In 2022, the overall tech market crashed, causing a significant share price drop even for the major players. Now, standing in 2023, as the sector is getting back on its feet, several stocks with high long-term growth potential are still trading at a bargain price.
Thus, it is a perfect opportunity for investors to buy high-quality tech stocks and book profits in the long run. Here are two stocks that they can consider buying.
Open Text
Open Text (TSX:OTEX) is a Canadian information management solutions provider. As per the latest reports, this company has expanded its partnership with Google Cloud to provide artificial intelligence-powered integrations to its clients. It will enable businesses of all sizes to enhance their productivity and deliver better performance to their respective customers.
Additionally, Open Text has recently acquired KineMatik, which will help the company introduce automated project management and business process solutions on its platform. This move will enable the organization to provide a more comprehensive range of services to its clients. Also, it will enable the company to effectively increase its presence in the Canadian tech market.
Furthermore, Open Text had a strong Q4 2023 performance. Its total revenues were up by 65.2% year over year, with figures reaching US$1.5 billion. The company’s annual recurring revenues came in at US$1.2 billion, indicating a 56.4% year-over-year growth. Operating and free cash flows were US$115 million and US$91 million, respectively, while the adjusted EBITDA stood at US$463 million.
For those looking for high-growth options within the software sector, this is a top growth stock to buy at its relatively inexpensive valuation.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) is a Canadian international digital health service provider. Data on August 10, 2023, stated that this company’s subsidiary, OceanMD, has signed a deal worth US$38.5 million with the Provincial Health Services Authority in British Columbia.
The former will provide a wide variety of services like eOrders, eConsults, eReferrals, etc., thus facilitating connected healthcare solutions and streamlining the overall healthcare process. Moreover, the company recently announced this summer that WELL Health has re-branded CRH Medical Corporation to WELL Health USA.
The goal of this move is to refocus investors on the company’s bid to modernize and digitize healthcare businesses all across the United States. It also aims to take advantage of the country’s existing healthcare expertise and create a line of services that can benefit the U.S.’s healthcare organizations.
Apart from this, WELL Health reported major growth in the second quarter of 2023. The company reported quarterly revenue of US$170.9 million, indicating 21.8% year-over-year growth. Additionally, the company’s patient services revenue improved by 23.9% in comparison to last year, with figures reaching US$54.2 million.
Bottom line
Given the improving financials and strong growth prospects of both stocks, long-term investors would do well to consider adding to positions over time. While these stocks aren’t exactly screaming bargains at these levels, their relative valuations (compared to their growth rates) make these stocks intriguing picks if they drop in value for any reason moving forward.
