You Won’t Believe This: 3 TSX Stocks Surged Over 20% in 5 Days

The last five days saw some bull runs in the crypto and e-commerce stocks as some of the companies reported better-than-expected returns. 

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

The last five days were one of the best for three stocks. The payments technology company Nuvei (TSX:NVEI) surged 20.5% after its second-quarter earnings on August 10. But Hut 8 Mining (TSXV:HUT)(NASDAQ:HUT) stock surged over 36% in the last five days ahead of its second-quarter earnings. The crypto mining company is riding the Bitcoin bull as the digital gold begins an upward wave, rising over 50% in 20 days. 

Another company that enjoyed the Bitcoin saga is Hive Blockchain Technologies (TSXV:HIVE). Its stock surged 18% in the last five days as BTC price surged. Now the big question is, should you buy these stocks at their current price? 

Nuvei stock 

For those who don’t know, Nuvei joined the stock market last September and has shown a remarkable growth of 171%. Nuvei’s payment platform helps merchants expand by allowing them to accept and send payments globally. The company caters to several verticals like retail, travel, gaming, and financial services, but its key growth driver in e-commerce. 

There were concerns that the end of the pandemic might slow growth, but its latest earnings showed otherwise. Nuvei earns revenue from subscriptions and commission per transaction. It looks to improve both these figures by offering more payment forms like cryptocurrency, cards, and banks in different countries. Its second-quarter volume and revenue surged 146% and 114%, respectively, year over year (YoY). This is higher than the first quarter growth figures of 132% and 80%, respectively. 

The first quarter is seasonally weak for e-commerce. The second half will see an uptick in travel and retail as economies re-open and back to office and holiday season drive shopping. Nuvei will also partially benefit from the growing acceptance of crypto. However, I won’t call that a significant growth driver as of yet. But yes, a few years down the line, crypto will add to its transaction volume. 

The recent 20% surge in stock price is the outcome of these earnings. The stock has entered the overbought range of 81 Relative Strength Index (RSI), and it might see some correction in the next few days. That would be a good time to buy this growth stock. 

Hut 8 Mining  

Hut 8 Mining has a new feather in its cap. It became the first Canadian crypto mining company to list on the NASDAQ in June. It raised $115 million from the NASDAQ issue. The company mines and trades Bitcoin to earn revenue. It also started hosting services that allow individual miners to use its computing power to mine currency for a fee. 

Its second-quarter revenue surged 260% YoY to $33.5 million, of which hosting services contributed $2.2 million, and self-mining $31.4 million. Its Bitcoin balance was 3,824, with a market value of $166 million, as of June 30. As the BTC price fluctuates, so will the value and profits of Hut. 

A 36% surge is normal in crypto. But Hut stock has hit an overbought category and could see some correction. With some patience, you can buy the stock at a better price. 

Hive stock 

Like Hut, Hive is a blockchain technology company that not only mines BTC but also Ethereum. Like BTC, the price surged more than 50%, ETH price surged almost 75% in the last 20 days. Hive’s primary source of earning is selling or trading BTC and ETH, and the surge in crypto price is doing well for the stock. In the last two crypto bubbles, Hive stock touched a $4.7 (November 2017) and $6.8 (February 2021) peak.

The stock has already reached $4, and it is still a little below the overbought category. I expect the share to cross $5 before any correction comes, representing a 25% upside. 

You can either hop on to Hive rally to enjoy the 25% upside, wait for a correction and then buy, or divide your investment in now and later. You can also buy some shares now and more shares in another correction and benefit from both rally and dip. 

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 Puja Tayal 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

Man considering whether to sell or buy
Tech Stocks

BlackBerry Stock Is Down 20%: Buy the Dip or Call It a Pass?

BlackBerry stock has seen a series of 20% monthly dips since December 2023. Should you buy the dip or call…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Kinaxis: The AI Stock Investors Are Missing Out On

Kinaxis stock (TSX:KXS) is one AI stock you don't want to miss, with proven results and long-term contracts leading to…

Read more »

telehealth stocks
Tech Stocks

Forget Shopify Stock: 1 Tech Stock to Buy Instead

Shopify stock (TSX:SHOP) plunged by over 20% after earnings guidance for the second quarter came in lower, but this other…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Tech Stocks

Down 27% But Not Out: Why Dye & Durham Is a Buy Today

Dye & Durham stock reported a steep fall of 27% in two months. What happened? Should you be worried about…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

These 2 AI Stocks Are Set to Soar in 2024 and Beyond

Here are two of the best AI stocks in Canada that you can buy now and hold for at least…

Read more »

edit Sale sign, value, discount
Dividend Stocks

2 Bargains I’d Buy as They Dip Toward 52-Week Lows

Buying a stock at its 52-week low is a bargain when you are confident this stock will recover sooner or…

Read more »

stocks rising
Dividend Stocks

2 Market-Beating TSX Stocks That Are Still Buys Today

goeasy (TSX:GSY) stock has easily beaten the TSX. Together with Celestica (TSX:CLS), the growth stocks could gain much more value…

Read more »

Growth from coins
Tech Stocks

A Few Years From Now, You’ll Wish You Had Bought This High-Growth Stock

Are you looking for a high-growth stock that can make you a millionaire a few years from now? Then read…

Read more »