Canada tech industry has been on an upward trajectory thanks to the country’s friendly immigration policy that has seen it attract some of the best talents, in matters tech. Similarly, the country has been a fertile ground for innovation in the global tech space. It thus does not come as a surprise that the likes of Constellation Software Inc. (TSE: CSU) Real Matters Inc. (TSE: REAL) and Absolute Software (TSE: ABT) have emerged as some of the best stocks for gaining exposure in the country’s burgeoning tech industry.
Real Matters Covid-19 Resilience
Real Matters Inc. (TSE: REAL) stands out in the Canadian tech space on the fact that it has remained resilient amidst the coronavirus pandemic. While most stocks are down by more than 20% for the year, the tech heavyweight is up and pushing higher as a bounce-back play.
The Canadian tech company provides technology as well as network management solutions used in mortgage lending and insurance industries in Canada. Its core business also revolves around offering residential mortgage appraisals for purchase, refinance, and equity. In 2019, $REAL was up by more than 200%. Therefore it is an ideal tech pick for investors looking to gain exposure to the Canadian and United States housing market.
Impressive financial results is another attribute that affirms $REAL must-watch credentials in the Canadian tech industry. In its first quarter, the company posted an 87% increase in net revenue as EBITDA grew by 41%. Its cash balance improved to $80.9 million.
Absolute Software For Cloud Computing
For investors looking to gain exposure in the Canadian Cloud computing sector, then Absolute Software (TSE: ABT) is the stock to bet on. The Vancouver-based company develops markets and provides cloud-based endpoint as well as visibility and control platforms. Its solutions are mostly used in the management of security devices as well as applications and data.
The Canadian tech giant markets its solutions through PC OEMs as well as distributors and value-added resellers. Similarly, $ABT has expanded its operations into Europe, Latin America as well as South Africa in pursuit of opportunities for growth.
Amidst the Covid-19 pandemic, #ABT has pulled lower. However, in recent weeks, the stock has shown signs of bouncing back. Strong financial results in recent quarters are some of the fundamentals supporting a further bounce back.
Solid revenue and earnings growth are some of the reasons to be bullish about Absolute long term prospects. The company also boasts of a 3.1% dividend yield.
Constellation Software Underpriced
Constellation Software Inc. (TSE: CSU) is another tech giant that appears underpriced amidst the coronavirus pandemic. After a recent pullback, now may be the best time to take a closer look at given its prospects in the Canadian tech industry.
It is highly unlikely that you will venture into any industry in Canada and not come into contact with one of Constellation Software products and solutions. The company has carved a niche for itself on the development and sale of automation software for businesses. Most importantly, its solutions are used to automate mission-critical processes.
Automating mission-critical processes has seen Constellation enjoy high-profit margins as companies move to automate most of their operations. That said, the company remains at the heart of the next phase of the Canada technology revolution.
