3 Under-the-Radar Tech Stocks That Could Skyrocket in 2023

Underrated tech stocks like Kinaxis Inc. (TSX:KXS) and others are worthy targets for Canadian investors in the middle of June 2023.

| More on:

The S&P/TSX Composite Index was up 90 points in early afternoon trading on June 13. However, the S&P/TSX Capped Information Technology Index was down nearly 1% during the same trading session. Despite that, I’m still looking to snatch up under-the-radar tech stocks that are available for Canadian investors in the late spring season. Today, I want to target three tech stocks that could swell your portfolio in 2023 and beyond.

This undervalued tech stock is worth snatching up before the summer season

Celestica (TSX:CLS) is a Toronto-based company that provides supply chain solutions in North America, Europe, and Asia. Shares of this tech stock have climbed 21% month over month at the time of this writing. That has pushed the stock into positive territory so far in 2023.

This company released its first-quarter fiscal 2023 results on April 26. It delivered revenue growth of 17% to $1.84 billion. Meanwhile, adjusted earnings per share (EPS) rose to $0.47 compared to $0.39 in the previous year. Looking to the second quarter of fiscal 2023, Celestica provided revenue in EPS guidance between $1.75 and $1.90. Moreover, it projects adjusted EPS between $0.44 and $0.50.

Shares of this tech stock currently possess a favourable price-to-earnings (P/E) ratio of 11. This tech stock is trading in attractive value territory compared to its industry peers.

Here’s a cheap stock in the tech space that offers a big dividend payout

Evertz Technologies (TSX:ET) is a Burlington-based company that is engaged in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and around the world. Its shares have jumped 1% over the past month. The stock has climbed 2% in the year-to-date period.

In fiscal 2023, this company posted revenue growth of 29% to $441 million. Meanwhile, earnings from operations increased 75% year over year to $101 million while net earnings surged 73% to $72.7 million. For the fourth quarter, Evertz posted quarterly revenue growth of 24% to $116 million, and EPS nearly doubled to $0.25.

This tech stock currently possesses an attractive P/E ratio of 14. Meanwhile, Evertz offers a quarterly dividend of $0.19 per share. That represents a tasty 6% yield. Moreover, this tech stock boasts a fantastic balance sheet. Evertz is an excellent target for investors on the hunt for value, growth, and income in the months ahead.

One more undervalued tech stock to target today

Kinaxis (TSX:KXS) is the third and final tech stock I want to zero in on today. This Ottawa-based company provides cloud-based subscription software for supply chain operations in Canada, the United States, and internationally. This tech stock has dropped 2.4% over the past month. Shares of Kinaxis are still up 17% so far in 2023. Investors who want to see more if its recent performance can play with the interactive price chart below.

In the first quarter of 2023, Kinaxis delivered total revenue growth of 70% to $98.1 million. Meanwhile, gross profit surged 87% to $69.6 million. Adjusted earnings before interest, taxes, depreciation, and amortization soared 267% year over year to $33.1 million. Kinaxis has an immaculate balance sheet, and it is trading in solid value territory compared to its industry peers. This remains one of my favourite tech stocks on the TSX.

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.

Fool contributor Ambrose O'Callaghan has positions in Kinaxis. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

2 Cheap-Looking Stocks to Could Win in the AI Revolution

It's about time we gave firms like Thomson Reuters (TSX:TRI) a bit more of an AI premium.

Read more »

bulb idea thinking
Tech Stocks

The Smartest Canadian Stock to Buy With $1,000 Right Now

Strong financials, booming demand for its services, and an expanding presence in AI and cloud computing hardware make Celestica the…

Read more »

doctor uses telehealth
Tech Stocks

3 Tech Stocks I’m Looking to Buy in February

These tech stocks will deliver solid gains driven by the deployment of AI and investments in omnichannel commerce and digital…

Read more »

Burning semiconductor CPU
Tech Stocks

Is AMD in Trouble After Wednesday’s Stock Drop?

Shares took a painful hit after the chip designer's fourth-quarter report.

Read more »

An investor uses a tablet
Tech Stocks

If I Could Only Buy and Hold a Single Stock, This Would Be it

Despite more than doubling in value over the last six months, I still find BlackBerry stock undervalued based on its…

Read more »

chip with the letters "AI" on it
Tech Stocks

Celestica Stock Trading at All-Time High: What’s Next?

Celestica stock is beating Nvidia, surging 1,358% since October 2022. Today, it is trading at its all-time high. Is there…

Read more »

dividend growth for passive income
Tech Stocks

2 Growth Stocks That Could Turn $10,000 Into $24,800 by 2030

These resilient growth stocks could grow your money.

Read more »

Credit card, online shopping, retail
Tech Stocks

Where Will Shopify Shares Be in 5 Years?

In addition to Shopify’s consistently growing sales and expanding profit margins, its focus on long-term growth initiatives could help its…

Read more »