3 ASX tech shares I think growth investors should be stalking

If you’re a growth investor you’re well versed in scouring the market for stocks that show trends of above-average growth or growth potential.

If you’ve never heard of these tech stocks it’s time to put them on your watchlist.

Prophecy International Holdings Limited (ASX: PRO)

Prophecy International designs, develops and distributes computer software applications and services for the corporate marketplace with offices in Australia, the US and UK.

Any company in the cyber security realm is one to watch, as companies worldwide are forced to reassess and redefine their cyber-security situation on a daily basis.

Prophecy’s share price is at 63c per share today, and the company has been struggling to find a foothold in the industry in the past couple of years, with performance out of its SNARE and eMite products falling short of expectations in FY17.

However, a February 8 announcement revealed preliminary first-half FY18 results are expected to show a strong improvement over the same period last year, with unaudited financials forecasting sales revenue of $5.89 million and $1.06 million EBIT – representing a 24% growth against the same period last year and a 58% increase of EBIT vs first half FY17 results.

Prophecy has been working behind the scenes to forge strong industry partnerships in the hope these connections will open up additional markets for the company in the future.

Rhipe Ltd FPO (ASX: RHP)

Subscription software provider Rhipe Ltd has enjoyed a steady upward swing in share price over the last year, opening today up 4.5% at 93c per share. That’s up from 45c at the same time last year.

Rhipe works with world-leading software vendors, providing subscription for products such as Microsoft, VMware and Citrix as well as consulting and support to companies transitioning their own clients to cloud and subscription-centric business environments.

It’s an interesting niche, and a specialised one, with Rhipe being recognised as ARN’s Software Distributor of the Year and asserting itself as a market leader for cloud and service provider software licensing in Australia and New Zealand with recent expansion across South East Asia.

Rhipe’s first half FY18 results presentation early this month reported an EBITDA of $2.8 million a profit after tax of $1.1 million and a 22% growth in group revenue since FY17.

With service providers making the transition towards cloud computing business models globally, it will be interesting to watch Rhipe’s progress over the next few years in this obvious growth sector.

Senatas Corporation Limited (ASX: SEN)

Data encryption hardware developer Senetas Corporation provides technology designed to protect government and enterprise information – no doubt a growth area as our reliance on technology grows commercially and personally.

Senetas is beginning to make a name for itself in the competitive encryption hardware industry and was awarded a NATO Certification – providing the company with a strong competitive position and assurance for its customers.

The company has experienced slow, but consistent growth in the last few years, with the share price opening today up 4.35% to 12c a share – up from 0.09c at the same time last year.

On January 23 Senetas announced NPBT of $2.2 million, with further earnings growth expected in the second half – underpinned by projected sales from custom algorithm products.

Senetas will release its half-yearly report on February 26 and it will be interesting to see if results reach expected targets.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

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.