Forget Bitcoin: Buy This 1 TSX Stock Right Now

If you adhere to the core strategy of value buying and prefer buying assets when they are highly discounted, Bitcoin might seem very attractive right now, but it might not be a good bet.

| More on:
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

It takes time to develop the right investment habits and develop an eye for good assets, no matter what domain you are sticking to. But it takes an even longer time to break your old habits or keep them from influencing your investment approach when you are looking into a different asset class.

And that’s a shortcoming that makes several good stock investors bad crypto investors. Even though they understand that it’s an entirely different asset class and the crypto market has little to no overlap with the stock market in terms of patterns and movements, devising and implementing a unique asset-centric investment approach for seasoned stock investors proves difficult.

As a value investor, you might be very interested in Bitcoin right now because it’s trading at a discount compared to its recent peak. But you might have trouble determining whether it has reached rock bottom or will it sink further to a four-digit price tag. A safer approach would be to not risk tying your capital to an asset that you don’t fully understand and buy a stock that might have amazing long-term potential.

A payment technology company

Nuvei (TSX:NVEI) is a relatively new kid on the block. The company had the largest tech IPO in the tech sector (beating several other technology stocks by a significant margin) and raised $805 million in 2020. It has been less than a year since then, and the stock has only grown since then (about 119%), indicating that the interest is still strong in this tech company. Right now, it has a market capitalization of $14.1 billion and minimal debt.

Even though the company is quite expensive right now, the higher price tag is justified since it didn’t just have a ground-breaking entry in the market; it has steadily built up upon that. The stock didn’t spike the way other tech stocks did in the aftermath of the pandemic-driven crash, and it’s one of the reasons it wasn’t subjected to a correction like many others in the sector.

The revenues are also consistently growing, and the gross profit is in line, so the stock growth is not detached from the real numbers underneath the hood. The company is solid, but will it stay this reliable growth stock for the coming decade or so?

Nuvei prospects

Nuvei has an impressive presence. It has already entered 200+ global markets, works with 470 different payment methods, and offers payment solutions not just for 150 fiat currencies but 40 cryptocurrencies as well, and that’s what promises a promising future for the company.

The concept of using cryptocurrencies for routine payments is still in its infancy and will go through a lot of regulatory and adoption phases before it becomes commonplace. But when it does, companies like Nuvei, which already have the protocols, technology, and SOPs for it and have a global presence, might be ideally placed to profit from this transformation and get the early bird advantage.

Foolish takeaway

Nuvei has already proven its mettle as a one-stop payment solution for a wide variety of businesses and financial transactions, and it’s equipped to embrace cryptocurrency-based payments as soon as they pass through legal barriers. It has the tech and presence to compete with much more prominent names in the industry. All in all, the company has a lot of long-term upsides.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Tech Stocks

grow money, wealth build
Tech Stocks

How to Create $100,000 by Investing $500/Month

These two TSX stocks will aid you in building wealth of $100,000 over the next 8.5 years.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

This Battered Growth Stock Could Soar Over the Next 3 Months

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a top work-from-anywhere stock that may be in for a sizeable move to the upside in coming…

Read more »

financial freedom sign
Tech Stocks

3 Selloff Stocks That Could Set You Up for Life

Are you hoping to take advantage of the stock market selloff? Here are three stocks that could set you up…

Read more »

question marks written reminders tickets
Tech Stocks

Docebo (TSX:DCBO) Stock Is Still Down 63%: Should You Buy it?

The growth potential of many new tech stocks that joined the TSX during the pandemic may have been exaggerated, and…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

2 Growth Stocks Investors Should Buy Today

Are you looking for stocks to add to your portfolio? Buy these two growth stocks today!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Tech Stocks I am Buying During a Correction

High-growth tech stocks such as Docebo and Shopify should remain part of your buying list right now.

Read more »

exchange-traded funds
Tech Stocks

2 Tech Sector ETFs to Buy for a Recovery

Individual tech stocks might not fit the risk appetite of many conservative investors. Though, gaining exposure to the entire sector…

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks Are Back in the Game: Up to 83% Upside to Come!

Buying a basket of diversified growth stocks can accelerate your retirement plan. Alternatively, you can use profits for a nice…

Read more »