I likely don’t need to tell you that the market has been incredibly volatile this year. Everything came to a head, causing a downturn. We’ve had a poor global economic situation, a floundering oil and gas sector, and then a pandemic. Yet there is one industry that seems to be wading through these waters quite nicely, and that’s tech stocks.
Tech stocks aren’t just staying afloat. These companies are soaring to all-time highs in many cases. So, it actually creates a difficult situation. Are these stocks going to continue soaring higher? Or are tech stocks in for a dip? Or is it completely stock dependent?
For my money, if there are three tech stocks I would look into buying today and holding for several years, I would consider BlackBerry (TSX:BB)(NYSE:BB), Lightspeed POS (TSX:LSPD)(NYSE:LSPD), and Kinaxis (TSX:KXS).
BlackBerry
BlackBerry still has a long road ahead of it, but the change to a focus on cybersecurity has done the company well. The company’s year-over-year revenue was starting to creep up before the crash. After it hit, it slumped a bit but still was on the positive side. As of the latest earnings report, the company had year-over-year revenue increase of 4.3%.
A great part of this revenue is its recurring. The company has its QNX technology in cars, sure, but it also focuses on providing cybersecurity to businesses. These businesses need security in a world where employees are working from home. And once you sign on, that revenue comes in on a monthly basis for years in some cases. As subscriptions continue to rise, BlackBerry shares should as well.
Lightspeed
BlackBerry provides a long-term outlook, but Lightspeed will provide you with returns right now. The company continues to expand its base, providing Lightspeed Subscriptions and Lightspeed Payments to its clients most recently. Clients in the retail and restaurant industry can collect payments faster, which means so can Lightspeed. Everybody wins.
It’s these moves that have allowed the company to continue bringing in substantial revenue. Most recently, year-over-year revenue came in at 58% for the second quarter in a row! And again, we have recurring revenue from subscriptions. In fact, sales have grown by 44.5% year over year as of the most recent quarter. It’s likely that Lightspeed will continue growing strong during the pandemic and beyond.
Kinaxis
If you want stability, Kinaxis has it in spades. This company provides supply chain management services to its clients. These clients are enterprise level and around the world, with no one client taking up more than 10% of the company’s portfolio. Each client also signs up for sometimes years at a time, so that recurring revenue will continue coming in strong.
Revenue continues to climb steadily, most recently by 33.5% during the latest quarter. Sales also grew by 28.3% during the last quarter. If you look at how the company should grow in the next few years, it’s like the pandemic never even happened. Kinaxis shareholders have already seen returns of 152% in the last year, and it’s very likely that will continue happening in the years to come.
Foolish takeaway
Not all tech stocks are equal, and you can’t compare a small computer firm to a company like Kinaxis. While each might have some growing pains during and after the pandemic, these tech stocks also have a bright future ahead. Holding onto these stocks for years, even decades, could bring in returns beyond your wildest dreams.
