Technology stocks have skyrocketed this year. The unprecedented COVID-19 pandemic highlights the profitability of technological progress. Companies that provided solutions for consumers and businesses to deal with during a pandemic were particularly successful this year.
Technology stocks currently report high price-to-book value ratios (P / S) and price-to-book value ratios (P / B), but there may still be some stocks that are suitable for purchase in software.
Here are three tops Toronto Stock Exchange Software stocks to consider purchasing in 2021.
Constellation Software inventory was successful last year
Constellation Software has issued the following statement regarding the impact of COVID-19 on the company:
“The pandemic can also adversely affect many of our customers, including our ability to meet our ongoing payment obligations, which can increase our bad debt exposure. Little is known about future implications and the resulting economic implications, and they are evolving rapidly. “
Technology success may not be over yet. Still, there is a risk of bubbles. Constellation Software has a price-to-book value ratio of 8.92 and a price-to-book value ratio of 37.93. For stocks with an annual dividend yield of only 0.31%, it may not be worth the risk.
CGI trading lower than pre-pandemic highs
CGI (TSX: GIB.A)(NYSE: GIB) Market sales in March fell from a 52-week high of $ 114.49 to $ 67.23. Investors are trading shares at $ 100.69 per share, which is only $ 13.80 lower than the pre-pandemic high at the time of writing.
President and Chief Executive Officer George Schindler said of last year’s fourth-quarter earnings:
“In the quarter, our relationships with trusted clients led to higher bookings and better cash generation. We saw a healthy pipeline of profitable growth opportunities, both through construction and purchase. We are in a position to continue to create value for our clients as they become increasingly dependent on technology to navigate these dynamic times. “
CGI announces first quarter financial results for 2021 January 27th. CGI has a price-to-book value ratio of 2.12 and a price-to-book value ratio of 3.57. The stock is generating strong cash and does not appear to be significantly overvalued by the pandemic. Still, bBefore betting on one of the stocks lost in the pandemic, take a look at how earnings moved in the previous quarter.
Nuvei reports strong earnings growth
Nuvey (TSX: NVEI) It fell from a 52-week high of $ 82.04 to $ 43.51 during the March market sale. Investors are trading shares on Friday for $ 73.25 per share.
Nuvei provides a cloud-based payment platform to merchants around the world. Philip Fayer, Chairman and CEO of Nuvei, is a member of the company. Powerful performance During the third quarter.
“I am very proud of everything we achieved in the third quarter when we embarked on our journey as a publicly traded company. Our performance, including total revenue of $ 11.5 billion and strong revenue growth, We are confident that it is a testament to our technology, the strength of our business model, and our focus on high-growth areas. “
Nuvei has a price-to-book value ratio of 29.59 and a price-to-book value ratio of 8.28, so it is not an overvalued stock. Just because these values are lower than Constellation Software does not mean that this is a better option. As with CGI, wait until Nuvei reports revenue before making the final purchase decision.
Stupid contributor Debra Ray There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Constellation Software. Motley Fool recommends CGI GROUP INC CL ASV.
Three Top TSX Software Stocks to Buy
https://www.fool.ca/2021/01/23/3-top-tsx-software-stocks-to-buy/ Three Top TSX Software Stocks to Buy