Got $5,000? 2 Tech Stocks to Buy Now

Tech stocks continue to thrive in today’s market, despite two stock market crashes. But you can still buy these two stocks for huge returns.

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The Canadian market is still an incredibly volatile place to invest. There’s no doubt about that. However, there is a large difference between investing and hoping to take out money quickly, and making long-term investments.

If you decide on the latter, choosing strong companies that have a solid future ahead of them and then holding on for the long haul is your best bet. You could see short-term explosions in share price, but that will multiply over and over again should you choose to hold onto the stocks.

Tech stocks are the perfect place to look in this case. There is a new world with new companies creating new necessities. Tech stocks are now considered a necessity in many cases, especially in e-commerce. But instead of buying the massive share price of an e-commerce stock, you can simply choose a stock that deals with e-commerce.

So, what two stocks should you consider? For my money, I would dig into Kinaxis (TSX:KXS) and Docebo (TSX:DCBO).

Kinaxis

If you were lucky enough to buy Kinaxis back in 2014, you would have returns of 1,477% as of writing. But even if you managed to buy during the crash in March 2020, you would still have returns of 159%! But that doesn’t mean you’ve completely missed out on this tech stock opportunity.

Kinaxis is a subscription-based software as a service (SaaS) company. It helps supply chain management for enterprise level companies. This means enormous companies around the world sign on for years at a time to have Kinaxis figure out the most efficient way of operating. Today, that is an invaluable service that more and more businesses are signing on to. In fact, no one business takes up more than 10% of the company’s revenue.

Speaking of revenue, Kinaxis has year-over-year returns of 33% as of writing. With businesses returning to some kind of normal, and Kinaxis setting its next earnings report at the end of this month, you should be ready for even more good news. And with return on equity (ROE) of 11.5 at writing, the company has proven it gives back to shareholders.

Docebo

Kinaxis has a few years of growth behind it, but Docebo is only in its infancy. The company came onto the markets last year, just in time before the pandemic struck. Since then, the company has exploded. To date, it’s had returns of 234% since it came onto the market, with most of that coming after the crash in March.

Docebo is a learning management system that allows employers to train employees any where in the world. So, obviously, this became a necessary tool for many businesses with the work-from-home economy booming. Now, artificial intelligence can help you train employees, and everyone can be on the same page, even if it’s on the other side of the world.

Again, we see huge revenue year over year, with the most recent quarter jumping 46.5%, and subscription revenue jumping 55.1%, and recurring revenue hitting 54.5%. At the beginning of October, the director of Docebo resigned; he had carried it from a small company. This should show the direction that Docebo is now taking: go big or go home. So, if you’re looking for the next Kinaxis-type company to latch onto, it has to be Docebo.

Bottom line

Both of these companies have solid opportunities to soar during this volatile market. Each even provides a defensive stock among tech stocks, as it provides necessary services in this new world. However, holding onto these stocks for decades could mean you add a few zeros on the end of that $5,000 if you invest today.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC.

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