The low-key, but top-performing, Canadian tech stocks we’ve identified have had average sequential revenue growth of 11% quarter over quarter
SmallCapPower | December 2, 2019: Technology companies tend to spark investor interest as they are trendy and are the drivers of innovation in modern society. These companies are often characterized by rapid growth with the potential for big investor upside. Today we have discovered four Canadian tech stocks that have been quietly outperforming the TSX Composite Index.
*Share price data as at November 28, 2019, data obtained form S&P Capital IQ
Enghouse Systems Limited (TSX:ENGH) – $42.10
Technology
Enghouse Systems Limited develops and sells enterprise-oriented applications software worldwide. The Company operates through two main business segments: Interactive Management Group and Asset Management Group. The Interactive Management Group segment provides customer interaction software and services. Its technologies include contact center, attendant console, interactive voice response, dialers, agent performance optimization, and analytics that support various telephony environments. The Asset Management Group segment offers a portfolio of products to telecom service providers, utilities, and the oil and gas industry. Its products include operations support systems, business support systems, and mobile value-added services solutions, as well as data conversion services. On September 12, 2019, Enghouse reported Q3/19 financial results: EPS was $0.28 on revenue of $101.3M (which was up 14% QoQ), in-line with estimates of 0.28 and $103M.
- Market Cap: $2,302.6M
- 30-Day Return: +10.4%
- 90-Day Return: +9.6%
- 90-Day Average Trading Volume: 61,630
The Descartes Systems Group Inc. (TSX:DSG) – $57.32
Technology
Descartes Systems provides a variety of software and services related to logistics, including route planning and telematics solutions for delivery fleets; customs and regulatory filing solutions; logistics messaging solutions; and software used by freight forwarders to run their operations. Descartes generally charges its customers on a subscription or per-transaction basis. On September 4, 2019, Descartes reported Q2/19 financial results, highlighted by EPS of $0.11 on revenue of $80.5M, which beat analyst estimates of $0.08 and $80.3M, respectively. Descartes Group is expected to report Q3/19 results on December 4, 2019.
- Market Cap: $4,822.1M
- 30-Day Return: +11.3%
- 90-Day Return: +21.2%
- 90-Day Average Trading Volume: 125,400
Kinaxis Inc. (TSX:KXS) – $107.50
Technology
Kinaxis is a vendor of SaaS solutions for supply-chain planning. Its software provides customers with a control tower view of their supply chains, highlighting issues that may affect their ability to meet customer demand. It also allows customers to perform scenario analysis, allowing them to determine the impact that different decisions might have on their operations. On October 31, 2019, Kinaxis reported Q3/19 financial results, highlighted by an 11% increase in quarterly revenue to $47.1M and EPS of $0.17. Q3 results beat consensus estimates for revenue of $44.7M and $0.11 EPS.
- Market Cap: $2,819.4M
- 30-Day Return: +27.6%
- 90-Day Return: +37.1%
- 90-Day Average Trading Volume: 94,980
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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