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The S&P/TSX Composite Index, a broad measure of Canadian stock market performance, hit a record high in May. Energy and materials sectors have shown resilience since the start of the year, and technology stocks are not left behind. Artificial intelligence (AI) is finding a way to underpin some of Canada's tech stocks, and the best-performing TSX tech stocks so far in 2024 include Celestica (TSX:CLS), Propel Holdings (TSX) :PRL), as well as lesser-known stocks. Copperleaf Technologies (TSX:CPLF) stock, an analytical software vendor.
Let's see if they can continue their rise.
Propel Holdings: AI-powered fintech stock
Leading the pack is Propel Holdings, a fintech stock that leverages proprietary AI to win new business at an astronomical rate and deliver higher profitability. Propel Holdings is up 94% since January, making it one of the best-performing TSX tech stocks.
The Company is an emerging credit provider to underserved high-yield consumer credit markets in the United States and Canada. The company's consumer brands MoneyKey and Fora are gaining traction. Revenue for the first quarter of 2024 increased 47% year over year. Net profit followed suit, increasing 77% year over year.
Confident about the company's business outlook, management raised the quarterly dividend on Propel Holdings shares by 8% in May, marking the fourth increase since early 2023.
Can stock prices continue to rise? Propel Holdings' stock price is likely to maintain its upward momentum until the second half of 2024. The company's AI-powered credit software is growing loan portfolios without compromising credit quality, which is a very encouraging sign. Additionally, its forward price/earnings (P/E) ratio of 8.3x compares attractively to the industry average P/E of 23.7, suggesting there is room for further price appreciation.
Celestica stock: Canadian tech veteran who grew like a startup
Celestica is a 100-year-old technology business that has grown like a startup these days. CLS stock has soared 81% so far this year, making it one of the best-performing TSX tech stocks in 2024 (so far). Despite a 366% capital gain over the past 12 months, the stock remains about as cheap as he was a year ago.
The global supply chain solutions and electronics manufacturing services partner was a manufacturing division within IBM for 75 years until 1996.
The strong demand for agile systems in the AI ​​era, combined with the strong recovery in the technology hardware market in recent years, is a win-win for Celestica. The company has continued to see strong revenue and profit growth recently, and will continue to post double-digit revenue growth in 2024.
Total revenue rose 20% to US$2.2 billion in the first quarter of 2024, with gross margins expanding as sales volumes increased. Management recently raised its revenue outlook for this year to US$9.1 billion from US$8.5 billion, seeing strength in the company's revenue line. Customer orders for faster server and storage components remain strong as companies invest in AI computing capabilities around the world.
Can stock prices continue to rise? Celestica stock remains an undervalued growth stock with a forward P/E of 14.2x and a P/E of growth stocks of 0.6x, meaning the market has not yet fully appreciated the company's earnings growth potential. It suggests. If the company repeatedly beats its long-term sales and profit growth targets of 10% per year and the cash-flow positive company persistently repurchases its own stock, the stock could maintain its upward momentum. .
Copper Leaf Technology Co., Ltd.
Shares of Copperleaf Technologies, a Canadian-based company that provides AI-powered analytics and decision-making technology, have risen 44% since the beginning of the year. However, despite the best performance, CPLF stock is still 65% below its all-time high recorded immediately after its 2021 initial public offering.
The $660 million small-cap enterprise decision analytics platform helps clients understand the complexities of capital projects while considering qualitative aspects such as environmental, social, and governance factors that influence the risk profile and valuation of large enterprise projects. Helps you make sound investment decisions.
Copperleaf targets a vast $12 billion market opportunity and promises customers higher return on investment and greater capital efficiency, while claiming up to 50% reductions in historical planning horizons .
The company is regaining revenue growth momentum, although profitability remains elusive. Revenue for the first quarter of 2024 increased 29% year over year, and sales balance increased his 32% to a record $145.5 million (equivalent to more than his five quarters of revenue).
If the current sales growth momentum continues, the stock could maintain its recovery momentum. However, even if his unit sales price is 8 times his, which is comparable to his industry average of 9 times, the profitability is low, so some caution should be exercised in investing.
