The S&P/TSX Composite Index was down 43 points in early afternoon trading on March 18. North American stocks rallied yesterday afternoon following comments from Federal Reserve Chairman Jerome Powell. He vowed to maintain the policy of near-zero interest rates until 2023. This sparked a run for stocks. However, rising bond yields today have ushered in more volatility. Young investors should be eager to jump on the dips for top tech stocks. They have the time horizon to take maximum advantage of the capital growth potential in these promising equities. Today, I want to look at three of my favourites on the TSX.
Why young investors should buy the dip in this top TSX stock
Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations around the world. This tech stock proved to be one of the most resilient during the March 2020 market pullback. The pandemic has disrupted supply chains, sparking demand for Kinaxis’s cutting-edge tech for the world’s top companies. Shares of Kinaxis have climbed 59% from the prior year.
The company released its final batch of 2020 results on March 3. Total revenue rose 17% to $224 million in 2020. Meanwhile, cash from operating activities increased 62% to $59.4 million. Kinaxis is projecting revenue between $242-247 million in 2021.
Shares of this tech stock have dropped 12% month over month. The stock fell into oversold territory in the beginning of March. Kinaxis is still worth snatching up for young investors before the spring.
This tech stock is on fire in the e-commerce space
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) provides commerce-enabling Software as a Service (SaaS) platform for small and midsize businesses and other enterprises. Its shares have dropped 4.7% in 2021 so far. The stock has soared over 570% from the prior year.
Earlier this week, I’d suggested that TFSA investors should snag this promising tech stock. In Q3 FY2021, Lightspeed saw payments nearly quadruple compared to the previous year. The company projected revenue between $68 and $70 million in the fourth quarter and an adjusted EBITDA loss between $12 and $14 million. Young investors should jump on stocks with exposure to the explosive e-commerce sector, which has received a boost from the pandemic.
Shopify is still a beast worth owning for young investors
Shopify (TSX:SHOP)(NYSE:SHOP) is another e-commerce tech stock that has soared on the TSX since its debut in 2015. Shares of Shopify have climbed over 3,700% over the past five years. It has managed to match the gains of some of the most explosive stocks on the NASDAQ. Shopify stock has dropped 19% month over month at the time of this writing.
The bump for the e-commerce sector during the pandemic was illustrated during the Black Friday-Cyber Monday shopping weekend. Shopify merchants raked in $5.1 billion in sales over the four days. That was more than $2 billion in sales compared to the previous year. In 2020, Shopify saw revenue rise 86% on gross merchandise volume growth of 96% compared to 2019.
Shares of this tech stock have continued to build huge momentum in recent years. Shopify is pricey, but it is also geared up for huge growth, as it sets sights on global growth this decade. Young investors should scoop up this exciting tech stock today.
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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.