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Canada and the United States had tough months for growth stocks. The index hasn’t fallen significantly, but some highly rated growth stocks have fallen by more than 50%.The perfect example is ARK Innovation ETF.. It is highly valued and despised for its particular focus on high-growth, high-opportunity equities.
Growth stocks are getting cheaper
Many of these stocks are unprofitable and trade at multiples of their selling price, which are many times higher than the benchmark index. This ETF has been punished in the past year. At that time, it was down 43%. We don’t recommend buying Kathy Woods funds, but I think you’ll have the opportunity to start shining on individual growth stocks. Since the beginning of the pandemic, many growth stocks are now trading at the lowest valuation multiples.
Indeed, many software names that have benefited from pandemic and forward results can be slow. However, many of these businesses have stronger customer penetration, better balance sheets, and a wider total addressable market (TAM) than ever before. Therefore, the recent sale of growth stocks is a great opportunity for investors who want to buy high quality stocks at bargain prices.
Nuvei: Top High Growth Stocks
One TSX Technology stock Sounds interesting Nuvei (TSX: NVEI)(NASDAQ: NVEI).. Payment stocks have been hit hard in the last few months, and Nuvei is no exception. It is unavoidable that the stock price was targeted in a short report at the end of last year. Inventories have fallen 52% since October 2021.
With 10x sales, I haven’t called this stock exactly yet It’s cheap.. However, looking at the ratio of corporate value to EBITDA, it has only been traded 25 times. Nuvei achieved 53% revenue growth in 2020 and is expected to grow by more than 90% in 2021. EBITDA is expected to grow in the same clip as revenue. Going forward, revenue and EBITDA growth could drop to the + 30% range. Still, for a company that is growing both revenue and revenue rapidly, owning a stock is not an unthinkable valuation.
Nuvei has a great payment platform to help you deal with the complexity of currencies, regions and even alternative payments (ie cryptocurrencies).Just signed Interesting transaction When Wix.com This makes it easier to pay for the website builder platform. These types of transactions show that Nuvei is associated with the top e-commerce and merchant platforms. This stock is volatile, so we hold it on average and hold it in a “risk” allocation of our portfolio.
Descartes Systems: Portfolio Anchor
One of the interesting growth stocks that many haven’t talked about is Descaltes system (TSX: DSG)(NASDAQ: DSGX).. We provide integrated cloud-based software solutions for the logistics, shipping and freight industries. The supply chain is heavily disrupted by pandemics. Fortunately, this was a big tailwind for Descartes. Nevertheless, inventories have fallen 22% since November.
Descartes is an excellent portfolio anchor for growth stocks. Descartes software solutions earn a high rate of recurring revenue. It also earns a very attractive + 40% EBITDA margin on these revenues. As a result, it generates a lot of free cash flow. Currently, the company’s net cash is $ 171 million.
With the recent declining tech stock valuation, Descartes is in a great position to turn its cash into attractive market expansion acquisitions. Descartes is by no means a cheap stock (it trades at 12x selling price and 34x profit). However, given its high quality business platform, it’s the perfect platform to buy, hide and keep for years to come.
Fire Sale: Two Top Growth Stocks to Buy Today
https://www.fool.ca/2022/01/19/fire-sale-2-top-growth-stocks-to-buy-today/ Fire Sale: Two Top Growth Stocks to Buy Today