{"id":182336,"date":"2020-08-04T19:24:06","date_gmt":"2020-08-04T19:24:06","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=182336"},"modified":"2020-08-04T19:24:06","modified_gmt":"2020-08-04T19:24:06","slug":"top-canadian-tech-stocks-docks","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/","title":{"rendered":"Top 5 Canadian Tech Stocks (DOCKS): Can they skyrocket like the FAANGs?"},"content":{"rendered":"<p><a href=\"https:\/\/stockchase.com\/company\/view\/67\/AMZN-Q\">Amazon<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/4277\/FB-Q\">Facebook<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> and <a href=\"https:\/\/stockchase.com\/company\/view\/4017\/TSLA-Q\">Tesla<\/a> have been blowing out their quarters and rocketing into the stratosphere, but what about their Canadian peers? It&#8217;s time to meet the DOCKS, the top 5 Canadian Tech Stocks.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Meet_the_Top_Canadian_Tech_Stocks_DOCKS\" >Meet the Top Canadian Tech Stocks (DOCKS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Top_Canadian_Tech_Stocks_Descartes_System_Stock_DSG-T\" >Top Canadian Tech Stocks: Descartes System Stock (DSG-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Top_Canadian_Tech_Stocks_Open_Text_Stock_OTEX-T\" >Top Canadian Tech Stocks : Open Text Stock (OTEX-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Top_Canadian_Tech_Stocks_Constellation_Software_CSU-T\" >Top Canadian Tech Stocks : Constellation Software (CSU-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Top_Canadian_Tech_Stocks_Kinaxis_Stock_KXS-T\" >Top Canadian Tech Stocks : Kinaxis Stock (KXS-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/top-canadian-tech-stocks-docks\/#Top_Canadian_Tech_Stocks_Shopify_Stock_SHOP-T\" >Top Canadian Tech Stocks : Shopify Stock (SHOP-T)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Meet_the_Top_Canadian_Tech_Stocks_DOCKS\"><\/span>Meet the Top Canadian Tech Stocks (DOCKS)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"font-size: 1.3em;\">\n<li>Descartes Systems (DSG)<\/li>\n<li>Open Text (OTEX)<\/li>\n<li>Constellation Software (CSU)<\/li>\n<li>Kinaxis (KXS)<\/li>\n<li>Shopify (SHOP)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Sure, <a href=\"https:\/\/stockchase.com\/company\/view\/5093\/SHOP-T\">Shopify<\/a>&#8216;s stock is orbiting Mars, but what about the rest of the Canadians DOCKS: <a href=\"https:\/\/stockchase.com\/company\/view\/391\/DSG-T\">Descartes<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/926\/OTEX-T\">Open Text<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/3413\/CSU-T\">Constellation Software<\/a> and <a href=\"https:\/\/stockchase.com\/company\/view\/5163\/KXS-T\">Kinaxis<\/a>? <span lang=\"en-CA\">In a pique of patriotism and the eternal search for yield, let&#8217;s look at these homegrown tech names and see how they stack up.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-182463\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/08\/DSG-T-1-760x254.jpg\" alt=\"Top Canadian Tech Stocks: Descartes Stock\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Tech_Stocks_Descartes_System_Stock_DSG-T\"><\/span>Top Canadian Tech Stocks: Descartes System Stock (DSG-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"DSG-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/DSG-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> Using the cloud, <a href=\"https:\/\/stockchase.com\/company\/view\/391\/DSG-T\">Descartes<\/a> takes care of the logistics behind shipping stuff for companies. They&#8217;re good at what they do and are considered a world leader in global logistics. True, the stock trades at a 154x PE and only 0.06% of shares are owned by insiders, but revenue growth tops 18% year-over-year, the one-year total return is 55% and over five-year stands at 241%.<\/p>\n<p>At the start of the pandemic, DSG tumbled from $62\/share to $44, but has since catapulted to $75, above its 50-day moving average of $71.70 and 200-day average of $60.90. Also, its quarterly earnings grew YOY by 50.9%. Descartes has momentum, especially with the Canadian economy recovering faster than expected. So, does it have more room to run? Analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1171\/Michael-Decter\">Michael Decter<\/a> observes that the Descartes Stock benefits from the chaos in trading goods, meaning Trump&#8217;s tariffs and threats against China as well as the ongoing pandemic will keep trade turbulent at least until the November 3 vote.<\/p>\n<p>A clue to the stock&#8217;s near future may lie in its chart of the past month, dipping to $70 before bouncing back to its current $75. I&#8217;m not a technical analyst, but $75 may represent a resistance level as we enter August, historically a time for pullbacks. Though not heavily covered like <a href=\"https:\/\/stockchase.com\/company\/view\/5093\/SHOP-T\">Shopify<\/a>, Descartes boasts fans on Bay Street, and has long blown past its price target of $57.47. (Dividend investors are out of luck, since Descartes is like most tech stocks and doesn&#8217;t pay a divvy.) Buy on weakness.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-182461\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/08\/OTEX-T-2-1-760x254.png\" alt=\"Top Canadian Tech Stocks : Open Text\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Tech_Stocks_Open_Text_Stock_OTEX-T\"><\/span>Top Canadian Tech Stocks : Open Text Stock (OTEX-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"OTEX-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/OTEX-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> I wrote about this stock <a href=\"https:\/\/stockchase.com\/discover\/bnn-stock-picks-summer\/\">recently<\/a>, so I won&#8217;t repeat my assessment here. However, I will sum things up by saying that <a href=\"https:\/\/stockchase.com\/company\/view\/926\/OTEX-T\">OTEX<\/a> has increased only 5.3% year-to-date, but has the potential to perform much better once the U.S. contains COVID-19 and gets back on the economic track.<\/p>\n<p>Another tailwind is OTEX&#8217;s recent cloud agreement with <a href=\"https:\/\/finance.yahoo.com\/news\/opentext-announces-cloud-agreement-amazon-200200634.html\" target=\"_blank\" rel=\"noopener\">Amazon Web Services<\/a>. If this isn&#8217;t a buy now, it&#8217;s definitely one to place on your radar.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Tech_Stocks_Constellation_Software_CSU-T\"><\/span>Top Canadian Tech Stocks : Constellation Software (CSU-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"CSU-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CSU-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> <a href=\"https:\/\/stockchase.com\/company\/view\/3413\/CSU-T\">Constellation Software<\/a> <a href=\"https:\/\/stockchase.com\/expert\/view\/1282\/Barry-Schwartz\">Barry Schwartz<\/a> thinks low interest rates gives the Constellation Software stock an advantage. If you believe interest rates will continue to be low, the company&#8217;s business model is very attractive. It can use the cashflow to continue acquiring software companies.<\/p>\n<p>It will probably become an enormous company and continue to grow. It is undervalued. Constellation Software is <a href=\"https:\/\/stockchase.com\/expert\/view\/67\/David-Baskin\">David Baskin<\/a>&#8216;s favourite among the DOCKS stocks. They make good acquisitions shrewdly, which made them grow into the dominant Canadian name. He thinks it&#8217;s a better bet until <a href=\"https:\/\/stockchase.com\/company\/view\/5093\/SHOP-T\">Shopify<\/a> starts being consistently profitable.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-182462\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/08\/KXS-T-1-760x254.png\" alt=\"Top 3 Canadians DOKS: Kinaxis\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Tech_Stocks_Kinaxis_Stock_KXS-T\"><\/span>Top Canadian Tech Stocks : Kinaxis Stock (KXS-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"KXS-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/KXS-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> <a href=\"https:\/\/stockchase.com\/company\/view\/5163\/KXS-T\">Kinaxis<\/a> offers cloud-based supply chain management software to businesses in defence, cars, consumers products, electronics, pharma and elsewhere. Business isn&#8217;t good; it&#8217;s great. Kinaxis has beat its last four quarters (and next reports on August 5). YOY revenue growth is 27.57% and the company boasts a one-year return of 141% and 433% over five.<\/p>\n<p>It trades at a PE of 126.58x. (Again, no dividend.) Since the March 23 bottom, KXS has steadily climbed to its current $200, but like <a href=\"https:\/\/stockchase.com\/company\/view\/391\/DSG-T\">Descartes<\/a>, Kinaxis shares recently slippedy. KXS hit a high above $211 in early July, slipped to $187, then climbed to its current $203. Is this rally running out of steam? Kinaxis&#8217; next earnings report will be pivotal. No doubt that its numbers will continue to be strong, but will they match the street&#8217;s lofty expectations? Audrey Omelchak would still buy at these levels, given KXS&#8217; highly recurring revenues and quality clients. She also sees a chance for KXS to penetrate deeper into this wide market.<\/p>\n<p>Two months ago, <a href=\"https:\/\/stockchase.com\/expert\/view\/1324\/James-Telfser\">James Telfser<\/a> championed the stock, partially for the company&#8217;s huge backlog of orders. I prefer <a href=\"https:\/\/stockchase.com\/expert\/view\/1315\/Darren-Sissons\">Darren Sissons<\/a>&#8216; assessment: the valuation is high and this will tumble during a market correction. But long-term, Kinaxis is a winner and a Canadian success story.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-182460\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/08\/SHOP-T-4-1-760x254.png\" alt=\"Top Canadian Tech Stocks: Shopify Stock\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Tech_Stocks_Shopify_Stock_SHOP-T\"><\/span>Top Canadian Tech Stocks : Shopify Stock (SHOP-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"SHOP-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/SHOP-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> A <a href=\"https:\/\/stockchase.com\/company\/view\/5093\/SHOP-T\">Shopify<\/a> bull and bear recently meet on a patio over drinks:<\/p>\n<p><i><span lang=\"en-CA\">Bull: <\/span><\/i><span lang=\"en-CA\">This stock is on steroids! Crazy momentum. A ginormous homegrown success. With brick-and-mortar flocking online, Shopify can only benefit and continue to surge.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bear: <\/span><\/i><span lang=\"en-CA\">Yeah, a tremendous run, but based on what? I read somewhere that the PE of the U.S. stock is 1,100x! And I thought <a href=\"https:\/\/stockchase.com\/company\/view\/4017\/TSLA-Q\">Tesla<\/a> was nuts at 774x. To compare, <a href=\"https:\/\/stockchase.com\/company\/view\/820\/MSFT-Q\">Microsoft<\/a>&#8216;s is only 35x. Sure, Shopify is on a run, but it&#8217;s fueled by hype and speculation. It&#8217;s like the days of weed stocks before legalization or when Bitcoin went ballistic.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bull: <\/span><\/i><span lang=\"en-CA\">The online retail trend is here to stay. Sure, big pharma is accelerating the testing of COVID vaccines faster than at any other time , but it&#8217;s still going to take at least a few months before anyone announces a breakthrough and customers flood back into shops. Until then, Shopify will soak up all this e-commerce demand.<br \/>\n<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bear: <\/span><\/i><span lang=\"en-CA\">I don&#8217;t doubt the online trend, but I would like to see more profit growth in Shopify. It comes down to the numbers. A lot of good news has been baked into the price already. Parabolic growth always sees parabolic falls.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bull: <\/span><\/i><span lang=\"en-CA\">What about Tesla? A few years ago that stock shot up and investors like you were skeptical. Look where Tesla is now.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bear: <\/span><\/i><span lang=\"en-CA\">Tesla&#8217;s also overbought by hype.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bull<\/span><\/i><span lang=\"en-CA\">: You&#8217;re missing out.<\/span><\/p>\n<p><i><span lang=\"en-CA\">Bear: <\/span><\/i><span lang=\"en-CA\">You&#8217;re gonna lose your shirt. Me. I&#8217;d rather buy gold.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon, Facebook, Apple and Tesla have been blowing out their quarters and rocketing into the stratosphere, but what about their Canadian peers? It&#8217;s time to meet the DOCKS, the top 5 Canadian Tech Stocks. Meet the Top Canadian Tech Stocks [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":182464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[480,483,481,479,482],"class_list":["post-182336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists","tag-canadian-tech-stocks","tag-constellation-software-stock","tag-descartes-stock","tag-docks-stocks","tag-shopify-stock"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/182336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=182336"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/182336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/182464"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=182336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=182336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=182336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}