2 TSX Tech Stocks to Buy Hand Over Fist in March 2024

The solid growth prospects of these two top TSX tech stocks make them look attractive to buy in March 2024.

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The tech sector has been one of the best-performing areas of the Canadian stock market in the last year, thanks to the growing expectations of interest rate cuts in the near term amid early signs of cooling inflationary pressures. As the economic outlook continues to improve in the years to come, some fundamentally strong TSX tech stocks can outperform the broader market by a wide margin. Given that, it could be the right time for investors to consider adding some quality tech stocks to their portfolios.

In this article, I’ll highlight two such TSX tech stocks that you can buy in March 2024 to expect outstanding returns on your investments in the long run.

A rallying TSX tech stock to buy now

CGI (TSX:GIB.A) is the first TSX tech stock you may consider adding to your portfolio in March. After rallying by more than 40% in the previous three years, the shares of this Montréal-headquartered information technology (IT) and business consulting firm have already risen 11.3% so far in 2024 to trade at $158.01 per share. With this, CGI now has a market cap of $32.6 billion.

While macroeconomic challenges have affected the tech sector globally in the last couple of years, the demand for CGI’s consulting services has still remained firm, helping the company continue growing financially. In its fiscal year 2023 (ended in September 2023), the IT firm’s revenue grew positively by 11.1% YoY (year over year) to $14.3 billion. Similarly, its adjusted annual earnings jumped 15.3% from a year ago to $7.07 per share.

Besides its strong financial growth trends, CGI’s strong cash flows and robust financial base give it the flexibility to comfortably invest in future growth and return money to shareholders through share buybacks. In the quarter ended in December 2023 alone, CGI generated $577.2 million in cash flow from operating activities, which was nearly 16% of its total quarterly revenue.

Moreover, CGI is currently focused on utilizing artificial intelligence (AI) technology to modernize its portfolio of services and drive cost efficiencies, which should help its profitability improve further and share prices soar.

And a cheap tech stock to buy in March

Investing in TSX tech stocks for the long term could be more rewarding if you’re able to find cheap stock that has the potential to grow significantly in the future. One such stock is BlackBerry (TSX:BB), which is trading at a low valuation despite its strong growth prospects in fast-growing areas like cybersecurity and the Internet of Things.

After advancing by 6.6% in 2023, BB stock has lost nearly 12.3% of its value in 2024 so far to currently trade at $4.12 per share, making it look even more attractive to buy on the dip. At this market price, it has a market capitalization of $2.4 billion.

Besides its well-established enterprise cybersecurity business, BlackBerry has increased its focus on developing advanced machine learning and AI-based solutions for the automotive industry. For example, its intelligent vehicle data platform, IVY, can help carmakers collect in-vehicle sensor data in real time to provide better functionality and features to their customers. As the demand for such technological solutions is likely to skyrocket in the years to come, you can expect this tech stock to rally and yield solid returns in the long run.

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.

The Motley Fool recommends CGI. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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