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Here are 3 tech shares with explosive growth prospects

So far this year the S&P/ASX 200 Info Tech (Index: ^AXIJ) (ASX: XIJ) has thoroughly outperformed the market with an 8.5% gain.

Due to the sector being home to a good number of high-quality shares with strong growth prospects, I believe the sector has a lot left in its tank and can continue its outperformance for some time to come.

Three shares which I would consider buying today are listed below:

The Appen Ltd (ASX: APX) share price has fallen around 8% this year, leaving its shares changing hands at just under 25x trailing earnings. Whilst this might sound expensive, I believe it is a fair price to pay for the data solutions and services company’s shares given its current growth outlook. Management expects earnings growth in excess of 20% this year thanks to strong demand for its voice recognition and language data services.

The Nextdc Ltd (ASX: NXT) share price has gone gangbusters this year, climbing a massive 21%. With the data centre operator recently posting a 110% increase in half-year EBITDA to $23.9 million, it’s not hard to see why investors have been fighting to get hold of its shares. As more businesses migrate to the cloud I expect to see demand for its services rise, resulting in increasing levels of contracted utilisation and strong profit growth. At 30x annualised earnings I feel NEXTDC could be a great buy and hold investment.

The WiseTech Global Ltd (ASX: WTC) share price has also been a big mover this year with a 21% gain. Although its shares are reasonably expensive, I believe at this point in time it deserves to trade on higher than normal multiples. After all the cloud-based supply chain management software provider recently reported a 361% jump in half-year net profit to $14.4 million. With over 6,000 logistics companies using its CargoWise software, I believe the company has become an integral part of the logistics industry.

These 3 stocks could be the next big movers in 2020

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*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd and WiseTech Global. 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.

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