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2 of the Best Canadian Tech Stocks to Buy Right Now

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The tech sector delivered spectacular returns in 2020, as the pandemic-induced lockdown measures changed the global landscape. Unfortunately, the broader tech sector has been under significant pressure since this year began, as overvaluation concerns and inflation fears rise.

The macro trend of the entire tech sector going through a pullback might present an excellent opportunity for investors to add to their winning bets in the sector at a discount. I will discuss two such stocks that you could consider adding to your portfolio if you are looking at the pullback as a chance to buy high-quality tech stock shares at a bargain.

Lightspeed POS

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) could be one of the best Canadian tech stocks to have in your portfolio. The company was quick to pivot its offerings to cater to the changing demands of its clients as the pandemic led to lockdowns worldwide. The rising adoption of online shopping and an omnichannel selling model has created lucrative opportunities for the company.

Lightspeed has been capitalizing on organic growth by launching innovative product offerings and expanding its customer base. It has also successfully increased its revenues from each customer through additional services that its customers find useful.

Aside from organic growth, Lightspeed has been nimble on its feet when navigating strategic acquisition deals to accelerate its growth. Lightspeed has completed several acquisition deals to expand its offerings and substantially grow its customer base in the last few months.

The stock is trading for $87.21 per share, reflecting an almost 11% discount from its all-time high in February 2021.

Should you invest in Lightspeed right now?

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WELL Health Technologies

WELL Health Technologies (TSX:WELL) is another excellent tech stock that capitalized on the changing global landscape amid the pandemic. The demand for telehealth services offered by companies like WELL Health Technologies surged due to the pandemic, allowing the company to raise substantial capital to expand its offerings. The company acquired CRH Medical, ExecHealth, and IntraHealth after the latest financial quarter that ended in March 2021 to boost its revenues.

These strategic acquisitions make the stock an attractive buy by increasing its annualized revenue run rate close to $300 million and raising its adjusted EBITDA to $80 million. WELL Health was also one of the tech companies affected by the recent selloff in the industry.

The stock is trading for $7.88 per share, reflecting an almost 15% discount from its February 2021 high. The correction could offer investors an excellent entry point to the stock for long-term gains, as it continues to improve its acquisition pipeline and operating metrics to become more profitable.

Foolish takeaway

Tech companies like Lightspeed POS and WELL Health Technologies managed to provide investors with market-beating returns during a spectacular 2020. While posting similar returns in the future might be out of the question, the companies do have substantial long-term upside potential.

If you are bullish on the tech sector, you could consider adding these two companies to your investment portfolio to enjoy outsized long-term returns.

Speaking of Lightspeed stock…

Should you invest $1,000 in Lightspeed POS right now?

Before you consider Lightspeed POS, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Lightspeed POS wasn't one of them.

The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

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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 Adam Othman has no position in any of the stocks mentioned.  The Motley Fool owns shares of and recommends Lightspeed POS Inc.

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