MENU

3 tech shares I would buy in December

The months of October and November have been reasonably disappointing for the tech sector.

Since the start of October the S&P/ASX 200 Info Tech index had fallen approximately 13% prior to today.

I’m optimistic that things will be much better in December and beyond, which I feel could make it worth considering an investment in one of the three top tech shares listed below.

Altium Limited (ASX: ALU)

One of my favourite tech shares on the local market is this electronic design software company. Altium has been growing at an impressive rate over the last few years and this looks set to continue being the case for the foreseeable future thanks to the rapidly expanding Internet of Things market. As these devices will more often than not have a printed circuit board (PCB) inside them, I believe subscriptions for Altium’s award-winning PCB design software will increase strongly and underpin its earnings growth.

REA Group Limited (ASX: REA)

Another quality tech company that I think is worth considering is REA Group. This year the property listings company has demonstrated to investors that it can still deliver solid earnings growth in a falling housing market. In the first quarter of FY 2019 REA Group delivered a 17% increase in revenue to $221.9 million and a 23% lift in EBITDA to $130.9 million. This strong revenue growth reflected price changes which took effect from July 1, an improved product mix, and further depth penetration.

Xero Limited (ASX: XRO)

I think that this accounting software provider would be a great buy and hold investment option. This is because I believe the quality of Xero’s software has put it in a great position to benefit greatly from the shift to cloud-based accounting. This was evident in the first half of FY 2019 when the company saw its revenue jump 37% to $256.5 million thanks to 193,000 net subscriber additions and a 6% lift in its average revenue per user metric.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Xero. The Motley Fool Australia has recommended REA Group Limited. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!