The WiseTech Global Ltd (ASX: WTC) share price has suffered at the hand of a tech-led selloff. Now down 22% since the beginning of the year, could the logistics software company present a buying opportunity?
In early morning trade, shares in WiseTech are feeling the pinch again, trading 2.8% lower to $45.41. The WiseTech share price is now 24.8% below its 52-week high of $60.40.
What does WiseTech do again?
WiseTech aspires to be the operating system for global logistics. Keeping track of all the variables within a supply chain can be complex. However, WiseTech's cloud-based software solutions — such as CargoWise — bring all of the information into one location.
The technology helps logistics providers be more productive by giving them a broad toolset when it comes to the logistics industry. This includes features for handling customers, warehouse management, geocompliance, transport, etc.
Since its inception in 1994, WiseTech has grown to servicing 24 of the top 25 global freight forwarders on the planet. Likewise, the company's software is used by 41 of the top 50 global third-party logistics providers.
Is the WiseTech share price in the buy zone?
A slump in the WiseTech share price could be attributed to a broader retreat in sentiment across tech shares. In fact, the S&P/ASX All Technology Index (ASX: XTX) is still down 17% year-to-date.
Staggering rates of inflation have seen investors begin to shift more into value shares. Last night, the United States Federal Reserve recorded its hottest inflation reading in 40 years, hitting 7.5%.
However, Bruce Williams of Elston Asset Management believes the value proposition offered by WiseTech is a good opportunity.
In an interview with Livewire, portfolio manager Williams said:
WiseTech is growing very, very strongly. They've got a lot of the sector as clients and it's a five-year integration program or up to five years. They continually build revenue, not only from new client wins but from existing clients as well.
Fellow Fool, Tony Yoo, recently covered another expert's take on WiseTech and its share price. Jun Bei Liu of Tribeca noted the company's shares as a 'great buying opportunity' following the recent pullback, adding:
The last result was just incredibly strong and we think they still have a bright future
Lastly, WiseTech is expected to report its first half results on Wednesday 23 February.
