Investors may not think that tech stocks are the best investment right now. Truth is, I entirely disagree. That is, now that tech stocks have completely crashed and practically burned in the last year.
However, some tech stocks were certainly due for a drop, though not all of them. In fact, there are two, in particular, that I would certainly consider buying for a steal of a deal right now. So let’s take a look at them and their performance on the TSX today.
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Open Text
The first of the tech stocks I’d consider investing in on the TSX today is Open Text (TSX:OTEX). This company has quite the interesting history, coming on the scene in the 1980s from a technology project working on the Oxford English Dictionary. Since then, it has expanded to provide software, cloud data, and security for companies and even governments around the world.
While the company does deal with small businesses, it has major clients including Alphabet on board using the system. In the last few years, several partnerships have been quite exciting for investors. Now, Open Text stock is moving onto the next phase, which involves acquiring businesses that can help support all this new business.
While shares trade at a fair 32.2 times earnings, OTEX also remains at a valuable 2.5 times book value. In fact, shares are only down 4% in the last year, having recovered recently to climb 24% year to date.
In the last 10 years, however, shares are up 215%, providing long-term returns as well as a dividend yield at 2.6% as of writing. So I would certainly consider this to be one of the top tech stocks to pick up for long-term income.
WELL Health stock
Another strong choice to consider may not have the longevity, but it certainly could in the future. WELL Health Technologies (TSX:WELL) came on the scene just before the pandemic. It proved to be perfect timing, as its virtual healthcare provided an essential tool for healthcare providers during lockdowns.
Since then, the company has continued to expand, even after restrictions and other tech stocks dropping sent shares into a downward spiral. WELL Health continued to expand operations, becoming the largest outpatient clinic in Canada, and moving into the United States.
It now has operations that include virtual healthcare, electronic medical records, digital applications, cybersecurity, and more. And there’s even more growth underway, as acquisitions become a regular occurrence.
Yet even with record results under its belt, it’s only recently that WELL Health stock has seen shares recover. In the last five years, shares rose 1,660% before dropping by 71%. Favourably, in the last year, shares are up 20%, and climbing! While there isn’t a dividend yield to consider as of writing, I also wouldn’t count that out in the future if the company continues to grow at this breakneck pace. So it’s a great time to buy before shares hit all-time highs again, and may only climb on from there. Especially as WELL stock continues to trade at a valuable 1.7 times book value.
