3 TSX Tech stocks that could soar
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The once mighty tech sector is down almost 40% year-to-date, but that doesn’t mean there aren’t exciting investment prospects at the moment. absolute software (TSX:ABST)(NASDAQ:ABST) beats the market with its gain of 20.55% since the beginning of the year. Descartes Systems Group (TSX:DSG)(NASDAQ:DSGX) and Evertz Technologies (TSX:ET) also deserve to be on your buy list, despite the current headwinds.
Well positioned to succeed
Absolute Software provides the intelligent, self-healing security solutions organizations and businesses need to counter the growing threats from cyber hackers. According to its President and CEO, Christy Wyatt, Absolute Software is well positioned for success in fiscal year 2023 due to strong customer demand for cyber defense and cyber resilience.
The financial results for fiscal 2022 reflect the stock’s impressive performance so far this year. Wyatt said the early results were the strongest in company history. In the 12 months ended June 30, 2022, total revenue increased 63% to US$197.3 million compared to fiscal 2021.
Notably, corporate and government shares of total annual recurring revenue (ARR) in the fourth quarter of fiscal 2022 jumped 99% year over year. During the same quarter, active devices for Absolute’s global customer base increased by 18% compared to the fourth quarter of fiscal 2021.
Wyatt adds that the industry is increasingly aware of the value of Absolute’s unique, intelligent, self-healing security solutions. So, management will continue to invest in growth through fiscal 2023. This top-performing tech stock is currently trading at $13.99 per share and paying a dividend of 2.23%.
Descartes Systems reported remarkable revenue growth in the second quarter of fiscal 2023. The $7.41 billion company provides on-demand software-as-a-service (SaaS) solutions, primarily to logistics-intensive businesses . SaaS solutions help customers improve productivity, performance, and security.
In the three months ended July 31, 2022, revenue increased 18% to $123 million from the second quarter of fiscal 2022. Its CEO, Edward J. Ryan, said, “Descartes experienced a very successful quarter helping customers navigate the complexities of global supply chains and logistics.”
Ryan adds, “Our Global Logistics Network (GLN) is designed to help these shippers, carriers and logistics service providers connect and collaborate to plan and execute shipments efficiently and sustainably. You can profit from this technology stock because it is trading at a discount (-16.4% since the beginning of the year).
Market analysts covering Descartes have a 12-month average price target of $126.36, a potential upside of 44.5% from the current stock price of $87.47.
Evertz is a rare find for its generous dividend yield of 5.15%. Additionally, at $13.98 per share, the tech stock outperforms the TSX since the beginning of the year (+9.08% against -8.66%). The $1.05 billion company designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new media industries.
Total revenue for the first quarter of Fiscal 2022 increased 5% to $101.5 million from the first quarter of Fiscal 2021, although net income fell 5.4% to reach $13.9 million. Additionally, sales increased 21% year over year to $78 million. Management believes that the strong quarterly financial performance indicates the growing adoption of new Evertz technologies and products.
Brian Scott Campbell, the company’s executive vice president of business development, is optimistic about the business outlook due to the robust demand environment and strong order backlog heading into fiscal 2023. Evertz will continue to grow. build on its leadership position in the broadcast and technology sectors.
Don’t count the tech sector yet in 2022. Absolute Software, Descartes Systems, and Evertz Technologies have visible growth potential and could generate significant capital gains.