Tech stocks haven’t been doing so well over the last year. After climbing to all-time highs in many cases, these were followed by collapses in share price. Yet in the last three months, Open Text (TSX:OTEX) and Nuvei (TSX:NVEI) have both climbed by over 20%.
So, what’s going on with both of these tech stocks, and which is the better buy on the TSX today?
Open Text stock
Open Text stock remains a strong choice for long-term holders. I say this, because it’s been around for decades already, growing substantially in that time. And not just in terms of share price.
Open Text reported its earnings last month, which saw the eight consecutive quarter of organic cloud growth. Since then, it’s also had two other positive announcements. The company came out with its Cloud Editions 23.1 release, and announced a partnership with Bayer.
This is on top of the many other household names the company has partnered with in the last few years. Clearly, Open Text stock has discovered what it can do best. That’s both cloud storage as well as cybersecurity.
Yet shares are still down by 8% in the last year, despite climbing 27% in the last three months on the TSX today. So, Open Text stock certainly looks like a strong option, and investors get the addition of a nice little 2.77% dividend yield.
Nuvei stock
There is also Nuvei stock to consider, with the tech stock also seeing a climb in the last while. The payment solutions provider also has had several strong announcements that has investors wondering if perhaps they should purchase the popular stock once more.
Nuvei stock announced several partnerships over the last few months of companies choosing the payment solutions provider for their operations. However, the company hit its stride after announcing it would acquire Paya for $1.3 billion. It also recently announced expansion into Australia.
There are clearly some exciting things happening with Nuvei stock. Yet even with shares climbing 21.4% in the last three months, those shares remain down by 24% in the last year. It’s not to say that Nuvei stock doesn’t have a strong future ahead, but at this rate it does look more volatile than Open Text stock.
Foolish takeaway
In this case, I would have to go with Open Text stock for a solid long-term hold that you can count on. The company has partnerships with some pretty major companies, whereas Nuvei stock is still making its way from the ground up. While it might be the more exciting choice, it’s perhaps not as stable.
In fact, analysts continue to peg Open Text stock as a low-risk company. This comes from decades of growth behind it and decades more to come. It’s proven time and again that it can expand its business and find new and growing solutions for revenue. In that case, I would certainly consider Open Text stock not just a buy in this environment but also as a long-term hold — even as shares continue to climb higher on the TSX today.
