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Highlights
- The TSX technology index posted a year-to-date loss of about 38 per cent
- Sylogist said its revenues surged by 48 per cent year-over-year in Q2 2022
- CTS stock slipped by over 53 per cent in 12 months
Economic factors like inflation and recession concerns seem to be pressurising Canadian growth stocks, including tech players. However, even with the TSX technology index posting a year-to-date (YTD) loss of about 38 per cent, some growth-focused investors continue to look for quality TSX growth stocks in this sector.
Such Canadian traders can explore Sylogist (TSX:SYZ) and Converge Technology (TSX:CTS) amid the current economic scenario to capture long-term growth.
So, let us talk about these two stocks under C$ 10 and evaluate their financial and stock performance.
Sylogist Ltd (TSX:SYZ)
Sylogist offers Enterprise Resource Planning (ERP) solutions to the public service sector across the United States, Canada and the UK. The software firm said its revenues surged 48 per cent year-over-year (YoY) to C$ 13.1 million in Q2 2022.
The Software-as-a-Service (SaaS) provider reported a gross profit of C4 8.4 million in the latest quarter, higher than C$ 6.3 million in the same period a year ago. Interestingly, this small-cap company also offers a quarterly dividend of C$ 0.125.
SYZ stock plummeted by almost 49 per cent in a year. As per to EODHD/Others, SYZ had a Relative Strength Index (RSI) of 43.32 on July 7, above the oversold territory.
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Converge Technology Solutions Corp (TSX:CTS)
Converge Technology posted an increased total revenue of C$ 550.03 million in Q1 2022, relatively up from C$ 310.2 million in the prior year’s quarter. The small-cap tech firm also reported a significant surge in gross profit to C$ 109.04 million in the latest quarter compared to C$ 67.79 million in Q1 2021.
CTS stock slipped by over 53 per cent in 12 months. According to EODHD/Others, CTS had an RSI value of 32.93 on July 7, near the oversold mark.
Bottomline
Investors could consider Sylogist and Converge for growth exposure in future as these TSX stocks are discounted and seem to be undervalued (compared to their 52-week highs) at current prices.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
