The tech climb and selloff were some of the worst disasters investors faced over the last few years in the investing world. The pandemic led many digital offerings to skyrocket before crashing down, as inflation and interest rose and restrictions eased.
Yet now, after crashing to incredible lows, tech stocks are on the move. In fact, some of the best and most popular names are gaining momentum once more. So, let’s look at three of these tech stocks that investors should consider, as the selloff comes to a close, before it’s too late.
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Shopify stock
Shopify (TSX:SHOP) was one of the first tech stocks to come roaring back in the last few months. In fact, in the last year, shares of Shopify stock have climbed about 86% as of writing. The reason comes from money-saving moves by the tech stock.
Shopify stock made major cuts to bring in immediate savings, including massive layoffs. However, it also sold its logistics business to Flexport for a stake in the company. Furthermore, it’s now refocusing its efforts on its previously lucrative revenue streams. That’s the e-commerce industry, where the company’s bread and butter lies.
All this news has sent shares climbing back from 52-week lows. Yet, with shares at about $87 as of writing, it’s still far away from all-time highs at $228 (adjusted for a stock split). While there haven’t been many insider purchases in the last year or so, analysts are coming back on board with the stock. And with earnings around the corner, it could be the perfect time to buy before a boost.
Lightspeed stock
Another of the tech stocks that fell into oblivion was Lightspeed Commerce (TSX:LSPD), but this happened even before the pandemic. Lightspeed stock saw shares drop after a short-seller report claimed its gross transaction volume (GTV) was all “smoke and mirrors.” And that its acquisitions weren’t bringing in the revenue promised.
Since then, Lightspeed stock has proven otherwise. Its acquisitions are bringing in plenty of earnings, and more is likely on the way. Yet just as with Shopify stock, the company had some layoffs and now focuses back on its original breadwinner: the point-of-sale system.
In this case, there is more of an opportunity to be had. Shares of Lightspeed stock are still down 4% in the last year, though up about 27% in the last three months after the recent news. It also trades at a valuable 3.73 times sales, though it’s still working on returning to a profit. With management believing that’s achievable by 2024, and analysts in agreement, now is a great time to pick up the tech stock on the upswing.
goeasy stock
What these last two tech stocks have in common is they are far newer than a company like goeasy (TSX:GSY). goeasy stock has been a long-time winner in the market but with very different routes. The company started out as a lender for home appliances and furniture. Now, it’s expanded, creating lending options in the fintech industry as well.
goeasy stock dropped on news that the government would reduce the maximum allowable interest rate to 35%. However, the company didn’t have a problem with this and applauded the decision. Since then, there has been an improvement in the stock. Furthermore, it continues to post record-setting results!
Shares of goeasy stock are cheap across the board, trading at 12.6 times earnings, 1.95 times sales, and 7.04 in enterprise value compared to earnings before interest and taxes. Yet shares are still down from all-time highs. It’s up 15% in the last year and 35% in the last three months. But there is still a discount from 52-week highs at 16%. So, this stock is a buy before another rebound.
