3 Strong Tech Stocks With Huge Growth Potential

Tech stocks BlackBerry Ltd (TSX:BB)(NYSE:BB), Shopify Inc. (TSX:SHOP)(NYSE:SHOP), and Kinaxis Inc. (TSX:KXS) have solid histories and exciting growth potential that should make any investor drool.

| More on:
growing plant shoots on stacked coins

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

One of the most exciting industries to invest in over the last decade has been tech stocks. These companies offer opportunities to get in on the ground floor and, of course, bragging rights to say you did that.

But there are a few options out there that, while they may not be on the ground floor, still offer opportunity to make some great cash.

Today, I’ll be showing you why BlackBerry (TSX:BB)(NYSE:BB)Shopify (TSX:SHOP)(NYSE:SHOP) and Kinaxis (TSX:KXS) are all great tech stocks for you to consider for your portfolio.

BBM isn’t back, but BlackBerry is

BlackBerry is finally starting to slink out of the horrible decade its had. Once trading well into the $100 share price, hitting a high of almost $130 per share, the company now trades for a measly $12.34 per share at the time of writing this article.

But this company is now due for a huge comeback, and it looks like that’s starting to happen. BlackBerry has steered its focus away from phones and into an almost entirely new market: software. It’s already had some success, proving itself as an enterprise software company, and this has been driving the company’s revenue for the last little while, reaching $200 million last quarter.

The next step for the company is cybersecurity, artificial intelligence, and autonomous vehicles. Cybersecurity has become its main target in the short term, making acquisitions with companies such as Cylance, a cybersecurity firm. It’s also begun research into autonomous vehicles, with the government kicking in $40 million to help it out.

You don’t need to shop around with SHOP

Shopify’s critics keep putting up barriers for why this stock shouldn’t rise, and the e-commerce platform keeps knocking them down. The company is well on its way to reach analysts’ prediction from last year and hit $300 per share by the end of 2019. Heck, it could do it before the summer.

That’s due to the potential this company has. Right now, it remains mainly a small- and medium-sized business platform, but there have been more and more premium clients coming in. Shopify Plus customers now make up almost 5,500 of the company’s 820,000 total merchants. As that grows, so will the money.

But it’s not just the clients making this firm grow. This company is setting itself up to be the next Amazon and has the power to do it. It’s hardly crossed the starting line when it comes to expanding its ecosystem and growing its application interface, and that expansion will lead to a number of merchant solutions, such as payments, shipping and capital. This will put it well within Amazon territory.

Kill time with Kinaxis

Kinaxis is similar to Shopify where it still has a lot of room to grow and is already in the process of getting there. The stock is fairly valued at the moment, but has been making announcements lately that could send the stock soaring.

Most recently, Kinaxis joined with EXA Corporation of Japan to deliver digital supply chain solutions and drive maximum business value to both of the companies’ customers. Kinaxis has come out as the top choice because of its heavy investment into artificial intelligence and detecting trends in operational data for its clients.

Even with its heavy investments and acquisitions, the company is financially stable. Its latest earnings reported a revenue increase of 15% year over year at $150.7 million, and it forecasts its total revenue could be between $183 million and $188 million for this year. Analysts are therefore giving a pretty sunny prediction of $100 per share in the next 12 months.

Bottom line

Tech stocks remain an exciting opportunity for investors, but you have to be picky. But by choosing BlackBerry, Shopify, or Kinaxis, you likely will skip most of the worry and get mainly glory.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of Shopify. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Amazon, BlackBerry, Shopify, and Shopify. BlackBerry, Shopify, and Kinaxis are recommendations of Stock Advisor Canada.

More on Tech Stocks

young woman celebrating a victory while working with mobile phone in the office
Tech Stocks

3 Growth Stocks Trading at a Massive Discount Right Now

Canadian growth stocks such as Shopify have the potential to deliver market-beating gains to investors in the next year.

Read more »

analyze data
Tech Stocks

Got $5,000? 3 Stocks to Hold for the Next 20 Years

Do you have $5,000 you’re looking to invest? Here are three stocks worth holding for the next 20 years!

Read more »

You Should Know This
Tech Stocks

Why BlackBerry Stock Dived 25% Last Quarter

Despite its recent big losses, BlackBerry stock has the potential to yield outstanding returns in the long term.

Read more »

Dollar symbol and Canadian flag on keyboard
Tech Stocks

3 Top Canadian Growth Stocks to Buy in July

Here are three growth stocks you might want to add to your buy list in July.

Read more »

Various Canadian dollars in gray pants pocket
Tech Stocks

2 Ultimate Growth Stocks to Buy Below $50

These under-$50 stocks have multiple growth catalysts that point to a steep recovery.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

This 1 Tech Stock Has Surged 50% in the Last 2 Months: Should You Buy?

While the entire tech sector is in a selloff, one Canadian tech stock has jumped 50% in two months. Is…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

3 Growth Stocks Worth Buying if You Can Handle Volatility

Are you an investor that isn’t scared of a little volatility? Here are three top picks!

Read more »

edit U-turn
Tech Stocks

Can Shopify (TSX:SHOP) and Lightspeed (TSX:LSPD) Recover Before 2023?

Shares of these omnichannel commerce-enabling companies are down over 80%, creating a solid buying opportunity.

Read more »