Last year, the TSX darling and tech sensation was Shopify, which boasted a magnificent run that saw the stock closing at $516.30. As of this writing, SHOP is trading at $616.33 per share at writing, which is quite steep.
Since 2018, Altus is already showing good organic growth that in 2019, the tech stock was able to deliver a 63.7% gain. So far this year, Altus is up 11.9%.
This $1.72 billion company provides software, data solutions, and independent advisory services to the commercial real estate (CRE) industry. Its clients are in Canada, the U.S., Europe, and the Asia Pacific. Slowly but surely, Altus is migrating more and more clients worldwide onto its platform.
According to Altus CEO Bob Courteau, CRE is witnessing a rapid acceleration of its digital transformation. The trial and testing period is over and the industry is ready to move to practical innovation to solve the present challenges.
The annual growth estimate for the next five years is 27.6%, which means that Altus will be showing robust growth and producing chunking returns from here on in. But the more exciting news is teaming up with WSP Global to form a Canadian geomatics firm.
With the partnership, the company is likely to become the leading and best-in-class geomatics firm in Canada. Both are looking forward to long-term growth.
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High-growth SaaS stock in the making
Tecsys is positioning itself to take a leading role in supply chain management. With solid revenue growth last year, the company should be nearing a top-line of $100 in 2020. In terms of stock performance, TCS delivered 76.4% gains in 2019. As of this writing, the stock is trading at $20.47%, with analysts projecting a 27% upside.
This $267.8 million company is starting to make waves not only in Canada, but also in the U.S. and other international markets. Tecsys is into the development, marketing, and sale of supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and retail order management.
Allied services include demand planning and supply chain finance solutions and implementation, system enhancement, cloud, advisory, consulting, education, and support. Investment analysts see a long runway for organic innovation, segment, and geographic expansion very soon.
Early this year, Tecsys announced that Power BI, the cloud-based suite of business analytics tools of Microsoft, is powering its cloud-native retail order management analytics.
Investors should start keeping a close watch on this company, as Tecsys is bound to deliver sustainable growth and margin expansion, which could witness the emergence of another high-growth SaaS stock.
New tech sensations
Following the sterling performances last year, Altus and Tecsys are expected to continue displaying dynamic growth in 2020. Notably, both tech stocks are dividend payers. Altus offers a 1.37% dividend, while Tecsys yields 1.14%.
Canada’s tech sector produced more gainers in 2019 that added more value to the S&P/TSX Info Index. I think that either Altus or Tecsys will be the tech sensation of 2020.
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.
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends ALTUS GROUP, Microsoft, Shopify, Shopify, and Tecsys Inc and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft.