Australian investors sure are a lucky bunch. I believe the local share market is home to a number of shares with explosive growth potential.
None more so than the three tech shares listed below. Each has grown their bottom line at a rapid pace in the last 12 months, and I expect the trend to continue for the foreseeable future.
Here's why I think they could smash the market this year:
The Appen Ltd (ASX: APX) share price has fallen around 9% so far this year, meaning the language technology company's shares are changing hands at just 24x trailing earnings. I think this represents great value for investors, especially with the company recently posting a 23% increase in full-year net profit after tax. I expect a similarly strong performance in FY 2017.
The Class Ltd (ASX: CL1) share price has dropped 28% in the last six months, which I believe could make it an opportune time to snap up its shares for a long-term buy and hold investment. The self-managed super funds software provider recently reported that its market share had risen once again, this time to 21.7%. With a retention rate of 99% I expect to see further market share gains this year.
The Webjet Limited (ASX: WEB) share price may have risen a staggering 72% in the last 12 months, but I don't believe it is too late for investors to grab a slice of the online travel agent. In February Webjet's numerous brands once again posted industry-beating bookings growth. This helped the company deliver a stunning 86.9% increase in half-year net profit after tax. Its shares are currently priced at 24x annualised earnings, which I feel is more than fair given the rate it is growing its bottom line.
