Although most sectors were impacted significantly by the pandemic Canadian tech stocks on the other hand have had a great year. Canadian tech stocks are on average up 90% year to date and they benefitted from pandemic tailwinds as the need to go digital became apparent. Some of these stocks are poised to delivering massive returns beyond 2020.
Enghouse among Canadian tech stocks poised to offer more returns in the next decade
Enghouse Systems (TSX:ENGH) is one of the stocks that will deliver huge returns in the next decade having delivered over 1500%to shareholders in the last ten years. The $4 billion company is in a better position to continue delivering more returns partly because of its specialty area which is enterprise-level software solutions.
The company also specializes in communication networks and visual computing which are areas expected to see demand growth as more people work from home. Most importantly the company has reinvested most of its returns into the business via strategic acquisitions of various software enterprises.
Absolute Software’s solutions becoming important in the current setting
Another exciting Canadian tech stock is Absolute Software Corp (TSX:ABT) which is expected to show exceptional performance beyond 2020. The company is a leader in the cybersecurity sector which provides tracking and tracing software solutions for laptops. The cybersecurity space is a potential sector and the company’s services are increasingly becoming necessary which is interesting.
In the FY2020 ended June 30, 2020, Absolute reported revenue of $104.7 million which is a 6% YoY increase. For FY2021 the company expects to grow annual revenue by 7%-13% to between $112 million and $118 million.
Lightspeed showing solid performance amid the pandemic
Lightspeed POS (TSX:LSPD) is also another attractive Canadian tech stock currently which has risen 85 years to date. In its recent quarter, the company almost doubled its gross e-commerce transaction volume with the payments and recurring software revenue increasing 57% YoY. Despite the impact of the pandemic the company still expects revenue of between $38-$40 million for the September quarter.