This Undervalued Stock Could Still Double in 2021

If there’s one undervalued stock I would consider for 2021, it has to be Mogo (TSX:MOGO)(NASDAQ:MOGO), which could still double this year alone!

| More on:
Business success with growing, rising charts and businessman in background

Image source: Getty Images

This year has been volatile, to say the least. When the pandemic hit, sending the economy crashing, tech stocks went down right along with it. However, these tech stocks were some of the first to rise up from the ashes. In 2020, we actually saw astounding growth, but that growth proved short-lived. Almost as soon as 2021 hit, shares in tech stocks fell. But that created a time to pick up companies that would be considered undervalued stocks.

Today, there are fewer and fewer opportunities to find an undervalued stock that could still double in 2021. We’re now halfway through the year, but there are still opportunities. Today, I’m going to cover Mogo (TSX:MOGO)(NASDAQ:MOGO) and discuss why I think Motley Fool Canada investors should give it their attention.

Back off from Bitcoin

One of the reasons Mogo stock was getting so much attention was due to cryptocurrency. Bitcoin in particular rose to astounding heights this year. However, those astounding heights have since dropped to incredible lows. If you were looking for a get-rich-quick scheme, you found it, but it was really quick. It’s more likely investors would have seen share losses, not gains.

And that’s why cryptocurrency remains incredibly volatile. Yes, I believe cryptocurrency is the future. Governments around the world have even admitted as much, stating they would have to create their own cryptocurrency. So, it’s going to happen. However, right now, it’s a crazy time with too many options and too much to lose. Cryptocurrency is based purely on what people believe it’s worth to be, not on economies or performance.

There’s a different way to get in on the future of cryptocurrency with Mogo stock.

Fintech boom

There has been a boom in the financial technology industry over the last few years. Mogo stock has been a part of that and still has fantastic growth potential in its future. The $672 million fintech stock has seen share growth of 674% in the last year alone as of writing! However, shares were up over 1,000% just a few months back. That alone makes it an undervalued stock in my book.

But this undervalued stock is perfect for patient Motley Fool Canada investors. The company has a share price of just $9.50 right now, with announcements pushing the share price higher every day. The company increased its acquisition of shares in Coinsquare recently, a cryptocurrency platform, while also offering finance learning through its platform.

CEO and Founder David Feller has stated Mogo stock plans to become the most comprehensive digital wallet for Canadians. With Coinsquare under its belt, the company is well on the way to achieving this goal. It now offers MogoCrypto, MogoSpend, MogoMoney, and MogoMortgage, to name a few — all in the pursuit of financial health for its customers.

But that leads to your financial health as well. The company offers stable subscription revenue — revenue that’s increased 32% year over year as of the latest quarter. So, if there’s an undervalued stock that could double this year, Motley Fool Canada investors should definitely keep their eye on Mogo stock.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned.

More on Tech Stocks

Money growing in soil , Business success concept.
Dividend Stocks

3 TSX Stocks That Could Make You a Millionaire

These three TSX stocks each have outstanding potential while trading undervalued today, creating significant opportunities for investors.

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

money cash dividends

Canadian Investors: Where to Put $100 Right Now

If you have $100 to invest right now, here are two high-risk growth stocks that can grow your money fivefold…

Read more »

Caution, careful
Dividend Stocks

Top Investor-Favourite TSX Stocks to Avoid This Year

Here are two TSX stocks that could continue to underperform.

Read more »

question marks written reminders tickets
Tech Stocks

Will Slowing Google Ad Sales Drive Alphabet Stock Lower?

Google ad sales are trending lower in 2022 due to a weak macro environment. But Alphabet stock is trading at…

Read more »

Businessman holding AI cloud
Tech Stocks

2 Stocks That Could Grow Your Portfolio Over the Next Decade

These two TSX stocks could be stellar additions to your long-term portfolio, given their multi-year growth potential and discounted stock…

Read more »

Wireless technology
Tech Stocks

These Tech Stocks Are Growing up to 138% Despite the Recession

Growth stocks like WELL Health Technologies (TSX:WELL) are thriving, despite the recession.

Read more »

grow dividends
Tech Stocks

BlackBerry (TSX:BB) Stock: The Best Buy for Your RRSP

BlackBerry stock is still falling after its quarterly result, despite a 28% revenue increase in its Internet of Things segment.

Read more »