Tech stocks haven’t done as well as investors thought, have they? We all thought we’d get rich off tech stocks that surged during the pandemic, only to have them drop back into nothingness. But now, after a huge drop, there could be a reason to buy a few again.
Today, let’s look at tech stocks due to bounce back that could actually double in the next three years.
WELL Health
The first of the tech stocks due to double in three years should easily be WELL Health Technologies (TSX:WELL). This comes from several factors. First off, despite seeing a share price drop over the last few years, WELL Health stock didn’t deserve it. In fact, earnings remained not only strong but record breaking in that time.
It’s now one of the tech stocks that’s spanning the globe in terms of virtual healthcare. This is becoming an essential part of our lives, with WELL Health stock seeing the potential for absurd growth in the near future. And yet, shares are down 34% in the last two years.
I say the last two years because, in the last year, there’s been some recovery. Shares are up 37% in the last year, and it trades at a valuable 1.77 times sales, and 2.37 of enterprise value over earnings before interest and taxes (EV/EBIT). Investors simply aren’t paying what it’s worth quite yet. With that in mind, even with shares on the rise, at $4.70, shares could easily double and beyond in the next three years with more room to grow.
Lightspeed
One with a more difficult future to foresee, perhaps, is Lightspeed Commerce (TSX:LSPD). But to get on board with this, look to the past. Shares came crashing down first from a short-seller report, followed by the crash in the tech sector and another whammy with interest rates rising.
There have been firings and cuts all over the place, yet Lightspeed stock has made significant positive changes. This includes focusing on its point-of-sale systems rather than acquisitions and putting its past acquisitions to great use.
Lightspeed stock shares are now at just $23.85 as of writing, which is 85% below former all-time highs. There is renewed interest in tech stocks, and Lightspeed stock should soon become a cautious gem for investors to consider. Trading at just 3.61 EV/EBIT and 3.75 price to sales, it’s therefore a great stock to pick up before other investors do — one that could easily triple in the next three years when the economy recovers and consumers start spending again.
Nuvei
Finally, keeping with the point-of-sale theme, Nuvei (TSX:NVEI) is another of the tech stocks investors should take a second look at. It’s one of the tech stocks making partnership after partnership and looks quite overvalued at this point.
But we’re not talking about overvalued stocks; we’re talking about ones that could triple in three years. This could be Nuvei stock as well. Nuvei stock is on track to make enough partnerships to become the next Shopify stock. It’s surged past earnings estimates, but after meeting them last quarter, it has come down in share price.
So, now is the time if you’re looking for tech stocks to grow in the near future. Shares are up 4% in the last year but down 17% in the last three months. The stock could easily double before the year is out, according to analysts. So, keep a close eye on this one as well.
