3 Top Tech Stocks That Could Explode Higher

Want explosive growth in your long-term investment portfolio? Check out these top tech stocks immediately!

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Tech stocks are still a great place to invest your money for wealth creation in the long haul. Here are three top tech stocks that have the potential to explode higher down the road.

Converge Technology Solutions

Converge Technology Solutions (TSX:CTS) is a superb tech stock that’s experiencing explosive growth. The growth stock is a four-bagger from a year ago. It is making acquisitions here and there, which is translating to growth in its revenue, gross profit, and adjusted EBITDA — a cash flow proxy. For example, last quarter, its revenue jumped 52% year over year to $345 million, its gross profit climbed 43% to $78 million, and its adjusted EBITDA rose 86% to close to $22 million.

Recently, on a market correction in growth stocks, investors could have picked up shares at a discount of as much as 19% from its recent bought deal financing that priced shares at $10.55 per share. If you believe in the management’s ability to scale the business through an M&A and cross-selling strategy, the tech stock remains a good deal, despite recovering to $11 per share. In the near term, analysts believe an upside of approximately 25% is possible.

Nuvei

A little more than a year ago, Nuvei (TSX:NVEI)(NASDAQ:NVEI) closed the largest tech initial public offering (IPO) on the TSX until that point in time. The tech stock did not disappoint. Since then, Nuvei stock has been roughly a three-bagger. The company followed with an IPO in the United States earlier this month that raised more cash. The upsized offering pushed out 3,000,000 subordinate voting shares for US$123.14 per share, providing gross proceeds of approximately US$369 million to the company.

The payment-processing company provides a flexible platform for its clients, so that they can pay for what they need and add new functionality when they’re ready. The Nuvei platform markets itself as a “single point of connectivity for in-app, e-commerce, in-store and mobile payments.” It can also amazingly handle more than 500 payment methods and about 150 currencies.

The tech company’s trailing 12-month (TTM) revenue was US$537 million, up almost 70% year over year! Additionally, its gross profit margin remained high at north of 81%. Nuvei is growing in scale and with strong insider ownership, more great results could very well follow.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) stock could explode higher once it turns a profit, which could be a year or two away. Positive adjusted EBITDA is a good start. In the first half of the year, the tech company reported adjusted EBITDA of $12.4 million. Its TTM revenue of almost $117 million was a massive jump of just over 200% from a year ago thanks primarily to acquisitions.

The company is digitizing the traditional healthcare industry and making strategic acquisitions along the way. Particularly, management projects annualized revenue run-rate of approximately $400 million and adjusted EBITDA run-rate to approach $100 million from the full contributions of CRH Medical and MyHealth Partners acquisitions starting in the third quarter.

According to analysts, the tech stock trades at a big bargain with a discount of more than 40%. Therefore, it has near-term upside potential of over 70%, which is incredible. The stock has been trading in a sideways channel since October 2020 and seems to be waiting for a big event (like turning a profit) that could move the 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.

The Motley Fool recommends Nuvei Corporation. Fool contributor Kay Ng owns shares of Converge and WELL Health.

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