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2 Top TSX Tech Stocks to Buy This Summer

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Investors in hunt of growth often gravitate toward the tech sector. And that makes sense. In Canada, there are a handful of options that tend to generate the most attention.

In this article, I’m going to highlight two of my top picks among this group. Indeed, these stocks are ones I view as the most attractive right now for long-term investors.

Shopify

Any list of top tech stocks ought to have Shopify (TSX:SHOP)(NYSE:SHOP) somewhere near the top.

Indeed, this company has proven itself as one of the most consistent growth stocks on the TSX in some time. The company’s whopping 110% annualized revenue growth rate this past quarter highlights this point better than any other data point could.

Shopify brought in more than a billion dollars in net income this past quarter — something that shocked even the most bullish analysts. The company’s GMV increased to US$37.3 billion. This represented impressive growth of 14%. Moreover, Shopify’s monthly recurring revenue jumped to US$89.9 million — a 62% climb year over year.

As far as earnings surprises go, Shopify’s were significant. However, since earnings, Shopify stock has traded on a downtrend. This has provided long-term growth investors with what I view as a nice buying opportunity.

For those who believe Shopify could indeed be the next Amazon, such a buying opportunity may not come around very often. Indeed, Cathie Wood’s comments comparing the two companies shows how bullish the market is on this stock.

Those looking to buy the dip ought to consider Shopify in this environment.

The 10 Best Stocks to Buy This Month

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CGI 

Unlike Shopify, Canadian tech star CGI (TSX:GIB.A)(NYSE:GIB) hasn’t provided much in the way of dips to buy on lately.

Indeed, this IT services company appears to remain high on the list of buy-and-hold stocks for long-term investors — and for good reason.

The company’s diverse portfolio of revenue streams across both private and government clientele is attractive. CGI has some of the most stable cash flows of its peers and has recently reported very good earnings as well.

In fact, the company recently announced fully diluted quarterly earnings of $1.34 per share. On an annualized basis, CGI is trading around 25 times earnings. That’s certainly not expensive at all for the growth and stability this company provides.

Over the long term, CGI’s management team has indicated they’re looking to expand prudently. CGI will be looking to make more strategic decisions to ramp up their online offerings. Additionally, the company’s working on various blockchain projects with large companies, providing yet another catalyst for this company (as if it needed another).

CGI remains a hot stock for a reason. However, I think this sentiment is warranted. This is a great long-term play for investors at these levels.

Like these top picks? Here are a few more to consider right now:

The 10 Best Stocks to Buy This Month

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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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Shopify, and Shopify. The Motley Fool recommends CGI GROUP INC CL A SV and recommends the following options: long January 2023 $1140 calls on Shopify, short January 2023 $1160 calls on Shopify, long January 2022 $1920 calls on Amazon, and short January 2022 $1940 calls on Amazon.

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