With the Canadian stock market soaring right now, the tech sector can offer investors some interesting opportunities.
The S&P/TSX Composite Index is up 15% on the year. And with that, many TSX stocks are currently trading at all-time highs.
The tech sector certainly has its share of high-flying stocks trading at steep valuations today. There are also plenty of discounted stocks that continue to trade below all-time highs which were set in late 2021.
I’ve put together a basket of three market-beating tech stocks that long-term investors should have on their radar.
If you’re looking to add some growth to your portfolio, I’d highly suggest adding these three companies to your watch list.
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Tech stock #1: Constellation Software
Investors will need to shell out some serious cash to own shares of this tech stock. Constellation Software (TSX: CSU) is priced at more than $4,000 a share right now.
While that may be a steep price tag, investors need to remember that it’s the amount of money which you have invested that matters, and not the amount of shares you own. Whether you own 40 shares of a $100 stock or 1 share of a $4,000, it won’t have any impact on your long-term gains.
Constellation Software may demand a steep price to entry but its track record speaks for itself. Shares are up more than 200% over the past five years. That’s even with the company nearing a $100 billion market cap.
This growth stock may be past its peak multi-bagger days but there’s no reason why it will begin lagging the market’s returns anytime soon.
Tech stock #2: Shopify
It wasn’t long ago that Shopify (TSX: SHOP) was not only the largest tech stock in Canada but the largest on the TSX. But with shares currently down about 50% from all-time highs that were last set in 2021, Shopify has long since given up the top spot as the largest company in Canada.
Long-term investors won’t want to miss out on this buying opportunity. And at this rate, these discounted prices might not be around for much longer.
Shopify has returned 50% over the past year and close to 200% over the past two years. The tech stock has certainly returned to its market-beating ways and is poised to set new all-time highs before we know it.
Tech stock #3: Descartes Systems
At a market cap of roughly $10 billion, Canadian investors may not be as familiar with this tech stock, at least in comparison to Constellation Software and Shopify.
Descartes Systems (TSX: DSG) has quietly been outperforming the Canadian market for the past two decades. Shares are up more than 150% over the past five years, easily outpacing the returns of the S&P/TSX Composite Index.
With the tech stock at all-time highs right now, investors won’t get any type of discount. That being said, this is not a stock that has gone on sale often in the past.
Patient, long-term investors who are looking for reliable market-beating returns should have Descartes Systems high up on their watch lists.
There’s no sense in waiting for a discount if you’re interested in this company.
