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A sneak-peek into stocks that became market darlings in 2017

Nov 14, 2017 | Team Kalkine
A sneak-peek into stocks that became market darlings in 2017

While 2017 has been a mixed bag from stocks’ performance standpoint with technology stocks getting some air and mining and oil and energy plays waving through the best and the worst, there were some standouts worth a mention.

Particularly, Xero Ltd (ASX: XRO) became a market darling with the stock moving up about 70% in last one year at the back of various positive updates and an attempt to move from the small-cap bucket to the mid-cap sector. The group now aims to wipe-out its New Zealand securities which will be consolidated into the XRO securities listed on ASX. Strong 1H FY18 with 34% growth in annualised committed monthly revenue and narrowing down of net loss with backing from FY17 earnings result and positive operating cash flow are bringing the stock trend on next level of growth track. It is worth noting that the group started gaining traction when Technology Crossover Ventures grabbed a stake in Xero during the year.

With returns of 240% in last one year, a2 Milk Company Ltd (ASX: A2M) became another piece of attraction in 2017. A2M had acquired an 8.2% stake in Synlait Milk and was surging high on product demand and accelerated strategy for growth in China. However, with some profit-booking activities, the stock seems to be slipping a bit in the past one month.

On the other side of the table was Blackmores (ASX: BKL) that was in the list of stocks, which outdid in 2016 but lost ground in 2017 as the stock lost the charm among the investors. Blackmores was specifically impacted by the profit warning based on anticipated weak demand in China. Despite the shortcomings, the stock has been up 44% in last one year.

With some ups and downs, Retail Food Group Ltd (ASX: RFG) was seen to be defending against the pressure in 2016 and 2017, and witnessed a decent first half 2017 results. However, the stock has been down 30% in last one year.


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