If you’re looking to invest in Canadian businesses now, tech stocks are some of the best you can buy for your portfolio. These stocks usually offer a tonne of growth potential, making them the best to buy if you’re looking for growth.
There are a tonne of possibilities in the tech industry. You could find a stock that has invented a completely new product or service. Or you could find a business that is creating an entirely new industry. The possibilities are endless.
Plus, these stocks not only have the ability to see their revenue grow rapidly but also their profitability. Tech stocks can often have huge margins as they scale due to low marginal costs on the products or services they are selling. This is why they can provide investors with some of the biggest gains on the market.
And the best time to buy a tech stock is when it’s still early in its growth. This is why small-cap tech stocks offer some of the best prospects for the growth of any stock on the market.
So if you’re a growth investor looking for a stock to add to your portfolio, these two small-cap tech companies are some of the best to buy today.
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A top AdTech stock for long-term investors
One of the highest potential tech stocks in Canada right now is AcuityAds Holdings (TSX:AT)(NASDAQ:ATY).
AcuityAds is in the rapidly growing AdTech space. Many investors and analysts alike are bullish on this business, especially with AcuityAds’ new proprietary platform now up and running.
The company continues to sign new contracts and grow its sales showing just how much potential its operations have.
Unfortunately, though, the stock has been on a consistent downtrend this year. That can’t last forever, though, as the stock is now extremely cheap, and the operations only continue to improve.
AcuityAds is one of the top tech stocks to buy, but it’s one you’ll have to commit to for the long run. Nevertheless, it can earn you some massive returns over the years. Currently, its one-year target price is upwards of $18.50, more than an 85% upside from today’s price.
So if you’re a long-term investor looking for a high-potential growth stock, AcuityAds is the stock for you.
A top cyber security stock for tech investors to buy now
Another high-potential tech stock with a market cap of just $400 million is Magnet Forensics (TSX: MAGT).
Magnet Forensics is an impressive company operating in an industry that will be growing for decades: cyber security. Through its software, Magnet aids companies and organizations in preventing cyber-attacks and other forms of digital crimes.
Its software can acquire, analyze, and alert businesses on any digital evidence to help prevent these attacks before they happen. This makes it one of the top tech stocks to buy now.
Not only has the company shown that it can execute by rapidly growing its revenue, but it’s also slated to grow for years and at a rapid pace. In 2020 there was just under US$1 trillion in cybercrimes. That number is estimated to grow to more than US$10 trillion in just five years.
And since Magnet is one of the top companies in the industry and continues to improve its operations, it’s easily one of the top tech stocks to buy now.
