The S&P/TSX Composite Index has not yet recouped the losses that it suffered in the spring of 2022. However, there have been many opportunities for growth over the past year. Canadians with some extra cash in the summer season should consider snatching up promising equities before we move into the fall. Today, I want to look at three growth stocks that have recently hit or come close to their 52-week lows. Let’s jump in.
This growth stock is dirt cheap and boasts exciting technology!
Nuvei (TSX:NVEI) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America, Europe, the Middle East, and elsewhere around the world. Shares of this growth stock have plunged 48% month over month as of late-morning trading on August 14. That has dragged Nuvei stock into negative territory so far in 2023.
Canadian investors should seek exposure to the exciting payment technology solutions space. Consumers are increasingly moving away from cash and are sticking solely with digital payment methods. That is good news for Nuvei, which released its second-quarter (Q2) fiscal 2023 earnings on August 9.
The company reported total payment volume growth of 68% to $50.6 billion in Q2. Meanwhile, revenue climbed 45% to $307 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to provide a more accurate picture of a company’s profitability. In Q2, Nuvei achieved adjusted EBITDA growth of 19% to $110 million.
Nuvei is geared up for strong earnings growth going forward. That means investors should be eager to buy the dip in August.
Here’s a green energy stock that has been hit by volatility
Boralex (TSX:BLX) is another Montreal-based company that is engaged in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, the United States, and the United Kingdom. This growth stock has dropped 6.2% over the past month. Meanwhile, its shares have plunged 18% in the year-to-date period. Investors can see more of its recent performance with the interactive price chart below.
In Q2 2023, Boralex reported a 4% increase in power production to 1,353 gigawatt hours of electricity. Meanwhile, revenues from energy sales and feed-in premiums climbed 25% to $210 million. EBITDA dipped 2% to $119 million.
This growth stock is trading in favourable value territory compared to its industry peers at the time of this writing. Moreover, it offers a quarterly dividend of $0.165 per share. That represents a 2% yield.
Why I’m looking to an ETF as our final undervalued growth stock today
I’m going to switch things up in this piece and target an exchange-traded fund (EFT) for our final growth stock target. iShares Global Clean Energy ETF (TSX:XCLN) seeks to track the investment results of an index composed of global equities in the clean energy sector. Shares of this ETF have dropped 8.6% month over month. The ETF is now down 14% in 2023.
This fund offers investors exposure to companies that produce energy from solar, wind, and other renewables. Some of the top holdings in this fund include U.S. renewable energy equities like First Solar, Enphase Energy, and Solaredge Technologies.
