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3 leading ASX 200 tech shares to buy now

The reopening of the Australian economy and record-low interest rates has made the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) rife with opportunities. For investors interested in the technology sector, here are three leading ASX 200 tech shares to consider buying today. 

1. EML Payments Ltd (ASX: EML) 

The EML share price ascended to an almost ‘market darling’ status following years of consistent organic growth and strategic acquisitions. However, global social distancing and lockdown measures due to the coronavirus have derailed its business model that is largely dependent on shopping centres and recreational activities. 

Prior to EML’s acquisition of Irish firm, Prepaid Financial Services (PFS), its revenue from shopping centre gift cards represented approximately 65% of group revenues. Its long-term strategy is to diversify its earnings away from its dependency on shopping centres. The acquisition of PFS pivoted its earnings to more General Purpose Reloadable (GPR) than Gift & Incentive (G&I). GPRs have various applications including salary packaging benefit accounts, fintech and digital banking, and sports betting/gaming. 

I believe EML’s positive business update and depressed share price bodes well with the reopening global economy. Its G&I segment should see volumes recover as lockdowns ease and trading conditions improve. 

2. Data#3 Limited (ASX: DTL) 

Data#3 is a business communications technology leader that provides an integrated array of solutions including cloud, mobility, security data and analytics and IT lifecycle management. The company’s 1H20 results announced that revenue had increased by 11.6% to $718.9m and NPAT jumped 41.5% to $8.7m. 

On 2 April the company provided an update on the impact of COVID-19. It cited that, to date, there has been no material change to its overall sales pipeline. Customers have been shifting their priorities to address immediate remote working, cloud and security requirements. Its performance to date and current pipeline of opportunities will help it achieve its full year financial objectives.

However, it noted that its performance is typically dependent on significant earnings in the fourth quarter, and it is too early to provide more specific guidance at this point in time. It reassured the market that approximately 60% of its revenue is recurring from contracts with government and large corporate customers. 

3. Tyro Payments Ltd (ASX: TYR) 

Tyro is one of the many businesses that will benefit from a reopening Australian economy. The company offers payment solutions for credit and debit card transactions.

As of 30 June 2019, 77% of Tyro’s merchants were SMEs and 86% were in the health, hospitality and retail sectors. Despite these sectors being hit the hardest by lockdown rules, Tyro only experienced a 38% fall in transaction values in April and 20% fall in the first two weeks of May (on prior corresponding period). The reopening of retail, restaurants and cafes should see volumes improve moving forward. 

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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 Emerchants Limited and Tyro Payments. The Motley Fool Australia has recommended Data#3 Ltd. and Emerchants 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.

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