1 Tech Stock Not Named Shopify (TSX:SHOP) Delivered 600% Return

A lesser-known tech name, not the largest publicly listed company, delivered a 600% return in the last 12 months. Buy the Converge Technology Solutions stock for astronomical gains in 2021 and beyond.

Shopify is likely to repeat its number one spot on the 2021 TSX30 List, the third edition of TMX Group’s flagship program. The e-commerce platform has returned 925.22% (116.63% compound annual growth rate). Thus far this year, however, the tech superstar has gained just 35.42%.

Lesser-known Converge Technology Solutions (TSX:CTS) flies under the radar but outperforms Shopify by a country mile. At $12.23 per share at writing, the trailing one-year price return is 611.05%. Had you invested $15,000 in this stock a year ago, your money would be worth $106,656.98 today. Meanwhile, the year-to-date gain is 140.68%.

Market mover

Canada’s technology sector is a market mover and was TSX’s best performer in 2020. Shopify, the largest publicly listed company in the country, ranked number one and number two in the 2019 and 2020 editions of the TSX30 List. Tech stocks didn’t have an explosive start to 2021, but the sector is now the second-highest performer (+33.03%) after energy (+38.69%) as of September 3, 2021.

Lightspeed Commerce and Nuvei are following in the footsteps of Shopify. Absolute Software, Docebo, and Mogo are among the high-growth stocks. However, none of these popular tech names have delivered astronomical gains in 2021, like Converge Technology. Market analysts recommend a strong buy rating.

Brief overview

Converge Technology Solutions is a $2.6 billion software-enabled IT & cloud solutions provider. The company is relatively young (five years old) but has an ambitious goal to address the most difficult IT challenges in the 21st century. Believe it or not, it’s also a parent company to 21 sister companies.

The Converge umbrella houses established and successful IT solution companies globally. Moreover, the family of specialists in technology solutions, IT portfolio management, and consulting services is still growing. The locations of Converge’s offices worldwide are in technology-driven metropolitan cities.

Advanced analytics, cloud, cybersecurity, digital infrastructure, managed services, and talent are among the available solutions or services. Management strongly believes that the multi-faceted approach will enable Converge to address the unique business and technology requirements, whether public or private sectors.

Converge added to its family recently Vicom Infinity and Infinity Systems Software. The former is a world-class IBM mainframe solutions provider, while the latter is a leading supplier of software and services for IBM platforms. Other new acquisitions include Dasher Technologies from Silicon Valley and German IT service provider REDNET AG.

Long growth runway

Converge appears to have hit its stride in Q2 2021, given the impressive financial results plus another feather on its cap. Last month, the company made it to the CRN®’s 2021 Fast Growth 150 List (14th place) of the Channel Company. Management reported a 51.56% revenue growth versus Q2 2021.

Notably, net income was $3.72 million compared to the $5.57 million net loss in the same period last year. For the first half of 2021, total revenue reached $655.5 million, a 39.65% jump from the first half of 2020. Meanwhile, net income was $8.8 million as against the $7.16 million in net loss.

Exponential returns

Many investors want to invest in Shopify, but the price is too high today. Also, several tech names offer massive growth potentials. However, if you seek exponential returns, Converge Technology Solutions is the logical choice. Buy the tech stock now before the price soars through the roof again.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Docebo Inc., Lightspeed POS Inc., and Shopify. The Motley Fool recommends Absolute Software Corporation and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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 »