The WiseTech Global Ltd (ASX: WTC) share price has rocketed 18.7% higher in just 2 days – but is the Aussie tech stock the best of the WAAAX group?
Why has the WiseTech share price surged higher?
August has been a crazy month for WiseTech shareholders, with the WiseTech share price plummeting 17.3% before the phenomenal recovery in the last 2 days.
The US-China trade war escalation was the catalyst for the tech stock’s share price fall in early August, with concerns that Aussie tech and resources companies could be caught in the crossfire.
However, WiseTech rebounded strongly on Wednesday as it became the first of the WAAAX stocks to release its results this August reporting season.
WiseTech posted another bumper result on Wednesday which saw the WiseTech share price surge a whopping 27% higher after its release.
WiseTech exceeded analyst estimates by posting a 57% revenue growth to $348.3 million and a 33% increase in net profit after tax to $54.1 million.
Also boosting shareholders’ hopes for WiseTech was the announcement that it plans to expand its operations with further international operations on the horizon.
What are the WAAAX stocks?
These top tech stocks are the ASX200’s answer to the “FAANG” stocks (Facebook, Apple, Amazon, Netflix, Google) which comprise a significant portion of the US share markets’ market cap.
While not quite as dominant in domestic equities, the WAAAX stocks have outperformed over the last 2-5 years and have proved to be some of the best buys on the market.
Is WiseTech the best WAAAX stock?
While this question is always up for debate, the stunning rebound from the WiseTech share price and ability to consistently outperform certainly makes it a good buy within the group.
In my view, the likes of Afterpay and Appen are overvalued at present and I’m waiting for their respective results releases before seeing whether there’s a buying opportunity there or not.
I like WiseTech’s strong earnings profile and international expansion roadmap for the future, but Altium delivered some explosive growth of its own in its latest full-year results and lays a strong claim to the top WAAAX stock title.
Xero is set to release its half-year results later in the reporting season and could be one to watch given rival MYOB has now been taken private.
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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Appen 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.