2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

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Growth stocks are an important part of a well-diversified portfolio. They have the potential to add significant upside and, therefore, create enormous wealth. In this article, I’d like to highlight two ultra-cheap growth stocks that have this potential.

Without further ado, here are the growth stocks to buy in 2024.

BlackBerry: Significant potential awaits

As one of Canada’s most well-known tech stocks, BlackBerry (TSX:BB) has seen better days. In fact, the stock is currently trading below $5 and continues to languish. But despite BlackBerry’s struggles and obstacles, there is still hope and big potential.

Created with Highcharts 11.4.3BlackBerry PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

For example, in BlackBerry’s recent investor day, management highlighted its outlook. This outlook includes a return to profitability in 2025, with rising earnings and margins over the next three years. By 2027, management expects adjusted earnings before interest, taxes, and depreciation (EBITDA) to come in between $80 million and $95 million, representing a 14% margin.

Also, BlackBerry’s latest quarter, the second quarter (Q2) of fiscal 2025, saw significant financial as well as design wins. Essentially, costs are coming down fast, and this puts BlackBerry in a breakeven position that is ahead of schedule.

Looking ahead, BlackBerry continues to look forward to strong growth tailwinds in its Internet of Things (IoT) business. This segment alone has great potential for revenue growth, as the digitization of the automobile is a strong secular growth trend. Once the automaker delays are behind us, I think we’ll see this strong growth come to fruition. In the meantime, BlackBerry will continue to streamline the business and innovate. BlackBerry stock remains cheap, considering the strong potential growth of its business.

Well Health Technologies: The ultimate growth stock

As the leading tech company that’s working to digitize the healthcare industry, Well Health Technologies (TSX:WELL) is in a sweet spot. This is reflected in its stock price, which has appreciated 56% since the end of 2022.

Created with Highcharts 11.4.3Well Health Technologies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Well Health’s recent history has been all about record-breaking results, increasing guidance, and strong positive momentum. I’ve written a lot about Well Health stock over the last couple of years, and today, my bullish view remains.

In the company’s latest quarter, the earnings power of its business was on full display. Revenue increased 42% to $243 million, 11% adjusted EBITDA growth, and earnings per share (EPS) of $0.48. This blew past expectations that were calling for break-even, and this compared to a net loss of $0.03 in the same period last year.

The growth at Well Health Technologies is evident. Profitability has not been — until now. The current consensus expectation for this year’s EPS is $0.48 compared to break even in 2023. This means that Well Health stock is trading at a mere nine times earnings.

Looking ahead, management’s focus is on shareholder value creation and per-share growth. Well Health believes that the stock is being discounted by up to $1 billion due to the conglomerate discount. The cash received from the spin-offs and/or divestments would be invested into the Canadian primary care market, as there continues to be enormous opportunity there. It would also be used to improve the balance sheet.

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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 Karen Thomas has a position in Blackberry and Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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