These tech shares could be in the buy zone…
The post 3 ASX tech shares to buy this week appeared first on The Motley Fool Australia. –
The tech sector is home to a number of companies with strong growth potential.
Three that are highly rated are listed below. Here’s what you need to know about these tech shares:
Nitro Software Ltd (ASX: NTO)
The first ASX tech share to look at is document productivity software company. It was a solid performer during the first half of FY 2021 and more of the same is expected in the second half and beyond. Particularly given its investment in sales staff and favourable tailwinds which are supporting demand for its software.
The team at Bell Potter are positive on the company. So much so, Nitro is currently the broker’s number one pick in the sector. It has a buy rating and $4.00 price target on Nitro’s shares.
NEXTDC Ltd (ASX: NXT)
Another tech share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. NEXTDC has been experiencing very strong demand for data centre capacity due to the structural shift to the cloud. This has underpinned strong sales and operating earnings growth in recent years. Positively, this is expected to continue as the shift to the cloud continues. It could also boost its growth further if its international expansion is a success.
Goldman Sachs has a buy rating and $14.40 price target on its shares.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
A final tech share to look at is actually an ETF that gives investors access to a large group of tech shares. The VanEck Vectors Video Gaming and eSports ETF provides investors with exposure to companies involved in the growing video gaming market. Among the shares included in the fund are hardware giant Nvidia and game developers Activision Blizzard, Electronic Arts, Roblox, and Take-Two. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.
Should you invest $1,000 in NEXTDC right now?
Before you consider NEXTDC, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NEXTDC wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.