2 Explosive Canadian Tech Stocks to Buy Today

Canadian stocks have showcased a surprising recovery in 2021. As many stocks continue to trade near their all-time highs, it’s becoming increasingly difficult for long-term investors to pick good stocks to buy today that still could yield handsome returns in the long run. I’m highlighting two explosive TSX stocks from the tech sector in this article, as I find them really attractive right now.

BlackBerry stock

BlackBerry (TSX: BB)(NYSE: BB) stock could be one of the best Canadian tech stocks to buy right now. The company has the potential to post exponential financial growth in the coming years. BlackBerry’s focus on the fast-growing internet of things (IoT) market has helped it come face to face with many emerging trends from different industries.

Its industry-leading artificial intelligence and machine learning-driven IoT solutions are gaining popularity. That’s why even many large companies are relying on its software solutions. On September 9, BB announced enhanced integration of BlackBerry’s unified endpoint manager and Microsoft 365. This integration will make the authentication for Microsoft 365 users more secure.

Similarly, BlackBerry’s ONX real-time operating system has also become extremely popular among large automakers in recent years. Now, the company is eyeing the fast-growing autonomous and electric vehicle technology market. That’s why it’s developing an intelligent vehicle data platform called IVY, which has already started receiving positive feedback from many large automakers.

BB stock has largely remained underappreciated, despite all these recent positive factors, and hasn’t yet seen the rally it deserves. That’s another reason why I expect it to start an explosive rally very soon.

Magnet Forensics stock

When we talk about the surging demand for cybersecurity solutions, we shouldn’t forget the kind of innovative online security solutions Magnet Forensics (TSX: MAGT) provides. It’s a fairly small company compared to BlackBerry, with a market cap of just $517 million at the moment.

Interestingly, Magnet Forensic has many former BlackBerry employees in its team. MAGT primarily focuses on delivering innovative cybersecurity solutions to private and public organizations across the globe. In a very short period, the company has acquired nearly 4,000 public and private sector customers. Magnet’s investigative tools are capable of analyzing data for any threats and vulnerabilities from various sources, including cell phones, PCs, IoT devices, et cetera.

In the June quarter, Magnet Forensics’s revenue rose by 42% year over year to US$16.5 million. Nearly 81% of its total revenue was made up of recurring revenue. Its term licence sales as well as software maintenance and support sales are growing positively. This could be one of the reasons why Street analysts expect the company to post consistent strong earnings growth in the coming years.

As more businesses than ever are either building or improving their online presence in the post-pandemic world, I expect the demand for Magnet Forensics’s cybercrime tools to skyrocket. I believe this demand could help the company grow at a much faster pace than most analysts expect. While MAGT stock has already more than doubled in the third quarter so far, I consider its recent gains to be just the start of an explosive long-term rally.