Got $3,000 in your pocket? 2 tech stocks to hold and buy for the long run


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I often like to recommend to investors starting out that they don’t put everything they have towards stocks. Even when it comes to their investment income. Instead, I recommend creating a budget, and based on your budget and income, you can usually put 5% to 10% aside per month.

Given that as of 2021, Statistics Canada says the average Canadian salary came in at about $60,000, that would mean putting aside about $3,000 per year. And in many cases, that’s $3,000 which continues to sit there, uninvested.

So today, I have a recommendation. While they’re down, I would say that tech stocks offer some solid long-term hold options. If you know where to look. And luckily for you, I do!

Open Text

If you’re going to find tech stocks to hold, they have to stand the test of time. One of those companies is Open Text (TSX:OTEX). The enterprise software company has been around for decades. It’s one of the tech stocks that also doesn’t depend on one source of revenue. Instead, it creates partnerships with some of the biggest brands out there, which should endure for years, if not decades.

Now, the company has moved from these major partnerships to supporting the work that it’s cut out for. This has meant rolling out new upgrades, as well as mergers and acquisitions. Open Text stock is now a strong company with a solid balance sheet, low risk tolerance score, and strong buy recommendation by analysts.

Shares of Open Text stock are down 12% in the last year, but again, we’re thinking long term. In that case, Open Text has climbed 951% in the last two decades! That’s a compound annual growth rate (CAGR) of 12.5% as of writing. So, this is certainly a strong contender if you’re looking for long-term tech stocks to hold.

CGI

Another solid, low-risk option is CGI (TSX:GIB.A). CGI stock has long been outperforming analyst estimates thanks to its strategy of buying, selling, and reinvigorating tech companies. It will pick them up on the cheap, only to turn them around and out in better shape than before. This coupled with its business consulting and IT solutions makes it a strong choice that will remain relevant for decades.

This was seen during its latest earnings report, with revenue up 11.6% to $3.5 billion year over year. Net earnings were up 4.1% as well, with diluted earnings per share (EPS) climbing by 7.4% compared to the year before. Yet, it still has a $25 billion backlog to look forward to!

Again, CGI stock has also been around for decades. In the last year, shares are up by 18.6%. However, in the last two decades, it’s up an insanely impressive 1,648%! That’s a CAGR of 15.4% during that time.

Bottom line

Not all tech stocks are risky. In fact, both of these tech stocks are low-risk options that continue to beat out analyst estimates. They’ve been around for decades, with a future outlook that proves they’ll be around for decades more. So long-term holders would certainly do well to consider them in their portfolio.

The post Got $3,000? 2 Tech Stocks to Buy and Hold for the Long Term appeared first on The Motley Fool Canada.

Should You Invest $1,000 In CGI Group?

Before you consider CGI Group, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in February 2023… and CGI Group wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 2/17/23

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More reading

3 Growth Stocks on the Move — and I’d Still Buy Them Hand Over Fist 3 Canadian Tech Stocks Worthy of Your TFSA 3 Growth Stocks to Buy With $1,000 Right Now 3 Growth Stocks to Buy With $1,000 Right Now The “AI Hype Train” and Which Stocks Are Your Ticket to Ride

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CGI. The Motley Fool has a disclosure policy.

https://www.fool.ca/2023/03/03/got-3000-2-tech-stocks-to-buy-and-hold-for-the-long-term/

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