A stock that is growing but yet not overvalued is a rare commodity. A good investor always tries to get his hands on those seemingly unnoticed stocks. Constellation Software and CGI are tech stock giants in the Canadian market and hence popular among investors. But some tech companies are silently growing and witnessing mounting stock values.
Here, I will discuss two such under-the-radar tech stocks. You can consider these stocks to add to your portfolio this month.
A real estate tech stock
Real Matters (TSX:REAL) is a niche software company that creates solutions for the real estate sector. The company primarily makes software tools that help insurance and mortgage underwriting service providers to do extensive finance work in a hassle-free manner. The U.S. has been the hotbed of the company’s growth in the last year or so.
In the last year, the overall sales of Real Matters in the U.S. grew by 26%, with total revenues across all markets shooting up to 14.6%. The TSX performance of the company also reflects this amazing growth. People who bought shares in Real Matters at the start of 2019 have seen their investments tripled by the end of the year.
The company has witnessed a huge 212.88% stock growth in 2019. Real Matters claims that it holds nearly 20% market share of the appraisal software applications in the United States. It is expecting to have this share expanded by 15-20% this year. If the company maintains this growth trajectory, then the stock will also keep on moving higher.
The astonishing growth of Real Matters stock in the last year has grabbed the attention of many investors. Nonetheless, many are still unaware of this tech stock, which its not-so-high forward P/E ratio of 31.5 also suggests.
A point-of-sales tech stock
Lightspeed POS (TSX:LSPD) is a tech company that offers hardware and software assistance to restaurants, retailers, and online ventures in streamlining their point-of-sales (POS) activity. You can tell that the business proposition of Lightspeed POS stands on a strong foundation since digital, paperless transactions are the future.
This tech stock debuted on the TSX in March 2019, and since then, it has witnessed 132% growth. The company’s substantial growth and sound balance sheet indicate that the stock hasn’t grown out of thin air. The company’s revenue has increased by 51% over the last year. Moreover, its balance sheet is debt-free, which is an extraordinary achievement for any publicly listed company.
The company is also solidifying its growth and expansion through well-thought-out acquisitions and mergers. For instance, it has recently acquired Gastrofix, a thriving hospitality industry-focused POS venture. All these positive indicators suggest that Lightspeed POS could witness the same growth trend this year.
Real Matters and Lightspeed POS are doing exceptionally well and witnessing growth in the respective tech sectors. The stock performance of the companies will also go with that business growth. These tech stocks haven’t become all the rage among investors so far. So, this is perhaps the perfect time to add either of these stocks to your portfolio.
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 Jason Hoang has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends CGI GROUP INC CL A SV and Constellation Brands.