The broader market is facing the heat of the new coronavirus strain today. The Canadian stocks are staging a sharp sell-off as the new COVID variant-driven, more new restrictions are emerging. At 12:30 AM ET, the S&P/TSX Composite Index and the S&P/TSX60 Index were trading with 0.7% and 0.9% losses for the day, respectively.
Similarly, the United States’ key market indexes such as the Dow Jones Industrial Average and the S&P500 fell by 0.7% and 1.2% earlier this morning.
The imminent market crash
November turned out to be excellent for the stock market as the shares across industries rallied. Some businesses’ improving fundamentals also supported the month’s outstanding market gains.
The shares of many other companies such as Air Canada rallied despite their terrible fundamentals, however. These gains were based on investors’ overconfidence, I believe. These seemingly irrational gains in such companies’ shares set the stage for a big imminent market crash.
Stocks to buy amid the market crash
Nonetheless, some companies — especially from the tech sector — tend to benefit from stay-at-home orders. Many such tech companies immensely benefited earlier this year when the COVID-19 related shutdowns forced businesses to allow remote work.
And you may want to buy their shares as the new coronavirus variant-related more restrictions loom. More restrictions could lead to another rally in these tech stocks. Here are two of such great stocks to buy right now:
Shopify Inc. (TSX:SHOP)(NYSE:SHOP) is undoubtedly one of the best tech stocks to pick if you fear more stay-at-home restrictions in the coming months. The stock has had an outstanding year so far. In the first quarter, it rose by 14.2% and posted an impressive 119% in the second quarter.
Shopify’s business hugely benefited during the COVID lockdown phase as more businesses made efforts to build and improve their online presence. In the last couple of quarters, Shopify has reported over 95% revenue rise on a year-over-year basis while its net profit is continuing to be at its record highs.
The shares of this Ottawa-based Canadian tech giant are currently trading with 191% year-to-date gains. If the new coronavirus strain results in more restrictions in the coming months, you can’t go wrong with Shopify.
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is another great tech stock to hold during the coronavirus related uncertainties phase. When COVID-19 restrictions were at their peak in the June quarter, this omnichannel commerce-enabling software company reported a 51% year-over-year rise in revenue. In the September quarter, its sales growth accelerated further to 62% year over year.
That’s one reason why Lightspeed POS stock has more than doubled in 2020 so far. In the June quarter alone, it posted over 70% gains. It’s currently trading with 105% year-to-date gains and has the potential to inch-up further as the new coronavirus variant forces more businesses to improve their online infrastructure.
That’s why just like Shopify, Lightspeed POS would be a great stock to buy, even if the new COVID uncertainties trigger a broader market crash.
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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.
Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.