One of the best performing areas of the market over the last 12 months has been the tech sector.
Since this time last year the S&P/ASX 200 Info Tech index has gained an impressive 30%, compared to a gain of 7.2% by the benchmark index.
The good news is that despite this stellar gain, I still believe there are a number of tech shares that could continue to generate strong returns for shareholders over the next 12 months and beyond.
Three tech shares that I would buy this week are listed below:
Altium Limited (ASX: ALU)
Altium is a provider of printed circuit board (PCB) design software globally. I think it is one of the best tech shares on the local market and could provide outsized returns for shareholders over the next decade thanks to its exposure to the Internet of Things boom. As the majority of connected devices require PCBs inside them, I expect demand for the company's award-winning software will continue to grow strongly for the foreseeable future. This should result in strong sales growth and even stronger profit growth as it scales.
Bravura Solutions Ltd (ASX: BVS)
Bravura is a provider of software products and services to the wealth management and funds administration industries. It is the company behind the increasingly popular Sonata wealth management platform. Sonata has been a key driver of growth for the company in recent years and shows no signs of slowing any time soon. In addition to this, the potential acquisition of GBST Holdings Limited (ASX: GBT) looks like a smart move by management and could prove to be a big boost to its earnings growth over the coming years.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a medical technology company providing software that uses AI imaging algorithms to assist in the early detection of breast cancer. At the last count, the company's software was handling 7.1% of the U.S. breast cancer screening market. The company's CEO, Dr Ralph Highnam, believes this has positioned the company well for further strong growth. He said: "Having over 7% of US women now under contract provides an astonishing amount of data for applying serious AI to enable better regulatory reporting, improved ROI for breast imaging clinics, and even better breast care outcomes for women. We're looking forward to FY2020 with great confidence."
