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 applying VectorVest:
3 Best Performers – No price limits.
IKW.AX at 844%, SMI.AX at 723% and LIN.AX at 471%.
3 Best Performers – Stocks over $1 (must have been greater than $1 at purchase and at sale).
AVR.AX at 309%, YAL.AX at 172% and WHC.AX at 148%.
3 Best Performers – Stocks over $10 (must have been greater than $10 at purchase and at sale).
CPU.AX at 46%, ZIM.AX at 23% and WTC.AX at 19%.
3 Best Performers – Stocks over $20 (must have been greater than $20 at purchase and at sale).
ZIM.AX at 23%, WTC.AX at 19% and EBO.AX at 17%.
3 Best Performers in the ASX 200 – No price limits.
AVZ.AX at 387%, CXO.AX at 306% and WHC.AX 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.AX at 41%, BIS.AX at 40% and TGR.AX at 35%.
Pulling out all the stocks, we have the following list:
AVR.AX, AVZ.AX, BIS.AX, CPU.AX, CXO.AX, EBO.AX, IKW.AX, KOV.AX, LIN.AX, SMI.AX, TGR.AX, WHC.AX, WTC.AX, YAL.AX and ZIM.AX.
Loading the stocks above into a WatchList notes some interesting overall 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 look at their performance 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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