Is Now the Right Time to Buy Tech Stocks Trading Cheaply?

These tech stocks are outperforming the broader market in 2023 and have the potential to deliver solid gains in the long term.

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The moderation in inflation and an expected slowdown in the pace of interest rate hikes will likely spur the recovery in tech stocks. Thanks to the recent pullback in prices, top Canadian tech stocks are trading cheap, offering a solid entry point near the current levels. 

With this theme in the background, I’ll discuss three top Canadian stocks from the tech sector that are trading at a discount and have solid fundamentals. This indicates that investors with a long-term view can generate solid capital gains by investing in these stocks. Let’s begin. 

WELL Health

Well Health (TSX:WELL) stock has recovered swiftly in 2023. Shares of this digital healthcare company are up over 90% year to date, reflecting the company’s low valuation and back-to-back strong financial performances. Despite the recent rally, WELL Health stock is still trading at a considerable discount from its highs. Notably, it trades at the next 12-month enterprise value-to-sales (EV-to-Sales) multiple of 2.5, much lower than its historical average of 11.8, indicating further upside in the stock.

WELL Health has defied general market trends and delivered 88% growth in its annual dividend. Despite macro headwinds, the company also delivered record adjusted EBITDA and turned profitable on the EPS front. 

The continued increase in omnichannel patient visits and rapid growth in its high-margin virtual services revenue positions it well to deliver strong organic sales and profitability. Furthermore, its focus on accretive acquisitions will likely accelerate its growth rate. Overall, WELL Health’s solid growth and low valuation make it a solid long-term investment. 


Like WELL Health, Nuvei (TSX:NVEI) stock has jumped about 65% year to date. Despite the recovery, shares of this Canadian fintech are trading at a forward EV-to-sales multiple of 4.5 compared to its historical average of 10.5. While its valuation looks compelling, Nuvei continues to grow its volumes at a decent pace, supporting my bullish outlook. 

The payment solution provider’s total volume increased by 34% in 2022, driven by e-commerce. Meanwhile, its adjusted net income increased by 10%. 

The expansion of alternative payment methods on its platform, investments in sales and distribution, cross-selling opportunities, and forays into new geographies will likely support its organic growth. Meanwhile, Nuvei is looking to strategic acquisitions to expand its addressable market and accelerate its growth rate. 


Shopify (TSX:SHOP) stock has gained over 40% this year. The recovery reflects the e-commerce giant’s ability to grow its sales regardless of tough year-over-year comparisons and macro headwinds. While Shopify stock has increased quite a lot, it is still trading at an NTM EV-to-sales ratio of 9.9, significantly lower than its pre-pandemic levels. 

While the pressure on consumer spending could pose a challenge for Shopify in the short term, its growing share in the overall retail market, and increased penetration of payments offerings augur well for growth. 

Shopify is expanding its offerings into new geographies. Meanwhile, the company is witnessing strong adoption of its innovative products, including Payments, Capital, and Market. Overall, its low valuation, expansion of marketing and sales channels, and growing adoption of new products positions it well to capitalize on the digital shift and deliver strong financials.

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.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool has a disclosure policy.

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