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.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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

grow money, wealth build
Tech Stocks

How to Create $100,000 by Investing $500/Month

These two TSX stocks will aid you in building wealth of $100,000 over the next 8.5 years.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

This Battered Growth Stock Could Soar Over the Next 3 Months

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a top work-from-anywhere stock that may be in for a sizeable move to the upside in coming…

Read more »

financial freedom sign
Tech Stocks

3 Selloff Stocks That Could Set You Up for Life

Are you hoping to take advantage of the stock market selloff? Here are three stocks that could set you up…

Read more »

question marks written reminders tickets
Tech Stocks

Docebo (TSX:DCBO) Stock Is Still Down 63%: Should You Buy it?

The growth potential of many new tech stocks that joined the TSX during the pandemic may have been exaggerated, and…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

2 Growth Stocks Investors Should Buy Today

Are you looking for stocks to add to your portfolio? Buy these two growth stocks today!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Tech Stocks I am Buying During a Correction

High-growth tech stocks such as Docebo and Shopify should remain part of your buying list right now.

Read more »

exchange-traded funds
Tech Stocks

2 Tech Sector ETFs to Buy for a Recovery

Individual tech stocks might not fit the risk appetite of many conservative investors. Though, gaining exposure to the entire sector…

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks Are Back in the Game: Up to 83% Upside to Come!

Buying a basket of diversified growth stocks can accelerate your retirement plan. Alternatively, you can use profits for a nice…

Read more »