Three ASX small-cap stocks with over 7% six-month returns

Highlights

  • Investors generally buy small-cap stocks due to their potential to give higher returns than mid- and large-cap peers.
  • Unlike large-caps, small-cap stocks always have a high potential to grow further.
  • However, investors should also be careful since small-cap stocks come with higher risks.

Small-cap stocks are popular among investors as they have the potential to outperform mid- and large-cap stocks. Unlike large-caps, small-cap stocks always have a high potential to grow further, implying investors can expect better returns in the future by investing in them.

In the current scenario, where the COVID-19 vaccination rate has picked up significantly, these stocks are expected to grow further. However, small-cap stocks also come with higher risks. Thus, investors should be a bit cautious while dealing in these stocks.

Here are three small-cap ASX-listed tech shares with more than 7% six-month returns:

Bigtincan Holdings Ltd (ASX:BTH)

Bigtincan Holdings provides software solutions as a service (SaaS) to global organisations across the life sciences, telecommunications, financial, technology, retail, manufacturing, energy, and government sectors. The AU$556.85-million company’s recurring revenues from enterprise mobility software have grown significantly in the recent past.

Bigtincan posted a 48% increase in ARR to AU$53.1 million in FY2021. The company expects to continue the same performance in FY2022. It has provided an ARR guidance of AU$119 million for FY2022.

3 ASX small-cap stocks with over 7% six-month returns

 

The stock gave a return of 7.37% in the past six months.

Unlike large-caps, small-cap stocks always have a high potential to grow further.

Source: ©Webking   | Megapixl.com

ELMO Software Ltd (ASX:ELMO)

ELMO Software offers cloud-based human resource and payroll solutions for organisations.

In FY2021, with an annualised recurring revenue (ARR) of AU$478.71 million, the company rose 52.1% to AU$83.8 million. The company’s management has an annual recurring revenue (ARR) guidance of AU$105 million to AU$111 million for FY2022.

The stock gave a return of 13.19% in the past six months.

MNF Group Ltd (ASX:MNF)

MNF Group is an integrated telecommunications software and network provider. The AU$616.41-million company’s clients include leading global innovators such as Google, Twilio, and Zoom.

In FY2021, the company’s overall revenue fell 5% to AU$218.7 million due to lower global roaming and audio-conferencing usage. The high-quality recurring revenue increased 12% to AU$113.2 million and the recurring gross profit lifted 14% to AU$68.1 million.

The stock gave a return of 65.45% in the past six months.

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