This Lesser-Known Canadian Tech Company is a Real Gem

One of the winners from the rally we've seen in technology stocks globally, Enghouse Systems (TSX:ENGH) has been discussed less than its counterparts. This often under-the-radar company is a stellar growth opportunity many investors may not be aware of due to its size and its Canadian listing. This company is in the business of acquiring various technology service businesses and has done a fantastic job of creating shareholder value in recent years.

One of the key segments Enghouse has focused on has been the Telemedicine segment, a business which has absolutely skyrocketed since the coronavirus pandemic took hold. These businesses are becoming increasingly profitable. Many investors are now starting to revalue these assets higher as the true growth potential of Enghouse’s portfolio is being considered. This is a high-flying stock for a reason, and with outperformance in Enghouse’s portfolio likely to continue for some time, the company's valuation could continue to remain elevated accordingly.

Enghouse’s balance sheet is solid, providing investors with hope that additional acquisitions could be on the horizon. With interest rates likely to remain low for years, companies that are able to borrow at rock bottom rates to gain high growth rates from investments will continue to do so, further increasing the value of growth investments an encouraging continued capital inflows into the stock like Enghouse, a bullish tailwind for long term investors.

Invest wisely, my friends.