Forget Reddit Stocks: Buy These 3 Unbeatable TSX Tech Stocks Instead
The Motley Fool
Published Jun 14, 2021 14:15
Updated Jun 14, 2021 14:45
Forget Reddit Stocks: Buy These 3 Unbeatable TSX Tech Stocks Instead
The recent massive rally in some meme stocks has become one of the hottest topics among stock investors lately. A handful of stocks like BlackBerry, GameStop (NYSE:GME), AMC Entertainment, and Clover Health saw a sharp rally earlier this month. Unfortunately, the rally in most of these Reddit stocks has seemingly run out of steam for now, as most of these stocks saw sharp losses in the last few sessions.
Reddit stocks The rally in these stocks picked pace earlier this year after being widely discussed on Reddit’s WallStreetBets group. The users of this subreddit apparently tried to go against institutional short-sellers and started consistently buying the stocks of selected companies — triggering a sharp rally.
But the recent sharp drop in these Reddit stocks once again demonstrated why buying stocks based on Reddit trading frenzy is too risky. It certainly isn’t something that retail investors with low to medium risk appetites should consider. However, it doesn’t mean small retail investors shouldn’t expect good returns. They can buy some cheap stocks with good fundamentals for the long term to get handsome returns. Fundamentally strong stocks could even beat most of these Reddit stocks in the long term, I believe.
Here are three Canadian tech stocks with solid fundamentals that you can buy today.
Lightspeed POS stock Lightspeed POS (TSX:LSPD)(NYSE:LSPD) stock is one of my favourite Canadian tech stocks to buy right now. The stock hasn’t seen much appreciation this year, as it’s currently trading with only 0.3% year-to-date gains after posting solid 149% gains last year.
Lightspeed mainly focuses on providing its cloud-based, omnichannel commerce platform to small- and medium-sized businesses. These solutions make it easier for businesses to sell their products online, manage operations, engage with consumers, and accept payments. In its fiscal year 2021 (ended in March 2021), Lightspeed’s revenue rose by 84% compared to the previous fiscal year. Its sales growth rate is expected to increase further as analysts expect its sales to more than double in the ongoing fiscal year. Long-term investors can buy its stock right now before it starts rallying again.
Shopify stock Shopify (TSX:SHOP)(NYSE:SHOP) is another tech stock that you may consider adding to your portfolio right now. Despite the ongoing strong trend in its financials, its stock has underperformed the broader market in 2021 so far. The stock is currently trading with 8% year-to-date gains — much lower compared to more than 15% gains in the TSX Composite Index.
Shopify registered 110% YoY (year-over-year) growth in its revenue in the first quarter. Its subscription solutions sales rose by 71%, and merchant solutions sales jumped by 137% YoY for the quarter. While the company’s near-term sales growth may slow a bit in the coming quarters, its long-term financial growth outlook remains solid.
Get The App
Open Text stock Open Text (TSX:OTEX)(NASDAQ:OTEX) is a Waterloo-based enterprise software company. Its information management solutions help companies gain business insights and take the right decisions at the right time.
Despite COVID-19-related challenges, the demand for Open Text’s software solutions remained stable, as its revenues have consistently been rising for the last seven quarters in a row. Analysts expect the company’s adjusted net profit margin to expand to 27.2% in the fiscal year 2021 compared to 25.2% in the fiscal year 2020.
The shares of Open Text have also underperformed the broader market this year and trading with just 4.3% year-to-date gains. Long-term investors can buy its stock right now before it starts rallying again.
The post Forget Reddit Stocks: Buy These 3 Unbeatable TSX Tech Stocks Instead appeared first on The Motley Fool Canada.
The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends BlackBerry, OPEN TEXT CORP, and Open Text and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
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.