If your risk tolerance allows you to invest in small cap ASX shares, then I think the ones listed below could be worth considering.

I believe all three small cap shares could be destined for big things in the future. Here’s why I think you should add them to your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap share to watch closely is Bigtincan. It is a fast-growing provider of enterprise mobility software. The company’s software allows businesses to increase their sales win rates, reduce costs, and improve customer satisfaction through improvements in mobile worker productivity. Demand for its software has been growing strongly in recent years and has continued during the pandemic. As a result, the company remains well-placed to deliver strong revenue growth in FY 2020.

Nitro Software Ltd (ASX: NTO)

I think Nitro Software is another small cap ASX share that is worth watching closely. Nitro is a software company which is aiming to drive digital transformation in businesses around the world across multiple industries. The main product in its portfolio is the the Nitro Productivity Suite solution. This solution provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Whispir (ASX: WSP)

A third and final small cap share that I think could have a bright future is Whispir. It is a growing communications platform as a service (CPaaS) provider which offers an industry-leading software platform. This clever platform allows organisations to deliver actionable two-way interactions at scale by using automated multi-channel communication workflows. Management notes that it has a long runway for growth. The CPaaS market is growing at a rapid rate and is expected to be worth US$6.7 billion per year by 2022.

More reading

• 3 exciting small cap ASX shares to watch closely in the 2020s
• EML Payments and these ASX mid cap shares could be destined for big things
• 3 small cap ASX tech shares that could be stars of the future
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• 2 exciting small cap ASX shares that could have big futures

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 BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nitro Software Limited, and Whispir 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.

The post 3 excellent small cap ASX shares to add to your watchlist appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index fell 0.9% to 5,936.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 looks set to end the week on a subdued note on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 4 points or 0.1% lower. This follows a mixed night of trade on Wall Street which has seen the Dow Jones fall 0.15%, but the S&P 500 rise 0.05% and the Nasdaq index climb 0.35% higher. This was the latter’s fifth straight gain.

Oil prices rebound.

It could be a strong finish to the week for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.5% to US$38.90 a barrel and the Brent crude oil price has pushed 2% higher to US$41.53 a barrel. Oil prices rebounded on OPEC+ output optimism.

Gold price edges lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on poor note after the gold price weakened. According to CNBC, the spot gold price is down 0.3% to US$1,730.50 an ounce. The price of the precious metal softened after U.S. jobless claims fell.

ResMed rated as a buy.

The ResMed Inc. (ASX: RMD) share price could go higher from here according to analysts at Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the medical device company’s shares. Goldman hosted a call with ResMed’s management yesterday and notes that demand for Obstructive Sleep Apnoea (OSA) products has remained robust during the pandemic.

Woodside given buy rating.

In addition to ResMed, Goldman Sachs is positive on Woodside Petroleum. It has reaffirmed its buy rating and $33.85 price target on the energy producer’s shares. This price target implies potential upside of 55.6% for its shares over the next 12 months.

More reading

• Why the ResMed share price could still go higher from here
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Reserve Bank of Australia almost halted property sales in April

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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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