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The Best Tech Stocks to Add to Your TFSA

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The S&P/TSX Composite Index was up 53 points in mid-afternoon trading on February 16. Canadian stocks were led by another positive performance for the healthcare sector. Metals and mining stocks also enjoyed a strong uptick on the same day. Today, I want to look at the best tech stocks to snatch up in your Tax-Free Savings Account (TFSA) today. Investors will be aware of how explosive tech stocks like Shopify can make fortunes over a few years. Let’s jump in.

A hot housing market is boosting this tech stock

Real Matters (TSX:REAL) is an Ontario-based company that provides technology and network management solutions to mortgage lending and insurance industries in North America. This was one of my top tech stocks to kick off the New Year. Shares of Real Matters have dropped 29% over the past three months as of close on February 16.

The company released its first-quarter 2021 results on January 28. Consolidated net revenue rose 24.8% to $44 million. Meanwhile, adjusted EBITDA climbed 19.7% to $17.4 million. Real Matters benefited from continued strength in the United States mortgage market. It expects this momentum to sustain itself as the U.S. central bank maintains low borrowing rates.

Shares of Real Matters last had a price-to-earnings ratio of 27. This puts it in favourable territory relative to industry peers. Canadians should consider stashing this undervalued tech stock in their TFSA today.

The next Shopify? A top e-commerce equity to snag right now

In late 2020, I’d discussed why investors should get in on the red-hot e-commerce space. Shopify is the obvious pick on the TSX and has proven to be one of the most explosive tech stocks in North America. However, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is a worthy little brother. Its shares have climbed 73% over the past three months.

Lightspeed released its third-quarter fiscal 2021 results on February 4. Revenue rose 79% year over year to $57.6 million in the third quarter. Moreover, customer locations increased to 115,000 worldwide. Recurring software and payments revenue jumped 85% to $52.5 million.

This tech stock isn’t exactly a value pick after jumping over 125% in the year-over-year period. However, it boasts an excellent balance sheet and has delivered promising earnings growth in successive quarters. TFSA investors should feel good about adding this tech stock for the long term.

One more tech stock to add to your TFSA today

Kinaxis (TSX:KXS) is the last tech stock I’d target in a TFSA right now. The Ottawa-based company is focused on supply chain solutions and operations planning software. It has thrust Canada into a global leadership position in this space. Moreover, Kinaxis has attracted massive clients like Ford, Unilever, and Toyota Motors.

Shares of Kinaxis have dropped 4% in 2021 as of close on February 16. That means TFSA investors have some time to stash this tech stock as it exhales. It is expected to release its fourth-quarter and full-year 2020 results later this month. Kinaxis boasts an immaculate balance sheet and very promising growth potential. It is well worth owning for the long haul.

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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.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. 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. The Motley Fool recommends KINAXIS INC and Real Matters Inc.

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