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Buy these fantastic ASX tech shares for potential market beating returns

The ANZ region may not have a tech sector anywhere near the size of those in the United States, Europe, and China, but it certainly is home to a good number of quality tech companies. Many of which I believe are worthy of a spot in most portfolios.

Two of my favourites are listed below. Here’s why I like them:

Altium Limited (ASX: ALU)

Altium is easily one of my favourite tech shares on the Australian share market. It is a software-as-a-service company that provides an award-winning printed circuit board (PCB) design platform. PCBs are the small boards you find in almost all electronic devices. Given the proliferation of electronic devices due to the rapidly growing IoT and AI markets, demand for its software has been growing at a very strong rate in recent years.

The good news is that management doesn’t expect this demand to ease any time soon. In FY 2020 it expects to have just over 50,000 software subscriptions. It is then targeting market domination and 100,000 subscriptions by FY 2025. Given the quality of its software and its leadership position in the industry, I’m confident Altium will achieve its goals.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It allows businesses to access high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. What I like about this product is that it means users can conduct accurate virtual site visits without needing to leave the home or office. This ultimately enables informed decisions, streamlined operations, and significant cost savings.

In FY 2020 Nearmap expects to report annualised contract value of $103 million to $107 million in FY 2020. While this is a large number, it is only a very small slice of a global aerial imagery market which is estimated to be worth US$10.1 billion. Due to the quality of its offering, which has been boosted by the release of Nearmap AI this year, I beleive the company in a position to capture a growing slice of this market over the next decade. This should drive strong recurring revenue growth and could propel the Nearmap share price notably higher.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap 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.

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