After witnessing big declines last year, many beaten-down Canadian stocks staged a sharp recovery in January 2023. Nonetheless, these sharp gains have made such rallying stocks hardly any less attractive as they still look cheap due to 2022’s massive correction in their share prices.
In this article, I’ll talk about one of the best Canadian growth stocks you can buy right now that, in my opinion, has the potential to double in value in the next three years.
Top Canadian stock to buy in 2023
If you want to keep your risks low when investing in stocks, you should always avoid investing in extremely volatile stocks with weak underlying fundamentals. With that in mind, BlackBerry (TSX:BB) could be a great Canadian stock to consider now as its long-term growth outlook looks impressive, underpinned by its resilient business model.
The Waterloo-headquartered company currently has a market cap of $3.5 billion, as its stock trades at $5.99 per share with about 35.8% gains. By comparison, the TSX Composite Index has gained 7% on a year-to-date basis. While BB stock is among the top-performing Canadian stocks this year, it tanked by 62.7% in 2022 due mainly to a decline in its cybersecurity segment revenue in recent quarters and the broader tech meltdown.
What could help this Canadian stock double?
In its fiscal year 2022 (ended in February 2022), BlackBerry made nearly 66% of its total revenue from its cybersecurity segment, and the contribution of its IoT (Internet of Things) segment revenue stood at 25%. Nonetheless, I find the growth outlook for its IoT segment quite attractive due to the Canadian company’s increasing focus on developing advanced technological solutions for futuristic mobility. Let me explain that with a quick example.
In December 2020, BlackBerry started working on its artificial intelligence (AI) equipped vehicle data platform called BlackBerry IVY in partnership with Amazon Web Services. So far, the AI platform has received largely positive feedback from large automakers and automotive suppliers.
Last month, BlackBerry announced that the IVY platform “is now pre-integrated on three commercially available digital cockpit platforms from leading tier-one automotive suppliers Bosch and PATEO.” This integration will allow auto companies to deploy innovative third-party applications in their vehicles at a faster pace. After nearly two years of development, BlackBerry expects its IVY solutions to be generally available in May 2023.
As consumers’ interest in autonomous and electric vehicles is rapidly growing, you can expect the demand for advanced technological solutions, like the IVY platform, to skyrocket in the coming years. And that demand can help BlackBerry expand its presence in the global automotive industry and significantly accelerate its financial growth in the long term. That’s why I wouldn’t be surprised if its stock doubles in value in the next three years or even sooner.
Despite these positive developments and improving long-term growth outlook, BlackBerry stock hasn’t seen much appreciation in recent years, making it look undervalued. While this Canadian stock has already risen more than 35% in 2023, it could just be the start of the spectacular long-term rally, in my opinion, which you may not want to miss.