If you’re looking for buy and hold options, then I think the tech sector would be a great place to start.
In this sector I believe there are a number of companies which have the potential to grow materially over the 2020s and beyond.
Three fantastic ASX tech shares that I feel are standout buys are listed below. Here’s why I like them:
Altium Limited (ASX: ALU)
I think Altium shares could smash the market over the next 10 years. This is because the electronic design software company has exposure to the fast-growing Internet of Things (IoT) and artificial intelligence (AI) markets. These markets are driving the proliferation of electronic devices, which in turn is driving strong demand for its software subscriptions. Combined with the benefits of scale and its other growing businesses, such as NEXUS and Octoport, I believe Altium is well-placed to deliver on its FY 2025 revenue target of US$500 million. This compares to Altium FY 2020’s expected revenue of ~US$189 million.
Kogan.com Ltd (ASX: KGN)
Another tech share to consider buying is Kogan. I believe the rapidly growing ecommerce company has the potential to grow materially over the next decade. This is thanks to the growing popularity of its website and the accelerating shift to online shopping. As of 2019, just ~10% of consumer spending was being made online. I expect this to grow significantly in the future. So with this tailwind in its sails and acquisitions in its sights, I think Kogan has a bright future ahead of it.
Pushpay Holdings Ltd (ASX: PPH)
A third tech share that I would buy and hold is this donor management platform provider. Pushpay has been benefiting greatly from the shift to a cashless society. Gone are the days of churches passing around a bucket, now they can use Pushpay’s app to donate. Adoption of its platform has been increasing rapidly, leading to the company’s revenue and operating earnings growing at an explosive rate. The good news is that Pushpay still has a very long runway for growth. It is aiming to win a 50% share of the medium and large church market, which represents a US$1 billion revenue opportunity. This compares to the US$127.5 million operating revenue it recorded in FY 2020.
5 stocks under $5
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
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- WAAAX shares see mixed recovery from COVID-19
- Pushpay and 1 other 5-star ASX share to buy right now
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- 5 things to watch on the ASX 200 on Tuesday
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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Kogan.com ltd and PUSHPAY FPO NZX. 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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