The coronavirus crisis has created an opportunity for Canadian tech stocks to thrive. The COVID-19 restrictions and lockdowns have pushed most businesses to shut officers and move their operations to virtual offices. As a result, this has resulted in significant growth for some tech stocks offering remote working capabilities and security.
Normally tech stocks are deemed as growth stocks considering their high valuation and as a result, they are a reserve of high risk-taking investors. Most of these tech stocks are currently trading at near or at their all-time highs and thus they present a massive opportunity for investors during this crisis.
Descartes’ supply chain management software has been important during COVID-19 crisis
One of the tech stocks that has performed exceptionally during the COVID-19 period is supply chain management software provider Descartes Systems Group (NASDAQ:DSGX). The company provides its software on cloud and on-premise and it has a huge customer base from various regions and across industries.
The company has an impressive first quarter with sales surging 7% and with a lot of uncertainty holding business operation automation stocks. The company has been focusing on growing its EBITDA by around 10% to 15% each year. Since 2015 the company’s revenue has grown at 12% CAGR. The pandemic is likely to help this stock to continue with an upside of impressive returns and it is an ideal stock for exposure to logistics as uncertainty grips shipment lifecycles.
Lightspeed among Canadian tech stocks to rebound after reopening of the economy
Another hot Canadian stock currently is point-of-sale provider Lightspeed POS Inc. (OTCMKTS:LGHEF). The company’s innovative product offering is more than a provider POS service. Lightspeed offers business support services through staffing, inventory management, digital marketing, creation of loyalty program as well as data analytics. Most of the company’s clients are small and medium-sized enterprises and although most of them closed during the pandemic with the reopening of the economy things will be back to normal.
The stock is among those expected to rebound after reopening of businesses and it holds massive potential. The company posted strong results last month for the quarter ended March 31 2020 with revenue growing 70% YoY to $36.3 million with loss or around $8.6 million.
WELL Health connecting patients and physicians virtually
WELL Health Technologies Corp (OTCMKTS:WLYYF) is another Canadian tech stock exuding a lot of promise. This telehealth company helps in the management of electronic medical records, runs around 20 care clinical, and also a telehealth platform called VirtualClinic+. The VirtualClinic+ offer a platform for connecting patients with physicians vial phone, video as well as secure messaging. Interestingly even patients outside the clinic they run can use the platform.
Tele-health is a potential industry that is just getting started in Canada according to Justin Keywood of Stifel GMP. Keywood has given the stock a 20% upside and believes the WELL could ultimately be an appealing private equity acquisition for big players such as Telus Corporation (NYSE:TU).
