When the market is already near an all-time high, it can become a challenge to identify laggards that can provide further growth. However, you might also consider investing based on a stock’s potential to grow further, rather than whether it’s close to previous all-time highs after being deeply discounted.
I have identified two TSX Technology Stocks those could be solid buying opportunities right now. Here’s what I think and what you might want to consider before investing.
Shopify
Shopify Inc. (TSX:SHOP) is $243.4 billion market capitalization giant in the Canadian technology industry. The company offers an e-commerce platform that helps sellers of all sizes create, build and grow an online presence. It is easily one of the most recognizable growth stocks on the TSX and has been the reason many growth-oriented investors have benefited in terms of capital gains.
At the time of writing, Shopify stock is trading for $187.03 per share. Since its initial public offering (IPO) in May 2015, it has grown by more than 5,259%. That means the $1,000 invested in the IPO would be worth about $53,590 today. Granted, anyone investing today may not realize the same profits as early investors. However, the stock has the potential to deliver substantial growth as the e-commerce industry continues to grow. It may be worthwhile to expand your holdings at this level.
Celestica
Celestica Inc. (TSX:CLS) is a lesser-known Canadian tech stock, but not one to brush aside. The $48.6 billion market cap company provides software-based supply chain solutions to customers worldwide. If you want to invest in one AI StocksCelestica might be a good choice. The company has transformed itself from a pure Electronics Manufacturing Services (EMS) provider to an AI-powered platform that has been driving tremendous growth since 2024.
At the time of writing, Celestica stock is trading at $422.46 per share. It is up 588.4% from May 2024, marking an incredible growth story. It’s too early to say with complete confidence whether the stock will maintain this kind of momentum, but with adjusted earnings per share (EPS) up more than 50% from the same point last year in the previous quarter, success seems more likely. I think it can be a good addition to a growth-oriented, self-directed investment portfolio.
Silly takeaway
Given market conditions, tailwinds, strong demand and the performance of the underlying companies, CLS stock and SHOP stock appear to be excellent investments to hold. Even allocating as much as $1,000 to hold these two stocks in a retirement account in the long run, it can be an excellent way to maximize the value that money can provide.
#Canadian #Growth #Stocks #Buy