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Should you buy Xero and these fast-growing ASX tech shares?

James Mickleboro
Man holding tablet with sharemarket chart showing growth shares

Although the Australian share market doesn’t boast any global technology giants like GoogleApple or Microsoft, I believe local investors still have plenty of exciting tech shares with strong growth potential to choose from.

Three of my favourite tech shares to consider buying right now include:

Altium Limited (ASX: ALU)

This electronics design software company is a real favourite of tech investors in Australia and for good reason. Altium has delivered exceptionally strong results over the past five years which has seen its shares rise materially. But importantly, I believe there is still a lot of growth left in the company thanks to its leadership position in printed circuit board design and the Internet of Things boom. In addition to this, I believe the company’s Octopart business has a lot of potential and could support the growth of its core business.

Webjet Limited (ASX: WEB)

I think this online travel agent could be a great option for investors thanks to its strong long-term growth potential due to the popularity of its numerous brands, its focus on margin improvement, and the continued shift to online travel booking from brick and mortar stores. In addition to this, the company has a long track record of successfully acquiring earnings accretive businesses. Given how fragmented the travel market is, I expect this trend to continue for some time to come.

Xero Limited (ASX: XRO)

I think that this cloud-based business and accounting software provider’s shares could be market beaters over the next decade. Especially given the quality of its product, its international expansion, and sizeable market opportunity. Furthermore, according to a recent study, over the next five years the Cloud Accounting Software market is expected to grow at an 8.6% CAGR in respect to revenue. I believe this bodes well for Xero’s growth prospects.

And here are three more growth shares that I think could be market beaters over the coming years. Now could be a great time to consider making an investment.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Xero. The Motley Fool Australia has recommended Webjet 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019