3 Top Performing ASX Tech Stocks To Consider in September 2021
Australian shares gained ground on Wednesday. This follows a volatile session that saw the market fall at the open. However, as the day progress, the ASX 200 rallied on news of Evergrande’s deal with bondholders.
The Australian benchmark ended the day higher, as gains in the resources, energy and mining sectors led shares higher. At the close in Sydney, the ASX 200 rose by 0.32%.
Our List of ASX Tech Shares to Consider in September 2021
At the moment of writing, the Australian index still remains 4.6% below its all-time high. The recent correction on the broad market could be an opportunity to consider some new plays in your portfolio. Here are three stocks that you may consider:
Nitro Software Ltd (ASX: NTO)
One of the hot software stocks right now is Nitro. It is a software company that aims to drive digital transformation in organisations with its Productivity Suite. This software suite provides integrated PDF productivity and electronic signature tools to customers through a software-as-a-service. Moreover, Nitro offers a desktop-based software solution. These amazing software suites are successful. Although, we have seen demands for Nitro’s offering increasing from businesses of all sizes.
Consequently, FY21 has been again, a year of revenue growth for the company. During the first half of the financial year, Nitro achieved a 56% increase in its annualised recurring revenue to US$33.8 million. Hence, this puts it on track to achieve its FY21 guidance, targeting US$39 million to US$42 million.
At the moment of writing, NTO is still 8.24% below its all-time high. Nitro shares already started to recover from their recent correction. Nevertheless, it is not too late to get some at the current price of $3.49 per share.
Zip Co. Ltd (ASX: Z1P)
Zip belongs to the hot sector of the moment, Fintech. Despite, the company is evolving in this relatively new industry, it has been around for a while. Hence, Z1P was first listed on the ASX in 2009 and is headquartered in Sydney. Zip has around 10,000 retail partners and 1,2 million customers in Australia.
Today, the Zip share price is up by more than 4% to $6.51. This follows the announcement of a major investment. According to the release, Zip has agreed to make a strategic US$50 million investment in India-based “Buy Now Pay Later” operator ZestMoney. The Indian BNPL has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.
It is a considerable expansion opportunity for Zip. Thus, a potential massive earnings growth could be expected in the following years.
Kogan.com Ltd (ASX: KGN)
Another ASX share that could be a top buy and hold investment is in the e-commerce Kogan. KGN is one more stock that should be taken as a long-term play. While KGN has just completed a mediocre 12 months in FY21 along with a soft start of FY22, we remain positive in the long-term outlook. The reason for that is KGN’s sizeable customer base and strong market position. In addition, Kogan is benefiting from the ongoing shift to online shopping. As a result, this leaves the company well-placed for growth over the next decade.
What happened during FY21? Well, variable demand and excessive inventory have caused big impacts on Kogan. FY21 gross profit went up 61% to $203.7 million. On the other hand, net profit fell 86.8% because of one-off inventory, logistics and Mighty Ape acquisition costs. However, the business is starting to see a return of growth again.
In FY22, Kogan expects to deliver strong growth with its exclusive brands. Furthermore, KGN will focus on the enhancement and development of its marketplace. And finally, we should see the benefits from the full integration of the Mighty Ape business to materialise in earnings growth onward 2HFY22.