2 Super Tech Stocks to Buy Before Christmas

Tech stocks like Kinaxis Inc. (TSX:KXS) and Shopify Inc. (TSX:SHOP)(NYSE:SHOP) are in the spotlight during the 2021 holiday season.

| More on:

The S&P/TSX Composite Index fell 15 points on November 18. The information technology sector had a choppy start in the first half of 2021. However, it has gained strong momentum in the late summer and early fall. Today, I want to look at two tech stocks that are great targets ahead of the holiday shopping season. Let’s dive in.

This company is in high demand during the supply chain crisis

Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations around the world. Shares of this tech stock have climbed 23% in 2021 as of close on November 18. The stock has surged 15% month over month.

This tech stock was able to defy the March 2020 market pullback triggered by the COVID-19 pandemic. Supply chains were disrupted in the early part of last year, putting a spotlight on Kinaxis’ product offering. The impact of the pandemic has further disrupted supply chains in 2021, which threatens to complicate the holiday shopping season.

Kinaxis has attracted top companies around the world to adopt its industry-leading supply chain and operations planning software, RapidResponse. Such advances could play a big role in preventing supply chain crises in the future. Kinaxis has developed artificial intelligence and machine learning to bolster the effectiveness of this software.

In Q3 2021, the company delivered SaaS revenue growth of 14% to $44.7 million. Meanwhile, it won a record number of new customers in the quarter. As its President and CEO stated in the Q3 report; “Supply chain issues continue to be at the centre of boardroom conversations and daily newsfeeds, and we are helping companies navigate the complexities.”

Shares of this tech stock have gained significant momentum in late 2021. Kinaxis boasts an immaculate balance sheet and is on track for strong growth on the back of this internationally renowned product offering.

Still the top tech stock to own in the surging e-commerce space

Shopify (TSX:SHOP)(NYSE:SHOP) is another Ottawa-based company that provides a commerce platform and services in Canada and around the world. Shares of this top tech stock have climbed 51% in the year-to-date period. The stock is up 67% from the prior year.

Last year, I’d discussed why investors need to get in on the e-commerce space. Indeed, the e-commerce space was able to accelerate its growth in the face of the COVID-19 pandemic. This leap was illustrated in part during the Black Friday Cyber Monday holiday shopping weekend. During that weekend, the company achieved $5.1 billion in worldwide sales, a 76% increase over the previous year and an all-time high for the holiday shopping weekend.

The next BF/CM weekend is set to kick off on November 26. Investors should watch Shopify’s performance closely as it seeks to top its record results in the previous year. In Q3 2021, the company delivered revenue growth of 46% to $1.12 billion. Meanwhile, adjusted gross profit jumped 49% to $616 million.

Shopify possesses a fantastic balance sheet and the company is poised for strong revenue and earnings growth going forward. Investors should look to snatch up this tech stock in late November.

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 Ambrose O'Callaghan owns shares of KINAXIS INC. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends KINAXIS INC.

More on Investing

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Bank Stocks

Best Stock to Buy Right Now: TD Bank or Manulife Financial?

Manulife continues to see momentum in its business and stock price, while TD Bank stock remains down and out.

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

Canadian Dollars bills
Metals and Mining Stocks

2 Cheap Canadian Stocks Under $20 to Buy This November

Cheap TSX stocks such as Endeavour Silver are trading at an attractive valuation in November 2024.

Read more »

happy woman throws cash
Tech Stocks

3 Growth Stocks That Could Be Long-Term Wealth Creators

These three growth stocks aim to grow their financials at a higher rate than the industry average, thus delivering superior…

Read more »

how to save money
Bank Stocks

This 5.9% Dividend Stock Pays Cash Every Month

First National Financial (TSX:FN) has a 5.9% yielding dividend that is paid out monthly.

Read more »

gift is bigger than the other
Investing

The Best Canadian Stocks to Buy With $5,000

These Canadian companies have solid growth prospects and the ability to deliver profitable growth even at a large scale.

Read more »