Tech stocks had a hard 2022. But it was inevitable, wasn’t it? The entire sector soared to all-time highs in many cases, only to come crashing down at the first whiff of recession fears.
Now, investors are looking at tech stocks as if any choice could devour their souls or, worse, their portfolios — especially beginner investors who have every right to be terrified given that they don’t have years of growth behind them to take on a little risk.
But there are other considerations. If you’re a new investor, you’re probably on the younger side. That means you have years ahead of you. That allows you to take on some risk as well. However, don’t let that trick you into thinking you can invest in any stock. Instead, if you want to experience steady growth from tech stocks, these are the three I would consider.
CGI stock
CGI (TSX:GIB.A) has been around for decades, creating a powerful method of creating growth. It’s one of the tech stocks in the software sector, growing through acquisitions mainly. The company will buy an essential software product, such as library software, on the cheap. CGI then provides the resources the product needs to thrive and reintroduces it for a higher price. This allows it to bring in more revenue, and the cycle begins again.
Given its history of growth and solid path to profits, CGI stock is a great stock for investors to consider — especially at these levels. Shares trade at 19.73 times earnings and 3.86 times book value. Plus, it continues to expand its expertise not just in North America but on a global scale. This will be incredibly beneficial during a potential recession next year, when diversified revenue sources will be important.
Shares of CGI stock are up 5% year to date and 412% over the last decade.
goeasy stock
Another strong choice among tech stocks is goeasy (TSX:GSY). goeasy stock has been around since 1990, growing from a loaner of home appliances and furniture to online loans for cars, homes, and more. Its growth has been astounding, seeing record operating income during its latest earnings report.
Its loan originations continue to climb as well, even in an inflationary and high interest environment. What’s more, it now trades down about 34% year to date, which is far below its all-time high prices. Yet analysts remain convinced it will see a $200 share price within the next year, thanks to its secured path to profit.
Trading at just 12 times earnings and 2.49 times book value, you can also add a 3.1% dividend yield from goeasy stock. Shares are down now but still up 1,659% in the last decade.
Open Text
Finally, here’s another tech stock that’s been around for decades. Open Text (TSX:OTEX) is a great option, as it’s become the company to have when it comes to keeping data safe in cloud storage. Companies ranging from Alphabet to Microsoft use the product, with new partnerships popping up again and again.
Yet despite recently reporting record net income, the company reported a loss due to a recent acquisition. Still, it’s why investors have a great opportunity to get in now before a recovery. Plus, you can gain a 3.43% dividend yield as of writing while shares trade at 2.06 times book value.
Shares are down 35% year to date but still up 223% in the last decade.
