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The 3 Best TSX Tech Stocks to Buy in July 2021

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Canadian tech stocks are gaining steam, despite their premium valuation and expected normalization in growth rate on economic reopening. For instance, top TSX tech stocks like Shopify (TSX:SHOP)(NYSE:SHOP)Lightspeed POS (TSX:LSPD)(NYSE:LSPD), and WELL Health Technologies (TSX:WELL) witnessed a fair amount of buying in the recent past that drove double-digit growth in their prices in one month. 

Despite the recent move up, I am bullish on these tech stocks and see significant upside in the long term. Let’s delve deeper into these companies to ascertain why they should be a part of your portfolio.


Shopify is arguably one of the best high-growth tech stocks listed on the TSX. Further, it is among the top long-term investments you could make. Its success is well reflected through stellar growth in its stock price, which skyrocketed over 6,000% since its IPO in 2015. As Shopify continues to evolve, I see further upside to its stock. It continues to grow its revenues rapidly. Meanwhile, its growing merchant base, product expansion, and operating leverage justify its premium valuation. 

Furthermore, its robust fulfillment network, increased e-commerce spending, growing global footprint, and the addition of high-growth sales and marketing channels provide a solid base for future growth. Also, the growing adoption of its payments solutions, high-value product launches, and cost management could continue to cushion its margins.

Lightspeed POS 

Lightspeed POS is another high-growth tech stock that should be in your portfolio. Its staggering revenue-growth rate and growing adoption of its digital platform, despite the economic reopening support, my bullish view. Its total revenues soared 127% in the most recent quarter on the back of a triple-digit increase in its recurring subscription and transaction-based revenues. The company expects the momentum to sustain and expects its revenue to increase by about 94% to 103% in FY22. 

The momentum in its underlying business and benefits from its recent acquisitions could continue to drive its top line at a very high pace. Further, its focus on product innovation, expansion in the high-growth markets, growing customer base, and increased adoption of multiple modules is likely to bolster its overall revenues and average revenue per user.  

Notably, Lightspeed stock has risen over 22% in one month, and I believe the continued shift towards omnichannel payment platforms and strategic acquisitions could accelerate its growth rate and drive its stock price higher.

WELL Health Technologies

Like Shopify and Lightspeed, WELL Health has created a massive amount of wealth for its investors. The telehealth company has delivered exceptional returns of about 5,526% since it went public in June 2017 on the back of its stellar financial performances and acquisitions. The growth in its software and services revenues and rising demand for its in-person and digital healthcare assets suggest that its revenues could continue to grow rapidly. 

Moreover, WELL Health’s strategic acquisitions, growing market share, and digitization of clinical assets are likely to accelerate its revenue growth further. The company has delivered positive EBITDA in two consecutive quarters. Meanwhile, its focus on cost optimization could continue to cushion its margins. 

Notably, WELL Health stock is up about 22% in one month but continues to trade cheap, providing a solid opportunity for buying at current levels.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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