If you’re a fan of buy and hold investing and are on the lookout for a few long term investments, then you might want to take a look at the ASX tech shares listed below.
Especially after a pullback in many of their share prices on Tuesday brought them down to even more attractive levels.
Here’s why I think these ASX tech shares could be top buy and hold options:
Altium Limited (ASX: ALU)
I think this award-winning printed circuit board (PCB) design software provider could be a great buy and hold option. Altium has been growing at a rapid rate over the last few years thanks to the growing popularity of its software with product designers and the proliferation of electronic devices globally. The good news is that with the Internet of Things market still accelerating and the company recently launching its new Altium 365 product, subscriber numbers look set to continue their impressive rise in the coming years once the pandemic passes. I expect this to drive strong earnings growth as its scales.
IDP Education Ltd (ASX: IEL)
IDP Education is a leading provider of international student placement services and English language testing services. Although its near term performance is likely to be impacted greatly by the pandemic, I expect it to rebound strongly once the crisis passes. In addition to this, I believe it has a very positive long term outlook due to its sizeable addressable opportunity, strong market position, and growing software-as-a-service business. This could make it worth taking advantage of the IDP Education share price weakness to pick up shares.
NEXTDC Ltd (ASX: NXT)
A final option to consider buying and holding is NEXTDC. I believe the data centre operator is well-placed to capitalise on the cloud computing boom. According to global technology research firm Gartner, it has forecast that 80% of all organisations will shift their workloads to third-party data centres by 2025. I expect this to lead to increasing demand for its innovative data centre outsourcing solutions, which should support solid earnings growth as the company scales.
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
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