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The market is likely to be driven by the COVID-19 vaccines in 2021. That economic recovery is going to drive numerous industries, but I still expect the tech stocks to remain on top.
Last year drove these stocks as the world recognized the necessity to get online. But even more than that, there are industries that will remain unmoved by market crashes in the future as these tech stocks continue to grow. That’s why I’m looking at these three tech stocks under $30, suggesting that you could see stellar returns in 2021 for even small investments.
Real Matters
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Shopify Inc.(TSX:SHOP)(NYSE:SHOP) has emerged as the most popular Canadian tech firm. The COVID-19 restrictions forced more businesses than ever to improve their online presence. As a result, the demand for Shopify’s cloud-based multichannel commerce platform skyrocketed last year. The company reported an 82% year-over-year surge in its sales in the first three quarters of 2020 combined to US$1.95 billion. It helped Shopify stock to post more than 170% annual gains for the second consecutive year.
Shopify will announce its latest quarterly results next week on February 17. Street analysts expect its outstanding sales growth rate to remain intact in the Q4. While Shopify’s near-term growth prospects are still great, these positive expectations are already priced in its stock, I believe.
Real Matters Announces Election of Directors
Real Matters Inc. a leading network management services platform for the mortgage and insurance industries, today announced that all of the nominees listed in Real Matters’ management information circular dated December 24, 2020, were elected as directors of Real Matters. The detailed results of the vote for the election of directors held at Real Matters’ Annual General Meeting of common shareholders held today … Real Matters Inc. (“Real Matters”), a leading network management services platform for the mortgage and insurance industries, today announced that all of the nominees listed in Real Matters’ management information circular dated December 24, 2020, were elected as directors of Real Matters. The detailed results of the vote for the election of directors held at Real Matters’ Annual General Meeting of common shareholders held today in Markham, Ontario are set out below:
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As small-cap stocks have a higher potential for growth than the bigger rivals, using a Tax-free Savings Account (TFSA) to invest in them would be a smarter move, as capital gains in a TFSA are not taxed.
Further, with the expected recovery in demand and economic expansion, now is the time to invest in small-cap stocks for outsized growth.
Jamieson Wellness
Jamieson Wellness(TSX:JWEL) has consistently performed well over the past several years and delivered strong organic growth. Its organic sales have grown at a CAGR (compound annual growth rate) of 8.9% since 2013, thanks to its strong product portfolio, sectoral tailwinds, and geographic expansion.
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Most of the Canadian tech stocks went through the roof and delivered exceptional returns in 2020, thanks to the structural shift in the way we work, shop, and learn. The pandemic-led lockdowns acted as a catalyst and provided a strong base for growth.
However, tech stocks witnessed selling in the recent past and surrendered some of their gains, which I believe is partly due to their stretched valuations and expectations that the tech stocks might lose steam as lockdown measures ease and the economy returns to normal.
Whichever scenario, I see the pullback in these high-growth tech stocks as a buying opportunity for long-term investors to generate outsized growth.