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2 Stocks That Have Surged More Than 100% Since March

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After seeing the Canadian market soar by almost 40% since March, it’s not surprising to see many stocks trading at all-time highs today. It’s worth mentioning, though, that not all industries have fared the same during this impressive run over the last couple of months.

Technology is one industry that has outperformed the broader Canadian market since the last week of March. Tech companies helping support the shift to a work-from-home culture have benefited from monster growth.

I’ve reviewed two top TSX tech stocks that have each seen its stock price more than double since the last week of March. While valuations may have risen dramatically during that run, both companies are worth considering for any long-term investment portfolio. 

Absolute Software

Absolute Software (TSX:ABT) has seen its stock price grow by just over 100% since mid-March. Although only valued at half a billion dollars today, this tech company is poised to see this strong growth continue for many more years.

Based in Vancouver, Absolute Software is in the business of providing cloud-based platforms for both enterprise and public sector institutions. The company specializes in management and security of computing devices, applications, and data. 

The dramatic rise in remote work should only fuel the growth of Absolute Software. As workers across the globe are working from home now more than ever, the demand for cloud-based security and management of company intellectual property will likely only increase. 

The surge in tech stocks over the past couple of months now has many of those companies trading at seriously high valuations. Absolute Software, on the other hand, looks relatively cheap to some of the other top TSX tech stocks.

Trading at a price-to-sales of about six today, Absolute Software is definitely not considered value stock. But the risk-to-reward here makes this stock very appealing to me. 

Absolute Software also offers a rare blend of growth and income to shareholders. The company owns a very modest dividend yield of 2.2% at today’s stock price. The annual payout earns shareholders $0.32 per share.

Docebo

Docebo (TSX:DCBO) has seen its stock price grow by close to 300% since mid-March of this year. The tech company is seeing a significant increase in demand for its products and services due to the global shift to remote work.

Docebo provides a learning platform to support employee, partner, and customer training. The cloud-based platform is powered by artificial intelligence aimed to customize the learning experience to each individual user.

The shift to a SaaS (software-as-a-service) model will allow the company to benefit from a predictable revenue stream. Today, more than 90% of all revenue is recurring, and recurring sales saw an increase of more than 50% in the company’s fiscal Q1.

For investors who believe the shift to remote work is here to stay, this is definitely one stock that I would keep on my radar.

Foolish bottom line

Across the globe this year we’ve seen a dramatic rise in employees working remotely. These are two companies that I believe will see a rise in demand as a result of this shift.

While each company may be trading at an all-time high, it that shouldn’t stop long-term investors from picking up shares today.

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Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned.

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