Appen Ltd (ASX:APX) and this ASX tech share are trading notably lower than their 52-week highs. Here’s why this could be a buying opportunity
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One small positive from the recent market turmoil is that it has dragged some quality shares down to very attractive levels.
Two ASX tech shares which I think are trading at levels that could lead to them generating strong returns for investors over the next decade are listed below. Here’s why I like them:
Appen Ltd (ASX: APX)
The Appen share price is currently trading 26% lower than its 52-week high. This means the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence is trading at approximately 37x estimated FY 2021 earnings. I think this is a buying opportunity for investors that are prepared to make a long-term investment.
This is because business and government investment on machine learning and artificial intelligence is expected to grow significantly over the next decade. I expect this to lead to growing demand for its services. Especially given its history of working with some of the biggest tech companies in the world and its strong position in the government sector through its Figure Eight business.
Nearmap Ltd (ASX: NEA)
Another share that has fallen heavily from its 52-week high is this leading aerial imagery technology and location data company. As of Friday’s close, the Nearmap share price was down 28% from its 52-week high. I feel this has left its shares trading at an attractive level for long-term focused investors.
Management believes the company is well-placed for growth thanks to its recent capital raising and new growth initiatives. So much so, over the long term it is targeting annualised contract value (ACV) growth of 20% to 40% per annum, with underlying churn of less than 10%. Thanks to the quality of its offering, particularly its latest AI product, and its expansion opportunities, I believe it is well-placed to achieve this.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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 Nearmap Ltd. The Motley Fool Australia owns shares of Appen 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.
The post 2 top ASX tech shares to buy after the recent market turmoil appeared first on Motley Fool Australia.