Why these 4 ASX tech superstars are soaring today

Credit: Pictures of Money

It’s been another solid day for local investors with the benchmark S&P/ASX 200 (Index:^AXJO) (ASX:XJO) and the broader ALL ORDINARIES (Index:^AXAO) (ASX:XAO) both lifting 0.8%.

Pleasingly, a number of companies have managed to generate significantly better returns than either of those indices, including these four tech businesses…

Senetas Corporation Limited (ASX: SEN) rose 10% to a new high of 22 cents per share. Senetas’ shareholders have enjoyed an incredible 12-month period with the stock up a remarkable 479% in that time. The company develops and manufactures defence-grade encryption hardware designed to protect government and corporate information and could have a promising future ahead of it.

Freelancer Ltd (ASX: FLN) released its interim financial results earlier today, revealing a strong lift in user growth as well as a record revenue result. Although none of that revenue found its way to the bottom line, with the company posting a $0.8 million loss for the half. The company is investing heavily in its growth to achieve greater results in the long run. The stock rose 9.1% to a new 52-week high of $1.44 per share.

Catapult Group International Ltd (ASX: CAT) continued its incredible run today, lifting another 5.1% to a record high of $1.44. The company’s shares experienced a brief dip recently after Bell Potter downgraded it from a ‘Buy’ to ‘Hold’ recommendation, but it now looks set to surpass their 52-week price target of $1.50 in the near future. Even at today’s price, I believe the stock could hold solid long-term value.

Altium Limited (ASX: ALU) has endured a tough run in recent months with its shares falling from an all-time high of $5.31 to a recent low of just $4.04. The stock is up 4.2% today however with investors likely recognising value at its current levels. Indeed, the company enjoys remarkable margins, strong customer retention rates and plenty of growth potential.

For the record, while I’ve already mentioned that Senetas’ shares have risen 479% over the last 12 months, Altium and Freelancer have also surged 77% and 67% in that time, respectively, while Catapult has gained 146% since its ASX debut in December.

The smart money is looking for up-and-coming smaller companies with huge potential.

Two of Australia's most promising small companies are still flying under the radar (and they're both tech stocks!). Discover these two exciting ASX investments in our brand-new special FREE report, "2 Small Cap Superstars". Click here now, it's free!

Motley Fool contributor Ryan Newman owns shares of Altium and Senetas. Ltd.You can follow Ryan on Twitter @ASXvalueinvest.

 The Motley Fool Australia owns shares of Altium. 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 Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.