The expertise sector has witnessed strong shopping for this yr, with the knowledge technology-weighted Nasdaq Composite Index rising round 33% year-to-date. The elevated utilization of AI (synthetic intelligence) and digitization of enterprise processes have boosted tech firms’ financials and inventory costs. In the meantime, I anticipate the uptrend to proceed and can be bullish on the next three Canadian tech shares.
WELL Well being Applied sciences
WELL Well being Applied sciences (TSX:WELL) is a digital healthcare firm that develops expertise and companies to assist healthcare professionals in enhancing affected person outcomes. Supported by strong financials and continued acquisitions, the corporate has witnessed wholesome shopping for, with its inventory worth rising by 87.8% year-to-date.
In the meantime, digitizing scientific processes, rising adoption of digital companies, and elevated utilization of software program options within the healthcare sector have created multi-year development potential for WELL Well being. The corporate can be investing in AI to develop modern merchandise and strengthen its place within the digital healthcare sector. It additionally focuses on inorganic development and has a strong acquisition pipeline with 17 signed LOIs (letters of intent) and definitive agreements. Together with these development initiatives, the corporate’s cost-cutting initiatives might enhance its profitability.
Additional, WELL Well being is engaged on spinning out WELLSTAR Applied sciences, a pure-play software-as-a-service (SaaS) expertise firm that companies round 37,000 healthcare suppliers. The spinoff, which the administration expects to finish by the tip of subsequent yr, gives a pretty funding alternative in a SaaS healthcare expertise section. Additionally, its valuation seems to be low-cost, with the corporate at the moment buying and selling at 1.6 instances analysts’ projected gross sales for the subsequent 4 quarters, thus making it a superb purchase.
Celestica
Celestica (TSX:CLS) is one other inventory that has delivered spectacular returns this yr, given its publicity to the high-growth AI sector, strong quarterly performances, and new product launches. 12 months-to-date, the electronics manufacturing companies supplier is up round 236% and has delivered round 813% returns within the final two years. Regardless of the large surge, the corporate trades at an affordable valuation, with its NTM (subsequent 12 months) price-to-sales a number of of 1.1.
Furthermore, the rising funding in increasing AI infrastructure has elevated the demand for Celestica’s merchandise, together with high-performance computing switches and storage models. Additionally, the restoration in industrial air journey and rising defence budgets amid ongoing geopolitical tensions might assist its monetary development within the coming years. So, I anticipate the rally in Celestica’s inventory worth to proceed.
Shopify
Shopify (TSX:SHOP), which helps numerous companies by way of its unified commerce platform, has returned over 51% this yr. In the meantime, the rising adoption of omnichannel promoting and its geographical enlargement has created multi-year development potential for the corporate. In addition to, the corporate continues to launch modern merchandise to fulfill the wants of varied prospects throughout segments, sizes, and geographies, thus increasing its buyer base and driving GMV (gross merchandise worth).
The e-commerce platform just lately launched offline fee assist to make sure uninterrupted gross sales even throughout community disruptions. It additionally gives personalised experiences by permitting prospects entry to Shopify bundles, which have been gaining traction amongst mid-market retailers. Additional, the corporate’s B2B enterprise has delivered triple-digit development for 5 consecutive quarters and will proceed its uptrend, thus supporting its monetary development. The corporate’s profitability and money flows are additionally enhancing, making it an opportune purchase regardless of its costly valuation.
