2 Top Canadian Stocks That Could Double in 2022

Growth investors will want to have these two discounted Canadian stocks on their shopping list this holiday season.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

Even with the market up just about 20% in 2021, it hasn’t been the strongest year for growth investors. Growth stocks led the way for the market’s strong rebound following the COVID-19 market crash in early 2020. But this year, many high-priced Canadian stocks have taken serious hits. 

For long-term investors, this could be an excellent buying opportunity. There’s no shortage of market-beating growth stocks trading well below all-time highs right now. If you can stomach the volatility, now is the time to invest in growth companies. 

I’ve got two discounted Canadian stocks at the top of my watch list right now. I’m already a shareholder of one of the companies, but I’ll be looking to add to my position before the end of the year. 

Canadian stock #1: Lightspeed Commerce

Don’t let Lightspeed Commerce’s (TSX:LSPD)(NYSE:LSPD) discounted price trick you; this is no cheap Canadian stock. Even with a 60% discount from all-time highs, Lightspeed is still trading at a steep valuation. 

Shares are valued at a price-to-sales ratio of 15. It’s not the most expensive growth stock on the TSX, but it’s still far from cheap. 

Lightspeed has been a richly valued Canadian stock ever since it went public in 2019. Investors have been willing to pay a premium because of the tech company’s long-term growth potential. 

Now valued at less than a $10 billion market cap, there are plenty of reasons to believe why Lightspeed could deliver multi-bagger growth in the coming years. 

The Montreal-headquartered company continues to gain market share in both the online and brick-and-mortar commerce space. The tech company has been reinvesting aggressively into the business to expand its robust product offering. In addition to that, it hasn’t been shy about making acquisitions, largely to grow its international presence.  

A short report in September and underwhelming quarterly results from November are the two main reasons why the Canadian stock is trading at a massive discount today. As a current shareholder, this is an opportunity that I’ll be looking to take advantage of.

If you’re going to invest in high-valued growth stocks, volatility should be expected. A 60% drop is definitely a large one but not all that uncommon for a richly valued growth stock like Lightspeed.

There’s no doubt in my mind that it won’t be long before Lightspeed is back to outperforming the market. In fact, there’s a good chance that this Canadian stock could be up more than 100% in 2022.

Canadian stock #2: WELL Health Technologies

Telemedicine was one of the hottest places to be investing in 2020. The pandemic created an abrupt rise in demand for telemedicine services, sending shares of many leaders in the sector soaring last year.  

WELL Health Technologies (TSX:WELL) ended 2020 at an incredible gain of 400%. Fast forward to today, and shares of the Canadian stock are down close to 50% from all-time highs. 

As we have slowly continued to move past the pandemic, it seems as if shares of WELL Health have done nothing but decline. The demand for telemedicine services has understandably dropped significantly year over year in 2020, driving shares of WELL Health downwards. 

Even with the recent pullback, though, the Canadian stock is still up more than 2,000% over the past five years. This growth stock is certainly no stranger to outperforming the market or growing 100% in just one year. 

As a huge bull on the growth potential of telemedicine, now is the time for long-term investors to pick up shares of companies like WELL Health.

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 Nicholas Dobroruka owns Lightspeed Commerce. The Motley Fool recommends Lightspeed Commerce.

More on Tech Stocks

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

Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold

A TSX growth stock is a top pick and profitable investment choice if you missed out on the ascent of…

Read more »

grow dividends
Tech Stocks

3 Tech Stocks That Could Make You a Millionaire

Given their long-term growth potential, these three tech stocks could deliver oversized returns in the long run.

Read more »

Businessman holding AI cloud
Tech Stocks

Ready to Invest in Artificial Intelligence (AI)? 2 Stocks That Are Solid Bets

These two AI stocks provide investors with strong future opportunities as AI continues to become a part of our everyday…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Down 88% from all-time highs, is Lightspeed stock a good buy in May 2024 and can the TSX tech stock…

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

Forget NVIDIA: 1 Tech Stock to Buy Instead

Here’s why Shopify (TSX:SHOP) stock could be a smart long-term buy for investors willing to look beyond NVIDIA’s impressive growth.

Read more »

Lights glow in a cityscape at night.
Tech Stocks

2 Artificial Intelligence Stocks to Buy and Hold for the Next Decade

Qualcomm (NASDAQ:QCOM) and another well-placed AI stock could drive substantial capital gains over the next decade. Here's how.

Read more »

Arrowings ascending on a chalkboard
Tech Stocks

This Small-Cap Stock Is up 20% This Year, and Here’s Why it Can Go Even Higher

Here's why investing in small-cap growth stocks such as Sylogist can help you beat broader market returns over time.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Up 51% This Year: This Canadian AI Stock is Still Down 65% From Its Highs – Time to Buy?

Copperleaf Technologies (TSX:CLPF) stock has shown positive momentum as the AI stock attempts a recovery. Can shares rise 180% to…

Read more »