Yahoo Finance Exploring Constellation Software And 2 Other High Growth Tech Stocks In Canada
The market has climbed 1.4% in the last 7 days, led by the Financials sector with a gain of 2.2%. As for the past 12 months, the market is up 19%, and looking forward, earnings are forecast to grow by 15% annually. In this favorable environment, identifying high growth tech stocks such as Constellation Software can be key to capitalizing on these positive trends in Canada's market.
Top 10 High Growth Tech Companies In Canada
Name | Revenue Growth | Earnings Growth | Growth Rating |
|---|---|---|---|
Docebo | 14.71% | 33.96% | ★★★★★☆ |
Constellation Software | 16.17% | 23.55% | ★★★★★☆ |
HIVE Digital Technologies | 48.71% | 94.27% | ★★★★★☆ |
GameSquare Holdings | 38.08% | 86.64% | ★★★★★☆ |
Blackline Safety | 22.38% | 162.50% | ★★★★★☆ |
Medicenna Therapeutics | 62.37% | 57.20% | ★★★★★☆ |
Sabio Holdings | 12.97% | 122.50% | ★★★★☆☆ |
BlackBerry | 20.61% | 76.74% | ★★★★★☆ |
Cineplex | 7.33% | 179.27% | ★★★★☆☆ |
Alpha Cognition | 62.98% | 69.54% | ★★★★★☆ |
Click here to see the full list of 24 stocks from our TSX High Growth Tech and AI Stocks screener.
Let's explore several standout options from the results in the screener.
Constellation Software
Simply Wall St Growth Rating: ★★★★★☆
Overview: Constellation Software Inc., along with its subsidiaries, acquires, builds, and manages vertical market software businesses across Canada, the United States, Europe, and internationally with a market cap of CA$90.21 billion.
Operations: With a market cap of CA$90.21 billion, Constellation Software Inc. generates revenue primarily from its software and programming segment, which totals CA$9.27 billion. The company focuses on acquiring, building, and managing vertical market software businesses across various regions including Canada, the United States, and Europe.
Constellation Software's recent performance underscores its robust position in the tech sector, with a significant revenue jump to USD 2.47 billion in Q2 2024, up from USD 2.04 billion the previous year, reflecting a growth of about 21%. This surge is mirrored in net income which nearly doubled to USD 177 million. The launch of Omegro marks a strategic expansion, uniting over 30 business units under a global umbrella aimed at fostering sustainable growth and leveraging synergies across diverse software applications. With earnings expected to grow by 23.6% annually, outpacing the Canadian market's forecasted 15%, Constellation is not just expanding its operational footprint but also solidifying its financial foundations for future scalability.
Docebo
Simply Wall St Growth Rating: ★★★★★☆
Overview: Docebo Inc. operates as a learning management software company offering an AI-powered learning platform in North America and internationally, with a market cap of CA$1.79 billion.
Operations: Docebo generates revenue primarily from its educational software segment, which brought in $200.24 million. The company focuses on providing an AI-powered learning platform across various regions.
Docebo's recent leadership changes, with Alessio Artuffo stepping up as CEO, signal a strategic push towards enhancing its global footprint in the e-learning sector. This move coincides with an impressive turnaround in financial performance; Q2 2024 saw revenues rise to USD 53.05 million from USD 43.59 million year-over-year, alongside a swing to a net income of USD 4.7 million from a previous net loss of USD 5.67 million. Notably, Docebo has committed to further growth, projecting revenue increases between 18% and 19% for the fiscal year ending December 31, 2024. The firm also actively returned value to shareholders by repurchasing shares worth CAD 6.92 million between May and June under its buyback program, underscoring confidence in its operational strategy and market position despite intense competition within the tech landscape.
Kinaxis
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada, with a market cap of CA$4.42 billion.
Operations: Kinaxis Inc. generates revenue primarily through its cloud-based subscription software for supply chain operations, with the Software & Programming segment contributing $457.72 million. The company operates in multiple regions, including the United States, Europe, Asia, and Canada.
Kinaxis, amid a turbulent period marked by executive reshuffles and activist pressures, continues to demonstrate robust financial health and strategic agility. With a notable 137.9% surge in earnings over the past year and an anticipated growth rate of 48.9% per annum, the company is outpacing its industry significantly. This growth is underpinned by a 14.9% annual increase in revenue, which exceeds the broader Canadian market's expansion rate of 6.9%. Recent strategic moves include appointing Robert Courteau as Executive Chair to steer through these transitions while capitalizing on Kinaxis' strong position in the $16 billion supply chain management software market—an area where it remains a leader with its AI-driven platform Maestro, despite recent challenges highlighted by shareholders like Irenic Capital Management and Daventry Group advocating for corporate sales or restructuring to unlock value.
Click here and access our complete health analysis report to understand the dynamics of Kinaxis.
Evaluate Kinaxis' historical performance by accessing our past performance report.
Key Takeaways
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:CSU TSX:DCBO and TSX:KXS.
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