4 growth stocks set to rocket

The tech sector is on the cusp of a boom in cloud-based applications.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Management at one of Australia's leading information technology (IT) service providers recently stated that cloud-based computing was set to the biggest shift in the IT space since the personal computer was released!

Whether you agree with the magnitude of the statement or not, it would certainly appear that cloud computing is set to change the landscape of IT with a number of businesses set to benefit from the growth in cloud-based technology.

Here are four companies offering exposure to both hardware and software which investors may consider adding to their watchlists if they are looking for exposure to this growing industry.

1)      XERO FPO NZ (ASX: XRO) has been one of the most successful companies on the ASX, having gained 476% since November 2012. The New Zealand-based company provides an online accounting system which has rapidly gained user numbers and integration with major financial institutions.

2)      Amcom Telecommunications Limited (ASX: AMM) offers a range of solutions for companies accessing the cloud. The solutions include data centres, managed services and cloud data protection.

3)       Telstra Corporation Ltd (ASX: TLS) is not about to miss out on the cloud revolution. While Telstra's sheer size makes the cloud just one potential profit driver of the overall group, its market leadership position also means it can capture market share of this growing segment by cross-selling to its customer base.

4)      TPG Telecom Ltd (ASX: TPM) owns Australia's third largest metropolitan fibre optic network including its own submarine cable system between Australia and Guam. This unique infrastructure asset positions TPG to benefit from the significant increase in data usage which cloud computing demands.

One of the problems with investing in fast growing industries and new technology is that it can be very difficult to accurately predict winners. For example, while Xero has incredibly exciting growth prospects, the firm is yet to make a profit – so investing in the stock is not without risk.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »