With the recent sell-off in tech stocks, it’s time to accumulate shares of high-quality companies to outperform the broader market averages. Kinaxis (TSX:KXS), a Canadian tech stock, is one of those promising companies that you can grab now for a cheap price.

Demand for Supply Chain Management Software Is Rising

After a very long period of rock-solid returns, Kinaxis has had a tough couple of years. Amid the COVID-19 pandemic, the company’s stock price soared to over $220 per share. But its price has remained relatively flat since.

Why the popularity during the pandemic? Because of Kinaxis’ RapidResponse, a cloud-based subscription software for supply chain operations. It’s no surprise that demand for reliable supply chain management software hit an all-time high as the world came to a screeching halt.

Globalized businesses face complex issues, especially as COVID-19 mitigation efforts continue to impact the economy today. Platforms like RapidResponse are essential to minimizing supply chain disruptions as economic and border closures are wreaking havoc. On the other hand, the pandemic has had a negative impact on former customers. Some have been unable to renew contracts or postponed projects. The good news is that Kinaxis is gaining more business than it is losing, as the world continues to emerge from the pandemic.

One of the previous knocks on Kinaxis was the lack of diversification. But the company is currently working hard to reduce this.

Double-Digit Growth for 2022 and 2023

In terms of performance, Kinaxis achieved high growth in 2020, recording $300 million in revenue for the first time. However, for 2021, the company reported revenue of just $314 million. The slowdown in the use of its products and difficult year-over-year comparables have dragged Kinaxis down.

The tech company is expected to return to strong growth in 2022 and 2023, with double-digit growth in revenue and net income. 

Kinaxis Teams Up With TraceLink

Kinaxis has partnered with TraceLink to launch an out-of-the-box integration between TraceLink Supply Chain Work Management and Kinaxis’ Rapid Response Planning Platform.

By uniting Kinaxis’ market-leading supply chain planning solution with TraceLink’s digital networking and supply chain work management capabilities, supply chain managers will quickly access multi-enterprise execution tools needed to improve their integrated procurement planning and execution processes.