It’s funny to think that technology stocks were all the rage only just a year ago but are completely out of favour now.
The S&P/ASX All Technology Index (ASX: XTX) had, in fact, risen a phenomenal 155% from the COVID-19 trough in March 2020 to November last year.
But over the past 12 months, the index has lost 28%.
However, with inflation looking to peak and the end of steeply rising interest rises in sight, many experts have tipped tech to make a comeback in 2023.
Still plenty of scepticism about tech
But as the old saying goes, “once bitten, twice shy”.
On Thursday, the broader S&P/ASX 200 Index (ASX: XJO) rallied an impressive 0.96%, but tech shares missed out on the party.
In fact, Shaw and Partners portfolio manager James Gerrish noted that quite a few of them sold off.
“Altium Limited (ASX: ALU) opened close to $40 before sliding lower all day,” he said in his Market Matters newsletter.
“In other words, at this stage investors are far from convinced that the tech sector can make a meaningful dent in the losses endured through 2022.”
But the tide will turn sooner or later
But Gerrish considers Altium a buy right now, as the sentiment for technology will turn soon.
“Market Matters remains long and bullish on Altium,” he said.
“We can see Altium testing well above $40 into Christmas.”
The share price for the ASX 200 electronics design software provider has already risen 7.5% over the past month.
And it’s not the only tech share he’s keen on at the moment.
“We’ve chosen Altium to make our point here but it could easily have been Seek Limited (ASX: SEK) or REA Group Limited (ASX: REA).”
Gerrish had previously tipped both of those stocks to lead the tech resurgence heading into Christmas.
REA has indeed fit the bill, seeing its shares soar 4.8% over the past month. Seek has also done well, edging up 4.73%.
The post 3 ASX 200 tech shares to buy now before the market wakes up: expert appeared first on The Motley Fool Australia.
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More reading
- Why are ASX tech shares having such a cracking run on Thursday?
- Analysts name the ASX tech shares to buy right now
- Experts say these ASX 200 blue chip shares are buys
- Here are the top 10 ASX 200 shares today
- Iâd aim for $1 million in retirement buying just 10 ASX 200 shares
Motley Fool contributor Tony Yoo has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended Rea Group and Seek. 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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