2 Growth Stocks to Buy Under $100

These two growth stocks have all of the upside in the world, and you can buy them really cheap.

| More on:
Dice engraved with the words buy and sell

Image source: Getty Images.

Many investors love to get a chance to invest in the top growth stocks. Unfortunately, a lot of these companies have seen their stocks appreciate to the point where certain investors may not be able to afford shares of the company. In this article, I will discuss two companies that have outstanding growth potential while not having extraordinarily high stock prices.

The fintech space is heating up

As the world becomes more digital, companies will need to adapt or be left behind. Nuvei (TSX:NVEI) provides a cloud-based payments platform to merchants in North America, Europe, Asia Pacific, and Latin America. In a very competitive landscape, this company has been able to secure a strong foothold in the payments space.

Over the past year, Nuvei’s merchants have processed a total annual volume of $35 billion. Of this, 71% was involved in an e-commerce-related sale, demonstrating the potential of Nuvei’s business. As e-commerce continues to grow, so too will the usage of its platform. Nuvei accepts 450 payment methods in about 150 currencies across more than 200 global markets.

The company has three forms of payments technology, that allow merchants to complete transactions. Its payments software can be used in-app, in e-commerce via an API, or in-store using hardware devices. The latter is what Nuvei identifies as its advantage over its competitors. While other companies rely on contactless purchases (think online shopping), Nuvei is able to add in-person payment options.

The company just recently started trading on the public market, after its initial public offering (IPO) in mid-September. Nuvei saw its stock hit a high of $58.88 before declining nearly 15% at the time of this writing. The current market weakness provides investors with an excellent opportunity to enter a position in the company.

Another payments-focused company can also be had for cheap

The second company that investors can buy under $100 is Lightspeed (TSX:LSPD)(NYSE:LSPD). This company has drawn comparisons to an early Shopify for its rapid growth and incredible potential. The fact that the two companies share overlaps in the same market may also give a reason for such comparisons. Lightspeed provides a cloud-based ecommerce enabling Software-as-a-Service platform to small- and medium-sized businesses.

The company’s customers are mainly restaurants and retailers. However, it has been working on diversifying into other industries. One of its most recent acquisitions has opened its doors to the market of golf course operators. Like Nuvei, Lightspeed’s customer base is largely international. More than 100 countries around the world use Lightspeed’s platform to operate their business. The company reported a $22.3 billion gross transaction volume in fiscal year 2020.

Lightspeed stock was crushed as a result of the COVID-19 pandemic, as investors expected small- and medium-sized businesses to feel the effects of global shutdowns the hardest. However, because of quick thinking by company management, Lightspeed actually saw an increase in customers over the year. As of Q1 2021, (Lightspeed’s fiscal year ends March 31) the company had 77,000 customers. This is a 51% increase over Q1 2020. Evidently, Lightspeed is still very much in the high-growth phase.

Foolish takeaway

You don’t need to look at the most expensive stocks to find companies with excellent growth. Nuvei and Lightspeed are both companies that have very long growth runways ahead, and they both trade under $100 at the time of this writing. This will allow smaller investors to get in on the companies, and also have more control on the size of the position in their portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

edit Sale sign, value, discount
Tech Stocks

Advanced Micro Devices Stock Is Trading at a Discount of 90% to Consensus Estimates

AMD stock is now trading at attractive valuations given its historical multiples, making it a top bet.

Read more »

TFSA and coins
Tech Stocks

3 TSX Stocks to Add to Your TFSA Today and Hold for the Next Decade

Do you have contribution room in your TFSA? Consider buying these high-growth stocks now.

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

Sinking Crypto Stock: Is Hut 8 (TSX:HUT) Worth Buying at $2.30?

A prominent crypto stock trading at an absurdly cheap price, but you must have a high-risk appetite to consider buying…

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Nasdaq Bear Market: Is Amazon Stock a Buy in Q4 2022?

Amazon stock is down 40% from record highs. But the trillion-dollar tech giant remains a compelling bet for long-term investors.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

2 Tech Stocks That Could Rise Faster With Easing Inflation

Two TSX tech stocks survived the market rout last week and could rise faster than their sector peers, as inflation…

Read more »

Maxar Technologies
Tech Stocks

2 Incredible Deals for Your TFSA Today

Investing in MDA Ltd. (TSX:MDA) could increase capital gains in a TFSA account, and here's one REIT to boost tax-free…

Read more »

Online shopping
Tech Stocks

Rebound Rockets: 2 TSX Tech Stocks to Buy Before They Soar

Beaten-down TSX stocks such as Lightspeed and Shopify should be on the top of your shopping list given they remain…

Read more »

stock research, analyze data
Tech Stocks

3 No-Brainer U.S. Stocks for Canadian Investors

Tech stocks may not seem like the best option right now, but these U.S. stocks are simply no-brainers in this…

Read more »