This year has had no shortage of ups and downs for investors across the globe. The COVID-19 pandemic has been the major catalyst for the extreme levels of volatility over the past six months. And even though the Canadian market is trading roughly at the same place it began the year, there is lots of uncertainty still ahead, at least in the short term.
The S&P/TSX Composite Index began the year with a slow and steady incline from January 1 up until the last week of February. The COVID-19 pandemic then caused the broader market to drop a staggering 35% in just over one month. Following that massive drop, the previously mentioned index went on to surge back up close to 50% over the next five months.
Now is the time to buy tech stocks
Extreme levels of volatility is perhaps an understatement when trying to describe the year that investors have had to live through. But even though the economy may seem unstable today, long-term investors know that these types of market conditions can lead to massive returns over the long run.
I’ve covered two of my favourite stocks tech stocks that are perfect for new investors. Each has a long runway of growth still ahead. Even better, both companies are trading below $50 today.
BlackBerry
BlackBerry (TSX:BB)(NYSE:BB) is a long way away from when it was trading above $100. But that doesn’t mean this tech stock doesn’t have to potential to once again be a multi-bagger.
The $3.5 billion company is no longer a top player in the smartphone industry. BlackBerry has since changed its course and is now a major AI-cybersecurity provider for enterprises across the globe.
A major tailwind for this tech stock is the projected growth rate of the cybersecurity industry as a whole. Analysts are expecting the entire industry to grow at a rate of more than 10% annually over the next five years. And that’s not even taking into consideration the potential impact that the COVID-19 virus will have on the cybersecurity industry.
The pandemic caused an abrupt change in the working culture earlier this year. Many working employees were forced to set up a home office to follow social-distancing guidelines. This has led to a significant increase in employees now using their personal home networks when working from home. This will likely only highlight the importance of BlackBerry’s software even more.
Trading today at just $6.50, this is one tech stock that has multi-bagger written all over it.
Lightspeed POS
This tech stock may be much younger than BlackBerry, but its publicly traded track record speaks for itself.
One of my favourite tech stocks to follow in the Canadian market, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is a company that I believe will also likely stand to benefit from economic tailwinds cause by the COVID-19 virus.
The $4 billion company took a substantial hit in its share price earlier this year. The COVID-19 pandemic wreaked havoc on small- to medium-sized businesses across Canada. Fortunately for Lightspeed, the company is no longer solely a point-of-sale hardware provider.
Lightspeed has spent the last several years aggressively expanding its product offering to become a robust cloud-based e-commerce platform. Products and services that Lightspeed now offers include digital marketing and analytics, loyalty program management, and billing software, to name a few.
This tech stock trades at just over $40 today. The valuation is steep, so the volatility will likely continue over the short term. But for investors that have a time horizon that will allow them to buy and hold for 10 or more years, this is one tech stock that deserves serious consideration.
Foolish takeaway
Don’t let not having enough money stop you from investing in the stock market today
Both of the companies that I’ve covered are in prime positions to see high levels of growth for many years to come. And with just $100, you could pick up shares of both companies.
