2 Growth Stocks Due to Double in 2023

Canadian growth stocks had their time in the sun before dropping off, but these two could be due to double in 2023.

| More on:
Money growing in soil , Business success concept.

Image source: Getty Images

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.

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 Amy Legate-Wolfe has positions in Lightspeed Commerce and Well Health Technologies. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Tech Stocks

Technology, internet and networking, security concept
Tech Stocks

Top Cybersecurity Stocks for June 2023

Canadian investors should look to snatch up top cybersecurity stocks like Absolute Software Corp. (TSX:ABST) to start the month of…

Read more »

online shopping
Tech Stocks

Shopify Stock Rose 22% Last Month: Is it Still a Buy in June 2023?

Shopify (TSX:SHOP) stock rose 22% in the last month but is down from 52-week highs. So, is it time to…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

Psst … 2 Tech Stocks I’d Buy Before Shopify

Shopify (TSX:SHOP) stock is great -- don't get me wrong. But these two tech stocks are great too, with more…

Read more »

Technology, internet and networking, security concept
Tech Stocks

1 Top Canadian Cybersecurity Firm on the Frontline Against Cyber Threats

Here’s the best Canadian cybersecurity stock you can buy now to benefit from the expected significant surge in demand for…

Read more »

Credit card, online shopping, retail
Tech Stocks

Should You Buy Lightspeed Stock After Its Q4 Earnings?

Despite its volatility, I expect Lightspeed to outperform in the long run due to its healthy growth prospects and cheaper…

Read more »

Shopping and e-commerce
Tech Stocks

Shopify Stock: Is $100 the Next Stop?

Shopify (TSX:SHOP) stock may be headed to the $100 level over the longer term if things fall into the right…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Open Text’s Cloud Kingdom: A SaaS Stock for the Long Haul?

Here's why Open Text (TSX:OTEX) could indeed be a software-as-a-service stock that long-term investors may want to consider right now.

Read more »

clock time
Tech Stocks

Is Now the Right Time to Buy Shopify Stock?

Amid another dip, Shopify stock might be worth buying right now for investors who missed the post-earnings surge.

Read more »