Why Nuvei Stock Has Zoomed Nearly 30% in 2 Days

Nuvei stock’s recent rally comes as the biggest relief for its investors since December, when a short report led to its massive selloff.

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What happened?

Nuvei (TSX:NVEI)(NASDAQ:NVEI) stock has surged by more than 29% in the last couple of sessions against a moderate 1% rise in the TSX Composite Index. With this, NVEI stock now trades at $73.03 per share — its highest closing level since February 16. These recent sharp gains have helped Nuvei stock limit its year-to-date losses to around 14%.

So what?

The recent steep recovery in Nuvei stock primarily started after the company released its upbeat third-quarter results on Tuesday. In Q4 2021, the Canadian payment technology firm’s total revenue jumped by 82.8% YoY (year over year) to US$211.9 million, along with a strong 55% YoY positive organic revenue growth. A solid 117% increase in its Europe, the Middle East, and Africa (EMEA) segment revenue was the key factor for its strong top-line growth. Interestingly, the EMEA segment accounted for nearly 54% of its total revenue in 2021 — even higher than the North American market’s contribution of 42%.

As a result, Nuvei’s adjusted earnings in Q4 stood at US$0.47 per share with a 42.4% YoY rise — beating analysts’ estimate of US$0.45 per share. To add optimism, the Montréal-based company gave robust Q1 guidance, boosting investors’ confidence. That’s why Nuvei stock jumped by 13.6% on Tuesday, despite the broader market and tech sector-wide weakness.

As easing commodity prices fueled a sharp recovery in the stock market yesterday, NVEI stock led the market rally to become the top-performing TSX Composite component for the day with 13.8% gains.

Now what?

Nuvei stock’s recent price recovery clearly reflects the strength in its financial growth trends. Despite the ongoing geopolitical tensions-driven broader market uncertainties restricting its gains, this recent recovery comes as the biggest relief for its investors since December 2021, when Spruce Point’s short report triggered a massive selloff in NVEI stock.

As more and more businesses are willing to build their online presence in the post-pandemic world, the demand for e-commerce and payment technology services is expected to rise further. That’s why I’ve been suggesting investors take advantage of the recent dip in Nuvei stock and buy this amazing high-growth stock at a big bargain.

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.

The Motley Fool owns and recommends Nuvei Corporation. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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