3 Cheap-ish Canadian Tech Stocks to Buy Right Now

If there are three tech stocks that investors should check out immediately, it’s these three.

When tech stocks get too cheap to ignore, it’s usually for a reason. Yet sometimes the market just gets it wrong. Right now, three Canadian tech companies are trading at what looks like bargain levels, with fundamentals that are quietly improving. If you’re looking for growth at a reasonable price, OpenText (TSX: OTEX), Lightspeed Commerce (TSX: LSPD), and WELL Health (TSX: WELL) all deserve a second look.

Abstract Human Skull representing AI

Source: Getty Images

OTEX

OpenText just wrapped up its fiscal year with a mixed but telling story. On the surface, total revenue fell 10% year over year, dragged by the divestiture of non-core assets. But strip that out, and the business is stabilizing. Cloud revenue continues to grow, up 2% for the year and accelerating into Q4. The tech stock also booked $683 million in capital returns to shareholders, including dividends and buybacks, which is no small feat in today’s climate.

Investors have cooled on OpenText lately, in part due to executive turnover and a murky outlook. But the new interim CEO is a 25-year veteran, and the board reaffirmed its focus on information management for AI. Add in a juicy forward price-to-earnings (P/E) ratio under eight and a 3.5% dividend yield, and this is one of the more compelling value plays in Canadian tech. The risk lies in execution. OpenText needs to show that it can grow again. But if it delivers even modest revenue gains next year, the upside could surprise.

LSPD

Then there’s Lightspeed. The tech stock has been through a rough patch since its pandemic highs, but the latest results show clear progress. Revenue rose 15% year over year to $305 million in the most recent quarter, beating expectations. Gross margins expanded to 42%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew over 50%, customer location count increased, and annual revenue per user (ARPU) jumped. In other words, the core engine is running better.

Lightspeed isn’t profitable on a GAAP basis yet, and the losses are still visible on the income statement. But the tech stock is leaning into payments and boosting operating efficiency, setting itself up for real operating leverage over the next few quarters. With a forward P/E around 36 and a price-to-sales ratio below two, it’s no longer a high-flyer, but it’s also not priced like a business that just grew revenue double digits with improving margins. The risk here is volatility. The stock has been hit hard by sentiment swings, but the fundamentals are quietly turning around.

WELL

Finally, WELL Health just posted its best quarter ever. Revenue soared 57% year over year to $357 million. Adjusted EBITDA jumped 231%, and the tech stock posted net income of $17 million. WELL also crossed a milestone with more than one million patient visits in Canada last quarter, showing real operating scale.

This tech stock has been dismissed by some as too acquisitive or too complicated, but the story is shifting. WELL now leans harder into organic growth and reining in its U.S. exposure while doubling down on Canada. With a forward P/E under 14 and strong free cash flow growth, it’s one of the few tech names delivering on all fronts with growth, profitability, and operating leverage. The risk? Healthcare remains a tricky space to navigate, and integrating acquisitions always brings uncertainty. But the momentum here is undeniable.

Bottom line

OpenText, Lightspeed, and WELL are all on very different journeys, but share one thing in common. Each trades at a valuation that assumes low expectations. Yet each one is showing signs of momentum that could make those assumptions wrong. If you’re looking to add a few cheap-ish Canadian tech names to your watchlist or your portfolio, these three tech stocks are worth keeping on your radar.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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