I do know it doesn’t appear probably proper now, however a bull market is on the best way. Bull markets occur after we undergo an financial downturn and particularly after a recession. Often, a recession lasts about 11 months, on common in line with economists. As of writing, this downturn began one 12 months in the past in April 2022. And we haven’t even entered a recession. That’s the reason now’s the time to construct up your watchlist round a prime tech inventory.

Why a tech inventory?

Your complete tech inventory business went down proper in the beginning of the financial downturn final 12 months. It doesn’t matter what the corporate was or how properly it was doing, these shares fell dramatically. That’s precisely why you have to be them earlier than the bull market begins and making a stable watchlist.

Whereas the tech inventory you offered final 12 months is down now, in a development atmosphere, buyers will get excited as soon as extra. We’ve gone by downturns earlier than and been positive on the opposite facet. And as fearful as buyers will be, they’ll simply as simply flip excited.

However what tech inventory must you decide up for when the bull market begins?

Suppose long run

When you’re going to purchase a tech inventory, it’s essential suppose longer than simply the subsequent 12 months or so. As a substitute, you’ll need an organization that’s confirmed it may stand the take a look at of time. On this case, it wants to face the take a look at of financial uncertainty.

That positively decreases your choices, as there are a lot of new tech shares on the market. The issue is that they’re unproven in these attempting occasions, or they’ve confirmed they gained’t achieve this properly. As a substitute, you will discover a tech inventory that’s been round for many years. And sure, they exist.

Don’t go for essentially the most thrilling choice! As a substitute, look to a tech inventory that has a confirmed methodology of development and earnings. For that, I’d think about CGI (TSX:GIB.A).

Hitting highs

Whereas different tech shares sink decrease, CGI inventory lately hit its 52-week highs! Quarter after quarter, the corporate continues to beat out earnings estimates and continues to supply robust annual reviews as properly.

Most lately, it reported a first-quarter revenue, up 10% from the earlier 12 months, with income up 11.6% at $3.45 billion. But it nonetheless has a backlog of $25.01 billion in tasks. And there may be extra on the best way.

The corporate made a number of bulletins after the first-quarter outcomes, together with a 10-year extension with the US State Division, a brand new five-year take care of a French meals service firm, and a software program associate with Microsoft Cloud.

Backside line

CGI inventory continues to have a stable methodology of discovering robust software program that may be bettered and utilized by the tech inventory for these robust partnerships. But it nonetheless trades at a good 21.49 occasions earnings. I will surely think about shopping for it, even at these highs. It’s a tech inventory that’s already climbed 30% within the final 12 months however is up 392% within the final decade. And there’ll proceed to be extra room to run.