2 Tech Stocks That Could Set You Up for Life

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The S&P/TSX Composite Index was up 55 points in late-morning trading on March 27. Meanwhile, the S&P/TSX Capped Information Technology Index was down marginally to kick off the new week. Today, I want to target two tech stocks that have the potential to set you up for the future. Let’s jump in.

Here’s a tech stock that offers exposure to a burgeoning Canadian-dominated space

Descartes Systems (TSX:DSG) is a Waterloo-based company that provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses around the world. Shares of this tech stock have climbed 11% in 2023 at the time of this writing. The stock is now up 13% in the year-over-year period. Investors can look deeper into its recent performance with the interactive price chart below.

Canada has become a leader in the supply chain management business solutions space. Grand View Research estimated that the global supply chain management market was valued at $21.1 billion in 2022. The report projects that this market will achieve a compound annual growth rate (CAGR) of 11% from 2022 through to 2030.

This company released its fourth-quarter (Q4) and full year fiscal 2023 results on March 1. For the full year, the company delivered revenue growth of 14% to $486 million. Meanwhile, cash provided by operating activities increased 9% to $192 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Descartes posted adjusted EBITDA growth of 16% from the prior year to $215 million in FY2023.

Shares of this tech stock have been on a red-hot run in the first quarter of this year. The company is on track for strong earnings growth going forward.

Don’t sleep on this tech stock, as we move into the spring season of 2023

Nuvei (TSX:NVEI) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America and around the world. Its shares have surged 65% in the year-to-date period. However, Nuvei stock is still down year over year from the same time in 2022.

Allied Market Research valued the global payment processing solutions market at $39 billion in 2020. The market is projected to rise to $146 billion in 2030. That would represent a CAGR of 13% from 2021 through to the end of the forecast period.

In Q4 FY2022, the company reported total volume growth of 28% to $40.3 billion. Meanwhile, revenue rose 4% to $220 million. For the full year, total volume increased 34% to $127 billion. Moreover, it posted revenue growth of 16% to $843 million. Adjusted EBITDA climbed 11% year over year to $351 million.

Nuvei is geared up for impressive earnings growth going forward. This is a stock that still offers decent value compared to its industry peers. It is still in the red in the year-over-year period. I’m looking to snatch up this tech stock in late March.

The post 2 Tech Stocks That Could Set You Up for Life appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Descartes Systems Group?

Before you consider Descartes Systems Group, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in March 2023… and Descartes Systems Group wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 3/7/23

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Fool contributor Ambrose O’Callaghan has positions in Nuvei. The Motley Fool has positions in and recommends Nuvei. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.

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