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The S&P/TSX Composite Index fell 15 points on November 18. The information technology sector had a choppy start in the first half of 2021. However, it has gained strong momentum in the late summer and early fall. Today, I want to look at two tech stocks that are great targets ahead of the holiday shopping season. Let’s dive in.
This company is in high demand during the supply chain crisis
Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations around the world. Shares of this tech stock have climbed 23% in 2021 as of close on November 18. The stock has surged 15% month over month.
This tech stock was able to defy the March 2020 market pullback triggered by the COVID-19 pandemic. Supply chains were disrupted in the early part of last year, putting a spotlight on Kinaxis’ product offering. The impact of the pandemic has further disrupted supply chains in 2021, which threatens to complicate the holiday shopping season.
Kinaxis has attracted top companies around the world to adopt its industry-leading supply chain and operations planning software, RapidResponse. Such advances could play a big role in preventing supply chain crises in the future. Kinaxis has developed artificial intelligence and machine learning to bolster the effectiveness of this software.
In Q3 2021, the company delivered SaaS revenue growth of 14% to $44.7 million. Meanwhile, it won a record number of new customers in the quarter. As its President and CEO stated in the Q3 report; “Supply chain issues continue to be at the centre of boardroom conversations and daily newsfeeds, and we are helping companies navigate the complexities.”
Shares of this tech stock have gained significant momentum in late 2021. Kinaxis boasts an immaculate balance sheet and is on track for strong growth on the back of this internationally renowned product offering.
Still the top tech stock to own in the surging e-commerce space
Shopify (TSX:SHOP)(NYSE:SHOP) is another Ottawa-based company that provides a commerce platform and services in Canada and around the world. Shares of this top tech stock have climbed 51% in the year-to-date period. The stock is up 67% from the prior year.
Last year, I’d discussed why investors need to get in on the e-commerce space. Indeed, the e-commerce space was able to accelerate its growth in the face of the COVID-19 pandemic. This leap was illustrated in part during the Black Friday Cyber Monday holiday shopping weekend. During that weekend, the company achieved $5.1 billion in worldwide sales, a 76% increase over the previous year and an all-time high for the holiday shopping weekend.
The next BF/CM weekend is set to kick off on November 26. Investors should watch Shopify’s performance closely as it seeks to top its record results in the previous year. In Q3 2021, the company delivered revenue growth of 46% to $1.12 billion. Meanwhile, adjusted gross profit jumped 49% to $616 million.
Shopify possesses a fantastic balance sheet and the company is poised for strong revenue and earnings growth going forward. Investors should look to snatch up this tech stock in late November.