It is no secret that investing in technology has become one of the hottest trends for Canadian stock market investors in the last few years. Several TSX tech stocks have delivered multi-bagger shareholder returns in a matter of months to early investors. It is no surprise that investors are constantly looking for more opportunities to provide them with stellar returns on their investments.
The TSX tech sector boasts multiple shining examples of how investing in the right TSX tech stocks can make you a much wealthier investor. However, most of the top names have already reached an expensive territory. While investing in the biggest Canadian tech firms can still provide you with upside potential, you might not see the same returns that earlier investors are enjoying today.
Fortunately, the Canadian tech sector is not short of publicly listed tech companies that have the potential to provide multi-bagger returns. Today, I will discuss two smaller tech stocks that you could consider adding to your portfolio if you are looking for the perfect gifts for yourself this Christmas.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) is a $1.38 billion market capitalization company that has rapidly risen on the TSX due to conditions created by the pandemic. COVID-19 and ensuing measures to curb the spread of the contagious virus saw lockdowns worldwide, forcing us to change every aspect of our lives from how we conduct business to our visits to the doctor.
The telehealth industry has existed for a long time, but the pandemic highlighted its importance and convenience. Imagine being able to consult with your doctor without having to risk infection by physically visiting the clinic. That is what telehealth providers like WELL Health Technologies enable through their innovative tech-based services.
The stock is trading for $6.69 per share at writing, and it could provide further upside potential to investors.
Converge Technology Solutions
Converge Technology Solutions (TSX:CTS) is a company founded just six years ago, and it has been riding the wave of increasing digitization across the board to put up a stellar performance on the stock market. The company helps its mid-market clients adapt to the changing global landscape by providing them with necessary tech-based solutions.
Converge has also been busy with an excellent mergers and acquisitions strategy to expand on its product offerings, increasing its addressable market, and its potential for revenue growth. The company has been acquiring companies in North America and in Europe to expand its global footprint, offering a wide range of services.
The stock is trading for $11.80 per share at writing, and it could be a steal at its current share price.
Foolish takeaway
Investing in smaller companies trading on the TSX entails a relatively high degree of capital risk than buying shares of well-established companies. However, making a calculated risk with an amount suitable enough for you to invest when you already have a well-balanced portfolio could provide you with substantial returns on your investment.
If you feel skittish about allocating a significant amount of money to high-growth stocks due to fear of volatility, it is completely all right to start with a small position and gradually increase or decrease your stake in the companies based on their performance.
WELL Health Technologies stock and Converge Technology Solutions stock could be ideal assets to have on your radar for this purpose.
