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Here are the best performing ASX 200 tech shares so far in 2021

These tech shares have been doing the best so far this year
The post Here are the best performing ASX 200 tech shares so far in 2021 appeared first on The Motley Fool Australia. –

In recent history, technology shares have often outperformed the S&P/ASX 200 Index (ASX: XJO). In fact, the information technology sector has outperformed the Australian benchmark index 11 out of the past 15 years.

Unfortunately for tech investors, 2021 is so far looking like a win for the passive index investors. But that doesn’t mean that all of the ASX 200 tech shares are suffering this year. Here are the three top techies bucking the trend.

Top 3 ASX 200 tech shares

Last week we recapped the best performers out of all the ASX-listed shares. This one is solely for our tech friends.

The big reveal…

Iress Ltd (ASX: IRE)

Iress is a provider of financial services software across the Asia Pacific, United Kingdom, Europe, United States, and Africa. The $2.52 billion company boasts a customer base of over 9,000 businesses.

Ironically, the Iress share price was in negative territory for the year until earlier this month. An unsubstantiated rumour that the company was in the acquisition sights of a big bidder sent shares flying.

The rumours appear to be whispers in the wind, but the elevated share price has remained. As a result, this ASX 200 tech company’s share price has risen 22.2% year-to-date (YTD).

Megaport Ltd (ASX: MP1)

Despite featuring frequently in the top 10 most shorted ASX shares, Megaport has been the second-best tech share to own from the start of the year. The company which provides flexible connectivity for its customer’s network needs has rallied 27.8% so far in 2021.

A by-product of the pandemic disruption is that more companies are seeking flexible and scalable solutions for their networking needs. This was demonstrated by Megaport’s Q3 FY21 annualised revenue increasing a further 8% to $81 million quarter-over-quarter. This was buoyed by its customers growing from 2,043 to 2,117 during the quarter.

Analysts at UBS have a buy rating and a price target of $17.10 on the ASX tech name. Though, the recent Megaport share price strength has put it above this target, with shares going for $18.20 at the time of writing.

Codan Limited (ASX: CDA)

At the top of the tech podium is metal detector, communications, and tracking solutions manufacturer Codan. If you read our best performing ASX 200 shares roundup last week, this company will look familiar.

A combination of strong metal detector sales and a couple of earnings accretive acquisitions has bumped up the share price so far in 2021.

The first acquisition of Domo Tactical communications adds a long-term supplier of network solutions to more than 20 key United States government agencies. This acquisition is expected to contribute $9 million to the bottom line in its first year of ownership.

Codan’s second acquisition involves a leading US-based provider of mission critical communication solutions. The company known as Zetron is forecasted to be earnings accretive in FY22.

Evidently, investors are pleased about Codan’s expansion. This ASX 200 tech share has delivered a 52.5% return so far this year – making it the best performing.

The post Here are the best performing ASX 200 tech shares so far in 2021 appeared first on The Motley Fool Australia.

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More reading

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5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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