LSPD - 4 Cheap Tech Stocks for Long-Term Investors
Amid the improvement in investors’ sentiments, the S&P/TSX Composite Index has bounced back strongly to rise close to 8% from last month’s lows. Despite the rebound, the following four tech stocks are trading at a substantial discount from their 52-week highs providing excellent buying opportunities for long-term investors.
Nuvei
Amid the recent recovery, Nuvei (TSX:NVEI) (NASDAQ:NVEI) has appreciated close to 30% from its last month’s lows. Despite the surge, it trades 63.5% lower than its 52-week high. The company’s NTM price-to-earnings has declined to 23.4, making it an attractive buy. With the rising popularity of digital payments, the company’s new alternative payment methods, geographical expansion of digital payment and cryptocurrency solutions, and new customer additions offer excellent growth prospects.
Nuvei is also strengthening its position in the online gaming and sports betting market through geographical expansion and signing agreements with major operators. Meanwhile, the company’s management expects its revenue to grow by 30% in the medium term while attaining an adjusted EBITDA margin of 50% in the long run. So, given its growth potential and discounted stock price, Nuvei could be an excellent buy for long-term investors.
BlackBerry
BlackBerry (TSX:BB) (NYSE:BB) , specializing in cybersecurity solutions, is trading around 62% lower than its 52-week high. Its lower-than-expected fourth-quarter earnings and weakness in the tech space have dragged its stock price down. However, the pullback offers an excellent entry point for long-term investors, given its multiple growth drivers.
The company is boosting its position in the high-growth IoT market through its strategic investments, such as IVY, design wins, and innovative product launches. It also focuses on expanding its customer base in the cybersecurity market, which is growing amid increased digitization and remote working and learning.
Given its growth potential, BlackBerry’s management expects an annualized growth rate of 13% through 2026. Also, its operating margin could improve at a rate of 1% annually while delivering an operating margin of 20% by 2027. So, its growth prospects look healthy.
Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD) (NYSE:LSPD) is another stock that a witnessed a substantial selloff compared to its 52-week high. Amid the correction of close to 79%, the company’s NTM price-to-sales multiple has declined to 5.5. Meanwhile, the addressable market for the company is rising amid increased adoption of omnichannel selling.
Meanwhile, Lightspeed Commerce also focuses on expanding its product offerings, increasing its geographical presence, and making strategic acquisitions to drive growth. Amid the favourable market conditions, the company’s management expects its revenue to increase by 35-40% this year. Its adjusted EBITDA losses could fall to 5% of total revenue. So, given its high growth prospects and discounted stock price, Lightspeed Commerce could deliver superior returns in the long run.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) is my final pick. It is trading at a discount of 57.5% from its 52-week high. The company’s NTM price-to-earnings multiple has declined to an attractive 17.6 amid the steep pullback. Meanwhile, the company continues to improve its financials, with its revenue growing at 395% in the recently reported first-quarter earnings. Its adjusted net income came in at $8.6 million compared to a net loss of $2.4 million in the previous year’s quarter.
Meanwhile, the demand for telehealthcare services is rising, benefiting the company. WELL Health has also announced to ramp up its acquisition strategy, which could boost its financials in the coming quarters. After its solid first-quarter performance, the company has raised its revenue guidance to $525 million from $500 million. Its adjusted EBITDA could come close to $100 million. So, given the favourable market conditions, improving financials, and attractive valuation, I am bullish on WELL Health.
The post 4 Cheap Tech Stocks for Long-Term Investors appeared first on The Motley Fool Canada .
The Motley Fool has positions in and recommends Nuvei Corporation. The Motley Fool recommends Lightspeed Commerce. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.
2022