TFSA Investors: 2 TSX Tech Stocks Trading for a Bargain to Beat the Market

Consider investing in these two TSX tech stocks trading for attractive valuations to capture tax-free capital gains in your TFSA portfolio.

| More on:
stock analysis

Image source: Getty Images

The selling in high-growth tech stocks that began in the latter part of 2021 has continued in 2022, and it does not appear to be letting up. Some of the top Canadian tech stocks have lost a considerable portion of value from their market capitalizations.

Risk-averse investors are understandably avoiding tech stocks due to the capital risk. However, the decline has led to opportunities for growth-seeking investors with contribution room available in their Tax-Free Savings Accounts (TFSAs).

Investing in and holding shares of high-quality tech stocks that have taken a beating could help you beat the market by a substantial margin in the long term. Holding such assets in a TFSA could ensure that you get to keep more of your investment returns by providing you with tax-free growth.

Today, I will discuss two high-quality tech stocks that have taken a beating to trade for more attractive valuations.


Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a $9.76 billion market capitalization payment-processing company based in Montreal. Nuvei has become the largest non-bank and private payment processor in the country since it became a publicly traded company in 2020. The company boasts a growing portfolio of alternative payment methods, expanding into various high-growth verticals.

With new product launches and strategic acquisitions unlocking more revenue streams, Nuvei looks well positioned to deliver market-beating returns in the future. At writing, Nuvei stock trades for $68.81 per share, and it is down by over 60% from its all-time high levels in September 2021. It could be an ideal time to pick up the shares of the beaten-down tech stock for a considerable discount before its eventual recovery.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is a $4.94 billion market capitalization giant that has lost a considerable portion of its market capitalization amid the tech selloff. The leading point-of-sale and e-commerce software provider has several growth vectors that could offer the opportunity for substantial growth for years to come.

Being targeted by a negative short-seller report amid a broader downturn for the tech industry has led to a steep decline in its valuation, despite a strong operational performance.

At writing, Lightspeed Commerce stock trades for $33.30 per share, and it is down by a staggering 79% from its September 2021 highs. It remains to be seen how long its downward trend continues, but the growth stock is trading for attractive valuations that could make it an excellent long-term TFSA investment to capture market-beating growth.

Foolish takeaway

Suppose that you have contribution room available in your TFSA, a well-balanced portfolio, and you are looking for long-term and tax-free gains. In that case, choosing high-quality stocks trading for a discount could be an excellent way to go. It is important to remember that investing in growth stock entails a considerable degree of capital risk.

If you are willing to assume the risk for the promise of market-beating long-term returns, Nuvei stock and Lightspeed Commerce stock could be ideal investments for you to add to your TFSA for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Nuvei Corporation. The Motley Fool recommends Lightspeed Commerce.

More on Investing

Dividend Stocks

Turn a $10,000 Investment Into $844 in Cash Every Year

The power of compound interest from regular investments in quality dividend stocks can deliver solid long-term returns and make you…

Read more »

Dividend Stocks

Grab This 10.8% Dividend Yield Before It’s Gone!

This dividend stock is down 43% in the last year, and it's about to turn around in the near future.…

Read more »

grow dividends
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts 

If you are looking for dividend payouts of up to 7-11% of the stock price, now is the time, as…

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Dividend Stocks

For $1,000 in Annual Income, Buy 1,163 Shares of This TSX Stock

Fiera Capital is a popular TSX dividend stock as it currently offers a tasty yield of 13.3%. But is the…

Read more »

Early retirement handwritten in a note
Stocks for Beginners

Maximize Your TFSA Potential: 3 Stocks to Buy Today

TFSA investors seeking long-term income would do well to consider these three TSX stocks that could certainly maximize growth potential,…

Read more »

A plant grows from coins.
Dividend Stocks

Old Faithfuls: Canadian Stocks Whose Dividend Payments Rise Each Year

Income investors should feel safe and secure owning three dividend aristocrats, also known as the old faithful trio.

Read more »

dividends grow over time
Stocks for Beginners

Dollarama: This Safe TSX Stock Has Rallied in 9 Out of the Last 10 Years

These key factors make Dollarama one of the safest Canadian stocks to bet on for the long term.

Read more »

Retirement plan
Dividend Stocks

Boost Your CPP Pension With This Simple Hack

The CPP takeout decision is never easy, although one simple hack can significantly increase the pension payment.

Read more »