Stock Market Sell-Off Continues: Where to Invest $1,000 Right Now

Investing $1,000 in these stocks would be a brilliant move.

| More on:

The stock market sell-off continued for the third consecutive day with tech stocks suffering the most. While the S&P/TSX 60 Index decreased by about 3.7% in the last three trading days, the Information Technology Index slipped over 8.5% during the same period.

Investors should note that the Canadian tech stocks witnessed a monster rally so far this year. Now, as tech stocks drag on profit booking, it’s time to invest in some of these high-growth companies that have ample room for growth in the coming years. So, if you plan to invest $1,000, here are three TSX tech stocks that should be on your radar after the recent sell-off.

Docebo

Shares of Docebo (TSX:DCBO) fell over 21% in the last three trading days following a massive rally so far this year. Docebo’s fundamentals remain strong, and the recent decline is merely fatigue after its stock’s massive run this year.

Long-term investors could consider buying its stock, thanks to the sustained demand for Docebo’s enterprise e-learning platform. While the higher utilization rate of its platform can be attributed to the pandemic, I believe the trend could continue even after the virus is contained.

As companies increase spending on corporate learning, Docebo’s AI-powered platform is likely to witness increased demand. Docebo’s customer base is growing at a double-digit rate. Meanwhile, average contract value has grown over 2.7 times since 2016.

The increasing deal size and growing share of recurring subscription revenue imply that Docebo could continue to report a strong set of financial numbers in the coming quarters, which is likely to propel its stock higher.

Lightspeed POS

Shares of Lightspeed POS (TSX:LSPD) have declined 10.5% in the last three days, reflecting broader market sell-off. However, investors should note that the shift in the consumption pattern has accelerated online activities, which could accelerate the demand for Lightspeed’s digital products.

Lightspeed’s digital platform helps businesses in managing payments and e-commerce activities. Amid structural shift toward the omnichannel platform, Lightspeed could witness acceleration in gross transaction volume (GTV). Meanwhile, its customer base is likely to go higher in the coming years.

Besides its core platform, Lightspeed offers premium services like accounting, analytics, and loyalty. With higher GTV, the demand for its premium services is likely to increase, supporting the expansion of its ARPU and margins.

The secular industry trend and heightened demand should continue to push Lightspeed stock higher.

Kinaxis

With its shares down over 12% in the past three days, investors should keep a close eye on Kinaxis (TSX:KXS). The supply-chain management software provider continues to witness solid demand, as reflected through its consistent financial performance and stellar growth in its stock over the years.

Its large addressable market and growing blue-chip customer base support the robust growth in the revenues and margins. Its strong cash position, high retention rate, solid order backlog, and growing subscription revenue mix should continue to support the rally in its stock.

While its underlying business remains strong, Kinaxis’s recent acquisitions are likely to accelerate its growth further and push its stock higher.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends KINAXIS INC.

More on Coronavirus

A airplane sits on a runway.
Coronavirus

3 Fresh Stocks I’m Likely Buying in 2025

I am likely buying Air Canada (TSX:AC) stock in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Coronavirus

Canadian RRSP Stocks to Buy Now for Retirement

Alimentation Couche-Tard Inc (TSX:ATD) is a quality retirement stock.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Coronavirus

Retirees: What Rising Inflation Means for Your CPP Payments

If you aren't getting enough CPP, you can consider investing in stocks and ETFs. Canadian National Railway (TSX:CNR) is one…

Read more »

Coronavirus

Air Canada Stock Is Starting to Get Ridiculously Oversold

Air Canada (TSX:AC) has been beaten down to absurd lows.

Read more »

Coronavirus

Should You Buy Air Canada Stock While it’s Below $18?

Air Canada (TSX:AC) stock is below $18. Should you invest?

Read more »

Illustration of data, cloud computing and microchips
Stocks for Beginners

3 Canadian Stocks That Could Still Double in 2024

These three Canadians stocks have been huge winners already in 2024, but still have room to double again in the…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Can Air Canada Stock Recover in 2024?

Air Canada (TSX:AC) stock remains close to its COVID-19 era lows, even though its business has recovered.

Read more »

A airplane sits on a runway.
Coronavirus

3 Things to Know About Air Canada Stock Before You Buy

Air Canada stock continues to hover below $20 despite the sharp rise in travel demand seen across the industry. What's…

Read more »