The February earnings season is now in full swing and some of the biggest ASX tech shares are on watch this week.
Altium Limited (ASX: ALU), Nearmap Ltd (ASX: NEA) and WiseTech Global Ltd (ASX: WTC) are all set to report their results this week.
Here are a few reasons I think we could see some strong capital gains from these 3 ASX tech shares this week.
Why these ASX tech shares could outperform
Altium is the first ASX tech share that I'll be watching this week,
Altium is set to report its half-year results after the market close today. The design software group has a history of outperforming at earnings time and I think we could see more today.
Concerns over the coronavirus outbreak and the US–China trade war have hit the Altium share price in recent months. However, a strong earnings result today could be a big boost for the tech group and send it higher in 2020.
Nearmap is one of the other hot ASX tech shares that could be in the buy basket.
While the WAAAX shares might be a touch overvalued, the Nearmap share price plummeted 30% lower in January.
The geospatial mapping group provided an update on its FY20 earnings and investors sold down the group's shares as a result. However, whenever there are violent sell-offs there can often be tactical buying opportunities.
Nearmap is set to release its half-year results on Wednesday and is one ASX tech share that could be undervalued right now.
WiseTech Global shares have been under pressure in recent months. The group's shares have been volatile as it has locked horns with US-based short-seller, J Capital Research.
J Capital alleges that WiseTech has overstated earnings and misled investors in its reporting. However, WiseTech has hit back and vigorously defended itself against these allegations. Despite this, the ASX tech share is up just 4.87% in the last 12 months.
A strong earnings result could be just the tonic that shareholders are after. If WiseTech can show signs of growth on Wednesday, I would expect a big share price jump.
