Rebound Rockets: 4 TSX Tech Stocks to Buy Before They Soar

Top TSX tech stocks like Kinaxis Inc. (TSX:KXS) and others are a good bet to bounce back in a big way after this rough market correction.

The S&P/TSX Composite Index was up 82 points at the top of the noon hour on September 19. This is a solid start after the index suffered brutal losses in the previous week. However, the S&P/TSX Capped Information Technology Index was down more than a half a percentage point at the time of this writing.

Today, I want to look at four TSX tech stocks that have struggled in recent months. These equities have a good shot to bounce back nicely going forward.

The supply chain crisis should drive you to snatch up this TSX tech stock today

Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based software subscription software for supply chain operations in North America and around the world. This company has established Canada as a leader in supply chain management software. The timing for this push has been fortuitous, as the COVID-19 pandemic significantly disrupted supply chains. There is no better time to modernize and bolster efficiency.

Shares of this TSX tech stock have dropped 21% in 2022 at the time of this writing. It is down 30% in the year-over-year period. In the second quarter (Q2) of 2022, the company delivered total revenue growth of 35% to $80.8 million. Meanwhile, gross profit jumped 24% to $49.7 million. The Relative Strength Index (RSI) measures the momentum of a given security. Kinaxis last had an RSI of 32, putting it just outside technically oversold territory.

Nuvei has been reeling for a year: Here’s why it can bounce back

Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America and internationally. This TSX tech stock debuted on the main index back in September 2020. It had a hot start out of the gate, more than tripling in value in its first year of trading. However, it has fallen sharply from the all-time high it reached in September 2021. Shares of Nuvei have plunged 49% in the year-to-date period.

Investors should seek exposure to the payment technology solutions market, which is geared up for big growth going forward. It released its Q2 2022 earnings on August 9. Nuvei delivered revenue growth of 19% to $211 million and adjusted net income growth of 16% to $74.7 million. This TSX tech stock is currently trading in favourable value territory relative to its industry peers.

This TSX tech stock boasts nice value and income

Evertz Technologies (TSX:ET) is a Burlington-based company that is engaged in the design, manufacture, and distribution of video and audio infrastructure solutions for telecommunications markets in Canada, the United States, and worldwide. This TSX tech stock has increased 4.7% in 2022 at the time of this writing. Its shares are down 4% month over month.

It unveiled its Q1 fiscal 2023 earnings on September 13. Revenue jumped 5% to $101 million. However, net earnings were down marginally from the prior year to $13.9 million. Shares of this TSX tech stock last had an attractive price-to-earnings (P/E) ratio of 15. Better yet, it offers a quarterly dividend of $0.18 per share. That represents a strong 5.1% yield.

Why Quarterhill can rebound in the months ahead

Quarterhill (TSX:QTRH) is the fourth and final TSX tech stock I’d bet on to rebound in the quarters to come. This Toronto-based company operates in the intelligent transportation system and intellectual property licensing industries around the world. Its shares have plunged 35% so far in 2022.

The company released its Q2 fiscal 2022 earnings on August 11. It reported consolidated revenues of $43.8 million — up from $18.8 million in the prior year. Meanwhile, gross profit jumped to $5.84 million over $3.31 million in the second quarter of fiscal 2021. Quarterhill stock possesses a favourable P/E ratio of 13. Moreover, this TSX tech stock offers a quarterly dividend of $0.013 per share, which represents a 2.8% yield.

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.

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