Are these four stocks good for investment?

Burson Group Ltd


BAP Details
 
Strong financial performance: Burson Group (ASX: BAP) reported a 74.1% rise in revenues for the first half of FY16 while net profit grew 77.9% to $19.3 million. Burson estimates to grow steadily by adding new stores. During the first half of FY16, the Group acquired Precision Equipment and Bering Wholesalers and furthermore acquisition of Sprint Auto Parts South Australia is in process. The company also announced that it plans to change its name to Bapcor to remove confusion over its Burson Trade division. So growthwill come organically as the number of stores increases and sales rise from existing stores.
 


Estimated Identified Benefits (Source: Company Reports)
 
Acquisitions contribution would also boost the group’s performance. Management expects net profit in the range of $41.5 million to $43.0 million for FY16. On the other hand, BAP also rallied by 36.14% in the last six months (as of May 02, 2016) placing the stock at very high P/E while having a low dividend yield. The company has also provided recent updates on its optimization projects. We believe the stock is “Expensive” at the current price of  $5.07
 

BAP Daily Chart (Source: Thomson Reuters)
 
Challenger Ltd


CGF Details
 
Outstanding annuity sales:Challenger Ltd (ASX: CGF) reported annuity sales of $575 million for the third quarter of FY16, up 29% over the corresponding period. The stronger sales were driven by a distribution agreement with giant financial planner Colonial First State. Challenger’s total group assets and funds under management at 31 March 2016 were stable as the previous quarter at $57.4 billion.
 


Assets under management (Source: Company Reports)
 
The Group has given guidance of operating earning between $585 million to $595 million for its annuities business with a targeted return on equity of 18%. Meanwhile, the stock is still trading at low P/E and has a decent dividend yield. Strong performance drove the stock up around 8.6% over past one month (as of May 02, 2016) and we recommend a “Hold” at the current price of $9.33
 

CGF Daily Chart (Source: Thomson Reuters)
 
Xero Ltd



XRO Details
 
Focus on international market: Xero Ltd.’s (ASX: XRO) focus on international market paid off and accordingly international ACMR expanded to 32% of Group ACMR. The operating revenue for the group has grown by 71% yoy with ANZ growing by 59% yoy and international growing by 110%. The group’s subscription revenue for the period was $89.8 million, up 72% while average revenue per subscriber increased to $30.7 with retention rate at 84%. Gross margin also expanded from 67% in first half of FY15 to 74% in first half of FY16. Meanwhile, Xero had acquired Diligent Corp, which offers cloud-based software, and helps senior executives and board members to exchange documents securely.  Considering the company’s growth to date, strong customer appeal and wide operating margins we recommend a “Buy” at the current market price of $14.58
 

XRO Daily Chart (Source: Thomson Reuters)
 
Macquarie Atlas Roads Group



MQA Details
 
Rise in toll revenues:  Macquarie Atlas Roads Group (ASX: MQA) reported 7.3% rise in weighted average revenues and 6.5% rise in weighted average traffic for March 2016 quarter over corresponding prior period. MQA owns 20.14% interest in AUTOROUTES PARIS-RHIN-RHÔNE (APRR) in France, which reported a 6.5% rise in total traffic and 7% rise in revenues. MQA owns an estimated 50% economic interest in TRIP II LP, the owner of the concession for the Dulles Greenway in Virginia, United States. Dulles Greenway reported a 7.3% rise in average daily traffic while revenue was up by 10.8%.
 


March Quarter performance (Source: Company Reports)
 
Meanwhile, MQA owns a 70% interest in Warnowquerung GmbH & Co. KG, the owner of the concession for the Warnow Tunnel in Rostock, Germany. Meanwhile, Warnow Tunnel reported 1% rise in traffic and 5.5% rise in revenue. Additionally, by replacing maturing debt with lower rates, the Group managed to reduce interest costs. MQA also has an interim dividend of 9 cents and have guided full year dividend of 18 cents. The Group has guided capital expenditure of Euro 370 million per annum for the period 2016 -2020. The stock has rallied over 20.83% returns in last six months (as of May 02, 2016) and we believe one should “Hold” the stock at the current price of $5.10
 

MQA Daily Chart (Source: Thomson Reuters)

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