When it comes to finding dirt-cheap stocks, investors need to look to the future. Because even if a company doesnât look all that exciting now, there needs to be reason enough for the future to look like a bright investment.

Such is the case with some tech stocks. Companies that know where the future is headed, and I donât mean only with artificial intelligence (AI). So, with that in mind, letâs look at OpenText (TSX:OTEX) and CGI (TSX:GIB.A) and why these belong on your watchlist.

OpenText

With its solid financial performance, strategic cost optimization, leadership in key markets, ongoing innovations, and positive analyst recommendations, OpenText presents a compelling case for investment. As the company continues to strengthen its market position and optimize its operations, it stands out as a strong candidate for investors looking to capitalize on growth opportunities in the tech and information management sectors.

OpenText has consistently demonstrated robust financial health. In the third quarter (Q3) of 2024, the company reported a significant rise in profit, with a 71% increase in fiscal Q3 profit driven by higher sales. The total revenues for the quarter reached $1.45 billion, marking a 16% year-over-year growth. This solid performance underscores the company's ability to generate strong earnings and revenue growth, which is a positive indicator for potential investors.

OpenText has been proactive in optimizing its business operations. Recently, the company announced a "business optimization" plan, which includes cutting 1,200 jobs to streamline operations and improve efficiency. Additionally, OpenText completed a significant $2 billion debt reduction using proceeds from divestitures, which will strengthen its balance sheet and reduce financial risk.

OpenText continues to innovate and expand its market presence. The company has launched new AI-powered solutions to enhance cybersecurity and information management. Moreover, OpenText's FedRAMP authorization for its cloud solutions enhances its ability to serve federal agencies, opening up new revenue streams and market opportunities. Overall, the company looks like a stellar buy as AI and cybersecurity heat up.

CGI stock

CGI stands out as a strong investment opportunity due to its consistent financial performance, strategic expansions, recognized market leadership, and proactive shareholder value initiatives. With a positive outlook from analysts and ongoing growth in key sectors, CGI offers a compelling case for investors looking to add a reliable technology stock to their portfolio.

CGI reported impressive financial results for Q2 2024, beating analyst expectations with an earnings per share (EPS) of $1.46, compared to the expected $1.44. The company also reported revenues of $2.78 billion, slightly surpassing the anticipated $2.77 billion. This consistent ability to exceed expectations highlights CGIâs operational efficiency and growth potential.

CGI has been actively expanding its client base and strengthening strategic partnerships. Notably, CGI Federal has been selected to aid the Federal Bureau of Investigation (FBI) in its modernization initiatives, and the company has also expanded its collaboration with ExxonMobil to enhance payment and loyalty services. These partnerships not only enhance CGIâs market presence but also provide stable revenue streams.

CGI recently announced its intention to repurchase 2.89 million of its shares held by the Caisse de dÃpà ́t et placement du QuÃbec. This move is part of a broader strategy to return value to shareholders and indicates managementâs confidence in the companyâs future performance. Now, analysts are bullish on the stock, especially at these prices.

The post 2 Canadian Stocks to Watch While Theyâre Still Dirt Cheap appeared first on The Motley Fool Canada.