Got $5,000? 2 Tech Stocks to Buy and Hold for the Long Term

Here are the best tech stocks to buy, with one offering long-term growth and the other offering strong business as usual.

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A lot of us are sitting around on cash that we really should be investing. The issue is, where on earth should we invest it in this crazy market? Luckily, there are still some strong tech stocks for those looking for superior growth in the next year or so. If you have $5,000 sitting around, let’s look at why you might want to consider picking up these two tech stocks on the TSX today.

Lightspeed stock

First up we have Lightspeed Commerce (TSX:LSPD) a tech stock that’s had quite the wild ride over the last few years. Chief Executive Officer (CEO) Dax Dasilva left as CEO and entered an executive position back in 2021. This came after a huge amount of growth, leading to a need to stabilize and become profitable.

This looks to have happened, and now Dasilva is back and ready for more. The enterprise e-commerce and point-of-sale company continues to expand, bringing on large clients in an expanding market. And what’s more, that market is only going to increase for the provider of of cloud-based commerce solutions.

Dasilva is now bringing back growth and a focus on strategy over the next few years. And based on past performance and this future growth, the tech stock looks undervalued. The company reported total revenue of US$239.7 million for the third quarter, up 27%. Its Unified Payments also increased, achieving over 29% of clients using it. That grew from 25% just from the last quarter!

This will create more recurring payments while also increasing growth among subscriptions now that Dasilva is back. Overall, investors should be thrilled at the future of this tech stock.

Descartes

Another strong tech stock to consider, especially if you’re interested in artificial intelligence (AI) and supply-chains, is Descartes Systems Group (TSX:DSG). The tech stock is a compelling case given its exposure to logistics technology, and a leader in the space.

The company holds a strong market position in the global logistics market and continues to expand these operations. This includes through the use of AI. The company uses it to help operational efficiencies for its clients and internal operations, making it a strong and growing stock.

The tech stock also offers recurring revenue, with a significant portion of cash coming from subscription fees. This helps keep revenue stable and predictable, leaving room for more growth opportunities. And it still remains a healthy balance sheet throughout all this, as demonstrated through earnings.

The tech stock reported revenue of US$128.3 million during its latest earnings report. Its net income margin held steady as well at 10%. This will continue to allow the tech stock to undergo more strategic initiatives, such as acquiring Logistika to expand its global reach. Plus, shares are now up 16% in the last year alone! So, it’s another tech stock to certainly consider as the market recovers long term.

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 Amy Legate-Wolfe has positions in Lightspeed Commerce. The Motley Fool recommends Descartes Systems Group and Lightspeed Commerce. The Motley Fool has a disclosure policy.

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