SHOP:CC - 3 Canadian Tech Stocks Poised for Even More Growth in July 2023
2023-07-06 14:45:00 ET
Technology companies are involved in developing and selling a wide range of technology-infused products and services. These companies offer high-growth potential, thus delivering multi-fold returns in the long run. The sector was under pressure last year amid high inflation, supply chain concerns, and geopolitical tensions. However, the industry has been back on the focus, with several companies witnessing substantial buying.
Amid improving investors’ sentiments, the following three Canadian tech stocks are up over 50% this year. Let’s assess whether the uptrend in these three stocks could continue.
Shopify
Shopify ( TSX:SHOP ) facilitates businesses to do e-commerce through its platform and services. After a challenging 2022, the company has witnessed substantial buying this year, with its stock price rising over 80%. The optimism surrounding ChatGPT, its solid first-quarter earnings, and new product launches appear to have driven the company’s stock price higher.
Meanwhile, the uptrend in the company’s stock price could continue amid the growing popularity of online shopping, the development of innovative products, and expanding customer base. The company’s strong financial position, with $4.9 billion of cash and marketable securities, could allow it to fund its growth initiatives. The company could also benefit from the improving macro environment, with Canada’s inflation declining to 3.4% in May from 4.4% in April.
Further, despite strong buying this year, Shopify trades over 60% lower than its 2021 highs, thus making it an excellent buy.
BlackBerry
BlackBerry ( TSX:BB ) is another tech stock that has witnessed healthy buying this year. Its stock price has increased by 54.6%. Last week, the company reported its first-quarter earnings for fiscal 2024, which ended on May 31. The company posted $373 million in revenue, including $218 million from patent sales. Meanwhile, removing the contribution from its patent sales, the company’s revenue stood at $155 million, which is lower than analysts’ expectations of $159.3 million.
However, its adjusted EPS (earnings per share) came in at $0.06, beating analysts’ expectations of a loss per share of $0.05. The improvement in the company’s profitability appears to have led to an increase in the company’s stock price. Meanwhile, given its exposure to high-growth markets, such as cybersecurity and IoT (Internet of Things), the company is well equipped to drive its financials in the coming quarters. So, I expect the uptrend in BlackBerry’s stock price to continue.
WELL Health Technologies
My final pick is WELL Health Technologies ( TSX:WELL ), which is trading close to 60% higher for this year. Its impressive quarterly performances and improvement in investor sentiments appear to have driven the company’s stock price higher. Despite the surge, the company has more room for growth, given the expanding addressable market, growth initiatives, and attractive valuation.
Virtual services are increasingly becoming popular amid technological advancements and growing internet penetration, thus benefiting WELL Health. The company is investing in artificial intelligence to develop tools that can lower administrative burdens while improving customer experience. Also, the company’s strategic investments to expand its footprint could support its growth. Despite delivering solid returns, the company trades at a cheaper next-12-month price-to-earnings multiple of 14.8, making it an attractive buy.
The post 3 Canadian Tech Stocks Poised for Even More Growth in July 2023 appeared first on The Motley Fool Canada .
Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy .
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