Psst … 2 Tech Stocks I’d Buy Before Shopify

Shopify (TSX:SHOP) stock is great — don’t get me wrong. But these two tech stocks are great too, with more historical growth behind them.

| More on:
A data center engineer works on a laptop at a server farm.

Source: Getty Images

Shopify (TSX:SHOP) continues to be one of the top-performing stocks on the TSX today. Shares are up 55% in the last year and about 60% year to date as of writing. So, Shopify stock shouldn’t necessarily be off your radar.

However, it’s not the huge buying opportunity it was before earnings. After the company announced layoffs coupled with the selling of its logistics business, shares jumped 30% in a day. Since then, shares of Shopify stock have come back down to earth, down 8% since that time.

That’s why today I’d like to go into two other tech stocks besides Shopify stock to consider. Both have long-term growth behind them and solid future outlooks as well.

CGI stock

CGI (TSX:GIB.A) is a solid choice for those looking for stable tech stocks. Yes, stable tech stocks do exist! And this is a perfect example. CGI stock has been a software acquisition company for decades now, upgrading software and then selling the platforms to the highest bidders.

CGI stock hasn’t let the recent downturn slow it down either. There is plenty of room to grow in this market, and the company has proven to have a strong management team that can identify undervalued software companies.

And the partnerships are massive, including names as large as Microsoft. Yet the stock is certainly not that expensive, trading at just 22 times earnings. Is it valuable? Not necessarily, but it’s still a good price — especially considering share growth.

Shares of CGI stock are up 30% in the last year and 19% year to date. Yet over the last decade, shares are up 341%! That’s a compound annual growth rate (CAGR) of 16% as of writing. So, with a solid outlook and plenty of historical growth, I would certainly consider this to be one of the best tech stocks to put on your roster.

Open Text

Another of the great tech stocks to consider on the TSX today is Open Text (TSX:OTEX). It’s a solid company that’s been around for decades. It focuses on cloud data storage and cybersecurity.

The company has grown with such success that it now creates major partnerships as well. This includes Microsoft as well as other companies, like Alphabet. It’s also similar in how Open Text stock has decades of growth behind it and even more ahead.

This can be seen from its earnings reports, showing just how strong it can be even during downturns. Total revenue was up 41% year over year to $1.24 billion, with annual recurring revenue up 37.7% to $1.01 billion.

Shares are up 8% in the last year after a drop last summer, but up 36% year to date as of writing during this recovery period. Shares are again not exactly cheap trading at 36.97 times earnings, but it also offers a 2.37% dividend yield as of writing to consider. That’s along with share growth of 207% in the last decade — a CAGR of 12%.

Bottom line

So, yes, Shopify stock is growing, and it’s great. It could very well be a stock similar to CGI stock and Open Text stock, with shares climbing steadily over the next decade. But these two tech stocks are already strong, stable, and growing, with plenty of historical and future growth to look at.

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has positions in Alphabet and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Alphabet, CGI, and Microsoft. The Motley Fool has a disclosure policy.

More on Tech Stocks

grow dividends
Tech Stocks

2 Top Growth Stocks in Canada for October 2023

After a rough end to September, here are two discounted growth stocks to load up on in October.

Read more »

tsx today
Tech Stocks

TSX Today: What to Watch for in Stocks on Monday, October 2

Despite firmness in crude oil, continued big losses in gold and silver prices could pressure the main TSX index at…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

TFSA Investors: 2 U.S. Tech Stocks to Buy and Hold Forever

U.S. stocks such as CrowdStrike and Datadog have the potential to outpace the broader markets and derive inflation-beating returns.

Read more »

Tech Stocks

3 Top Tech Stocks That Could Help Make You Rich by Retirement

Are you looking for tech stocks that could help make you rich by retirement? Here are three top picks!

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Tech Stocks

Pet Valu Stock vs. Chewy: Better Buy for the Long Run?

Chewy and Pet Valu are positioned to deliver outsized gains to shareholders. But which pet stock a better buy today?

Read more »

Businessman holding AI cloud
Tech Stocks

2 Artificial Intelligence-Powered Growth Stocks to Buy Right Now

Canadian investors should strongly consider Alphabet (NASDAQ:GOOGL) and another AI stock ahead of the next AI-driven tech boom.

Read more »

A colourful firework display
Tech Stocks

Nuvei Stock is on Fire This Year: Is it a Good Buy Today?

Nuvei stock (TSX:NVEI) is down about 85% since pandemic highs, falling 39% after earnings. So, what now?

Read more »

A bull outlined against a field
Tech Stocks

Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market

Are you looking for stocks that could skyrocket in the next bull market? Here are two top picks!

Read more »