Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

4 High-Growth Canadian Stocks Available at a Discount

Published 2021-04-22, 06:00 p/m
Updated 2021-04-22, 06:15 p/m
4 High-Growth Canadian Stocks Available at a Discount

4 High-Growth Canadian Stocks Available at a Discount

Amid the concerns over their higher valuations and rising COVID-19 cases worldwide, technology stocks have witnessed a sharp pullback over the last few weeks. Meanwhile, here are four such companies that have corrected over 25% from their recent highs and offer excellent buying opportunities.

Docebo Docebo (TSX:DCBO)(NASDAQ:DCBO), which provides highly configurable corporate e-learning solutions, has lost 32.4% of its stock value from its January highs. Meanwhile, the steep correction provides an excellent buying opportunity, given the expanding addressable market and its innovative product offerings, solid customer base, and rising average revenue per user.

Given its convenience and cost effectiveness, many businesses are adopting digital learning tools to upskill their employees amid the changing business environment. So, the demand for the company’s service could sustain, even in the post-pandemic world also. Over the last five years, the company has more than doubled its customer base, while its average contract value has grown three times. Further, the company earns around 89% of its revenue from recurring sources, which is encouraging.

Kinaxis Second on this list would be Kinaxis (TSX:KXS), which provides cloud-based supply chain management solutions to improve its clients’ efficiency. Along with the weakness in the technology sector, the weaker-than-expected fourth-quarter performance has dragged the company’s stock price down, which trades 31.7% lower than its 52-week high.

However, the improvement in economic activities and a structural shift towards online shopping could increase the demand for the company’s products and services in the coming quarters. Meanwhile, Kinaxis, with its recent acquisitions and innovative products, is well equipped to benefit from the expanding addressable market share. It has enhanced its flagship platform, RapidResponse, by empowering it with AI-based capabilities. Given its healthy growth prospects and the correction in its stock price, I believe Kinaxis could deliver superior returns this year.

Goodfood Market Goodfood Market (TSX:FOOD) is also trading 44.4% lower from its January highs. The steep decline in its stock price has dragged its forward price-to-sales multiple to an attractive level of 1.5. Meanwhile, earlier this month, the company has reported an impressive second-quarter performance. Its top line grew by 71%, while its adjusted EBITDA margin expanded by 5.5%.

Meanwhile, the demand for the company’s services could sustain amid the secular shift towards online shopping. Further, its growing customer base, penetration into newer markets, expanded product offerings, and rising delivery speed augur well with its growth prospects. So, I believe the steep correction provides an excellent entry point for long-term investors.

WELL Health WELL Health Technologies (TSX:WELL), which focuses on providing omnichannel healthcare services across North America, is my final pick. The demand for telehealthcare services is rising given their accessibility, convenience, and cost effectiveness. So, the demand for WELL Health’s services could sustain.

Further, the company is looking to aggressively expanding its geographical footprint through acquisitions. It is currently working on closing the recently announced acquisitions of CRH (LON:CRH) Medical and Intrahealth Systems. These acquisitions could drive the company’s annual revenue to above $300 million. Meanwhile, the company has also raised around $300 million in February, supporting its future acquisitions. Amid the recent sell-off in tech stocks, the company is trading close to 28% lower from its February highs. So, I believe investors should utilize this correction to accumulate the stock to earn higher returns.

The post 4 High-Growth Canadian Stocks Available at a Discount appeared first on The Motley Fool Canada.

The Motley Fool recommends Goodfood Market and KINAXIS INC. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.