After a very rough 2022, tech stocks are starting to rebound across the board. With that said, many investors are starting to turn their attention back on companies they’ve been looking away from for the better part of two years. I also believe it’s a great time to be investing in tech stocks. In this article, I discuss three TSX tech stocks that investors should be buying hand over fist in August.
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This is one of my favourite tech stocks
When it comes to tech stocks, Shopify (TSX:SHOP) is one that investors should always consider. This is one of the largest players in a rapidly growing global industry. A leader within the e-commerce space, Shopify provides a platform and many of the tools necessary for merchants to operate online stores. Where Shopify stands out from its peers, in my opinion, is its massive enterprise partnership network. With a plethora of ways that merchants can gain exposure in front of consumers, Shopify seems to provide unparalleled value.
Shopify was once the largest stock in Canada by market cap. That’s no longer the case due to a massive decrease in value in 2022. However, despite those struggles, I believe Shopify stock could rebound and surpass its previous highs. How long it takes to do that is another question. But with the global e-commerce industry continuing to grow and Shopify managing to increase its share of that space, I think investors could do well buying shares at these prices.
For investors looking to buy shares of blue-chip companies
If you’re interested in finding top growth stocks, that doesn’t mean you need to bank on risky plays. In fact, there are great blue-chip tech companies in Canada that offer great growth potential. Constellation Software (TSX:CSU) is an excellent example of this. If you aren’t familiar, Constellation Software acquires vertical market software (VMS) businesses. It has a proven track record of acquiring businesses of all sizes and plans to start aggressively targeting large VMS businesses in the future.
These successes have been reflected in Constellation Software’s stock price. Since its initial public offering in 2006, this stock has generated a compound annual growth rate of more than 30%. Even with all of that success and stock appreciation, Constellation Software shows no signs of slowing down. Over the past year, this stock has gained about 25%. That still greatly outpaces the broader market.
A tech stock in the healthcare space
Finally, investors should consider buying shares of WELL Health Technologies (TSX:WELL). This company operates primary health clinics, offers virtual medical services, and has an online marketplace where other healthcare providers can find solutions to boost their own virtual services.
Operating in a very competitive and largely unproven space, WELL Health may be the riskiest of the three stocks mentioned here. However, there is so much potential growth in this company. WELL Health is committed to growing via mergers and acquisitions and has already managed to penetrate the massive American healthcare space. If you’re willing to ride some volatility in hopes of a big payout in the future, WELL Health is a stock you should heavily consider.
