Friday, January 3, 2025

3 No-Brainer Tech Stocks to Buy With $200 Right Now

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Written by Amy Legate-Wolfe at The Motley Fool Canada

Investing in tech stocks doesn’t have to break the bank, especially with innovative options like fractional shares. If you’re starting with just $200, there are excellent opportunities to dive into some of Canada’s most promising tech stocks. These include Topicus.com (TSXV:TOI), OpenText (TSX:OTEX), and WELL Health Technologies (TSX:WELL). These companies represent diverse industries within tech, making each not only accessible but also strategically sound investments for long-term growth.

Let’s start with Topicus, a spin-off from Constellation Software that’s carving out its niche in the European vertical market software space. This stock is often compared to its parent company, Constellation, due to its high-growth potential.

As of its most recent earnings report, Topicus reported a 12% year-over-year increase in quarterly revenue to €312.2 million and an impressive 34% growth in net income to €38.0 million. Its 2024 revenue is on track to exceed $1.24 billion. Despite being relatively young as a standalone entity, Topicus benefits from a proven business model: acquiring and scaling mission-critical software companies.

The tech stock’s strong fundamentals include a robust operating margin of 17.83% and a growing cash flow base, making it a compelling option for those looking to invest in a tech stock with a history of compounding growth.

Next, we have OpenText, a veteran in the tech sector specializing in enterprise information management. With businesses relying increasingly on data management and security, OpenText has positioned itself as a leader in helping organizations streamline and safeguard their operations.

The tech stock recently posted annual revenue of $5.61 billion, demonstrating resilience, even amidst global economic uncertainty. Its profit margin of 8.35% and forward price-to-earnings (P/E) ratio of 7.99 indicate that it’s trading at a reasonable valuation relative to its earnings potential.

OpenText also pays a dividend, offering a yield of 3.55%, which is rare for tech stocks. For those seeking a blend of growth and income, this stock checks both boxes. With plans to integrate artificial intelligence into its offerings, OpenText is doubling down on innovation to ensure it remains competitive in the ever-evolving tech landscape.

WELL stock is another gem in the Canadian tech space, focusing on digital healthcare solutions that cater to the rising demand for accessible, tech-driven medical services. The tech stock has grown exponentially, with its most recent quarter showing a 23.1% year-over-year increase in revenue to $957.69 million.

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