Many Canadians new to investing are keen on investing in technology because of all the tech sector’s popularity in the last few years. The tech sector has undoubtedly produced some of the top performers on the TSX in recent years. Unfortunately, the barrier of entry to the names at the very top is quite high.
A few months ago, the broad pullback in the tech sector opened up several opportunities for Canadians seeking high-growth tech stocks at attractive valuations. Even at significant discounts, the likes of Shopify stock and Lightspeed stock are unlikely to provide multi-bagger returns.
Fortunately, the TSX has several other tech stocks to offer that you should keep on your radar, even if you are not investing in the companies immediately. Today, I will discuss two top Canadian tech stocks that you should keep a close eye on right now. Having these equity securities on your radar gives you the opportunity to research the companies and determine the best time to invest in their shares.
Nuvei
Nuvei (TSX: NVEI) is a $22.86 billion market capitalization company that has been riding the wave of increasing e-commerce activity by providing versatile payments processing solutions. Nuvei is the leading payments processing solutions provider trading on the TSX with a presence in over 200 global markets, accepting 480 different payment methods with 150 different currencies, and it even accepts 40 different cryptocurrencies.
The company has established itself as a leader in this space, firmly growing rapidly through a mergers and acquisitions strategy. As Nuvei continues expanding its global presence, its acquisition of Paymentez last month will give it exposure to Latin American markets. The stock is expected to make its debut on American stock markets soon.
At writing, Nuvei stock is trading for $159.97 per share, and it could be the right time to buy its shares before it moves beyond reach.
WELL Health Technologies
WELL Health Technologies (TSX: WELL) is a $1.39 billion market capitalization company that operates over 70 primary healthcare clinics. It is also a leading operator in the burgeoning telehealth industry, offering a comprehensive suite of software-based solutions to the healthcare industry. The onset of COVID-19 saw a massive surge in demand for telehealth services, translating into a stellar performance for WELL Health Technologies stock.
Between January and December 2020, WELL Health stock’s share prices appreciated by over 410%. However, the stock is trading for $6.37 per share at writing, down by 14.27% year to date. The decline could be attributed to the growing realization that a post-pandemic world is on the horizon.
However, the company could see massive growth in the long run, as the broader telehealth industry continues to grow in the coming years.
Foolish takeaway
The ongoing digitization and changing consumer habits indicate that tech stocks will likely outperform the broader markets in the long run. While there are already a few names in the industry that have established leading positions in the market, the TSX has several more names you should keep a close eye on.
Nuvei stock and WELL Health Technologies stock are two of the names you should have on your radar as investments that could provide you with stellar shareholder returns.
