2 Tech Stocks You’ll Probably Wish You’d Bought in 2023

Here are two of the best Canadian tech stocks you can buy in November 2023 before their recovery gains steam.

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Growing macroeconomic and geopolitical concerns intensified the Canadian stock market selloff between August to October 2023. As a result, the TSX Composite benchmark tanked by 8.5% during these three months. Nonetheless, the stock market has begun to show promising signs of recovery in November, supported by early indicators of easing inflation and a more optimistic economic outlook. These are the key reasons why the main TSX index has risen 6.6% so far this month.

A consistent improvement in the macroeconomic environment could help some fundamentally strong but beaten-down tech stocks recover fast. Given that, now could be the best time to buy these tech stocks as they still look undervalued based on their long-term growth outlook. Let’s take a closer look at two top Canadian tech stocks that haven’t seen much appreciation in recent years but could stage a spectacular rally as the macroeconomic environment improves.

Nuvei stock

Nuvei (TSX:NVEI) stock has already recovered by nearly 37% in November so far due mainly to its strong third-quarter revenue and the recent broader market rally. Even after these recent gains, however, this Montréal-headquartered fintech firm’s stock is still down 23.2% on a year-to-date basis at $26.41 per share.

The demand for Nuvei’s payment technology solutions remained stable in the third quarter of 2023 despite the challenging economic environment. This demand helped the company post a strong 54.6% YoY (year-over-year) increase in its total revenue to US$304.9 million, exceeding Street analysts’ estimates.

Similarly, Nuvei posted a remarkable 72% YoY increase in total quarterly volume, reaching $48.2 billion, primarily fueled by its e-commerce operations.  While there was a net loss due to strategic financial activities and currency exchange headwinds last quarter, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 36% from a year ago to $110.7 million.

These financial and operational figures from the third quarter alone highlight Nuvei’s strong market position and long-term potential for growth, making this tech stock look cheap to buy now.

BlackBerry stock

BlackBerry (TSX:BB) could be another fundamentally strong tech stock to consider buying that looks undervalued in November 2023. The Waterloo-based enterprise software company has a market cap of slightly less than $3 billion. BB stock currently trades at $4.93 per share with 11.8% year-to-date gains after tanking by about 63% last year. If you don’t know it already, BB primarily focuses on providing cybersecurity and IoT (Internet of Things) software solutions to its customers globally.

As more businesses across the world continue to build their online presence, the demand for BlackBerry’s enterprise cybersecurity solutions is likely to improve in the long run. Similarly, the demand for its IoT segment is also expected to surge in the coming years as the company continues to focus on developing advanced machine learning and AI-powered tech solutions for the automotive industry.

While the recent trends in BlackBerry’s earnings might not look very impressive at the moment, its continued focus on innovative tech and an expected surge in the demand for such AI-based cybersecurity and IoT solutions strengthens its long-term earnings-growth outlook. That’s why I expect BB stock to witness a sharp rally, as the macroeconomic scenario improves further.

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.

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

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