It is no secret now that growth, and especially technology, stocks have had the guts ripped out of them the past few months.
It’s bad enough that the S&P/ASX All Technology Index (ASX: XTX) has lost almost 20% for the year. Many of the smaller players now have market capitalisations that are just half of what they used to be.
With such heavy discounting, it’s no wonder some experts are calling on investors to get back into tech shares.
If you pick sound businesses, they are bound to head back up in the long run, they say.
Here are a couple of examples picked out this week:
Get your half-price bargain here
There’s no getting around it. The Nitro Software Ltd (ASX: NTO) share price has made investors go grey.
The stock has lost an eye-watering 66% since mid-November. This year alone it has plummeted more than 45%.
Yikes.
But for BW Equities equity salesperson Tom Bleakley, this just means the ASX share now “offers top value”.
“The company has guided to continuing growth this year,” he told The Bull.
“The company has enjoyed strong demand for its products, with revenue increasing 27% to US$51 million in fiscal year 2021.”
He’s not the only one thinking Nitro is a bargain right now.
According to CMC Markets, all 8 analysts surveyed rate the stock for the PDF handler as a “buy”, with everyone but one marking it as a “strong buy”.
Customers ‘stick with the product’
Medallion Financial Group private client advisor Stuart Bromley’s pick at the moment is accounting software maker Xero Limited (ASX: XRO).
“This accounting software provider has continued to build momentum, with more than 3 million subscribers,” he said.
“Users tend to stick with the product.”
Xero shares have not quite been hammered as much as Nitro, but nevertheless have lost almost 32% this year so far.
But Bromley notes the business is “capital light and scalable”.
“The price discount is attractive,” he said.
“Annualised monthly recurring revenues have exceeded NZ$1 billion ($920 million). Management is focused on expansion – organically and via acquisitions of complementary offerings, which should increase average spend per customer.”
Xero shares are more polarising among analysts, with 6 of 11 surveyed on CMC Markets rating it as a “buy”. Three say hold, while 2 are advising clients to strongly sell.
The post 2 ASX tech shares to buy now for DIRT CHEAP: experts appeared first on The Motley Fool Australia.
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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nitro Software wasn’t one of them.
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*Returns as of January 13th 2022
More reading
- Analysts name 2 exciting small cap ASX shares to buy with huge upside
- Why did the Xero (ASX:XRO) share price sink 5% today?
- Is this the ‘secret sauce’ for ASX 200 tech share price growth?
- 3 ASX tech shares worth buying now to hold for years
- 3 beaten-down technology ASX shares to buy right now: expert
Motley Fool contributor Tony Yoo owns Nitro Software Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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