These days TSX tech stocks provide investors with some of their biggest growth. So it’s crucial you have at least some exposure to these stocks, as missing out could lead you to underperform the market severely.
With so many tech stocks doing such similar and complicated things, for the average investor to understand, it can be difficult to decide which stocks you want to invest in.
That’s why, first and foremost, you must understand the business. If you can’t explain how a company makes its money, then there is no way you can adequately tell if the stock has value today or whether it’s a good investment.
And although it’s crucial to have exposure to tech stocks, many of these companies are higher risk. So unless you have a tonne of conviction for a certain tech stock, I would generally take a smaller position in these high-growth securities.
That said, here are two of the top tech stocks to buy before the next major stock market surge.
Top long-term tech stock
One of the best long-term tech stocks is Lightspeed POS Inc (TSX:LSPD)(NYSE:LSPD). Lightspeed is a proven provider of cloud-based platforms that power small and medium-sized businesses. The company empowers these businesses to better manage cross-channel selling, accept different payments, improve engagement with their customers, and manage their operations.
The company specifically targets restaurants and retailers and is currently operating in more than 100 countries. Lightspeed has shown that it intends to dominate the global market, where there are an estimated 47 million small and medium-sized businesses in the restaurant and retail industries alone.
This is a massive market for Lightspeed, a company that has, on average, improved its customer’s sales by more than 20% in the first year on its platform. That not only shows how powerful its tools are and attracts new business, but also continues to retain existing business.
Another avenue for growth is the continued innovation in the industry. And with Lightspeed’s size and scale, it can capitalize on improvements in technology and bring it to its customers faster, such as its payment processing solutions, which it began rolling out just last year.
Plus, that size also allows it to buy up smaller competitors with best-in-class e-commerce platforms to both acquire customers and integrate features into its business.
Leading software security company
One of the biggest areas for growth in tech, especially with the rollout of the game-changing of 5G technology, is the massive potential for the internet of things. The more devices that can send and receive data, the more productive our lives can be. However, it also opens up the potential for harmful attacks.
That’s why an investment in a tech stock like BlackBerry Ltd. (TSX:BB)(NYSE:BB) could offer substantial growth over the next few years.
Since its transition from being a hardware company, BlackBerry has focused solely on its software business. Software security has always been one of BlackBerry’s biggest strengths, which gives it massive growth potential.
Already the company is highly regarded in the security space, as 5G technology is just starting to be rolled out. So as this becomes more popular and more companies need software security, look for BlackBerry’s sales to skyrocket. With such fast internet speeds, the possibilities for tech innovators will be endless, meaning there could be a massive increase in demand for its security, for decades to come.
As we have seen many times before, as more technologies are put online, and more information and data are being collected, having a robust security system is crucial.
Plus, with massive clients such as the U.S Air Force and the Royal Canadian Mint, it’s clear that BlackBerry is a software company that gets a lot of respect.
So if you want a longer-term growth stock that will see a massive increase in demand for its services, BlackBerry may be the tech stock for you.
Bottom line
Tech stocks continue to offer investors great growth potential. So it’s crucial you have adequate exposure to the tech industry and don’t miss out on these tremendous gains.
