The Canadian tech industry has registered robust growth over the past few years. Montreal Vancouver and Toronto have emerged as the epicenter and leaders in emerging technologies. Similarly, more U.S tech giants are setting up base in the country to take advantage of the country’s booming information technology industry. Amidst the growth, Kinaxis Inc. (TSE: KXS), TECSYS Inc. (TSE: TCS) and Shopify Inc. (TSE: SHOP) continue to provide exciting investment opportunities after a recent correction triggered by coronavirus.
Shopify Tech Darling
Shopify Inc.(TSE: SHOP) is a Canadian tech darling, for a reason. The e-commerce giant has continued to outperform the overall tech industry, consequently generating significant value for investors. $SHOP has succeeded in carving a niche for itself as a cloud-based multichannel platform for small and medium-sized businesses in the country. It has also expanded its footprint into the U.S, the U.K, and Australia.
At a time when most Canadians remain at home due to the COVID-19 pandemic, #SHOP continues to register booming business thanks to its core e-commerce business model. Its platform is increasingly being used by merchants with a single view of customers and businesses in various sales channels. The platform allows businesses to manage products as well as inventory and process orders and payments around e-commerce.
With people being forced to stay at home as part of social distance policy against COVID-19, e-commerce platforms have emerged as a preferred destination for shopping. Similarly, $SHOP is on its way to registering impressive financial results as other tech giants continue to struggle to stay afloat amidst the epidemic. It thus does not come as a surprise that the stock is already up by more than 30% for the year at a time when the overall stock market has turned bearish.
Kinaxis Cloud-Based Solutions
Kinaxis Inc. (TSE: KXS) is another Canadian tech giant that has remained resilient amidst the coronavirus epidemic that has triggered a massive correction in the stock market. The stock is already up by more than 20% for the year at a time when most stocks in the #TSX have turned bearish.
Kinaxis outperformance does not come as a surprise as the company has established itself as a leader in the provision of cloud-based subscription software for supply chain operations. Amidst the current lockdowns designed to curb further spread of the Coronavirus, $KXS cloud-based solutions continue to elicit strong demand.
Companies, as well as individuals, are increasingly turning to cloud-based solutions to run businesses and work from home. Similarly, it won’t come as a surprise that #KXS flagship solution Rapid Response continues to fuel the working from home transition as a supply chain, planning, and analytics solution.
The company has also diversified its footprint with operations in Europe and Asia. Conversely, it should continue to generate impressive returns amidst the COVID-19 pandemic that is forcing many people to stay at home.
Tecsys Bounce Back
TECSYS Inc. (TSE: TCS) is an ideal pick for investors looking to gain exposure in the Canadian tech industry, especially after a recent market correction. #TCS was on an excellent run in 2019, rallying by more than 40%. However, it did come under pressure early in the year, pulling lower by more than 20%. The pullback appears to have presented an exciting buy opportunity as the stock has once again started rallying.
Tecsys should excite investors looking to gain exposure to the development, marketing, and sale of supply chain management software. $TCS has carved a niche for itself on this frontier as its solution are increasingly being used in warehousing, transportation on logistics as well as point of use and order management in Canada.
