We all know that some of the best stocks to buy now if you want rapid growth are high-quality tech stocks.
Tech stocks offer the potential for rapid growth because their technology is usually highly scalable.
Rather than creating a product with high input costs, the marginal costs of adding customers when you have a tech business are usually very low. So these companies can not only grow their sales rapidly but their profit margins can be exceptional too, once they reach scale.
This is why it’s crucial to own tech stocks. They are consistently some of the best performers.
However, you can’t just buy any tech stock. While the best stocks are consistently some of the top performers, they are also usually some of the most expensive stocks to buy as they are priced for rapid growth.
So when investors pay a growth premium to buy a growth stock that doesn’t end up working out, you can stand to lose a large portion of your investment.
This makes it crucial to do a tonne of due diligence when buying tech stocks. They are crucial for your portfolio, but also highly risky. So they are some of the most important stocks to research and understand before deciding to invest.
With that in mind, here are two of the best tech stocks to buy now.
A high-potential AdTech stock trading extremely cheap
While most Canadian tech stocks have already rallied significantly, one stock that’s still worth well less than $1 billion, giving it massive growth potential is AcuityAds Holdings (TSX:AT)(NASDAQ:ATY).
AcuityAds is a revolutionary company using its proprietary technology to help advertisers improve their entire marketing campaigns.
It not only uses artificial intelligence to provide insightful data and analytics to advertisers, but it also has an easy-to-use platform with a drag-and-drop interface, making it incredibly simple for advertisers to plan and buy their desired programmatic advertising.
This is a business with a tonne of potential, which is why AcuityAds is one of the top tech stocks to buy now. In addition, it’s been trading extremely cheap as of late, making this the perfect opportunity to gain exposure.
At less than $11 a share as of Wednesday’s close, the stock has more than 100% upside according to the six analysts who cover it. So if you’re looking for a growth stock with a tonne of potential, this top Canadian tech stock is one of the best to buy now.
One of the best Canadian tech stocks you can buy now
Another high-quality stock to consider is WELL Health Technologies (TSX:WELL). WELL is one of the best tech stocks to buy now because it’s addressing a tonne of much-needed improvements in the Canadian healthcare industry.
And not only does it have a tonne of impressive and high-potential businesses in its portfolio, but it’s also proven, especially these last couple of years, that it can source high-quality, high-value investments and grow rapidly by acquisition.
Its telehealth businesses, digital health apps, and electronic medical records business all offer massive potential for growth over the coming years. In addition, they also offer a tonne of synergies for WELL to continue to make high-value acquisitions. This is why it’s one of the best tech stocks to buy now.
And these high-potential technology businesses aren’t all that WELL owns either. It also has a growing network of physical clinics in both Canada and the United States.
It’s no wonder why all nine analysts covering the stock have it rated a buy. WELL offers superior growth potential for many years to come.
So if you’re looking to add an attractive growth stock to your portfolio, WELL is easily one of the best tech stocks to buy today.
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 Daniel Da Costa owns shares of AcuityAds Holdings Inc. and WELL Health Technologies Corp. The Motley Fool owns shares of and recommends AcuityAds Holdings Inc.