3 of the Best Tech Stocks on the TSX to Buy This Week

Here’re three of the best TSX tech stocks that you can buy in July 2021, as they could outperform the broader market in the second half and beyond.

stock research, analyze data

Image source: Getty Images

Some fundamentally strong tech stocks remained silent in the first few months this year, despite the broader market rally. Buying such stocks and holding them for the long term could be one of the best ways for stocks investors to boost their potential returns.

Here are three of the best TSX tech stocks that you can buy in July 2021, as they could outperform the broader market in the second half of 2021 and beyond.

Shopify stock

Shopify (TSX:SHOP)(NYSE:SHOP) is arguably one of the best Canadian tech stocks to buy right now. The stock hasn’t seen much appreciation this year, despite that it continued to post massive improvements in its financials in the first quarter.

The company reported a massive rise of 957.9% YoY (year over year) in its adjusted earnings in Q1 to US$2.01 per share. During the quarter, its revenues more than doubled with 110% YoY growth to US$988.6 million. The company registered 71% YoY gains in its subscription solutions revenue, while its merchant solutions sales jumped by 137%. Moreover, its monthly recurring revenues stood at about US$90 million — up 62% from a year ago.

While bears may continue to point towards a possible slowdown in Shopify’s sales growth rate in the coming quarters, I still expect it to be far better than most of its peers’ sales growth. After surging by nearly 23% in June, its stock is currently trading with 26% year-to-date gains as of July 5. It could just be the beginning of another big, long-term rally in Shopify stock.

BlackBerry stock

BlackBerry (TSX:BB)(NYSE:BB) has been one of the most famous tech stocks on Bay Street in 2021. Bears started arguing that BlackBerry’s financials don’t look impressive after a massive rally in its stock earlier this year. They credited Reddit traders for driving a baseless rally in its stock.

BB stock is currently trading with about 80% year-to-date gains. While Redditors might be partly responsible for these solid gains, the company’s significantly improving fundamentals could be another reason for its recent rally, I believe.

BlackBerry has been heavily investing in developing advanced technologies for autonomous and electric vehicles lately. As the demand for electric and self-driving cars continues to surge in the coming years, BB could turn out to be a big winner. Also, its enterprise cybersecurity solutions business is likely to grow multifold in the near future, as the demand for such solutions has already risen sharply in the last year. These are some of the reasons why I find this tech company’s shares worth buying, even after the Reddit trading frenzy calms down.

Lightspeed POS stock

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) primarily focuses on providing omnichannel commerce-enabling software to businesses. Despite COVID-19-related headwinds on some of its industries, LSPD’s sales growth remained strong last year. In its fiscal year ended March 2021, the company’s total revenue rose by 84% YoY, while its adjusted gross profit jumped by about 64%.

As many small- and medium-sized businesses from its target industries continue to recover amid the reopening economy across North America, Lightspeed’s overall business growth is likely to accelerate further. Despite its improving sales growth outlook, Lightspeed stock has risen by only 21% this year so far.

Long-term investors could add these seemingly undervalued tech stocks to their portfolios today to get amazing returns on their investment in the long term.

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.

The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends BlackBerry 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.

More on Tech Stocks

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

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

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

4 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Kinaxis stock has a strong past. But there is even more to look forward to from this top tech stock.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Future of AI: Best Canadian Stocks to Buy Now

Here are two of the best AI-focused stocks in Canada that you can consider adding to your portfolio before it’s…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 TFSA Stocks to Buy Right Now With $7,000

Are you looking for growth stocks that can help you maximize the tax-free withdrawals of the TFSA? This article is…

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $1,000

Not all tech stocks are the risky investments that many think they are. Which is why we're focusing on the…

Read more »