Retirement Worries? Check Out These 2 TSX Tech Stocks to Watch

Canadian investors saving for retirement may want to watch Enghouse Systems (TSX:ENGH) and Evertz Technologies (TSX:ET) on the TSX.

| More on:

Technology stocks have done very well this year in the stock market. Some of them are retaining their value fairly well, while others have been correcting downward in value. Still, there may still be some good technology stocks to buy on the Toronto Stock Exchange.

Some technology stocks haven’t reached outrageous price-to-earnings (P/E) ratios like Shopify or Zoom. Shopify has a P/E ratio of 724.31 and Zoom has a P/E of 279.71. These are examples of expensive technology stocks to buy.

Nevertheless, there are some great TSX technology stocks that still have reasonable PE ratios. The trick is to find some good technology stocks with growth opportunities that haven’t been impacted by the flight to safety into tech stocks.

Your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) will thank you for investing in value. Here are two stocks on the TSX that you might want to consider buying.

Evertz Technologies impacted by sport cancellations

Evertz Technologies (TSX:ET) fell to a 52-week low of $9.69 from a 52-week high of $18.65 after the March 2020 market sell-off. The stock is trading for $13.80 per share at the time of writing. The dividend yield is strong at 5.22% annually, and the P/E ratio is only 18.64.

Evertz Technologies provides video and audio infrastructure solutions in Canada and the United States. The company reported Q2 of the fiscal year 2021 earnings on December 9. In the management analysis, the firm discusses the expected impact of the COVID-19 pandemic.

Although Evertz’s management believes that there will be few continued effects of the pandemic, some risks still exist:

“Although the company is an essential service provider and has increased health and safety protocols to continue operations, widespread customer delays, travel restrictions and the postponement or cancellation of sporting as well as other live events and various other related projects will have an adverse effect on the company’s revenues and financial results in future quarters.”

Evertz Technologies is not the only firm impacted by the cancellation of sporting events. Hopefully, the world can get back to normal soon so that shareholders can feel more confident about future quarter revenues. If you are looking for a good stock to buy for retirement, think about putting this company on your watch list.

Enghouse Systems stock soared this year

Enghouse Systems (TSX:ENGH) rose from a 52-week low of $35.87 to a 52-week high of $80.91 after the March 2020 market sell-off. At the time of writing, the stock is trading for $65.65 per share. The dividend yield is 0.82% annually, and the P/E ratio is 38.55.

Enghouse Systems offers customer interaction, operations, and business support software and services. The technology firm will release Q4 2020 financial results on December 17. Given the performance of the stock’s share price this year, you may want to follow Enghouse System’s earnings as a potential investment for your retirement.

When the firm reported earnings last quarter, the technology firm reported an increase in revenue due to the transition to remote work:

“Revenue for the third quarter was $131.3 million, a 29.7% increase compared to revenue of $101.3 million in the prior year with Enghouse continuing to experience increased demand for its remote-work and visual computing solutions as a result of the COVID-19 pandemic.”

Like other technology firms offering digital solutions applicable to the challenges of today’s remote workforce, Enghouse Systems stock has been performing well this year. Therefore, this may be one technology stock that you should at least have on your watch list in December.

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 Debra Ray has no position in any of the stocks mentioned. Tom Gardner owns shares of Zoom Video Communications. The Motley Fool owns shares of and recommends Shopify and Zoom Video Communications. The Motley Fool recommends Enghouse Systems Ltd.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »