR, WHC, WTC, YAL and ZIM.
The composite of all these stocks has some interesting findings:
* The average return from 1 July 2021 to 30 June 2022 was 239%.
* The average returns for the market per above was -13.6%.
* The Earnings Growth Rate (GRT) – has been consistently rising over the last 18 months.
* Net Profit Margin (NPM) sits at a sizzling 33% as of 5 July 2022.
* Sales have taken a big step up in March 2022.
* Relative Timing (RT) has held above 1.00 for most of 1 July 2021 to 30 June 2022.
* The Dividend Yield (DY) has been above 2% since October 2021 (to 5 July 2022).
* Earnings Per Share (EPS) has been in a consistent uptrend over the last 2 years.
If you take that group of stocks and QuickTest them from 2 January 2020 to 5 July 2022, you will note a return of over 416%. The past can tell us a lot. These stocks currently exhibit some key attributes we teach when building a portfolio. We identified the top performers and then observed their key attributes. Unsurprisingly, all the key attributes that we teach were present.
Therein lies the answer regarding predicting the future as such. Nobody can predict the future, but if you build portfolios with rising earnings, consistent rising Earnings Growth Rate (GRT), solid Net Profit Margins (NPM) along with Sales holding steady and rising across all the companies on average…then you are creating the ingredients we have just seen from the best performers in Australia for the financial period of 1 July 2021 to 30 June 2022. You have the tools. You have been shown how to do this. The rest is up to you.
Please click here to see exactly how we did it.
Past performance is not a reliable indicator of future performance. Any forecasts and backtests used or discussed in this email are intended as a guide only and actual results may be affected by known or unknown risks and uncertainties and therefore may differ materially from results ultimately achieved.
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VectorVest Inc (ARBN 654 498 218) and Russell Markham are Authorised Representatives (No. 1294036 and No 1294037) of Centra Wealth Pty Ltd (ABN 39 158 802 450) which holds an Australian Financial Services License (AFSL No. 422704). Please refer to our Financial Services Guide which provides you with information about us and services we can provide. Any advice is general in nature and has not considered your personal objectives, financial situations or needs. You should consider whether the advice is suitable for you and your personal circumstances. Backtest results and Model Portfolio performance and profit calculations are theoretical and calculated by VectorVest Inc and do not reflect actual investments in the companies mentioned. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Actual results may be affected by known or unknown risks and uncertainties that cannot be reasonably included in a backtest, and therefore these outcomes can differ materially from backtested expectations. As a result, past performance should not be relied on as a guarantee for future results.
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