North American markets have bounced back nicely in the second half of March. The world economy was thrown into flux after the stunning Russian invasion of Ukraine on February 24, 2022. This triggered a series of historic economic sanctions on the Russian state, severely disrupting global energy markets. Today, I want to look at four TSX stocks that took a hit in late February and early March. It is not too late for investors to snatch up these discounted equities.
These companies are perfectly suited to address modern supply chain issues
Supply chain problems have stirred economic anxiety in Canada and the United States since late 2021. These problems have persisted since the start of the COVID-19 pandemic but appeared to reach their worst point in recent months. Interestingly, Canada is one of the world leaders in providing supply chain management and operations planning software. Below are two solid TSX stocks that operate in this space.
Kinaxis (TSX: KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations in North America and around the world. In recent years, its world-class software has attracted top clients like Ford, Toyota Motors, and Unilever. Shares of Kinaxis have dropped 1% in 2022 as of mid-morning trading on March 22. The stock is still up 13% from the previous year.
It unveiled its fourth-quarter and full-year 2021 results on March 1, 2022. In 2021, Kinaxis delivered total revenue growth of 12% to $250 million. Meanwhile, gross profit jumped 6% to $163 million. Kinaxis is trading in solid value territory compared to its industry peers.
On the topic of peers, TECSYS (TSX: TCS) is a Montreal-based company that is engaged in the development, marketing, and sale of supply chain management software in North America and internationally. This tech stock has plunged 34% so far this year. That has pushed the TSX stock into negative territory in the year-over-year period.
In the fourth quarter of 2021, TECSYS delivered SaaS revenue growth of 107% to $5.5 million. Meanwhile, annual recurring revenue (ARR) rose 9% to $52.5 million. Tecsys dipped into oversold territory in the middle of March. It is not too late to snag this tech stock on the dip.
Here’s a TSX stock in the healthcare space to buy on the dip
Dialogue Health Technologies (TSX: CARE) is another Montreal-based company. However, this one operates a digital healthcare and wellness platform. We are approaching the one-year anniversary of its IPO in late March 2021. Shares of this TSX stock have dropped 17% in 2022. Its stock has plunged 57% year over year.
Despite its struggles, I’m still bullish on its long-term prospects. The telehealth space delivered huge growth during the COVID-19 pandemic. This will slow as we return to some degree of normalcy, but investors should expect continued use of these digital channels to consult with health professionals. In Q3 2021, revenue surged 119% year over year to $17.2 million. Meanwhile, its adjusted EBITDA loss improved to $4.9 million.
Investors can expect to see its final batch of 2021 earnings on March 23, 2022.
One more cheap TSX stock I’d look to snatch up today
Docebo (TSX: DCBO)(NASDAQ: DCBO) is the last TSX stock I want to take a quick look at today. This Toronto-based company provides a cloud-based learning management system to train internal and external workforces, partners, and customers in North America and worldwide. Its shares have plunged 20% in 2022. However, it is still up 22% year over year.
In 2021, total revenue surged 65% to $62.9 million. Meanwhile, its adjusted EBITDA loss improved by over 200% to $2.60 million. I’m still looking to snatch up this promising TSX stock after its sharp dip in March.
