Becoming a successful stock market investor is not just about picking stocks on the TSX because the ticker has been performing well. Knowing exactly what you are investing in, why you are investing in it, and when you should buy the asset is crucial. If you are in it for the long haul, understanding these reasons and the business you are investing in is necessary for your success.
If you are purchasing a stock for long-term gains, adding an overvalued stock might not be ideal for your financial goals. However, if you feel that a stock is trading for a fair price or is undervalued, and the underlying business has the potential to deliver superior long-term performance, it might be worth adding to your portfolio.
Investing in technology has become increasingly popular over the years. Several tech firms have delivered stellar shareholder returns in recent years, and it would make sense for you to buy the shares of those companies that have more long-term upside to offer.
Today, I will discuss two companies you could consider investing in, as the winter freeze begins to set in.
Magna International (TSX:MG)(NYSE:MGA) is not technically a tech stock per se. It does provide tech-based solutions, among many other things, for the automotive industry. It is one of the largest Canadian car manufacturing corporations that boasts a massive $30.98 billion market capitalization. Magna International has operations throughout 28 countries worldwide, producing vehicles.
Besides the 3.7 million cars that have rolled off its production lines so far, the real reason to buy Magna International stock is the role it plays in the burgeoning electric vehicle and automated vehicle industries. The company has established partnerships with several industry giants to produce parts, boosting its revenues by a significant margin.
The stock trades for $102.83 per share at writing, and Magna International boasts a 2.15% dividend yield at writing.
Nuvei (TSX:NVEI) is a tech stock operating in the financial industry that is creating a big name for itself. It is a relatively new listing on the TSX. The stock began trading on the stock market in September 2020. The stock is trading for $160.90 per share at writing, reflecting an increase of almost 250% in just over a year of its debut on the stock market.
The Montreal-based tech stock boasts a $22.97 billion market capitalization. The company has established several tech-based solutions in the financial market and looks well-positioned to post stellar growth in the coming years. The company is also expanding its international presence. Nuvei recently acquired Paymentez, a company operating in Latin America that already boasts five million customers.
Between its performance in domestic markets and its expanding global presence, Nuvei stock could be well worth its expensive price tag.
Magna International stock and Nuvei stock both possess the potential to deliver stellar shareholder returns through the runway that lies ahead for both companies in their respective industries.
Magna International boasts more history that investors can reference to get an idea about its potential. Nuvei stock has only recently completed a year of trading on the stock market, but its performance so far is a strong indicator that the tech stock could be a multi-bagger for years to come.
If you are looking for ideal investments to add to your portfolio before the winter freeze sets in, these two stocks could be worth having on your radar right now.