3 High-Growth Stocks That Could Rally in 2022 and Beyond

These companies are growing fast, while their stocks are trading at a discount.  

The recent selling in equities has led to a significant correction in several high-quality growth stocks. I see this as an opportunity for long-term investors to buy these high-growth stocks at a considerable discount. With that in the backdrop, this article will focus on three Canadian companies growing fast, trading at a discount, and having solid upside potential. 

Shopify  

While Shopify (TSX:SHOP)(NYSE:SHOP) stock’s valuation is not cheap, it has witnessed a sharp pullback, providing a solid opportunity for investors to go long. To give background, Shopify stock has corrected about 38% from its 52-week high, while it is down about 20% this year. 

Overall, selling in high-growth stocks, difficult comparisons, and expected moderation in its growth rate amid an economic reopening weighed on its price.   

While Shopify’s growth could moderate a bit in the near term, its long-term fundamentals remain intact. The shift towards omnichannel platforms, Shopify’s market share gains, and expansion of product offerings augur well for growth. Growing penetration of its payments solutions and investments in fulfillment and capital will likely accelerate its growth. Meanwhile, the addition of new sales channels and operating leverage bode well for growth. 

Overall, Shopify is a solid stock that could continue to make its investors rich in the long term. Its ability to acquire merchants, growing market share in North America, and global expansion, product innovation, and secular industry trends could continue to drive its stock price higher. 

Lightspeed 

Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) stock witnessed a sharp correction, declining over 60% in three months. Furthermore, it is down about 10% this year. The massive decline in its price has driven its valuation lower. It’s worth noting that Lightspeed stock is trading at NTM (next 12-month) EV/sales multiple of seven, representing a massive discount compared to the pre-pandemic levels. 

While Lightspeed stock is trading cheap on the valuation front, its business continues to benefit from the strength in its base business and strategic acquisitions. Though difficult year-over-year comparisons and a deceleration in organic growth rate could continue to hurt its near-term prospects, the strong demand for its digital products, product innovation, and increased payments penetration augur well for future growth. 

Furthermore, its expansion into the high-growth markets and verticals, accretive acquisitions, upselling opportunities, and increased average revenue per user will likely support the uptrend in Lightspeed stock.

Nuvei

Like Shopify and Lightspeed, Nuvei (TSX:NVEI)(NASDAQ:NVEI) stock has also witnessed a significant correction in its price. Nuvei stock has corrected over 54% from its 52-week high and trades at a forward EV/sales multiple of 10.8, much lower than its historical average of 16.5. 

The steep decline in its price is one of the reasons why I am bullish on Nuvei in the long term. Its fundamentals remain strong, and I expect it to benefit from the strength in the digital payments segment.

Nuvei continues to acquire customers rapidly. Furthermore, it is deriving higher revenues from existing customers. Also, its expansion into high-growth verticals and product innovation augur well for future growth. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns and recommends Nuvei Corporation and Shopify. The Motley Fool recommends Lightspeed Commerce.

More on Investing

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

ways to boost income
Investing

Are Telus and BCE Stocks a Smart Buy for Canadian Investors?

Telus (TSX:T) and BCE (TSX:BCE) have massive dividend yields, but their shares have been quite sluggish!

Read more »

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »