16 Top Tech Stocks for Millennials
We asked our Foolish analysts to name their top tech stocks for our Millennialaudience. Here are their choices:
Robin Brown: Descartes Systems Inc.
Although Descartes Systems (TSX:DSG)(NASDAQ:DSGX) is a pricey stock today, itis perfect for investors with a long investment horizon. It is a leadingprovider of logistics/supply-chain software, networks, and digital solutions.As global trade increasingly becomes complex, Descartes stands to benefit froma wave of customers seeking to digitize and optimize their logisticsplatforms.Descartes produces very predictable revenues (89% are reoccurring) andaccretes significant free cash flow. It has a $46 million net cash position,which it will likely deploy into accretive acquisitions this year. Betweenacquisitions and organic growth, management targets 10-15% adjusted EBITDAgrowth per year. Compound that over a lifetime and it makes for a pretty sweetCanadian tech stock to own.Fool contributor Robin Brown owns shares of DESCARTES SYS.
Vineet Kulkarni: Constellation Software
Constellation Software (TSX:CSU) stock has soared more than 3,500% in the lastdecade. The stock is currently trading close to its all-time highs and looksexpensive from the valuation perspective.However, I think the stock will continue its uptrend driven by rewardingacquisitions and solid earnings growth. A $32 billion company acquires smallersoftware companies with a leadership position in niche markets and offersmission-critical solutions.Its client base includes commercial businesses as well as government andrelated parties. Constellation’s software is hard to replicate, which bodeswell for longer-term customer relationships.Constellation’s strong earnings growth potential and unique business modelmake it stand tall among peers and justifies premium valuation.Fool contributor Vineet Kulkarni does not have any positions in the stocksmentioned.
Vishesh Raisinghani: Absolute Software
Just like any other millennial in his late-20’s, what matters to me most iswealth creation. In my opinion, the best way to create wealth is to invest ina company that’s at the epicenter of a wave of relentless demand. AbsoluteSoftware (TSX:ABT) fits that bill perfectly. The company provides endpointsecurity software that allows corporations to secure a range of consumerdevices, from smartphones to laptops. In the work-from-home era, this serviceis as critical as ever.I believe Absolute’s platform will be adopted by more corporations of allsizes in the years ahead. Meanwhile, the stock is trading at 30 times cashflow per share and offers a 2.3% dividend yield. An attractively priced growthopportunity.Fool contributor Vishesh Raisinghani has no position in any of the stocksmentioned.
Nicholas Dobroruka: Kinaxis
My top TSX tech stock for millennials for the month of July is Kinaxis(TSX:KXS). The $5 billion company specializes in providing cloud-basedsoftware to supply-chain operations. Perhaps not the most exciting industry topique the interest of a millennial, but the long-term growth potential shouldhelp generate some excitement. Year to date, the stock is already up more than80% while the S&P/TSX Composite Index is down by 10%. With half the year stillleft, it’s very possible this stock will see it’s price double by the end ofthe year.A major reason for the surge in performance this year has been due to anincrease in demand for the company’s products and services. As consumerpurchasing behaviour has been dramatically altered by the effects of theCOVID-19 pandemic, companies’ supply-chain operations have had their handsfull trying to keep up.This tech company might not be a household name among Canadian millennials,but there is plenty of growth still ahead for investors to be very bullishabout.Fool contributor Nicholas Dobroruka has no position in any of the stocksmentioned.
Kay Ng: CGI Group
Millennial investors should seek to park a good portion of their money in thetech space to defend against a COVID-19-shaken economy and for long-termgrowth.My top tech stock pick for July is CGI (TSX:GIB.A)(NYSE:GIB). As a companythat offers end-to-end services and solutions globally, it helps clientsmaximize their technology strategies. Therefore, the stock is not onlyresilient but likely grow through this economic downturn.CGI has a track record of double-digit growth. Since the tech stock has fallenabout 21% year to date, it trades at a reasonable valuation for investorsseeking long-term growth in a blue-chip name that has stable earnings power.Fool contributor Kay Ng does not own shares of CGI.2 TSX Tech Stocks That Pay Killer Dividends!TSX tech stocks continue to outperform the broader market in 2020. Whileeveryone likes the hot growth from technology stocks, an elite few also payvery attractive dividends.
Why own dividend-paying tech stocks?
These stocks are attractive for a few reasons. First, dividend-paying techcompanies must be disciplined in how they allocate capital. As they pay adistribution to shareholders, they simply can’t afford to waste money onpoorly-thought investments or acquisitions.Second, it generally demonstrates that the business model is stable and solid.You can only pay a dividend if you have a strong sight-line for cash flows.Third, these tech stocks have a holistic plan to reward shareholders. Whilekiller-revenue growth is awesome, at some point investors need earningstangible accretion on their capital investment. The only way to keep themarket happy over the long term is to steadily keep growing earnings and cashflows.
This technology stock is thriving during the coronavirus crisis
That said, the first dividend-paying technology stock is Calian (TSX:CGY).Although the stock is up 30% year-to-date, Calian still yields an attractive2.5%.Calian has a diversified business that provides solutions for public andprivate enterprises in the defence, education, healthcare, communications, andgovernment sectors. Last week, Calian enjoyed its seventh consecutive quarterof record revenue growth.Year-over-year, adjusted EBITDA and net profit increased 55% and 36%,respectively. Its largest business segments, Advanced Technologies, Health,and InfoTech saw organic revenues increase 67%, 16%, and 7%, respectively. Thecompany year-to-date has posted over $160 million of new contracts to itsbacklog.Calian’s diverse business is proving to be incredibly resilient, even in theCOVID-19 crisis. Calian has no debt and has $33 million of cash. It providesessential services that are vital in crisis environments (i.e., emergencymanagement solutions, health services, cyber security), so 2020 could actuallybe a strong year.Management affirmed its 2020 guidance, despite some dilution from a recentshare offering. This diversified tech stock is well equipped to excel in theCOVID-19 environment. Not only should Calian thrive now, but it has a strongfoundation to expand as the world normalizes.
This stock has got a solid growth platform
Sylogist (TSXV:SYZ) is a slightly less “growthy” tech stock. Even still, it’sup 13% year to date and is beating the TSX by a nice margin. Sylogist is aprovider of cloud-based Enterprise Resource Planning (ERP) solutions forpublic organizations, non-profits, NGOs, and school divisions.This tech stock has consistently been pumping out a nice, growing ~4%dividend. In fact, since 2015, Sylogist has grown its dividend by almost 60%.It just increased the dividend again by 10% in its second quarter!Additionally, 80% of revenues are derived from subscriptions and maintenance,so the company has a very consistent, stable revenue stream. The year 2019 wasa bit of a flat year for the company due to restructuring and other one-timecosts. Yet, in 2020, it is beginning to gain traction with some new products,services, and even a small acquisition.In Q2, Sylogist saw gross profit margins rise 2 percentage points to 75%.Adjusted EBITDA margins increased to 60%, and adjusted EBITDA increased 34% toa record $5.6 million.Like Calian, it is cash-rich ($44 million) and debt-free. This tech stockoperates very efficiently and has very little fixed costs, so it produces asignificant amount of free cash flow. The company’s long-time CEO will beleaving this year.As a result, Sylogist has undertaken a strategic review process. I believethis could potentially open up a new aggressive growth strategy or possiblylead to a take-over offer. Either way, the stock is probably going to do verywell over the long term.
Founder/s: Barnaby Hussey-YeoFounded year: 2016Total funding: £44.7MBased out of London, Cleo is a fintech app designed for Gen-Z to assist interms of finance. Last year, the company raised $44 million (approx £33.2million) in Series B funding led by EQT Ventures with participation fromexisting investors Balderton Capital, LocalGlobe, and SBI. Cleo also plans toexpand in the US further, as it continues to make leadership hires in the BayArea. You can check out available positions over here.Image credits: Palo Alto Networks
Palo Alto Networks
Founder/s: Nir Zuk, Rajiv Batra, Yuming Mao, Dave StevensFounded year: 2005Total funding: £50.7MPalo Alto Networks, Inc. is an American multinational cybersecurity companywith headquarters in Santa Clara, California. Its core products are a platformthat includes advanced firewalls and cloud-based offerings that extend thosefirewalls to cover other aspects of security. They’re hiring for multiplepositions in London.Image credits: Trustpilot
Founder/s: Peter H. MühlmannFounded year: 2007Total Funding: £139MTrustpilot is a leading independent review platform that is free and open toall consumers and companies. It is one of the most visited websites across theworld. Since its debut, it has followed a freemium SaaS business model and theCopenhagen company has outed several job roles for London. Further, they’realso doing remote hiring.Image credits: Finastra
Some tips for remote interviews
Talking about how job seekers can ace a remote interview, especially duringcurrent times, Gettrick notes, “Be really clear where your experience andpassion can make a difference. Founders are obsessed by their businesses, andthe people that join them to help realise their dreams are very important. Itreally is personal ! So know the business, research the founders and make sureyou really understand what it’s like to join a startup.”For interviewees, she shares a few tips from her experience, especially forremote interview processes.1. Check that the technology the company uses is working before you join themeeting – and especially your camera. 2. Try to relax and be yourself as much as you can, you are trying to createa connection and a lot of your body language isn’t visible. Smiling a lot, and ensuring eye contact are my two ‘go to’ tips when I ambeing interviewed – and I strongly recommend them both. 3. Show that you have researched the company and the person who isinterviewing you. It can help make a fast connection as you get to know eachother. 4. Follow up with a short email afterwards, thanking the interviewer. Itmakes you stand out, shows your commitment to the role and also keeps youfront of mind.