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Highlights
- The S&P/TSX Capped Information Technology Index is down 35.75 per cent year-to-date (YTD)
- However, on Friday, May 13, it jumped over six per cent
- With the exception of one stock here, these stocks are currently trading fairly below their 52-week highs
Tech stocks, for the most part, has fallen this year. The S&P/TSX Capped Information Technology Index is down 35.75 per cent year-to-date (YTD).
However, on Friday, May 13, it jumped over six per cent and some experts speculated that some of this has to do with investors buying on the dip.
In lieu of this, let’s look at some TSX tech stocks currently trading at bargain prices.
NexJ Systems Inc (TSX:NXJ)
NexJ provides a suite of customer relationship tools to financial companies. NXJ closed at C$0.5 on Friday, May 13.
It is up over three per cent YTD after having risen 25 per cent in the last three months.
The stock is currently 30 per cent lower than its 52-week high of C$0.71 seen on April 27. It is up 14 per cent in the last month.
Redline Communications Group (TSX:RDL)
Redline provides wireless and mission critical services in tough locations and is used by mining and oil and gas companies.
RDL closed at C$0.88 Friday and is up 13 per cent, this year. Over the last 12 months it has increased around 53 per cent.
The stock is currently over 10 per cent above its one-year high of C$0.98 seen on February 7.
Sierra Wireless Inc (TSX:SW)
The company provides hardware for internet-of-things as well as direct-to-cloud solutions. SW closed at C$26.61 Friday and saw its 52-week high on the day.
It is in the green so far this year by 19 per cent. It has zoomed 32 per cent in a month and over 25 per cent in the last five days.
It has grown over 61 per cent in a year and is 0.11 per cent less than its 52-week high of C$26.64 (May 13).
Optiva Inc (TSX:OPT)
OPT has gained nine per cent in a month and 20 per cent in six months. It closed Wednesday at C$24.
It’s 52-week high is C$31.06 which came on December 2, 2021, and it is 23 per cent lower than that. Its price-to-earnings (P/E) ratio is 5.7 and this indicates the number of dollars that needs to be invested to get one dollar of profit.
Absolute Software Corporation (TSX:ABST)
The stock of the software company closed at C$10.80 Friday. Its trajectory seems to be on the rebound.
In the last five days it has gained 18 per cent. On a one-month and three-month basis, its growth is 9.6 and 2.4 per cent, respectively.
Its 52-week high of C$18.22 came way back on May 14, 2021, and it is 41 per cent lower.
ABST pays a quarterly dividend of C$0.08 and its dividend yield is nearly three per cent.
Also read: PKT, SEV, QNC, VNP, CLS: 5 Canadian chips stocks to nab this correction
Bottom line
Most tech stocks have taken a beating this year. However, the recent performances of these tech stocks seem to show that they have done better.
With the exception of Sierra, they are currently trading fairly below their 52-week highs. But some of their valuation metrics leaves much to be desired. For instance, only OPT has a positive P/E ratio.
Also read: FFN, DF, DGS, LCS & FTN: 5 top TSX dividend stocks under $10
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.
