Avacta exploded higher, and I’m finding other strong-performing shares too

In this stock-picker’s market, Avacta isn’t the only opportunity. Here’s where I’m finding some decent share ideas right now.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

A colourful firework display

Image source: Getty Images.

On 3 April, the Avacta (LSE: AVCT) share price stood close to 20p. Today, it’s near 182p. You don’t need me to tell you how holding the stock could have transformed your portfolio.

The biotechnology company’s share price exploded higher when it announced an agreement with Cytiva to develop a saliva-based rapid antigen test to indicate whether a person has the Covid-19 infection.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Then, on 20 May, Avacta revealed it had entered a “global, exclusive, direct-to-consumer sales and marketing” agreement for its Covid-19 antigen test with Medusa 19 Ltd.

A substantial market for the Avacta test

Avacta’s chief executive, Dr Alastair Smith, said in the recent update the potential size of the market for the firm’s saliva test is “substantial.” He reckons the demand will come from businesses for workforce screening as well as directly from consumers.

It seems like a no-brainer to expect these tests to fly off the shelves in the current pandemic. But it remains unclear how profitable sales will be. And the company has invested significant sums of money into getting the test off the ground. Meanwhile, the coronavirus will only run for so long. The R (reproduction) value of the virus has been falling, and the market for tests could vanish if a vaccine arrives.

If I’d been lucky enough to have been holding shares in Avacta through the recent rises, I’d take at least some of my money off the table now and possibly all of it. I reckon investing can be at its best if we aim to run to where the ball is going rather than where it is now. For me, that means looking at other opportunities today.

And I’ve been finding some strong-performing shares in the stock market recently. Luckily, many haven’t exploded up so far and as fast as Avacta. But the trends are up, driven by resilient underlying business performance.

A stock-picker’s market

I reckon it pays to be selective though. It’s true that lockdowns are easing and many businesses can soon resume trading, such as retailers. But a world with coronavirus will be different, and that looks set to lead to reduced revenue and profits for many companies. Meanwhile, there are some sectors with uncertain futures, such as the hospitality industry and travel.

However, other sectors are doing well, such as IT, computing, healthcare, food supplies and others. In many cases, business hasn’t been affected much by the crisis and has sometimes been enhanced by it.

Right now, I like the look of shares such as Avast, Beeks Financial Cloud, Codemasters, Faron Pharmaceuticals, Genus and Sage, to name but a few. But don’t buy the shares without first researching and analysing the underlying business though.

If you like what you’re seeing after doing your own research, I reckon you’ll find other attractive opportunities in the sectors I’ve mentioned. And promising shares in other sectors too. Good hunting!

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Social media and digital online concept, woman using smartphone
Investing Articles

Apple stock: Buffett is long, Burry is short. What should I do?

Our author thinks about whether following Warren Buffet into Apple stock might be a good addition to his portfolio –…

Read more »

Close-up of British bank notes
Investing Articles

5 ‘no-brainer’ dividend shares to buy today

Is there an easy way to narrow down the list of FTSE 100 dividend shares? I try one approach, with…

Read more »

Close-up of British bank notes
Investing Articles

£5,000 to invest? 2 dividend-paying penny stocks I’d hold to 2030

I think these high-yielding penny stocks could help cushion the impact of high inflation on my returns. Here's why I'd…

Read more »

Renewable energies concept collage
Investing Articles

2 green stocks that I think are no-brainer buys for the future

Jon Smith explains two of his favourite green stocks at the moment, one for growth and the other for income…

Read more »

An airplane on a runway
Investing Articles

The Rolls-Royce Share price may be set for take-off!

After an upbeat Civil Aerospace Investor Day, here's why I think the Rolls-Royce share price could be set for take-off…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

2 beaten-down growth stocks to buy as inflation rises

Despite inflationary pressures and recession concerns, I am looking at some top growth stocks to solidify my portfolio over the…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is the IAG share price too good to miss at current levels?

Jabran Khan delves deeper into the current state of play with the IAG share price and decides if now is…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

5 of the highest-paying income stocks compared! Which one is best for my portfolio?

Income stocks are certainly in vogue right now amid sky-high inflation. But which of these big dividend payers is the…

Read more »