In FY 2018 the information technology sector was one of the best performing areas of the market with a 29.5% gain.
While there’s no guarantee that the sector will perform as well in the new financial year, I think that there are a number of tech shares with market-beating potential.
Three top tech shares that I would consider buying this month are listed below:
Altium Limited (ASX: ALU)
This printed circuit board (PCB) design software provider could be a great long-term investment option thanks to the internet of things boom. As the proliferation of connected devices happens, I expect demand for Altium’s software will increase strongly. This is because connected devices will typically have a PCB inside them. As with all the shares mentioned here, Altium does trade at a premium to the market average and is a reasonably high-risk investment. However, I remain confident that its growth profile justifies this.
Appen Ltd (ASX: APX)
Appen is a developer of high-quality, human annotated datasets in the high growth machine learning and artificial intelligence markets. The company counts many of the world’s largest tech companies as its customers, which I believe it a testament to the quality of its services. Thanks to strong demand for its offering and a sizeable acquisition, management recently advised that full-year EBITDA is trending towards the upper end of its $50 million to $55 million guidance range. This would mean EBITDA growth of 95% year-on-year.
Webjet Limited (ASX: WEB)
This online travel agent is one of my favourite tech shares on the Australian share market. I’ve been very impressed with the way the company has achieved bookings growth well ahead of the industry average. And with management continuing to target this level of growth over the medium term, I believe it is well positioned to deliver above-average earnings growth for the next few years. This could make it a great buy and hold investment option.
The ASX small cap up 285% with no sign of stopping...
One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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.