The WiseTech Global Ltd (ASX: WTC) share price has soared more than 36% higher so far in August. Despite sliding 1% in late afternoon trading today, that still puts WiseTech among the top 5 leading share price gainers on the S&P/ASX 200 Index (ASX: XJO) this month.
During this same period, the ASX 200 has climbed a far more subdued 3.1%. (Not that we're turning our noses up at 3% monthly gains!)
WiseTech wasn't immune to the wider COVID-19 viral selloff that gripped markets in late February into March. From February 18 through March 19, the logistics software provider's share price crashed a gutwrenching 64%.
However, from the March low, the WiseTech share price rebounded strongly, and is up 173% at time of writing. That rebound has been enough to put the company well into the green for 2020, with the WiseTech share price up 22% since 2 January.
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What does WiseTech do?
WiseTech is a leading global provider of cloud-based software solutions for the international and domestic logistics industries. Its leading product, CargoWise One, provides a comprehensive, end-to-end global logistics solution.
WiseTech Global was founded in 1994 in Sydney, with the intent to lead the international logistics industry in technology innovation. WiseTech shares began trading on the ASX in 2016.
Today, the company operates in 50 offices worldwide. More than 12,000 logistics organisations in 150 countries use WiseTech software.
What's behind the 36% WiseTech share price leap in August?
The WiseTech share price saw rapid growth from its March low through the end of May. From there it traded in a range roughly between $19 and $22 per share. Right up until last Wednesday, 19 August. Wednesday saw WiseTech's share price close up 34% for the day, to $27.87 per share. (It's currently trading for $28.56 per share.)
The huge daily surge, responsible for most of August's 36% share price gains, came upon the release of WiseTech's 2020 financial year results. The company reported a 23% increase in revenue and a 17% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA).
The company holds a strong position with its global logistics software solutions business model. While the coronavirus pandemic may have shuttered countless restaurants across the globe and slashed international travel, goods still need to be stored and moved around from place to place.
As WiseTech founder and CEO Richard White noted: "COVID-19 market disruptions have provided a long-term tailwind for growing our market share."
