TOI:CC - 1 Tech Stock You'll Be Glad You Bought When the Bull Market Starts
2023-10-31 21:45:00 ET
It doesn’t seem as if a bull market could possibly be anywhere near us right now. We keep getting hints that it could be on the way. Yet, until interest rates drop and inflation along with it, it’s not likely to really start up again.
Even so, there are some companies you’ll have wanted in your pocket for when it starts again. And don’t be fooled, it will start eventually. So if you have even a bit of patience, here is the top tech stock that you’ll certainly want in your portfolio by then.
A major winner’s spin off
First, let’s talk about the company behind the tech stock I’m going to discuss. That stock is Constellation Software ( TSX:CSU ). Constellation stock has almost two decades of growth behind it. What’s more, the tech stock has enjoyed sustained growth.
How on earth could it achieve that, through downturns, depressions, recessions and a pandemic? It’s become essential. Yes, an essential tech stock. Constellation stock managed to achieve this as a company that searches for essential software, buys them up, refurbishes them, and distributes them once more.
This has been wildly successful over the years. It buys everything from library software to the ones running subway lines. And under the Constellation brand, it rakes in revenue. Constellation used to acquire even more specialty software companies.
So why not buy this tech stock?
Honestly, if you can afford it, do it. Constellation stock is up 1,342% in the last decade as of writing. That’s enormous growth that’s set to continue through a bull market. The only reason you may not be able to buy the stock? Its share price, and value.
Shares of Constellation stock currently trade at $2,769 per share as of writing. That’s a huge investment. Even as analysts believe the stock will surge past $3,000 in the coming year, especially in a bull market, it’s a big buy.
Furthermore, it trades at 86.7 times earnings, so it’s not as if you’re the only one figuring out that this is a strong stock to have in your portfolio. Instead, I’d go with the company’s spinoff tech stock.
Topicus stock
If you’re looking to buy Constellation stock but don’t want to make the major purchase, pick up Topicus.com ( TSXV:TOI ). Topicus stock is a spinoff of Constellation stock and is literally the same company, in a different location.
Topicus stock also buys up specialty software companies, but in Europe. With Constellation guiding the ship, it’s likely picking up Topicus stock when it came on the market. And that’s just what’s happened here. Topicus stock has been on the market about a year, providing time to get in on the ground floor.
Shares of Topicus stock are already up 24% in the last year, even as the market continues to drop. While it doesn’t necessarily offer value, it does offer long-term growth. That’s especially if you’re looking to hold this stock for years, even decades. You could end up having a stock similar to Constellation stock in your portfolio! So if you want Constellation stock but for a lower share price, this is definitely the one I’d pick up on the TSX today.
The post 1 Tech Stock You’ll Be Glad You Bought When the Bull Market Starts appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy .
2023