Not all tech stocks are wild rides on the stock market rollercoaster. While tech often conjures images of skyrocketing prices and sharp crashes, many tech stocks are like calm lakes rather than roaring rapids. Let’s dive into why Celestica (TSX:CLS), OpenText (TSX:OTEX), and Kinaxis (TSX:KXS) are standout examples of steady performers with strong potential for future gains. These three aren’t just surviving the tech scene — they’re thriving with strategic growth, solid earnings, and promising outlooks.
Starting with Celestica, this Toronto-based company specializes in advanced manufacturing and supply chain solutions. In the most recent quarter, Celestica reported a revenue surge of 22.3% year over year to $9.24 billion, accompanied by earnings growth of 14.3%.
The tech stock has more than doubled over the past year, with a 52-week range highlighting a low of $35.13 and a peak near $130. These gains reflect its strategic pivot toward high-margin end markets, including renewable energy and aerospace. With analysts maintaining a “Strong Buy” consensus, CLS offers a blend of growth and stability, making it an attractive option for tech investors.
Next, OpenText, a global leader in enterprise information management, boasts resilience in uncertain markets. Its first-quarter 2025 earnings showcased a net income increase of 4.3% year over year despite a revenue dip of 11%.
The tech stock’s operating margin remains robust at 19.92%, underpinned by efficient cost management and its ability to generate $928 million in free cash flow over the trailing 12 months. While OTEX’s share price has recently dropped by around 28% in the last year, this dip is an opportunity to snag a dividend-paying tech stock with a forward yield of 3.58%. With a forward price to earnings (P/E) of just 7.92, OTEX is not just cheap. It’s also poised for long-term gains as digital transformation accelerates globally.
Now, let’s talk about Kinaxis, a Canadian darling in supply chain management software. With revenue growing 14% year over year to $471 million and earnings per share climbing by 40%, Kinaxis continues to impress.
What makes KXS unique is its software-as-a-service (SaaS) model, which offers recurring revenue and resilience against economic turbulence. Analysts predict a bright future, as the company is well-positioned to capitalize on increasing demand for artificial intelligence (AI)-driven supply chain optimization. Insider ownership worth over $61 million aligns management’s interests with shareholders, reinforcing confidence in its strategic direction.
What sets these three apart from volatile tech peers is their focus on consistent profitability and smart growth strategies. Celestica’s move into high-demand industries, OpenText’s emphasis on recurring revenue, and Kinaxis’s leadership in AI-enhanced solutions are all reasons these companies are less susceptible to market swings. Furthermore, each shows a knack for leveraging innovation while maintaining sound financial discipline.
Another factor that enhances the appeal is attractive valuation. Celestica trades at a trailing P/E of 28.95, reasonable given its growth trajectory. At the same time, OpenText’s valuation metrics scream value at a forward P/E under eight. Kinaxis may have a higher forward P/E of 36.9, but its stellar revenue growth and leadership in a niche market justify the premium.
Let’s not overlook market dominance. OpenText’s enterprise management tools are essential to businesses undergoing digital transformation. Kinaxis helps the world’s largest companies streamline their supply chains — a critical function in today’s interconnected economies. Meanwhile, Celestica is diversifying its revenue streams into growing sectors like green energy and defence, positioning itself as a key player for the next decade.
In addition to their financial performance, these stocks benefit from tailwinds that support their industries. Supply chain optimization, enterprise digitalization, and green energy are not trends. These are necessities in a rapidly evolving global economy. Companies like Celestica, Open Text, and Kinaxis are uniquely positioned to meet these needs, ensuring relevance and growth potential for years to come.
For investors seeking tech exposure without volatility, CLS, OTEX, and KXS offer a compelling mix of stability and upside potential. With strong earnings reports, manageable debt levels, and clear growth trajectories, these three stocks are perfect for those who want to ride the tech wave without wiping out.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.
