After the tech sector’s rough year in 2022, there’s no shortage of beaten-down tech stocks to choose from on the TSX right now. The selling actually began in late 2021 for most tech stocks, which continued right through to the end of 2022.
The high levels of volatility have continued in 2023, but there’s also been a positive rebound through the first three months of the year. Interest rate hikes may finally be a thing of the past, as inflation continues to slow.
With that in mind, now could be an incredibly opportunistic time to load up on discounted tech stocks.
I’ve put together a list of five top tech companies that any long-term investor would be wise to have on their radar.
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Shopify
Shopify (TSX:SHOP) got off to a torrid start to the year but has cooled off as of late. Even with the recent pullback, though, shares are still up more than 20% year to date.
The stock was crushed in 2022, but the business remains in great shape today. Revenue continues to grow at a double-digit pace, as the e-commerce giant remains as focused as ever on capturing more market share.
Down about 70% from all-time highs, it may be a while before we see another buying opportunity like this.
Constellation Software
Constellation Software (TSX:CSU) is one of the few tech stocks on the TSX trading near all-time highs today. Shares are up a market-crushing 20% year to date and are up 200% over the past five years.
The reason why I’d still recommend buying at these prices is because this isn’t a growth stock that goes on sale often.
If you’re looking to add a dependable growth driver to your portfolio, this is the company for you.
Docebo
As a tech company specializing in developing virtual learning software, demand unsurprisingly surged for Docebo (TSX:DCBO) in the early days of the pandemic. But after peaking in late 2021, the stock has come back down to reality, offering investors a chance to get in at what could be close to the bottom of this selloff.
Shares are up 10% this year already and more than 30% over the past six months.
Investors bullish on the rise of remote work should have this tech company on their watch list.
Kinaxis
Kinaxis (TSX:KXS) is another under-the-radar software company that experienced huge gains in the second half of 2020. Today, shares are down about 20% from all-time highs but are up more than 30% over the past half-year — well on their way to new highs.
It’s been a steady trend of market-beating growth for Kinaxis ever since it joined the TSX in 2014. And with demand for supply-chain management software not looking like it will slow down anytime soon, I’d bank on many more years of market-beating gains for this hidden gem.
Lightspeed Commerce
At one point in 2020, shares of Lightspeed Commerce (TSX:LSPD) were riding an incredible bull run of more than 500%. Today, shares are trading below where they were right before the COVID-19 market crash in early 2020.
It’s been a wild ride for Lightspeed in its short life as a public company. But recent volatility aside, the business has done an impressive job since it joined the TSX in 2019 growing both its product line and international presence.
Volatility may continue, but this is a tech stock with multi-bagger growth potential written all over it.
