Forget Bitcoin: Add This Top TSX Stock Instead

Forget Bitcoin: Add This Top TSX Stock Instead

Road signs rerouting traffic

The price of Bitcoin and its peers were down sharply in early afternoon trading on July 19. Bitcoin is now hovering around the US$ 30,000 mark after reaching above US$ 60,000 in the middle of April. That is a sharp plunge that has punished newcomers. Standard Canadian and U.S. indexes are not faring much better today. The S&P/TSX Composite Index was down over 320 points at the time of this writing. I’m ducking Bitcoin in this environment. However, there is one TSX stock that I’m still interested in even in this turbulent climate.

Here’s why I’m not buying into the Bitcoin dip

Back in May, I’d discussed why Bitcoin and its peers in the cryptocurrency space had encountered resistance. Digital currencies had been under fire from international regulators for months. Elon Musk, who had been something of a crypto cheerleader, hinted on social media that he may exit the market. Moreover, Tesla ditched its plans to allow consumers to buy its products with Bitcoin.

Bitcoin hit huge milestones over the past year. Canada launched the first-ever Bitcoin-focused exchange-traded fund (ETF) with Purpose Bitcoin ETF (TSX:BTCC.B). That ETF has plunged over 40% since making its debut in late February. I’m not eager to get in on this highly volatile market right now.

Look to this red-hot TSX stock instead in July

Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations in Canada, the United States, and around the world. This TSX stock proved resilient during the March 2020 market pullback. Its shares were up 2% in mid-afternoon trading on July 19. Can it defy broader market turbulence again?

Canadians should be excited about Kinaxis’s role in the supply chain software space. This spring, Allied Market Research projected that the global supply chain management market would reach $ 37.4 billion by 2027. This would represent a CAGR of 11% over the projected period. The COVID-19 pandemic has further complicated the system of global trade and intensified demands on companies. Kinaxis’s revolutionary software has the potential to play a role in smoothing that transition.

The company is set to unveil its second-quarter 2021 results on August 5. In Q1 2021, Kinaxis delivered revenue growth of 9% to $ 57.7 million. SaaS revenue increased 19% to $ 40.6 million. Moreover, the company released full-year guidance for 2021. The company projects SaaS revenue growth between 17-20% for the full year. Meanwhile, it anticipates total revenue to come in between $ 242-247 million, with an adjusted EBITDA margin between 11-14%.

Why I’m buying Kinaxis over Bitcoin

This TSX stock has regained momentum after suffering sharp dips in March and June of this year. Kinaxis’s success has put Canada into a leadership position in this developing market. Bitcoin, however, seems to be losing traction among the mainstream in the summer of 2021. Digital currencies are not going to disappear anytime soon, but the bull market we saw over the past 12 months seems to have petered out for the time being.

The post Forget Bitcoin: Add This Top TSX Stock Instead appeared first on The Motley Fool Canada.

We’re Issuing a BUY Alert on this TSX Space Stock

Our team of diligent analysts at Motley Fool Stock Advisor Canada has identified one little-known public company founded right here in Canada that’s at the cutting-edge of the space industry and recently completed a transformational acquisition, all while making a handsome profit in the process!

The best part is that in a market where many stocks are selling at all-time-highs, this stock is trading at what looks like a VERY reasonable valuation… for now.

Click here to learn more about our #1 Canadian Stock for the New-Age Space Race

More reading

  • 3 Irresistible TSX Tech Stocks to Buy Today and Hold Forever
  • Top 2 AI Stocks for Your TFSA
  • Kinaxis (TSX:KXS): Should You Buy the Dip?
  • The 3 Best Canadian Stocks to Buy With $ 300 Right Now!
  • $ 10,000 Invested in This Bitcoin ETF in February Is Worth This Much Today

Fool contributor Ambrose O’Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends KINAXIS INC.

The Motley Fool Canada