Growth stocks, specifically tech companies, have not fared particularly well over the past 12 months. While the S&P/TSX Composite Index posted a 20% gain last year many top growth companies ended the year at a loss. Today, there’s no shortage of growth stocks on the TSX trading far below 52-week highs.
Short-term investors may be hesitant to buy growth stocks in today’s volatile environment. It’s very possible that growth stocks will continue to slide even lower in the upcoming months. But if you’re investing for the long term, I’d strongly suggest putting some cash to work to take advantage of these discounted prices.
I’ve put together a list of three market-beating growth stocks that are all trading at a discount. From a valuation standpoint, shares may not necessarily be cheap. But investors can own any of these three companies for less than $100 right now.
A short report released in mid-December caused Nuvei to sell off an incredible 40% in a single day. While the report did include several serious allegations, shares have rebounded very well from that drop, highlighting investors’ confidence in the company.
Nuvei has only been a publicly traded company since late 2020. And even with a 40% selloff in December, shares are still up a market-crushing 75% since September 2020.
Considering how well the growth stock has rebounded from its lows, I don’t think it will be long before Nuvei is back to trading at all-time highs. I’d act fast if you’re interested in this tech company.
WELL Health Technologies
Telemedicine stocks have not fared any better than tech companies over the past year. In the early days of the pandemic, telemedicine stocks surged, as demand for virtual health services skyrocketed. But as the world has slowly continued to return to pre-COVID life, demand for telemedicine services has dramatically cooled off.
As a huge bull on the long-term growth opportunity of telemedicine, I couldn’t pass up these prices. I’m not a shareholder of WELL Health Technologies (TSX:WELL) yet but will be looking to add the company to my portfolio very soon.
The growth stock was up a whopping 400% in 2020. In comparison, the Canadian market was just about flat. Shares are currently down close to 50% over the past year, but WELL Health is still up close to 200% since the beginning of 2020.
Last on my list is another high-priced tech stock that’s trading at an opportunistic discount.
Docebo provides a range of different virtual learning platforms to customers spread across the globe. Unsurprisingly, the abrupt shift to remote work for many employees in 2020 caused a jump in demand for Docebo’s suite of virtual learning products.
Docebo is also relatively new to the public market, having only joined the TSX in late 2019. Since then, shares are up over 400%, easily outpacing the returns of the Canadian market.
The tech stock is currently trading close to 40% from all-time highs. This is a buying opportunity that long-term investors won’t want to miss.