The technology sector keeps on outperforming the rest of the world stock markets. Most investors are focused on the Nasdaq. But what about the Toronto Exchange: TSX and TSXV? We have selected our top 3 tech stocks for 2017 on the TSX and TSX-V in Canada in this article.
TIO Networks: Our favorite tech stock for 2017 on the TSX Ventures
By far our favorite tech stock for 2017 in Canada is TIO Networks. We recommended the payment services sector a year ago, with TIO Networks being one of the selected tech stocks among our favorites. We wrote Why Investors Must Consider Payment Technology Companies In 2016, and meantime TIO Networks is trading close to 40% higher.
Tio Networks is a small cap with a $282M market cap. The company has a good management team, is doing acquisitions in a very thoughtful way, and is operating in a strong growth market. The prospects of the company are great, as evidenced by rising trading volume (see chart) and a stock price breakout in November of this year (see chart). This tech stock will go much higher in 2017.
As soon as Tio Networks will move to the TSX, it will attract even more attention and buying interest.
DIRTT Environmental: tech stock #2 for 2017 on the TSX
DIRTT Environmental Solutions provides 3D software for the construction market. The company has a market cap of $517M. It still categorizes as a small cap, but is trading on the TSX. The company broke out very recently, as seen on the chart below (purple circle). It tested its breakout point successfully last week, and seems now ripe to move much higher. We expect that this tech stock will challenge its all-time highs in 2017.
Edgewater Wireless: tech stock #3 for 2017
One of potential tenbaggers which we talked about multiple times on our blog is Edgewater Wireless. In July of this year, we wrote Edgewater Wireless Systems: Ten Bagger In The Making, right before the stock doubled in price. The company is a nano-cap with a market cap of $46M. It sits on a technology which will break through soon: adding capacity to WiFi access points. Think of public areas where you have been frustrated because WiFi was slow … Edgewater Wireless is solving that problem. The company was selected for funding as it has one of the most promising technologies. Once the company reaches critical mass in commercializing their technology, its stock price will take off.