BB, OTEX and CSU: 3 best tech stocks to buy amid market correction

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BB, OTEX and CSU: 3 best tech stocks to buy amid market correction

 BB, OTEX and CSU: 3 best tech stocks to buy amid market correction
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Highlights

  • The TSX main index dropped by 1.35 per cent on Wednesday, June 22
  • The TSX information technology index slipped by over 40 per cent in 2022
  • BB stock dived by almost 57 per cent in 52 weeks

Growing inflationary pressure, rate hikes and resultant recession concerns have been triggering major market volatility, particularly affecting tech stocks. In such an environment, Canadian investors can explore TSX tech stocks BlackBerry (TSX: BB), Open Text (TSX: OTEX), and Constellation Software (TSX: CSU) as these are currently available at discounted prices.

The TSX main index dropped by 1.35 per cent on Wednesday, June 22, after Statistics Canada reported that the country's inflation surged by 7.7 per cent in May. Last week, the Canadian benchmark index plummeted by approximately three per cent on June 16, a day after the US central bank increased interest rates by 0.75 per cent, followed by a decline of 0.387 per cent on June 17, leading it to fall below the 19,000 level.

The TSX information technology index, meanwhile, slipped by over 40 per cent in 2022 amid this market uncertainty.

On that note, let us explore these three TSX tech stocks amid market correction.

1. BlackBerry Limited (TSX: BB)

BlackBerry is a software company providing intelligent security solutions to businesses and governments. The cybersecurity company aims to spend about 30 per cent of its revenues on research and development (R&D) in fiscal 2023.

BlackBerry expects IoT serviceable addressable market (SAM) to expand by around eight to 12 per cent from 2023-2026. The mid-cap firm projects its IoT revenue to grow faster than the market growth rate, thereby increasing its market share from the current level of 26 per cent in core automotive areas.

BB stock dived by almost 57 per cent in 52 weeks. According to Refinitiv, BlackBerry’s Relative Strength Index (RSI) value was 43.14 on June 21, exceeding the oversold level of 30.

Also read: 3 TSX green stocks to fight climate change - AQN, BLDP and NPI

2.     Open Text Corporation (TSX: OTEX)

Open Text recorded revenue growth of 5.9 per cent year-over-year (YoY) in Q3 FY2022 despite the “ever-changing” dynamics of the global macro environment. The tech company said that this revenue surge was supported by a 13 per cent increase in cloud revenues in the latest quarter compared to Q3 2021.

This technology company will disburse a quarterly dividend of US$ 0.221 per share on June 24.

OTEX scrip decreased by roughly 26 per cent in nine months. OTEX’s RSI was 40.54 on June 21, up from the oversold territory of 30, as per Refinitiv findings.

BB, OTEX and CSU: 3 best tech stocks to buy amid market correction

Also read: 5 TSX stocks to explore to recreate Warren Buffett's portfolio

3.     Constellation Software Inc (TSX: CSU)

Constellation saw its revenue zoom by 22 per cent to US4 1.43 billion in Q1 2022. The tech giant significantly improved its net profit to US$ 98 million in the latest quarter than a loss of US$ 9 million posted a year ago.

Constellation Software is also timed for a quarterly dividend of US$ 1 apiece, payable on July 1.

CSU stock recently clocked a 52-week low of C$ 1793.925 on June 17. This software stock slipped by almost 21 per cent in 2022 and had an RSI value of 41.19 on June 21, according to Refinitiv.

Bottomline

Canadian investors with a risk appetite can explore these TSX technology stocks to derive long-term value as they are available at discounted prices amid the prevailing market uncertainty.

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.

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