Tech stocks did quite poorly over the last year or so, with investors seeking to take in their returns after years of growth. Some of the strongest tech stocks to see rises included WELL Health Technologies (TSX:WELL) and Nuvei (TSX:NVEI).
Yet both of these tech stocks have been going through some growth recently. With that in mind, which is the better buy on the TSX today?
Nuvei stock
Shares of Nuvei stock are still down, currently trading 34% lower than they were a year ago. Yet in the past few months, there’s been a change for the payment solutions provider. This comes, as investors have started warming up to the idea that maybe tech stocks will start performing well once more.
This certainly was the case for Nuvei stock, which has seen quarter after quarter of estimate-beating earnings. In fact, despite shares slumping, Nuvei stock had a strong 2022, and management believes there will be more growth in 2023.
The company continues to operate in over 200 different global markets and provides exposure to cryptocurrencies as well. It’s also grown through acquisitions over the last few years, bringing it to a market cap of $7.58 billion as of writing. And after a strong earnings report, shares are now back up 65% year to date.
The problem, however, is that there is a lot of excitement around the stock, but there are still losses to be found. Earnings were strong, but there was still a decrease in performance from the year before. It remains unclear whether it will achieve former 52-week highs at $74, while it trades at $54 on the TSX today.
WELL stock
Then there is WELL stock — one of the tech stocks brought up and then down by being both a tech stock and pandemic stock. Shares of WELL stock grew, as companies sought out the virtual healthcare provider during the pandemic. Yet when restrictions eased, shares slumped. Add to that the fall in tech stocks, and shares dropped dramatically.
WELL stock is now where it was back at the same time last year but still down by about half from all-time highs. Even so, during the last few years, it wasn’t the company’s performance that pulled it under but outside influence of the tech and pandemic stock performance.
WELL stock continues to be the largest outpatient clinic in Canada. It’s also expanding into the United States, making more partnerships and acquisitions on a consistent basis. Further, virtual healthcare has become part of our everyday life. So, it’s certainly not going anywhere, providing a long-term growth opportunity.
Now, WELL stock is up 69% year to date and climbing. The last quarter soared past estimates, providing record results for the company. Yet there is still more room to grow as it edges towards and perhaps past 52-week highs.
Bottom line
So, which is the better buy? WELL stock has to be the best option in this market. I don’t like the exposure Nuvei stock has to cryptocurrency, as it’s still quite a volatile market. Further, Nuvei stock may have had a strong 2022, but there is still much to be gained from the company. And a $20 share increase to reach 52-week highs just doesn’t seem likely in 2023.
Meanwhile, it’s also still down this year. As for WELL stock, it’s climbing higher and higher, surpassing 52-week highs in the near future. And at just $4.89 per share as of writing, even a small stake could reap major rewards.
