Out of the 3 top performing stocks of 2017 on the ASX All Ordinaries index that include The a2 Milk Company (A2M), Kogan.Com Ltd (KGN), and Appen Ltd (APX), KGN has been the best one with over 338.5% rise in stock price this year to date (as at December 21, 2017). KGN is an electronics online retailer that initially looked to fail to get traction, but this was just short-lived with the stock price growing steadily at the back of the group beating earnings benchmarks and paying a healthy dividend. The price movement has led the group to have a market capitalisation of over $553 million. The online group has done well despite the threat from Amazon and is still indicating this to be just the start of its growing era. Recently, the group inked an agreement with PetSure to distribute and promote pet insurance policies under a new brand “Kogan Pet Insurance”. Another agreement has been signed with Medibank Group to offer budget health insurance policies under a new brand “Kogan Health”. 

Overall, strong FY17 result fundamentals with 800% growth in proforma NPAT, investment in brands, market opportunity in online retail, additional verticals, and strong outlook for FY18 with 36.2% growth in revenue for four months from July to October, indicate for growth to continue.

Given the prevailing sentiments, KGN stock was up 5.2% on December 22, 2017 and is trading at very high levels. We give a “Hold” on the stock at the current price of $6.20
 

Growth Drivers (Source: Company Reports)

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