Why the Xero (ASX:XRO) share price can hit $100 again in 2020

Should the Xero Limited (ASX: XRO) share price be on your buy list as it rockets towards the $100 per share mark in 2020?
The post Why the Xero (ASX:XRO) share price can hit $100 again in 2020 appeared first on Motley Fool Australia. –

australian one hundred dollar note representing xero share price

The Xero Limited (ASX: XRO) share price rocketed 4.4% higher in yesterday’s trade to lead the S&P/ASX 200 Index (ASX: XJO) winners list.

Why did the Xero share price surge?

There were no new announcements from the Aussie software company but that didn’t stop heavy buying by investors.

The latest surge comes amid a broader sell-off in technology shares, particularly in the US-based Nasdaq.

It’s been a tough few weeks for tech investors who have seen the likes of Xero and Afterpay Ltd (ASX: APT) track US tech stocks lower.

But it seems like the Xero share price has met some support in the market and bounced back strongly.

Will the ASX tech share again rocket past $100 per share?

I think the Xero share price could be on the move again in this morning’s trade. US tech stocks performed strongly overnight and the ASX 200 looks set to rise.

That’s good news for investors but I think the medium-term outlook also has a lot to like.

Xero has continued to acquire and retain customers despite the coronavirus pandemic. The company has a clear, steady expansion plan with a mix of organic and inorganic (i.e. from acquisitions) growth.

That could see the company take big strides towards achieving the growth that is promised by its current 4,417 price-to-earnings (P/E) ratio.

If the company can continue to grow while keeping customer churn numbers low, I think the Xero share price is a good chance to hit $100 per share again in 2020.

Foolish takeaway

ASX tech shares have been under pressure in recent weeks but we could be seeing a turning point.

The Xero share price doesn’t look cheap by any means but it could still be a good buy for growth. As of Tuesday’s close, the company’s shares are still well below their all-time high of $103.48 per share reached earlier this month.

I think the Aussie tech share is worth watching in early trade as the market looks set to rebound.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Why the Xero (ASX:XRO) share price can hit $100 again in 2020 appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!