Technology stocks have been pummelled in the last few weeks. But not all of them are the same, so here are a couple of gems.
The post 2 ASX tech shares that experts love right now appeared first on The Motley Fool Australia. –
As inflation and rising interest rate fears grip the markets, technology shares have shed a lot of their valuation in the past few weeks.
In fact, since 7 September, the S&P/ASX All Technology Index (ASX: XTX) has plunged a painful 8.3%.
But not all tech shares are the same.
There are some businesses that are post-COVID reopening beneficiaries and others that are growing so fast it matters little what the rest of the market is doing.
Two experts this week picked out a pair of ASX shares that have exactly these tailwinds.
Waving your cards on Freedom Day
Shares for fintech Tyro Payments Ltd (ASX: TYR) have sunk 12% since 24 September.
But that might just make for a buying opportunity. As Burman Invest chief investment officer Julia Lee suggested, the business has a rosy outlook.
“Tyro has seen not only strong growth year-on-year, but the growth is likely ahead of it in the short term because of that reopening trade,” she told Switzer TV Investing.
“So I think from a short term, as well as a medium and long term basis, that it will do well.”
Tyro’s biggest business is providing card payment terminals to retailers, especially in the restaurant and takeaway sector.
Lee added that putting all tech stocks into the same basket is counterproductive, as each company has different real-world forces impacting them.
“With that reopening trade, you’d expect things like travel and hospitality to still do well despite that tech element being in there.”
Shaw and Partners senior investment adviser Adam Dawes said that the pandemic has shifted Australians well and truly onto card payments.
“Cashless society is continuing to happen now. I think I’ve had $20 in my wallet for the last 3 months and never had to spend it.”
The ASX tech stock that’s doubled this year
Yes, ASX tech shares are struggling. But try telling that to Aussie Broadband Ltd (ASX: ABB) shareholders.
After starting the year at around $2, the stock price is up a whopping 140%. Aussie Broadbank shares were going for $4.81 at close on Tuesday afternoon.
But Dawes reckons there’s more to come from the internet service provider.
“I really like the stock. We’ve got a $5.50 price target on it… I think there’s a little bit of room to move on the upside on that one.”
But that’s its advantage, as far as Dawes is concerned.
“It’s taking a lot of market share from Telstra,” he said.
“Telstra is so big, so cumbersome, it can’t be nimble. Aussie Broadband is very, very nimble.”
Dawes expects this cash pool to go to good use.
“They are going to make some more acquisitions which will be EPS [earnings per share] accretive,” he said.
“As well, we expect them to announce some other deals with the NBN and some fibre stuff.”
Wondering where you should invest $1,000 right now?
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.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of August 16th 2021
What happened for the Telstra (ASX:TLS) share price in the FY22 first quarter?
When will the Telstra (ASX:TLS) dividend increase?
Could the Telstra (ASX:TLS) share price reach $4.50 by the end of 2021?
How did ASX fintech shares perform in the FY22 first quarter?
Motley Fool contributor Tony Yoo owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited and Tyro Payments. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.