Three High Growth Canadian Tech Stocks to Watch

As we enter the fourth quarter, Canadian markets have experienced volatility following a strong performance in the first three quarters, with the TSX up over 14%, amid uncertainties related to global geopolitical tensions and economic indicators. In this context, identifying high-growth tech stocks becomes crucial as they often exhibit resilience and potential for expansion despite broader market fluctuations, making them worth watching in today’s dynamic environment.

Top 10 High Growth Tech Companies In Canada

Click here to see the full list of 24 stocks from our TSX High Growth Tech and AI Stocks screener.

Let’s dive into some prime choices out of from the screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Computer Modelling Group Ltd. is a software and consulting technology company that focuses on developing and licensing reservoir simulation and seismic interpretation software, with a market capitalization of CA$962.62 million.

Operations: CMG generates revenue primarily from developing and licensing reservoir simulation and seismic interpretation software, with reported revenues of CA$90.29 million. The company’s operations focus on providing specialized software solutions for the energy sector.

Computer Modelling Group Ltd. (CMG) is demonstrating robust potential within Canada’s high-growth tech landscape, underscored by its recent inclusion in the S&P Global BMI Index and a significant product launch. CMG’s Focus CCS tool, crucial for CO2 storage site validation, aligns with global net-zero ambitions and enhances its market position. Despite a dip in net income to CAD 3.96 million from CAD 6.9 million last year, CMG’s revenue surged to CAD 30.52 million from CAD 20.75 million, reflecting an annual growth rate of 11.5%. This growth trajectory is bolstered by expected earnings expansion at an impressive rate of 24.6% per year, outpacing the broader Canadian market forecast of 14.5%. However, investors should note the reduced profit margins from last year’s 29.2% to this year’s 19.7%, indicating areas needing efficiency gains amidst scaling operations.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stingray Group Inc. is a global music, media, and technology company with a market capitalization of CA$521.79 million.

Operations: Stingray Group generates revenue primarily from its Broadcasting and Commercial Music segment, which accounts for CA$201.10 million, and its Radio segment, contributing CA$154.41 million.

Stingray Group’s recent strategic moves, including the launch of its Stingray Karaoke app on VIZIO and innovative in-car entertainment solutions with Ford, underscore its commitment to expanding its digital entertainment footprint. The company’s R&D expenditures are pivotal, aligning with a 4.9% projected annual revenue growth, though this trails the broader Canadian market forecast of 7%. Despite a challenging profitability landscape, Stingray has repurchased 3.54 million shares this year, signaling confidence in its strategic direction while aiming for a turnaround with an expected profit surge of 69.2% annually over the next three years. This blend of technological innovation and aggressive market maneuvers positions Stingray to potentially reshape engagement in digital media spaces.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Vitalhub Corp. offers technology solutions for health and human service providers across various regions, including Canada, the United States, the United Kingdom, Australia, Western Asia, and internationally, with a market cap of CA$456.33 million.

Operations: The company generates revenue primarily from its healthcare software segment, which accounts for CA$58.32 million.

Vitalhub’s recent inclusion in the S&P Global BMI Index highlights its growing prominence in the tech sector. Despite a challenging quarter with a net loss of CAD 0.335 million, its year-on-year revenue growth to CAD 31.49 million and an earnings forecast predicting a robust annual increase of 65.9% demonstrate resilience and potential for recovery. This performance is underpinned by significant R&D investments aimed at innovation, crucial for staying competitive against industry growth rates of 13.5%.

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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.

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