One company outperformed its competition and carved out a place as the biggest riser on the London Stock Exchange (LSE) last week. According to the latest data from Saxo Markets, electronics manufacturer discoverIE Group saw its share price beat the rest.
Here’s everything you need to know about this booming company and why its stock was flying.
What do we know about discoverIE Group (DSCV)?
The company was previously known as Acal PLC. Its new name was formed to represent the term ‘discover innovative electronics’. The company’s bread and butter is to design and manufacture electrical components. It also acts as a middle-man, supplying third-party equipment to various companies.
This may not sound super exciting, but these small pieces of electronics play a crucial part in equipment that’s used across lots of different industries, including areas such as:
- Medicine and healthcare
- Industrial manufacturing
- Computing boards
Why did the discoverIE share price rise last week?
According to the Saxo Markets ‘Weekly Winners’ list, the discoverIE share price rose by a monster 22.76% last week. This now means the company’s current market cap is hovering around £1.14 billion.
Like many companies, discoverIE was hit hard by the effects of the coronavirus pandemic. But it’s now back on track and a recovering global economy is leading to a big surge in demand for the company’s products.
In addition to this, discoverIE recently acquired two businesses with high operating margins: US-based Beacon EmbeddedWorks and UK-based Antenova. These companies complement a long list of other smart takeovers that discoverIE has made over the years.
Investors are eating up all of these smart plays, and it looks like the company is on a great trajectory, going from strength to strength.
Other than discoverIE, what other share prices rose?
The discoverIE share price was not the only one to see a significant rise last week. Here are some of the other top-performing companies:
- Dunelm (DNLM) – 17.44%
- Clinigen (CLIN) – 14.82%
- Bakkavor (BAKK) – 12.26%
- Volex (VLX) – 11.65%
- Hochschild Mining (HOC) – 6.51%
- Smart Metering Systems (SMS) – 5.97%
- 4imprint (FOUR) – 5.69%
Can I buy shares in discoverIE?
You can pick up shares in the company using a share dealing account that gives you access to the full list of stocks on the FTSE 250. It’s worth using something like the Saxo Markets stocks and shares ISA to make sure you minimise the tax you pay on any future gains.
As the discoverIE share price has been rocketing upwards for the past two weeks, there may not be much more room to grow in the immediate future. But it does look like this business is forward-thinking and playing the long game. So it could still make a good long-term investment.
Just remember that past performance doesn’t dictate future results. High volatility and fast price rises sometimes mean the share price can move just as quickly in the opposite direction. So always invest with care and understand that you may get out less than you put in.
Please note that tax treatment depends on your individual circumstances may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
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