There has been a major drop in the market over the last year that has led to some former growth stocks dropping into oblivion. Yet these growth stocks have now fallen to lows that could easily double, even in 2023!
Today, I’m going to cover two growth stocks that stand the best chance at doubling this year and growing beyond.
WELL Health stock
WELL Health Technologies (TSX:WELL) grew to all-time highs during the pandemic, as the virtual healthcare provider became identified as an essential tool during restrictions. However, when those restrictions lessened, WELL Health stock started to drop.
After hitting lows of about $2.60 per share, WELL Health stock started to climb once more. Despite the fall, it really hadn’t done anything wrong! The company continued to put out strong quarterly reports, which even included record-setting numbers.
Yet it was the most recent report that really led to growth for the company. WELL Health stock hit record revenue for the year at $569.1 million, up 88% year over year. It also achieved record annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), up 73% from 2021. It went on to stated that guidance for 2023 should hit between $665 and $685 million, with adjusted EBITDA increasing by 10% from 2022 levels.
All this was great news, leading to shares climbing, now up 13% in the last year, and 91% year to date. So, you’ll notice, shares have already almost doubled. That being said, it has even more room to run given it trades at just $5.44 as of writing. So, investors would do well to consider a stake in this growth stock.
Lightspeed stock
Another company that climbed only to fall is Lightspeed Commerce (TSX:LSPD). E-commerce growth stocks like this one soared during the pandemic with an increase in at-home shopping. Lightspeed stock continued to expand its e-commerce options around the world. Even during the end of pandemic restrictions, it saw growth.
This came from its point-of-sale (POS) service coupled with $2 billion in acquisitions coming online. It continues to beat out earnings estimates quarter after quarter, and yet shares continue to trade down 37% in the last year and down 89% since hitting all-time highs.
We’re still waiting on full-year results, which are due out May 18. However, there could be a lot of growth by that time when Lightspeed stock states their outlook. As of now, the most recent third-quarters results were still strong, with revenue up 24% year over year, and gross payments volume up 75%. Furthermore, even though it operates at a loss in adjusted EBITDA from those acquisitions, it’s “significantly ahead of previously established outlook.”
What investors should expect is possibly good news of reaching profitability in early 2024, if not sooner. This could certainly allow for its current $17.50 share price to double in that time. For now, it trades at a valuable 0.77 times book value, offering a great chance to jump on Lightspeed stock — especially with earnings coming so soon.
