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3 tech stocks to get excited about

Investors have been cautious in the healthcare and oil sectors of late, but these 3 tech stocks have been able to maintain strength amongst otherwise volatile conditions and are worth having on your watchlist in the very least.

Technology One Limited (ASX: TNE)

Software provider Technology One Limited is no small fry, with a $1.57 billion market cap and 14 offices across Australia, New Zealand, Asia, the South Pacific and the UK.

Bell Potter named Technology One as among its top 12 stock picks for 2018 back in January, with a $6.20 price target on the stock with share prices up slightly to $4.96 at the time of writing, dropping back from $5.39 at this time last year.

Technology One has been battling a commercial dispute with the Brisbane City Council of late and there have been few announcements to excite investors in the interim save a mid-year roadshow report last month tabling the company’s eighth consecutive year of record revenues and profit and annual cloud subscription profit up 84%.

Technology One has maintained its FY18 guidance, with expectations its Cloud First, Mobile First strategy will gain strong traction as the company continues to focus on research and development and license growth.

Speedcast International Ltd (ASX: SDA)

Satellite-based communications provider Speedcast International shares are at a 52-week high, at $5.93 at the time of writing, up from $3.91 at this time last year.

Speedcast recently released an impressive annual report, with a 136% uptick in revenue, EBITDA rise of 195% and NPATA also up 41%.

Speedcast’s Harris CapRock transaction has won it the title of becoming the largest remote communication services provider in the world and the company has caught the attention of UBS who labelled it as a buy back in February with a price target of $5.80 which has now been exceeded.

Speedcast looks well positioned for growth well beyond 2018, continuing to reduce debt and win new contracts, and its strong fundamentals make it a pretty attractive proposition.

Gentrack Group Ltd (ASX: GTK)

Shares in utilities software developer Gentrack Group Ltd opened down today, at $6.64 at the time of writing, after reaching a 52-week share price high yesterday with a closing price of $6.67.

Still a small cap, $558 million market cap company Gentrack appears to have plenty of room for growth, as airport customers continue to take up its product with approximately 80 utilities and 110 airports using its software globally.

Gentrack’s bottom line has been bolstered by its recurring revenue stream, which was up 43% for FY17 to NZ$42.8 million.

Another similar player to watch is cloud-based software provider ELMO Software Ltd (ASX: ELO), a new player in the sphere who is beginning to impress with its debt-free cashed up balance sheet and growing demand for its services.

ELMO shares were down 1% to $5.60 at the time of writing.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. The Motley Fool Australia has recommended GENTRACK FPO NZ. 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 Scott Phillips.

 

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