I think that one of the most promising areas of the market to invest in at the moment is the tech sector.
In this area there are a good number of companies with the potential to grow strongly over the next decade and generate outsized returns for shareholders.
Three ASX tech shares that I think are worth considering are listed below. Here’s why I like them:
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a provider of software products and services to financial institutions including BNP Paribas, Fidelity, and Mercer. Thanks to the increasing popularity of its Sonata wealth management platform, it has been growing its earnings at a strong rate over the last few years. I believe there is still a long runway for growth for Sonata, which should be complemented by recent acquisitions. These acquisitions look set to provide Bravura with new avenues for growth in industries benefiting from structural tailwinds.
Xero Limited (ASX: XRO)
Another tech share to consider buying is Xero. It is one of the world’s leading cloud-based business and accounting software providers with a high quality and sticky product. Xero recently reported its full year results and revealed further impressive growth in sales and EBITDA. This was driven by strong customer growth and increases in average revenue per user. While the next few months may be trickier than normal because of the pandemic, I believe its long term prospects remain as positive as ever.
Zip Co Ltd (ASX: Z1P)
A final tech share to consider buying is Zip Co. I’ve been very impressed with the performance of the buy now pay later provider over the last couple of years and feel confident its strong growth can continue. Especially given its international expansion and the ever-increasing customer and merchant numbers on its platform. Another big positive was that Zip Co recently released a business update which showed that its growth has continued during the pandemic and its bad debts have remained low.
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Returns as of 7/4/2020
More reading
- Is the Xero share price a buy after last week’s dip?
- Leading brokers name 3 ASX shares to buy today
- Why Aristocrat Leisure, Newcrest, Santos, & Zip Co shares are charging higher
- 5 ASX 200 winners and 5 losers of the week
- These are the 10 most shorted ASX shares
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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