The S&P/TSX Index rose 79 points on February 15 to close at 15,407.66. The TSX is now up 2.27% week over week after a violent dip that ended the week on February 9. Stocks that are sensitive to interest rate hikes have continued to lag, and even the red-hot cannabis market has cooled in recent weeks. Tech stocks, however, are starting to pick up again as darlings on the TSX.
Today, we are going to look at three of my top tech companies to focus on in mid-February.
Constellation Software Inc. (TSX: CSU)
Constellation is a Toronto-based software company that services both the public and private sector. Constellation stock has climbed 10.3% in 2018 as of close on February 15. The company released its 2017 fourth-quarter and full-year results on February 14.
In the fourth quarter, revenue rose 22% to $688 million, and net income increased 16% to $76 million compared to $66 million in Q4 2016. For the full year, revenue climbed 17% to $2.47 billion, and adjusted EBITDA also rose 17% to $621 million. Adjusted net income made it the trifecta and posted 17% growth to $463 million.
Constellation declared a dividend of $1.00 per share, payable on April 5, 2018. Shares of Constellation have now climbed over 600% over a five-year span.
Tucows Inc. (TSX: TC)(NASDAQ: TCX)
Tucows is a Toronto-based company that mainly provides whole and retail domain name registration. It also owns Ting, a mobile virtual network operator and network service provider that was launched in 2012.
Shares of Tucows have fallen 14.8% in 2018 and was the target of a harsh short-sell campaign by a smaller research firm in January. The short seller alleges that Tucows management was misleading shareholders, and that an ongoing lawsuit could result in a substantial loss going forward.
Tucows released its 2017 fourth-quarter and full-year results on February 14. Net revenue soared 86% to $90.6 million, and net income spiked 298% to $11.19 million. Tucows reported impressive growth across all of its financial metrics, and Ting mobile posted the sixth year of top-line and bottom-line growth since its inception.
Tucows stock has jumped 10.7% week over week on the back of the strong earnings. It is still trading almost $15 off its all-time high of $89.78 reached in late December.
TMX Group Limited (TSX: X)
TMX Group is a Toronto-based company that operates cash and derivative markets for equities and fixed income. It operates the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV). TMX Group stock has climbed 8.6% in 2018 as of close on February 15. The company released its 2017 fourth-quarter and full-year results on February 12.
Adjusted diluted earnings per share were up 3% year over year to $1.22, and income from operations before acquisitions costs and strategic re-alignment expenses was up 6% to $83.8 million. Net income jumped 285% year over year to $202.3 million.
