Although Australia's tech sector is the smallest of 11 sector groupings by market capitalisation, there's no better time to take advantage of opportunities for home grown tech stocks.
Here are two tech stocks that are financially healthy, have been performing well, and have strong outlooks moving forward.
Nextdc Ltd (ASX: NXT)
Nextdc is a data centre provider offering a range of services to corporate, government and IT services companies. At the end of FY17 Nextdc posted a $23 million net profit, an increase of $21.2 million on last year. Nextdc's outlook for FY18 is 14%-25% in EBITDA growth.
The company is also the first in Australia to receive the TCCF certification, meaning its B2 facility has the ability to withstand individual equipment failures or distribution path interruptions and maintain IT operations. Growth in demand looks promising, with shortages in Sydney's quality data centre offerings and increased offshore demand, making this one of the best tech shares to invest in on the ASX.
The company's AGM will be held this week, so investors may hold off investing until then.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global services the logistics industry globally by providing software that monitors the movement of goods. Although the company only had its IPO last year it already has over 7,000 customers in more than 125 countries. The company has continued to pursue its aggressive global expansion plans, with recent acquisitions of two leading global rate management solution providers, Cargoguide and CargoSphere in September.
WiseTech's revenue at the end of FY17 grew 50% on the previous year to $153.8 million, with a forecast of 30%-37% in revenue growth and EBITDA growth of 32%-39% for 2018. The company has more than tripled its market capitalisation to $3.45 billion since listing in 2016 and its strong growth profile and impressive global acquisition strategy make it a top pick this month.
