Global markets appear to be making a bullish turn as President Trump announced that he would hold off imposing more tariffs on China, reviving hopes of a deal soon.
With that in mind, it might be a perfect opportunity to consder picking up these high-quality ASX tech stocks.
Rhipe Limited (ASX: RHP)
Rhipe is a leading cloud channel company that provides technology partners with end-to-end solutions. The company’s business model revolves around three strategic operations divisions including cloud licensing, cloud services and cloud operations.
On June 19, the company announced an earnings upgrade citing FY19 operating profit to be greater than $12.5 million and FY20 operating profit to be approximately $16 million.
Rhipe is strongly positioned as a value-added reseller of cloud software by providing clients with marketing, consulting and support as a service. The public cloud service market is expected to grow from $182.4 billion in 2018 to $331.2 billion in 2022. As more and more businesses switch to using the cloud, Rhipe has a strategic position to sell, implement and support vendors with technical needs.
Nearmap Limited (ASX: NEA)
Geographic information systems (GIS) is a high growth sector as businesses seek to leverage geographic analytics and high-quality imagery in its analysis and decision making.
Nearmap is a market leader in capturing high-quality geographic imagery. There is no competitor that can match the company’s aerial imaging quality to its scale. Nearmap recently announced the launch of its 3D online and beta version artificial intelligence products designed to stream and export imagery on-demand and for the intelligent identification of ground features and detection of change over time.
The company’s ability to stay ahead of the game and win contracts is reflected in its impressive compound annual growth rate (CAGR) of 38% for annual contract value across the past 2 years.
Altium Limited (ASX: ALU)
One of my key concerns for Altium was when US infrastructure software solutions and semiconductor manufacturer, Broadcom, cut its guidance for 2019, citing “broad-based” demand weakness and the US crackdown on Huawei. However, recent progression in the US-China trade war has alleviated such concerns.
Altium is a growth machine in itself. In the company’s half-year results back in February, it posted a 24% gain in revenue to US$78 million and 57.6% growth in net profit to US$23.4 million. I believe Altium can continue to leverage its strong position in the printed circuit board market and achieve its ambitious goal of US$200 million in revenue by 2020.
Xero Limited (ASX: XRO)
The Xero share price went gangbusters after the announcement of its FY19 results back in May. The company highlighted strong progress in top-line growth, cash generation and profitability. Some key metrics include a 36% growth in operating revenue to $552.8 million, 31% growth in total subscribers to 1.818 million and a positive H2 FY19 NPAT of $1.4 million.
Xero has been a strong trending growth stock and is currently sitting on price levels that are not too extended. I believe Xero deserves a place on your watchlist as one of the fastest growing tech companies.
Appen Limited (ASX: APX)
Appen is arguably a “market darling” in the machine learning and artificial intelligence space. The company highlighted another year of phenomenal growth with a 119% increase in revenue to $364.3 million and NPAT up 148% to $49 million. Appen will no doubt continue to leverage the tech-hungry market with its arsenal of products surrounding search categorisation, speech recognition and data annotation.
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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium, Nearmap Ltd., and Xero. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nearmap 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.