2 Explosive Canadian Tech Stocks to Buy Today

These two Canadian tech stocks could start an explosive rally anytime soon. Here’s why.

| More on:
A colourful firework display

Image source: Getty Images.

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.

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.

The Motley Fool recommends BlackBerry. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

work from home
Tech Stocks

Could Lightspeed Stock Be a Big Winner in 2023?

Investors can capitalize on Lightspeed’s low valuation and benefit from the recovery in its price.

Read more »

Tech Stocks

TFSA Passive Income: How I’m Investing to Make $2,000/Year From Dividends

I am increasing my dividend income by investing in dividend stocks like the Toronto-Dominion Bank.

Read more »

Electric car being charged
Tech Stocks

Is Now The Time to Buy EV Stocks?

EV stocks may be down now, but don't count them out. They'll soon be back up again, so now may…

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

Better Buy: Amazon vs. Apple Stock

While both Amazon and Apple have bright long-term prospects, Apple stock looks like the best tech company to invest in…

Read more »

A stock price graph showing declines
Tech Stocks

Has Blackberry Stock Finally Stopped the Slide?

Blackberry has not yet delivered the kind of financial results that we know it can, but this is about to…

Read more »

Car, EV, electric vehicle
Tech Stocks

Chinese Stocks are Soaring: This TSX Stock Could Gain

Magna International stock could benefit from China's economic re-opening.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

1 Oversold Growth Stock to Buy for Major Returns in 2023

This growth stock could be the best Canadian stock to buy now for 2023, with shares possibly doubling back to…

Read more »

Hands holding trophy cup on sky background
Tech Stocks

Could BlackBerry Stock Be a Big Winner in 2023?

BlackBerry (TSX:BB) stock more than halved last year amid the tech stock selloff. Could 2023 be a winning year for…

Read more »