There’s a hot Canadian tech stock that’s gaining steam this year that isn’t named Shopify (TSX:SHOP)(NYSE:SHOP). With a fraction of the tech giant’s market cap, Kinaxis Inc (TSX:KXS) isn’t doing too badly for itself with its share price up over 70% since the start of the year. The tech company focuses on helping business improve their supply chain operations and make them more efficient. And right now, businesses need all the help they can get to keep their expenses down and to conserve cash as COVID-19 wrecks havoc on the economy.
Kinaxis reported its first-quarter results of 2020 last week, and its numbers looked good. Sales were up by 15% and although its bottom line was down from the prior-year period, it was still in the black. Perhaps more importantly, its cash from operating activities was up 12% to $21 million U.S.. And unlike many companies that have reported their earnings over the past few weeks, Kinaxis did not scale back its guidance for the year and instead said it said that its sales pipeline saw growth and it has brought on new customers as well.
Any business that’s seeing an uptick demand during the pandemic is one that investors should keep a close eye on, as it could be a good sign of the company’s resiliency. With Kinaxis having a modest market cap of $4.5 billion, it’s still a modestly sized company and the stock has ample room to grow. For investors looking for a good stock to hold on to during the pandemic, Kinaxis could be one of the better options out there.
