The All Ordinaries Index (ASX: XAO) is up a respectable 4.34% since 4 June, but this ASX All Ords tech stock has left those three-month gains wanting.
The resurgent stock in question is online tradie marketplace operator Hipages Group Holdings Ltd (ASX: HPG).
On 4 June, Hipages shares ended the day at a one-year closing low of 80 cents. At market close on Tuesday, those same shares were swapping hands for $1.365 apiece. That puts the Hipages share price up an impressive 71% in a little over three months.
It's also seen the ASX All Ords tech stock recoup the heavy losses suffered in the first half of calendar year 2025. Shares are now up 8.0% year to date.
Now, here's why Lucas Goode, a portfolio manager at Investors Mutual, expects more outperformance from Hipages shares in the months ahead (courtesy of The Australian Financial Review).
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ASX All Ords tech stock tipped to outperform
Asked which stock his fund holds that he believes has the most near-term upside, Goode pointed to Hipages.
"Hipages Group is Australia's largest platform for trade services, connecting homeowners and trades people in a more efficient manner," he said.
"Strong network effects are driving more consumers to post jobs on Hipages because that's where the tradies' are, while tradies subscribe to find the jobs," he added.
Goode likened the potential of the ASX All Ords tech stock with industry giants like CAR Group Limited (ASX: CAR), Seek Ltd (ASX: SEK), and REA Group Ltd (ASX: REA).
He said:
As we have seen with Carsales, Seek and REA Group, online marketplaces are typically a winner-takes-all proposition, and Hipages is well on its way to being the dominant platform for the trades sector.
Goode added:
The founder-led company has now passed the critical inflection point of generating sustainable cash flow while still growing its top line at double digits, notably guiding to 50% growth in free cash flow in the current financial year.
As seen with recent success stories like Catapult Group International Ltd (ASX: CAT) and Life360 Inc (ASX: 360), reaching cash flow breakeven is often a watershed moment for small-cap tech stocks.
Indeed, in FY 2025, the ASX All Ords tech stock reported a 162% year-on-year increase in free cash flow to $5.6 million.
Looking to the company's FY 2026 guidance, Goode concluded, "Hipages' guidance for the 2026 financial year implies a roughly 15 times price-to-free-cash-flow multiple, very reasonable for such a fast-growing and dominant business."
