Stephen Takacsy - BNN - TOP PICKOwn all three of his top picks today- could be catastrophic? TECSYS (TCS TSX)
Tecsys is a Montreal-based company that develops and sells supply chain management software solutions. So, it’s really in a “sweet spot” right now. Its main clients are healthcare networks in the U.S., so hospitals and clinics are a segment it dominates, as well as complex distribution businesses like auto parts and omnichannel retailers. Its solutions are end-to-end from purchase order management and fulfillment, to inventory and warehousing, to accounting and analytics.
We recommended Tecsys at $15 back in 2019 and it was one of the 30 best-performing stocks on the TSX over the next three years reaching over $60. However, its share price has pulled back as a result of the sell-off in the tech sector, even though Tecsys is generating record sales and has a record backlog and a robust pipeline.
Tecsys is also profitable and pays a dividend. Its peer group is trading at significantly higher multiples, so the pull-back presents a great buying opportunity for a high-quality tech company. We think Tecsys could be a $100 stock within a few years and a likely takeover candidate down the road.