Next Shopify (TSX:SHOP)! 2 TSX Tech Stocks Ready to Explode

Forget Shopify. There are better growth options on the TSX today. Here are two tech stocks that should be on your watch list today.

| More on:
A colourful firework display

Image source: Getty Images.

Valued at a market cap of $235 billion, Shopify (TSX:SHOP)(NYSE:SHOP) is the largest company in Canada. The tech giant joined the TSX in 2015 and has been delivering market-crushing gains to its shareholders since the day it became a public company. 

Shopify’s stock price has understandably slowed, as it’s turned into a massive company. Still, the tech company is coming off a fiscal year where it delivered quarterly revenue growth near 100% in both Q3 and Q4.  

The tech stock has been more than a 40-bagger for its shareholders over the past five years, which is going to be a tough act to follow. At Shopify’s current size, I wouldn’t bet on a repeat performance over the next five years. But I certainly do not think the tech stock is anywhere near done delivering market-beating growth to its shareholders. 

Some growth investors may be turned off by Shopify’s market cap size, which is understandable. If you’re looking for a stock with serious multi-bagger potential, you may want to search for a smaller company.

Here are two top picks that growth investors will want to have on their radar today. Both companies are far smaller than Shopify and have plenty of multi-bagger growth potential. 

Tech stock #1: Lightspeed 

Lightspeed (TSX:LSPD)(NYSE:LSPD) joined the TSX in March 2019. It has since grown into a $14 billion company and seen its share rise by more than 450%. 

It’s been a great first two years as a publicly traded company, but I think the best is yet to come for Lightspeed. 

The Montreal-headquartered company made a name for itself selling point-of-sale hardware to brick-and-mortar retailers. Fast forward to today, and the tech company has an international presence helping both brick-and-mortar and online retailers in all areas of their businesses.

Lightspeed is coming off a quarter where it saw revenue growth top 125% in its 2021 fiscal Q4. The company also saw an acceleration in revenue in the last three quarters of the year. 

One of the reasons that the company has continued to grow revenue at such a fast rate is due to management’s commitment to product innovation. Lightspeed’s cloud-based products are used throughout their customers’ businesses, ranging far beyond just payment solutions.

Lightspeed stock is far from cheap, but that’s the cost of owning a top Canadian growth stock today. Shares are trading above a price-to-sales ratio of 60, so it’s likely going to be a bumpy ride for shareholders. But if you can handle the risk, this growth stock has lots of upside to be excited about.

Tech stock #2: WELL Health Technologies

Telemedicine stocks were some of the highest-gaining stocks in 2020, as the pandemic led to a sudden surge in virtual doctor visitors. Many market leaders in the telemedicine industry delivered market-crushing gains to shareholders last year. 

We’ve seen a recent cool-off in the telemedicine industry, but that should come as no surprise, as vaccination numbers continue to increase across the globe. But as a long-term investor, this is one dip that I’m ready to take advantage of. 

Shares of WELL Health Technologies (TSX:WELL) were up an incredible 400% in 2020. The pandemic created a bull run that couldn’t seem to be stopped last year. 

At one point this year, shares of WELL Health were down more than 20% below all-time highs. But after a strong run over the past two months, the $1.5 billion company is back trading right below all-time highs. 

At a share price below $10 today, this market-leading telemedicine stock doesn’t require you to break the bank. So, if you have a time horizon of five years or more, this is one growth stock that I’d strongly suggest taking a chance on.

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 Nicholas Dobroruka owns shares of Lightspeed POS Inc. The Motley Fool owns shares of and recommends Lightspeed POS Inc.

More on Tech Stocks

Tech Stocks

3 Top Tech Stocks That Could Help Make You Rich by Retirement

Are you looking for tech stocks that could help make you rich by retirement? Here are three top picks!

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Tech Stocks

Pet Valu Stock vs. Chewy: Better Buy for the Long Run?

Chewy and Pet Valu are positioned to deliver outsized gains to shareholders. But which pet stock a better buy today?

Read more »

Businessman holding AI cloud
Tech Stocks

2 Artificial Intelligence-Powered Growth Stocks to Buy Right Now

Canadian investors should strongly consider Alphabet (NASDAQ:GOOGL) and another AI stock ahead of the next AI-driven tech boom.

Read more »

A colourful firework display
Tech Stocks

Nuvei Stock is on Fire This Year: Is it a Good Buy Today?

Nuvei stock (TSX:NVEI) is down about 85% since pandemic highs, falling 39% after earnings. So, what now?

Read more »

A bull outlined against a field
Tech Stocks

Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market

Are you looking for stocks that could skyrocket in the next bull market? Here are two top picks!

Read more »

Volatile market, stock volatility
Tech Stocks

2 Tech Stocks On Sale in This Latest Tech Sell-off

Constellation Software (TSX:CSU) and Lightspeed Commerce (TSX:LSPD) went on sale in the latest tech sell-off.

Read more »

Dividend Stocks

3 No-Brainer Stocks to Buy With $200 Right Now

Are you looking to invest $200 in stocks right now? Here are three no-brainer stocks to invest your money in…

Read more »

analyze data
Tech Stocks

3 Top TSX Stocks to Buy in October 2023

Here's why undervalued TSX stocks such as goeasy and Dollarama should be on your shopping list in October 2023.

Read more »