1 Surprising Stock That Has Survived the Market Selloff

Growth investors with some cash to spare should have this under-the-radar tech stock on their shopping list this holiday season.

| More on:
A red umbrella stands higher than a crowd of black umbrellas.

Source: Getty Images

After surging close to 10% over the past two months, the S&P/TSX Composite Index is nearing positive territory. But despite the market’s recent gains, there are plenty of TSX stocks trading at massive discounts today. 

The tech sector in particular has been hit hard in 2022. It’s painfully easy to find a tech stock down more than 50% this year. Many are trading at losses even more than that dating back to all-time highs set in the tech sector’s peak in late 2021.

While it’s been a rough year in general for stock investors, not all companies have posted a loss in 2022. There’s been a few bright spots on the TSX for Canadian investors this year. 

I’ve reviewed one under-the-radar tech stock that’s up close to 10% year to date. And with loads of growth potential still in front of it, long-term investors would be wise to have this company on their watch list right now.

Absolute Software

At a market cap of under $1 billion, Absolute Software (TSX:ABST) is understandably not a household name amongst most investors. But considering the tech company’s track record of market-beating gains, Absolute Software deserves a spot in any long-term investor’s portfolio.

Over the past five years, shares are up more than 75% return. In comparison, the broader Canadian stock market has returned less than 30%. And with loads of market-beating growth potential still in front of the company, I wouldn’t bet on Absolute Software to begin trailing the market’s returns anytime soon.

The cybersecurity company specializes in endpoint and zero-trust security. Endpoint security involves protecting the entry of everyday tech hardware, which includes laptops, desktops, and mobile devices. Zero-trust security focuses on authentication; validating users before granting access to applications and data.

Riding the wave of cybersecurity

Cybersecurity is one industry that I’m hugely bullish on in the coming decades. As a shareholder of three market-leading U.S. cybersecurity stocks already, I’m looking to add Absolute Software to my portfolio before the end of the year. My cybersecurity basket is due for some Canadian exposure.

As reported by the Identity Theft Resource Center, 2021 set a new record of data breaches. And unfortunately, there isn’t much data to lead us to believe that we won’t continue to see a rise in cybercrime.

The fact is that the world is becoming increasingly more digitized, which is why companies like Absolute Software are in prime positions to see demand soar in the coming years.

Foolish bottom line

Absolute Software is just one small player in an industry that’s only expected to continue growing. I’d recommend long-term investors think about owning several cybersecurity companies, as long as the entire portfolio remains well diversified.

As a well-established company, Absolute Software is the perfect first cybersecurity stock for investors to own. Shares are also extremely affordable right now, currently trading at just over $10 a share.

If you’ve got some leftover cash after the holiday season this year, Absolute Software should be at the top of your shopping list.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Absolute Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

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

Is POET Technologies a Top AI Stock for Canadian Investors?

Canada has relatively few AI stocks, and the ones it has are different from American AI stocks in terms of…

Read more »

Rocket lift off through the clouds
Tech Stocks

2 Growth Stocks That Could Skyrocket in 2025 and Beyond

Wondering what types of stocks could rapidly rise in 2025? Check out these two stocks with substantial upside if they…

Read more »

up arrow on wooden blocks
Tech Stocks

The 3 Smartest Tech Stocks to Buy With $500 Right Now

Tech stocks can be seen as a bit risky, but these three have far less risk and more stability for…

Read more »

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

Shopify: A Must-Have Growth Stock for Your TFSA Now (and the Next 10 Years)

Shopify (TSX:SHOP) stock isn't just a top growth company, it's a titan worth owning in your decades-long TFSA fund.

Read more »

cloud computing
Tech Stocks

Best Stock to Buy Right Now: Manulife vs CIBC

Want the best stocks? These two are certainly the best options. But which is the better buy?

Read more »

profit rises over time
Tech Stocks

4 Reasons to Buy Constellation Software Stock Like There’s No Tomorrow

Constellation Software stock continued its climb upwards after recent earnings, and this only adds to its appeal.

Read more »

calculate and analyze stock
Tech Stocks

1 Stock That’s Just as Hot as Nvidia (Without All the Hype)

Nvidia stock may look like a strong option, but its valuation is through the roof. Enter this other under-the-radar stock.

Read more »

A plant grows from coins.
Tech Stocks

3 Growth Stocks Wall Street Might Be Sleeping on, But I’m Not

Don’t miss your chance to load up on these three beaten-down stocks.

Read more »