3 Tech Companies That Could Double in 2023

These three of the best Canadian tech stocks can yield outstanding returns on your investments in 2023.

| More on:
A worker uses the cloud for paperless work. tech

Source: Getty Images

If you want to earn outstanding returns on your stock investments in the long run, you should try to buy stocks when they look undervalued. After last year’s massive selloff, most Canadian tech stocks started 2023 on a solid note by rallying in January. However, macroeconomic uncertainties led to another round of corrections in the tech sector in February, which could be seen as an opportunity to buy them cheap.

Let me quickly highlight three of the best tech stocks that have the potential to double in 2023.

Lightspeed stock

Lightspeed Commerce (TSX:LSPD) was among the worst-performing Canadian tech stocks last year, as it plunged by more than 62% in 2022. After staging a 24.4% recovery in January 2023, LSPD stock turned negative again in February and lost 13.3% of its value during the month to currently trade at $20.86 per share. Now, the stock has a market cap of $3.2 billion.

In three years between its fiscal year 2019 and 2022, Lightspeed’s total revenue jumped by 608%. During the same period, its adjusted losses decreased significantly from US$5.53 per share to just US$0.37 per share. With this, the tech company remains on track to achieve sustainable profitability in the coming years. Besides that, consistently growing demand for its omnichannel commerce solutions makes its stock look highly undervalued after it has lost nearly 37% of its value in the last year.

Nuvei stock

Nuvei (TSX:NVEI) is a Montréal-headquartered payment technology provider with a market cap of $5.9 billion. After falling 58% in 2022, its stock jumped by 37.5% in January. However, macroeconomic uncertainties turned it negative again in February as it lost nearly 11% of its value to currently trade at $41.78 per share.

While Nuvei is yet to announce its fourth-quarter results, in the first three quarters of 2022, its revenue rose nearly 22% YoY (year over year). Similarly, its adjusted earnings grew positively by about 16% from a year ago, despite inflationary pressures and other macroeconomic challenges.

To accelerate its growth further, the Canadian payment technology solutions company’s trying to expand its presence in the international market with quality acquisitions. For example, last month, Nuvei completed the acquisition of the American integrated payment and commerce solutions firm Paya Holdings in a transaction worth US$1.3 billion. I expect these strategic efforts to help NVEI stock recover fast and potentially double in 2023.

BlackBerry stock

BlackBerry (TSX:BB) could be another great Canadian tech stock to consider right now. After plunging by 62.7% last year, its stock jumped by nearly 29% in January. Although the stock fell 6.7% in February, it still trades at $5.30 per share with solid 20.2% year-to-date gains and has a market cap of $3.1 billion.

While BlackBerry’s ongoing financial growth trend might not look very impressive, its long-term growth outlook looks very impressive due mainly to its growing interest in the automotive technology segment. The Waterloo-based company expects to make its artificial intelligence and machine learning-based vehicle data platform IVY generally available in May 2023, which is already pre-integrated on three commercially available digital cockpit platforms.

I expect the BlackBerry IVY platform to significantly improve the tech firm’s financial growth trend and help its stock soar, because such advanced technological platforms will play key roles in futuristic mobility.

Despite recovering by slightly more than 20% this year, BB stock has still lost 39% of its value in the last year, making it look cheap to buy now.

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 has positions in and recommends Nuvei. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Business man on stock market financial trade indicator background.
Tech Stocks

1 Growth Stock Down 50 Percent to Buy Right Now

There are plenty of growth stocks in the market worth considering, but Shopify (TSX:SHOP) looks like one of the best…

Read more »

Woman has an idea
Tech Stocks

Prediction: 1 Stock That Could Trounce the Market 

The TSX has been favouring tech stocks, but not this one. However, it has the potential to trounce the market…

Read more »

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Will Transform Everything: Investors, Be Early Adopters and Buy These 3 Stocks

Investors looking to invest in companies doing big things in AI should consider these three stocks for their portfolios.

Read more »

stock research, analyze data
Tech Stocks

Forget Shopify: These Unstoppable Stocks Are Better Buys Today 

Should you consider buying Shopify stock while rivals consider a buyout or should you go for stocks with a stronger…

Read more »

A colourful firework display
Tech Stocks

2 Potentially Explosive Stocks to Buy in March

These two growth stocks are destined for many more years of market-crushing returns.

Read more »

edit CRA taxes
Tech Stocks

TFSA Millionaires Are Learning They Can Still Be Taxed

If you day trade stocks like Shopify (TSX:SHOP) in a TFSA, you may be taxed.

Read more »