3 No-Brainer Tech Stocks to Buy Right Now for Less Than $1,000

Not all tech stocks are the risky investments that many think they are. Which is why we’re focusing on the easiest options to pick up.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 30, 2024 5:00 pm EDT

If you’re looking to invest in tech stocks under $1,000, they might not be the top choice. Yet there are some that offer the stability you would get from any top stock. That’s why today, Topicus (TSXV:TOI), CGI (TSX:GIB.A), and Celestica (TSX:CLS) stand out as no-brainer options.

These tech stocks are leaders in their respective niches and positioned to capitalize on both industry growth and recent sector challenges, making them undervalued opportunities. With the tech sector facing challenges, such as inflation and interest rate increases, these tech stocks are currently priced lower than their long-term potential. Let’s dive into why these companies are poised for success and how their financials back them up.

Topicus

Topicus.com is a software acquisition company that has rapidly expanded across Europe. Its business model focuses on acquiring vertical market software companies, integrating them, and generating strong cash flows. The tech stock reported quarterly revenue growth of 14.4%, indicating that despite current market turbulence, it’s managing to maintain solid momentum.

Although its price-to-earnings (P/E) ratio is high at 87.5, this is reflective of its forward-looking growth potential. As the tech sector shifts towards artificial intelligence (AI) and automation, Topicus stock is well-positioned to provide the software tools necessary to fuel that future.

CGI stock

CGI, a giant in IT services, provides critical consulting and outsourcing solutions to companies globally. With a forward P/E ratio of 19.2 and operating margins of 16.3%, CGI showcases financial strength while continuing to grow.

In its most recent earnings report, CGI announced a 6.1% increase in quarterly earnings, further proving its resilience in a competitive market. As businesses worldwide undergo digital transformation, demand for CGI’s services will only increase, thus making it a reliable tech stock for investors.

Celestica stock

Celestica is a leader in the hardware sector, providing design, manufacturing, and supply chain solutions for companies across industries. The tech stock recently reported impressive quarterly earnings growth of 79.5% and a revenue increase of 23.3%. This highlights its strong foothold in the market despite supply chain issues that have plagued the industry.

Celestica’s stock is priced attractively with a forward P/E of 14.3. This valuation suggests it has room to grow as the tech sector stabilizes and demand for electronic components continues to rise.

Tech stocks can still be strong

What’s working in favour of these tech stocks is that the tech sector, while currently facing some headwinds, is still fundamentally strong. The current challenges such as higher costs due to inflation and cautious consumer spending have impacted tech stocks. But this is more of a short-term effect. Long-term trends like automation, AI, and digital transformation are expected to push demand for tech services and products, benefiting companies like Topicus, CGI, and Celestica.

CGI and Celestica, in particular, have benefitted from this push towards digital transformation. As companies seek to optimize operations and embrace cloud computing and data-driven decision-making, demand for CGI’s services will continue to grow. Meanwhile, Celestica stands to gain from the increasing need for hardware components as industries like healthcare and automotive integrate more tech into their operations.

For Topicus, the future of software lies in consolidation. This company’s acquisition-focused business model is perfectly suited for that environment. It’s playing a long game, where it grows by acquiring smaller, specialized companies that continue to operate independently while benefiting from Topicus’ vast resources. With tech innovation expanding rapidly, this positions Topicus to be a key player in emerging software trends.

Foolish takeaway

These three tech stocks offer fantastic opportunities for tech investors with less than $1,000 to spend. Topicus, CGI, and Celestica have strong financials, are positioned in growth areas, and are currently undervalued due to sector struggles. As the tech industry recovers from inflation and economic concerns, these stocks are poised to see significant gains – thus making them smart buys for long-term investors.