TOI:CC - 3 Supercharged Tech Stocks to Buy Without Any Hesitation
2024-02-13 16:50:00 ET
If you’re hoping to make it big in the stock market, it’s essential that you focus on quality growth stocks . My personal favourite place to shop for great companies to hold in my portfolio is in the tech sector. This is because tech stocks tend to operate in cutting-edge areas, giving them a much greater potential growth profile than companies that operate elsewhere. In this article, I’ll discuss three supercharged tech stocks to buy without any hesitation.
One of the most important companies today
When I think about Canadian tech stocks, Shopify ( TSX:SHOP ) is one that comes to mind right away. This is a company that needs very little introduction. Shopify is one of the world’s leaders within the e-commerce industry. It provides merchants of all sizes with a platform and many of the tools to operate online stores.
Over the past year, Shopify stock has been on fire. It has gained nearly 70% over that period. It should be noted that at the time of this writing, Shopify’s most recent earnings presentation has caused the stock to drop around 10%. While that may cause some investors to become hesitant about the stock, I would urge you to rethink those worries. Shopify reported strong results and the drop seems to be due to weak forecasts. This is still a solid stock, in my opinion.
My favourite growth stock
Constellation Software ( TSX:CSU ) is another outstanding tech stock that Canadians should consider buying today. Since its initial public offering, Constellation Software has been one of the best-performing stocks in the country. For those who aren’t aware, since May 2006, Constellation Software stock has gained more than 19,600%! A $10,000 investment in Constellation Software stock in 2006 would be worth more than $1 million today.
Although this stock has already grown so much over the past decade and a half, I believe it still has a lot more room to run. The company continues to be led by its founder, Mark Leonard, and it remains dedicated to finding new ways to grow. The latter is illustrated by Constellation Software’s relatively recent decision to begin targeting large vertical market software businesses for acquisition. This stock has already gained 11% in 2024, and I think that’s just the start of another solid year for it.
If you’re interested in a smaller Constellation Software-type company
Considering how much Constellation Software has grown in recent years, it’s fair that some investors would prefer to look elsewhere for gains. If you’re interested in that sort of business, however, you wouldn’t have to look very far to find another great option. Topicus ( TSXV:TOI ) is a company that operates a very similar business to Constellation Software. It differentiates itself by focusing on the highly fragmented European tech market.
For those who haven’t heard of this company before, you should know that it once was a subsidiary of Constellation Software. Today, it operates as its own entity, but it still follows the proven Constellation Software playbook. That’s what should intrigue investors about Topicus. It’s much smaller than Constellation Software, so in theory, its growth runway should be longer. However, by having access to Constellation Software’s winning strategy, it could avoid major pitfalls that competitors may have to deal with.
The post 3 Supercharged Tech Stocks to Buy Without Any Hesitation appeared first on The Motley Fool Canada .
Fool contributor Jed Lloren has positions in Constellation Software, Shopify, and Topicus.com. The Motley Fool has positions in and recommends Shopify and Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy .
2024