2 Leading Tech Stocks to Buy in 2022 and Beyond

As a clear leader in the digitization race, Blackberry stock is one of two top Canadian tech stocks to buy in 2022 and beyond.

| More on:
Automated vehicles

Image source: Getty Images

The technology industry remains one of the most exciting, high growth industries today. When looking for exposure to this, there are many tech stocks to choose from. But only a few are cutting edge. Only a few are leading tech stocks. Here are two.

Blackberry is setting up for explosive growth

The first thing I would like to point out about Blackberry Ltd. (TSX:BB) is that its technology is widely recognized as cutting edge. In fact, the company has won numerous industry awards. It’s also secured many partnerships with equally top-notch players.

For example, Blackberry IVY was recently awarded the 2022 Enabling Technology Leadership Award for the connected vehicles industry. This is one of many awards that Blackberry has received over the years for both its machine-to-machine connectivity software as well as its cybersecurity software.

This is the backdrop that is allowing Blackberry to move to the next level. Let’s focus on the connected car as an example. I think it’s fair to say that there’s an evolution going on as the amount of software in cars is increasing rapidly. The structural growth is huge, and Blackberry is here for it. Design wins for Blackberry’s software have been record-breaking. In fact, in the first half of this year, Blackberry has had more design wins than it has ever had in any full year.             

Yet, this tech stock has had a rough time in the last few years. Down more than 50% in the last year, Blackberry stock is currently trading at just over $5. This is the level that it was stuck at in 2020. But while this is disappointing for me, as I bought the stock higher up, it doesn’t change Blackberry’s massive growth potential. With over $600 million in cash and improving financials, this is a tech stock to buy for 2022 and beyond.

CGI is a tech stock with the most impeccable track record

CGI Inc. (TSX:GIB.A) is another tech stock that’s highly recognized for its leading technology solutions. CGI is a $24 billion IT and business consulting services firm. CGI has been a solid performer over the last decade. This has been driven by its aggressive acquisition strategy. Simply put, CGI is a consolidator in the highly fragmented IT services industry. This strategy has yielded rewards including many years of steady revenue, cash flow, and profit growth.

In the last five years, CGI’s revenue has grown 12%. Also, its cash flow from operations has grown 25%. The revenue growth was driven by steady organic growth as well as growth through acquisitions. The growth in cash flow from operations was driven by increased efficiencies, which shows up as margin improvements. In fact, in its latest quarter, CGI achieved an EBIT margin of just over 16%. This compares to a margin of below 10% some years ago.

So, we can see how much progress CGI has made operationally. We can also see evidence that the digitization race is alive and well. According to the company, it’s still in the early stages. CGI’s record backlog of $24 billion provides a glimpse into the future demand and revenue growth we can expect from CGI and its stock – and it’s extremely strong.

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 Karen Thomas owns Blackberry Ltd and CGI Inc. The Motley Fool recommends CGI GROUP INC CL A SV. The Motley Fool has a disclosure policy.

More on Tech Stocks

data analyze research
Tech Stocks

2 TSX Growth Stocks I’d Buy and Hold Forever

Given their long-term growth potential and discounted stock prices, I believe these two TSX growth stocks would be an excellent…

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

1 Little-Known Canadian Stock to Buy Before Everyone Else Does

Softchoice is a top TSX stock for value and growth investors due to its widening profit margins and top-line expansion.

Read more »

four people hold happy emoji masks
Tech Stocks

3 Undervalued Canadian Stocks Worth a Buy Right Now

These Canadian stocks remain highly underrated, given their future path to growth and past performance that remains incredibly strong.

Read more »

Man holding magnifying glass over a document
Tech Stocks

Stock Split Watch: Is Constellation Software Next?

Many stocks that got to the same price as Constellation Software (TSX:CSU) split their stocks. Is CSU next?

Read more »

Shopping and e-commerce
Tech Stocks

Lightspeed Stock Fell 15% in November – Is it a Buy Today?

Lightspeed stock may have a rough 2023, but that doesn't mean you should ignore it, even after shares dropped .

Read more »

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

1 Growth Stock to Buy Ahead of the Trillion-Dollar Metaverse Opportunity

One TSX growth stock is an exciting prospect and strong buy as the full development of the Metaverse unfolds.

Read more »

A worker uses a laptop inside a restaurant.
Tech Stocks

2 Promising Growth Stocks to Buy in December 2022

Growth investors had better act fast, because these fire-sale prices won’t last forever. Here are two discounted growth stocks to…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Selling Losers Before 2023? Buy These 2 TSX Stocks With the Proceeds 

There is one month to 2023. Now is the time to sell your loss-making stocks, take the tax advantage, and…

Read more »