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3 Tech Stocks That Can Electrify Your TFSA This Summer

Tech stocks dwarf the heavily weighted energy and financial sectors on the Toronto Stock Exchange (TSX). This does not mean that there are not many high-quality options available as we near the midway point in July. Indeed, the stocks we will look at today have varied in overall performance, while the S&P/TSX Composite Index has been stagnant, especially in comparison to major indexes south of the border.

Investors looking to maximize capital growth in the second half of 2018 should look to the tech sector. Today, we are going to look at three options that could provide some explosiveness to a TFSA. Let’s dive in.

Celestica Inc. (TSX:CLS)(NYSE:CLS)

Celestica is an electronic manufacturing service company with a geographic reach extending across the Americas, EMEA, and APAC. Shares have climbed 22.6% in 2018 as of close on July 12. The stock is still down 8.4% year over year. Celestica is expected to release its second-quarter results in late July.

In the first quarter, Celestica reported a 1% increase in revenue from the prior year to $1.5 billion. Revenue from its Advanced Technology Solutions (ATS) segment climbed 8%. It grew to 36% of total revenue compared to 33% in the same time last year. Adjusted earnings per share were down to $0.24 compared to $0.29 per share in Q1 2017.

The April 2018 acquisition of Atrenne Integrated Solutions, Inc. is also encouraging. Atrenne is a designer and manufacturer of ruggedized electromechanical solutions and gives Celestica a footprint in the aerospace and defence sector. This should be seen as a huge positive considering the massive spending in this sector that’s slated over the next decade and very likely beyond.

The Intertain Group Ltd. (TSX:ITX)

The Intertain Group is a Toronto-based company involved in online gambling. Its parent company is Jackpotjoy, which generates a significant portion of revenue. Shares have climbed 19.6% in 2018 as of close on July 12, and the stock is up 56% year over year.

Online casinos have a lot to celebrate after the landmark Supreme Court decision this year that paves the way for legal sports gambling in the United States. The pressure will be on Canada to follow suit in the coming years, especially considering the monster revenue promised by this venture. Online casinos possess the infrastructure and user base required, but it remains to be seen how the structure of legal sports gambling will shake out.

BlackBerry Ltd. (TSX:BB)(NYSE:BB)

BlackBerry stock has plunged 17.2% over the past month as of close on July 12. Shares took a dive following the release of its first-quarter results. Back in July, I’d discussed the earnings and why now could be a fantastic time to stack at a low price. BlackBerry leadership predicted a slower start to the fiscal year, but revenue should pick up in the later quarters of fiscal 2019.

BlackBerry has transitioned successfully into a software company and now boasts big footprints in cybersecurity and the development of automated vehicles. The stock is still a buy today.

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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of BlackBerry. BlackBerry is a recommendation of Stock Advisor Canada.

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