The Evolution Of Canadian-Based Tech Companies
Over the years, the return on American equities makes those on the TSX Index look small. You can blame not having Canadian-based tech stocks functional. Energy and Materials dominate Canada’s main Index. Also, stocks with the most growth are in the Information Technology category. Those stocks are attractive to beginner investors who want to learn how to make money trading stocks on the market. In the past five years, the TSX Technology Indexes and the S&P 500’s CAGR is twenty percent. At this time, the tech companies in Canada are booming. This boom inspired me to make a list of the top five Canadian technology companies in 2020.
Top 10 Canadian Stocks In 2020
1. Absolute Software
Absolute Software is a new addition to the Top Ten list. The recent performance of this stock is the reason for its inclusion. For years, this stock was a dud. By 2019, its stock hadn’t moved in five years. That’s extremely strange for a software company. In 2020, things changed. So far, the company is up forty-three percent.
2. Tucows Inc.
During Covid-19, Tucows Inc. has performed exceptionally. During the drop in March, at its peak, this stock only lost twenty-six percent. That’s a lot better than what most companies could say. Tuscow has twenty-five years of experience in the business.
3. Light speed POS Inc.
In the past few years, Canada has had some dominant tech IPO’s emerge. Experts are speculating if Lightspeed will be another success. Making their debut on the TSX in March last year, Lightspeed stocks were $18.80 per share. At the end of 2019, the shares almost doubled and were trading at $36.07 per share.
4. CGI Group Inc.
CGI manages IT services and BPS. As of late, CGI is not performing as well as it has in previous years. This company lost eighteen percent of the value in its stock this year. Compared to its peers, this underperformance could hurt the stock in the future if it doesn’t bounce back.
5. Meridian HCM Holding Inc.
This stock is crushing the TSX right now. Although it’s only up by two percent, the TSX has lost twelve percent to date.
For individuals looking to trade Canadian-based tech stocks, it’s a great time to get involved. Tech stocks in Canada are on the rise. If you get in now, you may just be setting your future up for a fantastic retirement.
