MENU

3 ASX technology shares to watch in 2017

REA Group Limited (ASX: REA) shares, XERO FPO NZX (ASX: XRO) shares and Class Ltd (ASX: CL1) shares have been rallying in 2017.

Source: Google Finance

Nonetheless, here’s why I still have these three companies on my long term investment watchlist.

REA Group

REA Group is the owner of realestate.com.au, Australia’s leading property portal. It also has stakes in other property listing businesses, like iProperty Group and Move Inc. The company has grown rapidly thanks to an unwavering focus on user experience, a first mover advantage, industry tailwinds and savvy investment.

The company continues to grow its profit at a healthy clip. However, if investors want to buy shares they’ll have to pay up. The REA Group share price trades at 36 times profit with a 1.4% dividend.

Xero

Xero is the New Zealand-based accounting software business. The company is a dominant force, continually growing its network via geographical expansion and a better user experience. Accountants say that although Xero’s products are more expensive than others it is worth paying for.

The company is unprofitable and does not pay a dividend. However, it continues to grow its subscriber base fiercely and could make for an ideal ultra-long-term investment, in my opinion.

Class

Class is a small company, with a market capitalisation of just $360 million and a 1% dividend. Like Xero, Class’s software can be found in the cloud. Its two products, Class Portfolio and Class Super, are used by accountants and financial advisers to administer investment portfolios and self-managed superannuation funds (SMSFs).

At today’s prices, Class shares do not appear cheap but like REA Group and Xero it could be a long-term winner for patient shareholders.

Are you thinking of buying Xero shares? Why not try these 3 blue chip dividend share ideas. They have been hand-picked by our expert analyst.

Just, click here, enter your email address and we'll send you our expert analyst's research report -- completely free.

No payment or credit card details required.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Class Limited and Xero. 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.