News, Price Analysis, Stocks

Should You Buy This ASX Share After Gaining 29% Last Month?

Analysts trusts interested individuals can still fund a stock with more upside regardless of July’s spectacular surge.

An ASX stock gaining 29% within a month remains impressive, but what about that being only the start of an upward move? That is the case with Eagers Automotive Ltd, a vehicle dealership network.

That is according to experts at Celeste Funds Management. The team told customers (in a memo) that the firm recorded a massive trading update early last month.

Though the ongoing supply chain challenges plaguing new car deliveries, Eagers adjusted its PBT guidance for 2022 H1 to $195 million, compared to profit guidance of $183 million and $189 million in May, experiencing order bank growth and benefits from present productivity plus cash-out programs.

Eagers’ stock price gained over 5% that day and maintained uptrends throughout the month, closing July 29% up.

Welcome to the Party

Celeste team believes the stock gas more in store despite its outstanding performance. That comes even as Australians possibly witnesses challenges to afford big-ticket ident amidst surging interest rates.

They trust an upside order book will support Eager’s medium-short term earnings even as weakened macro elements can deteriorate consumer sentiments. Also, a robust balance sheet will back inorganic and organic growth.

Meanwhile, the business experienced heat from the increased interest rates. Also, the $13 million net corporate debt flashed a material improvement from $128 million on December 31, 2021. Meanwhile, Eagers Automotive will publish its interim earnings on August 25.

Insiders Find Eagers Attractive

Company directors and execs sell their stock in the firm for various reasons. They might need additional money to purchase new boats or enjoy lavish holidays overseas. However, there’s only one reason they might prefer buying their stocks. And that’s optimistic future projections. After all, can they risk their cash knowingly?

In that context, Nick Politis of Sydney Roosters and Eagers non-exec directors purchased massive shares from the company.

According to Montely Fool reports, Politis purchased Eagers shared worth $1.5 million in July. He added more stocks despite APE gaining 26% within the previous month. That means he believes in a bright future for the company.

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