Your $1,000 Today Could Grow to $3,573 in 1 Year

Investors can realize sizeable gains in the near term by taking positions in two undervalued tech stocks today.

| More on:
Growth from coins

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Many stocks trade below their intrinsic or real values in 2022. You can own them at bargain prices and realize sizable gains in the near term. Based on analysts’ price forecasts, Mogo (TSX:MOGO)(NASDAQ:MOGO) and Acuity Ads Holdings (TSX:AT)(NASDAQ:ATY) are buying opportunities.

With an average return potential of 257.35%, a $1,000 investment today could grow to $3,573.50 in one year. The current underperformance could be due to the general pullback of tech stocks. Thus far this year, the information technology sector is worst performer among 11 primary sectors. However, the business outlooks for Mogo and AcuityAds are both positive.

Financial health in the modern world

Mogo’s simple digital solutions attract investors, particularly the younger folks or millennials. The $222.93 million fintech and digital payments firm is also a crypto company. Its founder and CEO, David Feller, said, “We are still in the very early days of fintech adoption, as consumers look for solutions that are built for the modern world.”

With a slew of financial products and services, the member base is growing significantly. After the first three quarters of last year, membership is close to 1.8 million. In Q3 2021, management reported 58% and 126% growth, respectively, in total revenue and subscription & services revenue versus Q3 2020.

Mogo, however, incurred a net loss of $9.8 million compared to the $1 million net income in the same quarter in 2020. Management said it proactively scaled back on growth spending during the pandemic. Still, the diversified set of products continues to drive revenue streams.

Greg Feller, Mogo’s president and CFO, said, “Our third-quarter results were again highlighted by another quarter of accelerating growth in subscription and services revenue.” He added that the company will invest heavily to build a next-gen fintech platform.

Mogo wants to capture a significant share in a huge addressable market with long-term tailwinds. MogoTrade, a commission-free stock trading solution, is the company’s most significant product development to date. The fintech stock carries a strong buy rating from analysts. It trades at $2.92 per share but could potentially climb 351% to $13.17 in 12 months.

Leader in the digital ad space

AcuityAds has yet to report its full-year 2021 results, although the financial results after the first three quarters were mighty impressive. Net income reached $8.08 million compared to the $474,410 net loss in the same period in 2020. Illumin, an advertising automation platform is the key growth driver.

This $210.41 million technology company provides a powerful and holistic solution for digital advertising across all ad formats and screens to amplify the reach of marketers. AcuityAds boasts an industry-leading activation platform based on proprietary AI technology.

AcuityAds leverages an integrated ecosystem in the digital era to meet the demand and requirements of marketers. The near-term goal is to extend the company’s leading position in the digital space. Management will continue to support Illumin by putting additional marketing, sales, and product development resources. It should enhance its long-term growth trajectory. 

If you invest now, the tech stock trades at $3.47 per share. The 12-month average price target of market analysts is $9.15, or a 163.7% upside potential.

Visible growth

The investment thesis for Mogo and AcuityAds is visible growth that should lead to profitability. Both companies are well positioned to cement the foothold in their respective industries.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns and recommends AcuityAds Holdings Inc.

More on Tech Stocks

clock time
Tech Stocks

Now’s the Time to Load Up the TFSA With These 2 Top TSX Stocks

Here are two top TSX stocks that long-term growth investors may not want to give up on, especially at these…

Read more »

shopping online, e-commerce
Tech Stocks

Shopify (TSX:SHOP) Stock Recovers 30% From its 3-Year Lows: Should You Buy?

Shopify stock: Should you buy the dip or wait for more weakness?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

What Market Correction? 2 High-Growth Tech Stocks That Are on the Rise

I don’t think it will be long before these two Canadian tech stocks are back to delivering market-crushing returns.

Read more »

grow dividends
Tech Stocks

Why Kinaxis (TSX:KXS) Stock Jumped 14% Last Week

Kinaxis Inc. (TSX:KXS) stock popped over the past week after adding yet another big company to its impressive stable.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

TFSA Investors: Double Your Investments With These 3 Top Growth Stocks

Despite the volatility, I am bullish on these three stocks, given their solid growth potential.

Read more »

Arrow descending on a graph
Tech Stocks

2 Industries That Saw the Worst Decline Last Month

The TSX has been declining at a sharp angle since the beginning of June. And two industries (crypto and cannabis)…

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

Growth from coins
Tech Stocks

Got $1,000? Buy These 3 Under-$20 Growth Stocks to Earn Higher Returns

These under-$20 growth stocks can deliver solid returns in the long run.

Read more »