Want to Get Richer? 2 Tech Stocks to Buy Before They Skyrocket

These two tech stocks trade unbelievably cheap and have considerable growth potential, making them two of the best to buy right now.

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When it comes to investing and buying stocks for the long haul, there’s no question that buying high-potential growth stocks, especially those in the tech sector, is one of the best strategies due to the massive returns they can earn for investors.

Growth stocks are companies that are expected by the market to grow their revenue, earnings or both at an above-average rate compared to other stocks in the market, which can lead to higher stock prices and substantial returns for investors.

Their potential for rapid revenue and profit increases makes them attractive investment options for those seeking capital appreciation. And while there are growth stocks in almost every sector, tech stocks are easily some of the fastest-growing stocks

Tech stocks often stand out among growth stocks because they operate in an industry characterized by rapid innovation and scaling potential, allowing them to achieve exponential growth rates.

Unlike businesses that manufacture goods, with tech stocks, additional sales typically don’t increase their costs of goods sold, allowing these stocks to scale their business rapidly and potentially earn major returns for investors.

For example, from the time of Shopify’s initial public offering (IPO) in May 2015 until mid-November of 2021, the impressive tech stock saw its value rise by over 6,024%, or a compound annual growth rate (CAGR) of 88.3%. That’s unbelievably fast growth, nearly doubling investors’ money each of the six years.

Meanwhile, since November 2021, when inflation started to pick up, and the economy started to weaken, Shopify has fallen by over 65% in value. That may make you think that it’s a volatile stock you want to stay away from. Instead, it just shows how much of a premium Shopify can trade at due to its impressive long-term growth potential.

However, although nobody wants to see a stock fall rapidly and severely in price, over the longer term since its IPO, Shopify stock is still up by more than 2,280% or a CAGR of roughly 47%.

This goes to show just how powerful growth stocks, and especially tech stocks, can be. It also shows why it’s much better to buy these stocks for the long haul instead of trying to buy them for the short term and time the market.

With this in mind, if you’re looking to add top tech stocks to your portfolio today, here are two high-potential investments to buy before they eventually skyrocket.

One of the highest-potential tech stocks in Canada to buy now

Once one of the hottest stocks on the market, over the last year, Lightspeed Commerce (TSX:LSPD) has been unbelievably cheap.

However, as it continues to turn its business around and improve its prospects for growth, Lightspeed continues to become more attractive and could begin to rally and eventually skyrocket any time now.

For example, in recent quarters, Lightspeed has been shifting its strategy to focus on higher-value customers.

In its first quarter of 2024, the most recent quarter, Lightspeed reported that it increased the number of customers with over $1 million in gross transaction value (GTV) per year by 11% year over year.

Furthermore, the number of customers with over $500,000 of GTV per year increased 10% year over year, whereas the number of customers with less than $200,000 GTV per year decreased.

This helped Lightspeed beat expectations for both revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter and shows that as long as Lightspeed can continue turning its business around, it’s one of the top tech stocks to buy now.

A top healthcare tech stock

In addition to Lightspeed, another high-quality tech stock with significant growth potential to buy while it’s ultra-cheap is WELL Health Technologies (TSX:WELL).

WELL is an attractive business. In addition to its technology businesses, like telehealth services and digital health apps, it also owns some physical outpatient clinics, which helps diversify its operations and reduce risk.

The majority of its growth potential, though, comes from its technology investments and the organic growth potential they provide. Plus, because it serves the healthcare industry, WELL is much more defensive than most other tech stocks.

Therefore, WELL can’t trade cheaply forever. If you’re looking for a tech stock to buy now, I’d strongly consider WELL before it starts to gain momentum and eventually skyrockets.

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 Daniel Da Costa has positions in Well Health Technologies. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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