Growth stocks are often crowded by market darling names from the S&P/ASX 200 (INDEXASX: XJO). Instead, here are three stocks from the All Ordinaries (INDEXASX: XAO) index that you may want to put on your watchlist.
Data#3 Limited (ASX: DTL)
Data3 Limited is engaged in providing information technology solutions such as data centres, and configuration and warehousing facilities across Australia. On Thursday 11 July, the company announced a net profit before tax for FY19 to be approximately $26 million (FY18 $20.4 million and FY17 $22.4 million). The consolidated FY19 net profit after tax (NPAT) is estimated to be approximately $18 million, an increase of around 28% compared to FY18. The strong performance in a growing technology market reignited sentiment and sent the Data3 share price surging 18% on the day.
I believe the share price is quite extended at today’s prices. However, the company trades at a reasonable price-to-earnings (P/E) ratio of 22 within a strong growth sector and showing signs of growth. This stock deserves a place on investors’ watchlist, as it may offer a buying opportunity in the near future.
Dicker Data Ltd (ASX: DDR)
Dicker Data Limited is an Australian wholesale distributor of computer hardware, software and related products. Its vendors include household names such as Hewlett-Packard, Cisco, Toshiba, Lenovo, Microsoft and other major brands. DDR services approximately 5,000 resellers that in turn service multiple clients ranging from SMEs to large corporates.
DDR has set a high benchmark for growth after its first quarter were tracking ahead of forecasted figures. The company cited a 21.1% growth in revenue and 46.7% growth in profit before tax. In recent times, DDR also launched a new business division to meet the growing demand of operational expenditure. The launch of Dicker Data Financial Services will offer by-the-month payment solutions that can be specifically tailored to suit partners and customer needs.
Dubber Corporation Limited (ASX: DUB)
Dubber Corporation Limited is a transformative cloud-based software as a service (SaaS) that provides call recording and audio asset management. The company is strongly positioned in terms of expanding the global opportunity for its services. Market conditions, customer requirements and the continued development of cloud services in the telecommunications sector has enabled the company to leverage its products and position in the market.
Dubber provided a quarterly update back in May, which had revenues up by 23% and cash receipts increasing by 42%. I believe the company is in a sweet spot to leverage its software solutions on a global scale. Dubber cited that it is currently engaged with, and expects to provide services to, 7 out of the top 10 telecommunications service providers in the United States market.
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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Data#3 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.