5 hot NZX technology stocks to explore in September 2021

Highlights

• NZ has a strong technology sector.
• EROAD partnered with vision-based tech company Seeing Machines.
• Vista Group delivered strong H1 results in 2021.

Technology stocks are stocks that are related to the technology sector and are an important gauge for the economy and the sharemarket. Companies involved in this sector sell products that use sophisticated technology.

The technology sector witnessed growth accelerated by COVID-19 digitisation trends and is expected to grow further amid changing consumer habits and business work environment.

Let’s have a look at 5 NZX technology stocks that can be explored this month.

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Enprise Group Limited (NZX:ENS)

In 15 months ended 30 June 2021, the Group's revenue grew by $3.8 million to $16.1 million. Enprise's overall comprehensive income fell from $1.67 million to $0.83 million as a result of losses at its investee firm, iSell.

ENS declared a final dividend of 2.5 cents per share and an earnings per share of 6.84 cents. The Group has a bright future as it continues to embrace innovative cloud technologies.

Shares of Enprise were trading flat, at the time of writing, on Friday at $2.16. ENS shares have given a YTD return of 157.14%.

Geo Limited (NZX: GEO) 

Geo showed strong growth of 286% in new customers in H2 of FY21 on pcp and 87.2% increase in ARR retention to 90.5% across FY21.

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There was also significant reduction in costs during the period due to permanent efficiencies, and temporary cuts in salaries, rent and marketing spend in H1 amid COVID-19.

Shares of Geo were trading flat, at the time of writing, on Friday at $0.141. GEO shares have given a YTD return of 50%.

Vista Group International Limited (NZX:VGL)

Vista Group posted strong H1 results amidst a broader recovery in the industry and a free flow of movies into cinemas globally. The Group’s total revenue of $44.9 million in H1 2021 was in line with that of H1 2020.

It also launched Vista Cloud on time and budget, expanding prospects for VGL. The Group expects revenue to be between $95 million and $100 million for the full year to 31 December 2021.

GOOD READ: Is NZ technologically advanced? Which are the 5 popular tech companies?

Shares of Vista gained 0.4% in trading on Friday, at the time of writing, at $2.53. VGL shares have given a YTD return of 44.97%.

Serko Limited (NZX:SKO)

For the fiscal year ended 2021, Serko's overall revenue dropped 37% to $16.9 million. Serko partnered with Booking.com and the Zeno brand underwent validation in North America.

For all types of business travel, the Group has been developing new processes as well as carbon management alternatives.      

Shares of Serko declined 1.27%, at the time of writing, on Friday at $7.77. SKO shares have given a YTD return of 41.11%.

EROAD Limited (NZX:ERD)

EROAD recently partnered with Seeing Machines Ltd. The company uses face and eye recognition algorithms to assist and understand people. The technology will will become a crucial part in the MyEROAD gateway to guarantee safer results for fleet operators.

INTERESTING READ: Which are the 5 best AI companies worldwide?

Shares of ERD were trading flat, at the time of writing, on Friday at $5.9. ERD shares have given a YTD return of 25.99%.

Bottom Line

With increasing demand for emerging technologies like AI, Internet of Things, 5G and many more, technology stocks are set to gain pace moving ahead.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)