Gentrack Group Ltd (ASX: GTK) shares, Nearmap Ltd (ASX: NEA) shares and Pro Medicus Limited (ASX: PME) shares should be on your watchlist.
Quality ASX Small Companies Rally
Indeed, although shares in each company have run higher over the past two years I think long-term investors might still be able to unearth hidden value in these small companies.
Gentrack
Kiwi software business Gentrack specialises in developing solutions for utility providers and airports. For example, water and energy providers like Red Energy can use it for billing and customer service and interfacing with gas or electricity markets.
The company is pushing ahead with its expansion into the — now deregulated — UK water market. It also offers a 2.3% dividend.
Pro Medicus
If you're looking for high growth in a higher-risk investment, Pro Medicus is a must-have on watchlists. The $500 million company has developed technology which can be used by doctors and radiologists to send and receive medical images for diagnosis. Anyone who has ever sent a selfie or cuddly cat video over mobile networks to a lover or friend will know that it is not always a pleasant experience. However, just imagine if your image was 500 times the size. That's the size of some medical images. Pro Medicus' technology can do that in a handful of seconds.
The company's shares don't come cheap but if it can keep winning over hospitals I think its profit growth will continue.
Nearmap
Nearmap is the smallest company of the lot, worth $265 million. It has developed mapping technology with crystal clear resolution. Think of maps which are clearer and more regularly updated. The software is used by construction companies, mining firms, insurers and governments (to name a few). Nearmap is expanding abroad, which could unlock more value for shareholders.
Foolish Takeaway
At today's prices, each of these businesses appear a little expensive. However, if you are focused on the long-term and prepared to stomach hefty falls, at times, then I think you could consider building a small position in each company today.
