4 growth stocks set to rocket

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

| More on:

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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

More on ⏸️ Investing