Generally speaking, technology stocks have performed quite well over the past decade. Accordingly, investors appear to be on a quest to find the top growth options in the technology sector. In Canada, the options are actually quite limited, particularly in respect to what investors can find in the U.S.
That said, there are a few high-quality options to consider. In fact, these two top Canadian technology stocks are ones I’d put in the world-class category.
Let’s dive into why investors ought to take a look at these top Canadian tech names.
Top technology stocks: Shopify
Shopify’s e-commerce platform has enabled thousands of small- and medium-sized businesses to go online. During the pandemic, Shopify single-handedly contributed to the North American GDP to a degree few other companies did. That alone deserves some applause from investors.
Sure, Shopify was in the right place at the right time. Few investors saw the kind of acceleration toward e-commerce that would lead to Shopify’s share price accelerating to where it is. But it did.
Where do investors go from here? I mean, Shopify stock is in the nosebleeds in terms of valuation right now.
Well, for those who think the growth we’ve seen in the e-commerce space will continue, Shopify’s a strong long-term bet. This is a company that has grown into its valuation well in recent years. That’s surprised even the more bullish analysts covering this stock.
Shopify will need to continue its torrid pace of growth for some time. That’s a risk investors will have to take. However, those looking for quality growth may want to turn to Shopify before smaller-cap plays right now. This is a proven winner, after all.
Another one of the top technology stocks in Canada for decades, Constellation Software (TSX:CSU) has topped my list for some time.
Much of the rationale for putting Constellation on my top picks list so frequently is that this company is a proven winner. Constellation’s growth has come as a result of consolidating a highly fragmented software space. This catalyst not only remains strong but is perhaps stronger than ever. The booming growth we’ve seen among smaller-cap technology stocks has provided Constellation with an even larger potential acquisition pool to play with.
Those seeking consistent and reliable growth in the tech space can’t go wrong with this name. Constellation has one of the best management teams in the country and perhaps the world. This is a tech player with a business model that’s set up for success. And long-term investors who have simply held and/or added to their positions have continued to reap the benefits for more than a decade.