Tech stocks that are still relatively new often fly below most investors’ radars. They often do not have performance data endorsing their potential, or a business model that is well understood.
But these are not the only tech companies that can offer powerful growth under the right market conditions. Many tech stocks suffering alongside the market, but more viciously, might make an equally powerful resurgence in a bull market.
A venture capital tech company
Voxtur Analytics (TSXV:VXTR) has been around for a while, and even though it has its moments of glory, it was never a reliable growth stock. Ironically, this makes it a powerful buy right now. Voxtur Analytics is brutally beaten down, even for a tech stock. It’s trading at an 80% discount from its 2022 peak, and the current trajectory is downward.
One of the reasons behind this discount, which may continue growing bigger considering the stock’s trajectory, is its association with the real estate sector.
Voxtur offers a wide variety of solutions to real estate professionals (including investors), many of which are powered by artificial intelligence (AI) and machine learning (ML). This may be the redeeming quality that helps the stock grow out of the slump, and it can offer you more than 4x growth just by re-reaching its 2022 peak.
A payment solutions company
Payfare (TSX: PAY) is a payment company directed at employees, workers, and freelancers, making it different from most other payment solution providers that offer consumer-facing solutions. It offers these solutions to a wide range of businesses and employees of these businesses, including logistics, home services, and healthcare.
Its primary appeal to employees is the immediacy and multiple options. Meanwhile, businesses may prefer it because of its flexibility to cater to businesses of all sizes. The company is old, but the stock only joined the market in 2021, and after a brief growth phase, it has mostly slumped since its inception.
However, it showed a promising recovery alongside the sector and has grown over 38% since the beginning of the year. You may consider buying it in antipcation of the sector’s full recovery.
An IT company
Telus International Canada (TSX: TIXT) is a relatively new tech stock that only started trading on the TSX in February 2021. But it’s tied to a well-known name, that is, Canada’s second-largest telecom company (by market cap).
Telus International offers many solutions, including data, digital experience, customer experience, and so on. The range of solutions and presence of its parent company (which may create powerful growth opportunities) makes it a compelling tech investment.
So far, the stock has been a victim of a weak tech sector, and even though it has shown some vigour, it has mostly remained slumped under the sector’s weight. This may change when the market turns from bullish to bearish and the stock may offer promising returns to its investors.
Foolish takeaway
These three tech stocks are currently heavily discounted and may remain so until a sector-wide recovery occurs. It isn’t easy to pinpoint the starting point for the tech sector’s full recovery. In the meantime, you can leverage the bullish potential by buying these stocks at a sufficiently discounted price.
