3 outstanding small cap ASX shares to watch

Whispir Ltd (ASX:WSP) and these small cap ASX shares could have very bright futures ahead of them. Here's what you need to know…

| More on:
Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're a fan of small cap shares, then I would suggest you take a look at the ones listed below.

Here's why these three ASX small cap shares could have bright futures ahead of them:

Audinate Group Limited (ASX: AD8)

The first small cap share to look at is digital audio-visual networking technologies provider, Audinate. It is best known for its industry-leading Dante audio over IP networking solution. This solution is used widely across a number of industries and is currently dominating the competition. This appears to have positioned it perfectly for growth once the pandemic passes and large gatherings and events begin again. The company has also made some acquisitions in the video side of things and is looking to replicate its success in audio in this lucrative market as well.

Universal Store Holdings Limited (ASX: UNI)

Another small cap to watch is Universal Store. It is a fashion retailer which aims to deliver a frequently changing selection of on-trend products to a target 16-35 year old fashion focused customer. It has been a very positive performer during the pandemic and reported impressive growth during the first half of FY 2021. For the six months ended 31 December, Universal Store delivered a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. The company followed this up in the third quarter with further strong growth, setting itself up for a bumper full year profit result.

Whispir Ltd (ASX: WSP)

A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir provides an industry-leading software platform that allows governments and businesses to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Demand has been increasing strongly, leading to stellar recurring revenue growth in recent years. However, it is still only scratching at the surface of its total addressable market (TAM). At the end of the third quarter, Whispir's ARR stood at $50.3 million, which was up 20.3% over the prior corresponding period. This compares to its TAM of US4.7 billion in the just United States. 

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 Whispir Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Small Cap Shares

A young man wearing a black and white striped t-shirt looks surprised.
Small Cap Shares

Why this ASX small cap stock could rocket 60%

Bell Potter sees huge upside potential from this small cap.

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Small Cap Shares

3 small-cap ASX shares with 'long runways for growth'

DNR's Sam Twidale reckons investors could do worse than buy these guys for the long run.

Read more »

Kid putting a coin in a piggy bank.
Small Cap Shares

7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024

Could it be time to back the underdogs of the ASX amid a potentially richly-valued benchmark?

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

3 ASX penny stocks I don't think will be below 80 cents much longer

These sub-dollar shares are all capable of smashing through to another level, say experts.

Read more »

Kid on a skateboard with cardboard wings soars along the road.
Small Cap Shares

Want to make big returns? ASX small-cap shares are poised to outperform

Smaller businesses could be compelling investments today, according to an expert.

Read more »

The Two little girls smiling upside down on a bed.
Small Cap Shares

Where I'd invest $5,000 into ASX small-cap shares aiming for big growth

I love the potential of how big these small stocks could become.

Read more »

A young woman makes an online travel booking as she sits on some steps with her suitcase next to her.
Opinions

I think this ASX small-cap share can soar in 2024

This stock could keep travelling higher over time.

Read more »

Three young people in business attire sit around a desk and discuss.
Opinions

3 reasons why I'd buy small-cap shares over ASX blue chips in 2024

I’m excited by the potential of small stocks.

Read more »