When looking for stocks that could produce market-beating growth, investors often look to the tech sector. Companies attempting to push today’s tech to new frontiers have a very good chance of hitting it big and returning immense value to their shareholders.
In this article, I will discuss three top tech stocks that investors should consider adding to their portfolios in July.
Start with this top stock
Shopify (TSX:SHOP)(NYSE:SHOP) seems like the easy answer when it comes to choosing a tech stock with market-beating potential. The company offers a platform that merchants can use to operate online stores.
Anecdotally, I have seen many people in my personal life begin using Shopify’s platform over the past year. In fact, there are now more than 1.1 million businesses that use Shopify to power online retail operations.
Although Shopify has already grown tremendously over the past few years, the company seems to have increased its growth rate this year. In its latest earnings report, Shopify announced that its 2021 Q1 revenue was 110% greater than the reported value the year prior.
The company’s monthly recurring revenue is now growing at a compound annual growth rate of 45%. This is one stock that has proven that it can be a winner. Its growth runway is still long, don’t miss out.
This recent IPO can be a 10-bagger
It only took Nuvei (TSX:NVEI) one day to make history. After its first day of trading, the company became known as the largest IPO in Canadian history. This means that as impressive as Shopify may be, Nuvei was able to attract more cash during its IPO. For those who are unfamiliar, Nuvei provides an omnichannel payments platform to merchants.
Currently, the company is present in more than 200 global markets. Its platform accepts 450 payment methods and is compatible with 150 currencies and 40 cryptocurrencies.
Nuvei has stood out among other growth stocks this year due to its amazing run. Whereas other growth stocks have faltered, Nuvei has managed to gain more than 45% this year. Since its IPO, Nuvei stock has now gained more than 126%. It is still valued at a mere $14.6 billion. In order to reach the size of its larger competitors, Nuvei would have to grow 10 times from here. That is good news for shareholders.
One of the market’s top winners in 2020
Last year, Docebo (TSX:DCBO)(NASDAQ:DCBO) turned a lot of heads when it went on a 650% run after the COVID-19 market crash. However, at the start of this year, its stock fell about 40%. Since the end of March, Docebo seems to have found its legs. The stock has gained more than 60%, bringing it back to even for the year.
What’s interesting about Docebo is that the company has only continued to add reasons for investors to buy shares. In Q3 2020, Docebo announced a multi-year partnership with Amazon to power its AWS Training and Certification offerings.
The following quarter, the company was listed on the NASDAQ, giving international investors more access to the stock. Docebo is an outstanding young company with massive potential.
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 Jed Lloren owns shares of Docebo Inc. and Shopify. The Motley Fool owns shares of and recommends Amazon, Docebo Inc., and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.