Kalkine Media - In the past year, many tech stocks have faced significant challenges in the market, prompting investors to seek alternatives. However, several Canadian stocks have defied the trend, outperforming the market and delivering substantial returns for investors.
Today, let's focus on TSX small-cap stocks from the tech segment that have demonstrated strong growth potential and could offer long-term gains, especially in times of market downturns.
Celestica (TSX:CLS) (TSX:CLS)
Celestica has emerged as one of the top performers among tech stocks in recent times, with its shares surging by an impressive 186%. As a multinational electronics manufacturing services company, Celestica has evolved from its origins as an IBM (NYSE:IBM) subsidiary to become a leader in supply-chain solutions.
The company's revenue growth has been robust, recently reporting a 9.81% increase year over year, reaching $7.96 billion. This growth is attributed to long-term contracts with major tech firms. Moreover, Celestica's positive free cash flow enables further investment in research and development, underpinning its strong long-term strategy.
CGI (TSX:GIB.A)
CGI stands out as another top small-cap tech stock, solidifying its position as one of the largest IT services firms globally. Offering a wide range of IT services to stable institutions, including governments, financial services, and healthcare, CGI has demonstrated strong organic growth and strategic acquisitions.
With ongoing demand for IT services, CGI is expected to maintain its dominance in the industry. The company reported revenue growth of 11.1% in the last year, reaching $14.3 billion. Shares have climbed by 23.5% in the same period, reinforcing its position as a strong contender for investors.
Descartes Systems (TSX:DSG) Group (TSX:DSG)
Descartes Systems Group is another small-cap stock worth considering, valued at $10.11 billion. Specializing in logistics and supply-chain management software solutions, Descartes has become a global leader in the industry, providing cloud-based platforms and services.
The company reported record revenue of $144.7 million, up 19% from the previous quarter, reflecting its strong performance and growth trajectory. Despite a recent dip in earnings per share, Descartes remains a compelling investment opportunity, with shares up by 21% in the last year.
In conclusion, these small-cap tech stocks have demonstrated resilience and growth potential, making them attractive options for investors seeking long-term gains.