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Buzzing Trends. Today we will be looking at the Top 5 ASX-listed growth shares of 2021 ranked
on the basis of the year-to-date returns. So lets get started.
Growth stocks belong to the companies that report higher revenues and profits
than average companies within the same industry. Due to their high-growth potential, these stocks
are in high demand among investors. Despite the ASX remaining volatile in the past few months,
growth stocks have given decent returns to the shareholders. However, these stocks generally
distribute lower dividends than others, which can be a drawback for some investors.
Thus, investors should decide to include growth stocks in their portfolios
based on their needs and risk-taking capacity. Well, without further delay, lets look at the
Top 5 ASX-listed growth shares of 2021 ranked on the basis of the year-to-date returns:
First is Novonix.
Novonix is an Australia-based battery materials and technology company. The Company is
focused on the investment in scalability efforts to improve production capacity of anode materials,
commercialization of the Company's cathode technology, as well as expanding cell assembly
and testing capabilities. Novonix stock has given a year-to-date return of over 628%.
In the latest, the company released two “change of director’s interest”
notices. According to the notices, executive director Robert Natter and non-executive chair
Anthony Bellas exercised their performance rights to acquire more Novonix shares. The
company recently announced the opening of a new facility in Chattanooga, the US. The company said
this new facility would “produce the high-purity and high-consistency anode material required
for long-life batteries, specifically for electric vehicles and similar storage applications”.
Next is Vulcan Energy Resources.
Vulcan Energy Resources Limited is an Australia-based energy metals exploration
company. The Company is engaged in developing a combined geothermal and lithium extraction project
in the Upper Rhine Valley of Germany. Vulcan stock has given a year-to-date return of over 320%.
In October 2021, the company announced that it had signed a binding lithium hydroxide offtake
pact with Umicore, a leader in cathode materials production applied in Li-ion
batteries for electrified transportation. In the September 2021 quarter, the company also signed
deals with LG Energy Solution and Renault Group to supply battery-grade lithium chemicals.
Moving on to Lynas Rare Earths.
Lynas Rare Earths is an Australian rare-earths mining company,
listed on the Australian Securities Exchange as a S&P/ASX 200 company. It has two major operations:
a mining and concentration plant at Mount Weld, Western Australia, and a refining facility at
Kuantan, Malaysia. Lynas Rare Earths stock has given a year-to-date return of over 117%.
The company in its last week’s annual general meeting revised upwards forecast for the demand
for neodymium-praseodymium, an alloy used in numerous tech products and applications,
such as electric motors. The company currently expects an annual growth rate of 10%
in this division, up 300-basis points from previous estimates.
The forecast upgrade is on account of the increasing demand for electric vehicles.
Next stock is IGO.
IGO is an Australia-based exploration and mining company. The Company is focused on discovering,
developing and operating assets focused on metals critical to enabling clean energy.
IGO has core operations into non-operator gold mining under Tropicana Gold Mine,
nickel mining under Long Operation, and zinc and by-product mining under Jaguar Operations. IGO
stock has given a year-to-date return of over 64%. The company yesterday announced plans to acquire
Western Areas for AU$1.096 billion. The move is expected to turn IGO into a major regional player,
boosting its nickel output from 25,000 to 27,000 tonnes in the financial year 2022.
Last stock to look at is Lovisa.
Lovisa is a locally owned public company, deriving revenue from the retail sale of
fast-fashion jewellery and accessories. The company employs approximately
1,340 people, operates in Australia, New Zealand, Europe, Asia and South Africa, and is administered
by its head office in Hawthorn, Victoria. Lovisa stock has given a year-to-date return of over 64%.
The Lovisa share price has doubled over the past year and gained over 400%
since 20 March 2020 pandemic selloff lows. The company’s revenue only fell 3% in the
financial year 2020 and rebounded strongly, rising by 18% in the financial year 2021.
Well, that’s all for now. We will be back soon
with more shows to share the latest market insights with you. Till then,
Stay tuned with Kalkine TV for more stock, business and economy related hot trends.