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 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 (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 (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.