3 TSX Tech Stocks to Buy Right Now

TSX tech stocks like Shopify Inc (TSX:SHOP)(NYSE:SHOP) are soaring to dizzying heights this year

little girl in pilot costume playing and dreaming of flying over the sky

Image source: Getty Images

It’s an exciting time to invest in TSX tech stocks. After years of lagging behind the U.S. in tech, Canada now has a bonafide IT superstar in the form of Shopify Inc (TSX:SHOP)(NYSE:SHOP), while many other low-profile TSX tech stocks have been quietly making investors rich.

So far this year, publicly traded TSX tech stocks are up 37%, based on the performance of index funds that track them, which means that TSX tech has handily outperformed not only the TSX itself, but also the NYSE and NASDAQ.

Investing in a TSX tech ETF is one way to profit off the growth of the Canadian tech sector. But if you want to be a little more adventurous, the following are three TSX tech stocks that could reward you handsomely.


Shopify has been by far the best-performing TSX tech stock this year, rising 89% to the TSX’s 14%. This kind of outperformance is typical for the company, which has beaten the benchmark every year since its 2015 IPO.

In its most recent quarter, Shopify revealed that it had grown revenue by 50% and increased its merchant solutions revenue by 58% year-over-year. At the same time, the company posted growing adjusted EPS, while GAAP EPS remained negative. Shopify’s growth isn’t quite as hot as it has been in past years, but it’s still the king of the castle among TSX tech stocks.


OpenText Corp is a diversified tech company that sells a variety of enterprise software solutions. The company’s software helps companies digitize processes and supply chains through AI. In its most recent quarter, OpenText grew its revenue by 5% and its operating cash flow by 6%.

Those growth numbers may not be all that inspiring, but this is a company whose growth is steady and dependable. It should also be noted that OpenText increased its dividend by 15% in its most recent quarter.

Kinaxis Inc (TSX:KXS)

Kinaxis is a supply chain management company that develops AI-powered solutions that help companies respond to supply chain issues faster. The company’s RapidResponse platform builds on SAP architecture to make supply chain insights more actionable and manageable.

There appears to be a large and growing market for Kinaxis’ services, as it grew its revenue by 15% to $39 million in its most recent quarter. Other notable growth figures include an 18% jump in subscription revenue and a 9% jump in gross profit.

Unfortunately, the company’s net income and adjusted EBITDA did in fact decline during the quarter, but this was partially influenced by the company adopting new standards.

The fact that Kinaxis is growing revenue at 15% year-over-year shows that it has the potential to grow its earnings as well, assuming costs can be kept under control. As to whether that will happen, we’ll have to wait for the company’s Q1 2019 report to find out.

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.

Fool contributor Andrew Button has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify, Kinaxis and OpenText are recommendations of Stock Advisor Canada.

More on Tech Stocks

Dots over the earth connecting the world
Tech Stocks

Hot Takeaway: Concentration in 1 Stock Can Be Just Fine

Concentration in one stock can be alright under the right circumstances, and far better than buying a bunch of poor-performing…

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Forget TD Stock: 2 Tech Stocks to Buy Instead

As bank stocks continue disappointing investors in 2024, you can consider adding these two top Canadian tech stocks to your…

Read more »

financial freedom sign
Tech Stocks

1 TSX Tech Stock That Has Created Millionaires and Will Continue to Make More

Constellation Software is a TSX stock tech that has delivered game-changing returns to shareholders since its IPO in 2006.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Payfare Can Potentially Provide Explosive Growth

Payfare is a global financial technology company that powers digital banking, instant payment, and loyalty reward solutions for the gig…

Read more »

online shopping
Tech Stocks

1 Hidden Catalyst That Could Ignite Shopify Stock

Here's why Shopify (TSX:SHOP) ought to remain a top growth stock investors continue to focus on for the long haul.

Read more »

Man considering whether to sell or buy
Tech Stocks

WELL Stock: Buy, Sell, or Hold?

WELL stock has a lot of upside as the company is likely to continue to grow, posting positive earnings in…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Finally Going Private: What Should Nuvei Investors Do Now?

Understanding the reasons and factors behind a public company going private can help investors make an educated decision.

Read more »

woman data analyze
Tech Stocks

1 Stock I’d Drop From the “Magnificent 7” and 1 I’d Add

Tesla (NASDAQ:TSLA) stock is part of the Magnificent Seven, but Shopify (TSX:SHOP) is growing faster.

Read more »