The TMX Group launched the TSX30 in 2019, where Shopify made it in all three lists. It ranked number one in 2020 and second in 2019 and 2021. Also, Canada’s largest publicly-listed company rules the technology sector.
Several names are potential superstars, but either CGI Inc. (TSX:GIB.A)(NYSE:GIB) or Nuvei Corp. (TSX:NVEI)(NASDAQ:NVEI) are most likely to be the next tech phenomenon on the TSX. The respective businesses have long growth runways, and it should be a matter time before both are in the league of Shopify and other high-growth stocks. The share prices could even rise by $1,000.
top tsx stocks
Driving digital transformation
CGI has a market cap of $26.66 billion and is one of the largest independent IT and business consulting services firms globally. The Montreal-based company delivers an end-to-end portfolio of capabilities such as strategic IT & business consulting plus systems integration and managed IT & business process services.
Management’s primary goal is to assist organizations in their digital transformation journeys and accelerate results. More importantly, CGI provides the expertise and insight to drive innovation without disruption. CGI’s different products and services apply to nearly all commercial sectors.
In fiscal 2021 (year ended September 30, 2021), net earnings grew 22.5% to $1.37 billion versus fiscal 2020. CGI generated $526.9 million in cash from operating activities in Q4 fiscal 2021, a 7.1% year-over-increase. Also, note that the company has a backlog worth $23.06 billion.
Its President and CEO, George Schindler, highlights CGI’s strong position and accelerating growth in fiscal 2021. Schindler said, “Looking to the year ahead, we will accelerate our investments in the talent and capabilities necessary to expand our services and global footprint in support of clients’ evolving digital transformations.”
This tech stock trades at $108.78 per share (+7.71% year-to-date gain). Based on analysts’ forecasts, the return potential of 17.3% in 12 months. Note that the total return in 33.3 years is 107,005.93 (23.31% CAGR).
Tech solutions to remove payment barriers
Nuvei should benefit significantly from the ongoing transformation in the digital payments space. The $10.83 billion global payment technology provides intelligence and technology solutions that help businesses remove payment barriers.
If not for automation, payment processing would still be time-consuming today. Nuvei’s proprietary platform offers seamless pay-in and payout capabilities. Moreover, expansion and enhancement of its portfolio of real-time payout options are ongoing.
In the nine months ended September 30, 2021, total revenue and volume increased 97% and 119% year-over-year. Nuvei posted a net income of US$94.7 million compared to US$126.2 million net loss in the same period of 2020. Its Chairman and CEO, Philip Fayer, said the company achieved significant milestones in Q3 2021 besides the financial results exceeding its outlook.
Management expects to end 2021 with total revenue of between US$717 million and US$723 million. It forecasts an identical 30% growth in revenue and volume regarding medium-term targets. The strategy is to accelerate its investment in distribution, marketing, innovation, technology and infrastructure.
Market analysts are bullish on Nuvei, as evidenced by their price forecasts. The current share price of $75.32 could climb 114.9% to $161.88 in 12 months.
Fast-emerging superstars
For years to come, Shopify will be the face of TSX’s tech sector. However, CGI and Nuvei could succeed and be the next superstars.
