3 Canadian Tech Stocks for Safety and Growth in 2025

High risk might not always come with high reward, and safety may not always mean limited growth potential. This is something Canadian investors need to understand about tech.

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One reason that many Canadian investors tend to avoid tech stocks is the perception that many tech stocks are relatively risky, at least compared to the stocks from sectors like financials. However, several tech stocks offer a safe combination of consistent performance and fundamental strengths, making them ideal for reliable and robust growth. Here are three such stocks that you should look into in 2025.

An IT consulting company

CGI (TSX:GIB.A) is an IT and business consulting company that has been around for almost five decades and has been a publicly traded entity for nearly three decades. This indicates that the company has strong roots and long-standing clients. This is also evident from its contract ratio of 70:30 extension/renewals to new contracts.

Created with Highcharts 11.4.3CGI PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

While its returns haven’t been top-tier, they have been relatively consistent and decent enough for a safe growth stock. It has returned 237% to its investors in the last decade, and even though it pays dividends, the yield is relatively low. The stock is currently trading at a decent valuation and is bullish, so if you want to buy it at a discounted price, you may have to wait.

A logistics software company

Descartes Systems Group (TSX:DSG) is one of the most potent, consistent growers currently trading on the TSX. It has been going up almost consistently for one and a half decades, with relatively minor bumps along the road. In the last decade, it generated significant returns for its investors — about 829%. The returns slowed down in the latter half of the decade (in the previous five years), but it’s still on track to return at least 300% to its investors in the current decade.

Created with Highcharts 11.4.3Descartes Systems Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Apart from its performance consistency, one thing that makes Descartes safe is the massive network of logistics stakeholders. The company has also enhanced its platform with artificial intelligence (AI), and it can be integrated with a significant number of logistics applications, making it a good fit for a wide range of businesses seeking visibility and smart decision-making across its logistics and supply chain network.

A safety and monitoring company

If you want to invest in a hardware-related tech company, Blackline Safety (TSX:BLN) is a solid choice. This small-cap stock has gone through a slump and recovery cycle in the last five years and is currently growing at a solid rate. It shot up about 60% in the last 12 months alone, and if it keeps this pace, it can double its investors’ capital in less than two years.

Created with Highcharts 11.4.3Blackline Safety PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Despite its solid growth pace, the stock is still discounted and trading at a price point 27% lower than its five-year peak. However, its financials are strong and boast significant insider ownership (about 4.3%). Institutions own a large segment of the company’s total market value, but hedge funds own a significant slice, too, which may cause worry. However, Blackline’s leadership position in its space and performance history can neutralize that fear.

Foolish takeaway

The three tech companies are worth considering in almost any market, but you might consider buying them when they are discounted. The stocks’ long-term growth potential is solid enough, but buying them at the right time can significantly boost your overall returns.

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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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends CGI and Descartes Systems Group. The Motley Fool has a disclosure policy.

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