Rebound Rockets: 3 TSX Tech Stocks to Buy Before They Soar

Tech stocks may be down now, but these three will be the first to soar after we get through this market volatility.

| More on:
Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept

Image source: Getty Images

It’s a hard time for Canadian investors to seek out growth stocks. While on the one hand, everything is down and could rebound soon, on the other hand, it’s hard to tell what will explode and what will slump. And that couldn’t be more true when it comes to tech stocks.

Tech stocks were some of the first stocks to fall during the market drop. What’s more, these stocks have been falling further and further since the beginning of the year. Now, they remain near 52-week lows in some cases, but not all.

Today, I’m going to look at three tech stocks that stand to recover quickly over the next year and beyond. So let’s get to it.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) exploded during the pandemic, with shares of the stock soaring to double digits as the world started using telehealth to meet with medical professionals. But with restrictions easing, some believed this would no longer be a necessity.

That’s simply untrue. WELL stock is still a great consideration. It’s been expanding rapidly throughout North America, and has its eye on global domination. And even though shares of tech stocks like WELL are down, the company still has record levels of revenue coming in to facilitate further growth.

Shares are set to more than double in the next year, based on consensus price targets. WELL stock is coming off a record quarterly revenue report of $140.3 million, growth of 127% year-over-year. It increased its 2022 revenue guidance to above $550 million as well. Shares are down 28% year-to-date, though are up 17% in the last two months.

Dye & Durham

Another tech stock I’d consider is Dye & Durham (TSX:DND). DND was one of the tech stocks that soared during the last few years, and for good reason. The company latched on to a stable business model of creating software for companies like law firms, governments, and financial institutions. But after raising prices earlier this year, shares dropped.

Today is a different story. DND stock is just one of many companies raising prices with inflation hitting hard. What’s more, it has the cash on hand to continue acquiring businesses. Although it’s a new company, it could be one you’ll be glad you bought decades from now.

Shares popped recently for DND stock as an Australian regulator stated it would not stand in the way of its recent acquisition of the Link Group. DND has said the acquisition will expand its customer base in key U.K. and Australian markets, and strengthen its business-to-business software and information service solutions. So despite DND shares being down 67% year-to-date, they’re now up 7% since the news hit.

goeasy

Finally, though a lot of new tech stocks may be catching your attention, there are certainly older ones you should consider as well. These include goeasy (TSX:GSY), as the company has become a major loan provider over the last few decades.

goeasy stock currently retains huge value among tech stocks especially. It trades at just 12.36 times earnings, and is coming off record results from its latest quarter. The company reported a 66% increase in loan originations, with quarterly diluted earnings per share rising 100% to $2.32. At a time when interest rates are rising, goeasy stock actually managed to see its loan originations explode.

Not only that, it’s been around long enough that you can count on dividends from goeasy stock. It currently offers a decent 3.11% dividend yield, with a potential target price of $203, up from its current $127. Shares are down 27% year-to-date, but have grown 24% in the last two months.

Bottom line

When it comes to investing, tech stocks are prone to volatility, so it’s important to think long-term. All three of these companies could provide investors with superior growth in the near and far future. So if you’re looking for recovery stocks, consider adding these three to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in WELL Health Technologies Corp. The Motley Fool has no position in any of the stocks mentioned.

More on Tech Stocks

healthcare pharma
Tech Stocks

Well Health Stock Is Up 7% After Earnings: What Investors Need to Know

Well Health is benefiting from strong demand as it digitizes healthcare and strives to improve patient outcomes.

Read more »

Circuit board with a microchips
Tech Stocks

1 AI Stock That Can Help Turbocharge Your TFSA

Docebo is a high-flying growth stock that operates in the AI space and is a top investment in May 2024.

Read more »

Businessman holding AI cloud
Tech Stocks

This Canadian AI Stock Is Growing at a Breakneck Pace

Canadian AI stock Kinaxis Inc (TSX:KXS) is giving U.S. giants a run for their money.

Read more »

grow dividends
Tech Stocks

Why Hut Stock Surged 11% on Wednesday

Hut 8 (TSX:HUT) stock surged by as much as 11% on Wednesday after strong earnings that delivered on finances and…

Read more »

sad concerned deep in thought
Tech Stocks

The Potential TikTok Ban in the U.S. Is Real: Here’s What it Means for Facebook’s Stock

Meta Platforms (NASDAQ:META) could gain market share from TikTok being banned. That might leave BCE Inc (TSX:BCE) in a bad…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Lightspeed Stock Jumps 15% on Founder Dasilva’s Return, Earnings Beat

Dax DaSilva is back as Lightspeed stock (TSX:LSPD) CEO, and investors were thrilled with the news, along with a 25%…

Read more »

A gamer uses goggles to play an augmented reality game. tech
Tech Stocks

Why ‘Roaring Kitty’ Sent Meme Stocks Soaring Like It’s 2021

Roaring Kitty came back, leading to another rally in meme stocks that could be over before it even gets started.

Read more »

value for money
Tech Stocks

3 Bargains I’d Snatch Up as They Approach 52-Week Lows

Despite their near-term weakness, these three bargain stocks are excellent buys at these levels.

Read more »