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Got $2,000? 2 Under-$50 Tech Stocks to Buy and Hold Forever

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It would be best if you always had high-quality tech stocks in your portfolio as they often lead to a rapid appreciation in value. However, given the stellar rally in the majority of Canadian tech stocks, it can be tough to find the right tech stock that could continue to deliver high growth in the future.

The good news is that there are a few TSX-listed tech companies that have strong fundamentals and ample growth catalysts to support the uptrend in their stocks. So if you’ve got $2,000 to invest, consider buying and holding these two under $50 tech stocks to outperform the broader markets consistently.

Dye & Durham

First up are the shares of Dye & Durham (TSX:DND). The company has performed exceptionally well over the past several years. Its revenues and adjusted EBITDA have marked robust growth from FY16 to FY19, reflecting sustained demand for its cloud-based platform that offers legal professionals with critical information and public records.

While the lower economic activity and temporary closure of courthouses due to the pandemic slowed its growth in the most recent quarter, the company has multiple catalysts to fuel its future growth. Besides, with the reopening of the economy and the courthouses are likely to accelerate its growth further and drive demand for its platform.

Dye & Durham’s blue-chip customer base is steadily growing. Meanwhile, its customer churn rate remains low at 2%. Further, its accretive acquisitions are likely to drive growth and open new target markets. Also, its focus on client penetration through the cross-selling and relatively higher market share suggests that Dye & Durham stock could deliver stellar returns in the coming years.

Lightspeed POS

Lightspeed POS (TSX:LSPD) is likely to perform remarkably well in the coming years, thanks to the structural shift toward the omnichannel platform. As more and more small- and medium-sized businesses (SMB) move online, Lightspeed’s products like payments and e-commerce could witness higher demand, which is likely to boost its stock price.

The secular industry tailwinds are likely to drive Lightspeed’s customer base, gross transaction volumes and ARPU (average revenue per customer). Besides, its growing recurring software and payments revenues are encouraging. Lightspeed POS targets a large and underserved SMB market, which provides ample room for growth. Also, the company is expanding its payment and financial solution offerings outside North America, which is likely to accelerate its growth.

Investors should note that the growing demand for its platform, continued penetration into existing client base, and expansion of premium products like analytics and accounting bode well for future growth.

Also, its ability to expand into newer markets and drive its customer base through strategic acquisitions suggests that Lightspeed POS stock is likely to make its investors rich in the coming years.

Bottom line

Investors should note that both these tech companies operate a future-ready business with technology and solutions that are in high demand. Both these companies are growing their customer base fast and expanding their offerings that are likely to support their growth.

Further, their predictable revenue streams and accretive acquisitions suggest that both Dye & Durham and Lightspeed POS could continue to beat broader markets with their returns over the next decade.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc.

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