The year 2022 proved to be terrible for growth investors. While most Canadian growth stocks tanked sharply in 2022, inflationary pressures and rapidly rising interest rates restricted gains for many tech stocks. As 2023 is about to begin, the Canadian stock market is filled with tons of opportunities for long-term stock investors to buy some fundamentally strong stocks at a big bargain.
In this article, I’ll highlight two of the best Canadian stocks you can buy before 2023, which could turn out to be explosive in the long run and help you receive solid returns on investments.
Magnet Forensics stock
Magnet Forensics (TSX: MAGT) is a Waterloo-headquartered tech firm with a market cap of $504 million. The company primarily focuses on providing innovative investigative tools to businesses and public organizations globally to help them fight cyberattacks on digital crimes.
Despite broader market uncertainties, this Canadian tech stock has managed to inch up by 27% in 2022 so far to trade at $41.68 per share — thanks to its solid top-line growth. By comparison, the TSX Composite benchmark has seen 6% value erosion during the same period.
In the September quarter, Magnet’s total revenue rose 40.6% year over year and 8% sequentially to US$25 million. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped by 25.1% from a year ago to US$5.9 million.
Magnet already had a strong base of 4,600 customer organizations at the end of 2021, which is consistently growing with rising demand for its services amid escalating cybercrime problems. While its stock has already outperformed the broader market in 2022, its rally could accelerate further in 2023 due mainly to its improving long-term financial growth outlook.
BlackBerry stock
BlackBerry (TSX: BB) could be another great addition to your stock portfolio, especially if you’re looking for growth stocks with outstanding long-term potential. The shares of this Canadian tech firm have seen about 50% value erosion in 2022 to currently trade at $6 per share. At this price, it has a market cap of $3.5 billion.
Just like in the case of Magnet Forensics, BlackBerry is also set to benefit from consistently growing demand for enterprise cybersecurity solutions in the coming years. Despite the cybersecurity business being its biggest source of revenue at the moment, I find the growth prospects of BlackBerry’s Internet of Things segment even more attractive. Notably, the company has increased its focus on developing machine learning and artificial intelligence-based advanced technological solutions for the automotive industry in recent years.
In December 2020, it started building an intelligent vehicle data platform called BlackBerry IVY, which has already started receiving positive feedback from several large global automakers. The demand for such data platforms is likely to skyrocket going forward as we see more autonomous and electric vehicles on the road, which should help BlackBerry’s financial growth significantly accelerate. Despite these positive efforts, BB stock hasn’t seen much appreciation in recent years. Given that, you may consider buying this potentially explosive Canadian tech stock before 2023, when it’s trading with about 50% year-to-date losses.
