Remember the good old days of tech stocks? From 2019 to 2021, these companies soared in share price, and yet all but collapsed in the coming years. Yet one that has yet to climb back to significant highs is Lightspeed Commerce (TSX:LSPD).
Lightspeed stock is one of the tech stocks that made millionaires during that time and probably lost millionaires as well. Shares hit an all-time high of around $160 per share before dropping 30% in a day after a short-seller report. The company fell even further from there, with tech stocks and pandemic-related stocks falling as well.
But the thing is, the company certainly doesn’t deserve the drop. And according to analysts, it might be time to get back in. You could have a chance at becoming a millionaire once again.
Earnings surprise?
Analysts now expect strong earnings when Lightspeed stock delivers its earnings report at the beginning of February. In fact, tech stocks are expected to see operating leverage gains during the fourth quarter, all coming into effect after cost-efficiency measures come into play from the last fiscal year.
It shouldn’t come as much of a surprise in the case of Lightspeed stock. During its last report, the stock beat expectations during its second quarter and raised revenue guidance. Revenue rose to $230.3 million during the quarter, with adjusted earnings per share at $0.04, far ahead of the $0.01 expected. Furthermore, it operated at a profit of $200,000, when analysts expected a $4 million loss.
Now, analysts are expecting a strong third quarter, especially since they believe management has been conservative in their estimates. They basically stated that they expect no expansion in their payment penetration and flat to negative quarter-over-quarter gross transaction volume. However, they’ve had stellar results across North America, so it’s likely the stock will see that continue through the next quarter as well.
Get big on small tech
While Lightspeed stock isn’t exactly a small stock, it’s now time to get bullish on stocks that are smaller than those in the Magnificent Seven. Those stocks have had a banger year, which is likely to start trickling into its smaller peers.
That includes Lightspeed stock; therefore, according to analysts, it could be an excellent time to add exposure. Companies, including Lightspeed stock, really just aren’t getting the credit they deserve for cutting back in this high interest rate environment.
But for Lightspeed stock, it goes beyond that. Not only has the stock cut back, it’s grown — significantly. And that should continue as the company brings on more of its clients into its Unified Payments strategy. Within the next two years, 50% of its clients should be on board.
So, the small-cap stock is set to do well, remains cheap, and has growth on the table. What are investors waiting for?
Cuts
The bottom line here is that once the Federal Reserve and Bank of Canada start making interest rate cuts, there is bound to be a wave of improvement in share price. What’s more, when Lightspeed stock announces earnings, that would be a far sooner increase in shares.
So, if you’re looking for a deal, now is the time to hop on Lightspeed stock. It could make millionaires once again.
