2 Top Canadian Technology Stocks Build for the Next Decade
The Motley Fool
Published Sep 24, 2021 11:30
Updated Sep 24, 2021 11:45
2 Top Canadian Technology Stocks Build for the Next Decade
Generally speaking, technology stocks have performed quite well over the past decade. Accordingly, investors appear to be on a quest to find the top growth options in the technology sector. In Canada, the options are actually quite limited, particularly in respect to what investors can find in the U.S.
That said, there are a few high-quality options to consider. In fact, these two top Canadian technology stocks are ones I’d put in the world-class category.
Let’s dive into why investors ought to take a look at these top Canadian tech names.
Top technology stocks: Shopify Those looking for top technology stocks in Canada have to take a look at Shopify (TSX:SHOP)(NYSE:SHOP). Indeed, this is the largest company in Canada by market capitalization for a reason.
Shopify’s e-commerce platform has enabled thousands of small- and medium-sized businesses to go online. During the pandemic, Shopify single-handedly contributed to the North American GDP to a degree few other companies did. That alone deserves some applause from investors.
Sure, Shopify was in the right place at the right time. Few investors saw the kind of acceleration toward e-commerce that would lead to Shopify’s share price accelerating to where it is. But it did.
Where do investors go from here? I mean, Shopify stock is in the nosebleeds in terms of valuation right now.
Well, for those who think the growth we’ve seen in the e-commerce space will continue, Shopify’s a strong long-term bet. This is a company that has grown into its valuation well in recent years. That’s surprised even the more bullish analysts covering this stock.
Shopify will need to continue its torrid pace of growth for some time. That’s a risk investors will have to take. However, those looking for quality growth may want to turn to Shopify before smaller-cap plays right now. This is a proven winner, after all.
Constellation Software Another one of the top technology stocks in Canada for decades, Constellation Software (TSX:CSU) has topped my list for some time.
Much of the rationale for putting Constellation on my top picks list so frequently is that this company is a proven winner. Constellation’s growth has come as a result of consolidating a highly fragmented software space. This catalyst not only remains strong but is perhaps stronger than ever. The booming growth we’ve seen among smaller-cap technology stocks has provided Constellation with an even larger potential acquisition pool to play with.
Those seeking consistent and reliable growth in the tech space can’t go wrong with this name. Constellation has one of the best management teams in the country and perhaps the world. This is a tech player with a business model that’s set up for success. And long-term investors who have simply held and/or added to their positions have continued to reap the benefits for more than a decade.
Get The App
Enough said.
The post 2 Top Canadian Technology Stocks Build for the Next Decade appeared first on The Motley Fool Canada.
Fool contributor Chris MacDonald has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.