The Motley Fool

Millennials: Why Nuvei (TSX:NVEI) Will Make You Rich This Decade

Image source: Getty Images

The millennials grew into the most populous generation in North America by the end of the 2010s. This generation has also experienced two of the most devastating economic crises in modern history. Many were just entering the workforce during or after the 2007-2008 financial crisis.

Just as the generation hoped to gain a footing, they have been hit by the COVID-19 pandemic. For the broader population, this has generated conditions that are comparable to the Great Depression. Today, I want to discuss how a stock like Nuvei (TSX:NVEI) has the potential to richly reward millennial investors in the 2020s.

Why Nuvei is the perfect stock for millenials

Earlier this year, I’d discussed how millennial investors could turn $20,000 into $1 million over the course of a decade. We only need to look at recent history as stocks like Shopify have erupted since their initial public offerings. Millennials seeking growth should keep their eyes on the technology space.

Nuvei provides payment technology solutions to merchants and partners in North America and around the world. Its international expansion should power growth in the years ahead. The company released its third quarter 2020 results on November 11.

Total volume surged 62.5% year over year to $11.5 billion and adjusted EBITDA grew 59% to $41 million, expanding its footprint to nations like Russia, Singapore, Brazil, and others in Q3 2020. Nuvei has also expanded its support in the cryptocurrency space.

The 10 Best Stocks to Buy This Month

Click here to learn more!

Payment processing market: Where is it headed?

The concept of a cashless society may have seemed like a pipe dream a few decades ago. However, technological advances have illustrated that this future may not be so far. In 2017, the Bank of Canada released a survey that showed the volume of cash transactions had fallen from 54% in 2009 to 33% in 2017. Meanwhile, the value of cash transactions was 15% in 2017 compared to 23% in 2009. This is great news for payment processors like Nuvei.

A recent report from MarketsAndMarkets projected that the global payment processing solutions market would grow from $74 billion in 2020 to $120 billion by 2025. This would represent a compound annual growth rate (CAGR) of 10% over the forecast period.

Why millennials should consider the stock today

Nuvei made its debut on the TSX Index in the middle of September. Its shares have climbed 36% over the past three months as of close on December 30. Earlier this month, I’d recommended Nuvei stock for its explosive potential. Some millennials may be kicking themselves for missing out on the cannabis boom in the mid-2010s, or on recent Initial Public Offerings (IPOs) like Shopify or Kinaxis.

Millennials may also want to exercise patience and put Nuvei on a watch list as we enter 2021. Canadian stocks look overheated in late December. Better yet, millennial investors should lean on their long time horizon and add stocks like Nuvei using dollar cost averaging. This is a tech stock that could reward its shareholders very well by the end of the 2020s.

Millennials should look to these stocks in 2021 as well . . .

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends KINAXIS INC.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.