Shopify is likely to repeat its number one spot on the 2021 TSX30 List, the third edition of TMX Group’s flagship program. The e-commerce platform has returned 925.22% (116.63% compound annual growth rate). Thus far this year, however, the tech superstar has gained just 35.42%.
Lesser-known Converge Technology Solutions (TSX:CTS) flies under the radar but outperforms Shopify by a country mile. At $12.23 per share at writing, the trailing one-year price return is 611.05%. Had you invested $15,000 in this stock a year ago, your money would be worth $106,656.98 today. Meanwhile, the year-to-date gain is 140.68%.
Market mover Canada’s technology sector is a market mover and was TSX’s best performer in 2020. Shopify, the largest publicly listed company in the country, ranked number one and number two in the 2019 and 2020 editions of the TSX30 List. Tech stocks didn’t have an explosive start to 2021, but the sector is now the second-highest performer (+33.03%) after energy (+38.69%) as of September 3, 2021.
Lightspeed Commerce and Nuvei are following in the footsteps of Shopify. Absolute Software, Docebo, and Mogo are among the high-growth stocks. However, none of these popular tech names have delivered astronomical gains in 2021, like Converge Technology. Market analysts recommend a strong buy rating.
Brief overview Converge Technology Solutions is a $2.6 billion software-enabled IT & cloud solutions provider. The company is relatively young (five years old) but has an ambitious goal to address the most difficult IT challenges in the 21st century. Believe it or not, it’s also a parent company to 21 sister companies.
The Converge umbrella houses established and successful IT solution companies globally. Moreover, the family of specialists in technology solutions, IT portfolio management, and consulting services is still growing. The locations of Converge’s offices worldwide are in technology-driven metropolitan cities.
Advanced analytics, cloud, cybersecurity, digital infrastructure, managed services, and talent are among the available solutions or services. Management strongly believes that the multi-faceted approach will enable Converge to address the unique business and technology requirements, whether public or private sectors.
Converge added to its family recently Vicom Infinity and Infinity Systems Software. The former is a world-class IBM (NYSE:IBM) mainframe solutions provider, while the latter is a leading supplier of software and services for IBM platforms. Other new acquisitions include Dasher Technologies from Silicon Valley and German IT service provider REDNET AG.
Long growth runway Converge appears to have hit its stride in Q2 2021, given the impressive financial results plus another feather on its cap. Last month, the company made it to the CRN®’s 2021 Fast Growth 150 List (14th place) of the Channel Company. Management reported a 51.56% revenue growth versus Q2 2021.
Notably, net income was $3.72 million compared to the $5.57 million net loss in the same period last year. For the first half of 2021, total revenue reached $655.5 million, a 39.65% jump from the first half of 2020. Meanwhile, net income was $8.8 million as against the $7.16 million in net loss.
Exponential returns Many investors want to invest in Shopify, but the price is too high today. Also, several tech names offer massive growth potentials. However, if you seek exponential returns, Converge Technology Solutions is the logical choice. Buy the tech stock now before the price soars through the roof again.
The post 1 Tech Stock Not Named Shopify (TSX:SHOP) Delivered 600% Return appeared first on The Motley Fool Canada.
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Docebo Inc., Lightspeed POS Inc., and Shopify. The Motley Fool recommends Absolute Software Corporation and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
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