4 cheap tech stocks for long-term investors

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Amid improving investor sentiment, the S&P/TSX Composite Index rebounded strongly to climb nearly 8% from last month’s lows. Despite the rebound, the following four tech stocks are trading at a substantial discount to their 52-week highs, providing excellent buying opportunities for long-term investors.

Nuvei

Amid the recent recovery, Nuvei (TSX:NVEI)(NASDAQ:NVEI) is up nearly 30% from last month’s lows. Despite the surge, it is trading 63.5% below its 52-week high. NTM’s price-to-earnings ratio has fallen to 23.4, making it an attractive buy. With the growing popularity of digital payments, the company’s new alternative payment methods, geographical expansion of digital payment and cryptocurrency solutions, and the addition of new customers offer excellent growth prospects.

Nuvei is also strengthening its position in the online sports betting and gaming market through geographic expansion and the signing of agreements with major operators. At the same time, the company’s management expects its revenues to increase by 30% in the medium term while achieving an adjusted EBITDA margin of 50% in the long term. So, given its growth potential and reduced stock price, Nuvei could be a great buy for long-term investors.

Blackberry

Blackberry (TSX:BB)(NYSE:BB), which specializes in cybersecurity solutions, is trading about 62% below its 52-week high. Its weaker-than-expected fourth-quarter earnings and weak tech space drove its stock price lower. However, the pullback offers an excellent entry point for long-term investors, given its multiple growth drivers.

The company is strengthening its position in the high-growth IoT market through its strategic investments, such as IVY, design wins and innovative product launches. It is also focused on expanding its customer base in the cybersecurity market, which is growing amid increased digitalization and remote working and learning.

Given its growth potential, BlackBerry management expects an annualized growth rate of 13% through 2026. In addition, its operating margin could improve at a rate of 1% per year while generating an operating margin of 20% by 2027. Thus, its growth prospects seem healthy. .

Light trade

Light trade (TSX:LSPD)(NYSE:LSPD) is another stock that saw a massive sell-off from its 52-week high. Amid the nearly 79% correction, the company’s NTM price-to-sell multiple fell to 5.5. Meanwhile, the company’s addressable market is growing amid increased adoption of omnichannel selling.

Meanwhile, Lightspeed Commerce is also focused on expanding its product offerings, increasing its geographic presence, and making strategic acquisitions to drive growth. Under favorable market conditions, the company’s management expects its turnover to increase by 35 to 40 percent this year. Its adjusted EBITDA losses could fall to 5% of total revenue. So, given its high growth prospects and reduced stock price, Lightspeed Commerce could offer superior long-term returns.

WELL health technologies

WELL health technologies (TSX:WELL) is my last choice. It is trading at a 57.5% discount to its 52-week high. The company’s NTM price-to-earnings multiple fell to an attractive 17.6 amid the sharp pullback. Meanwhile, the company continues to improve its finances, with revenue rising 395% in recently released first quarter results. Its adjusted net income was $8.6 million, compared to a net loss of $2.4 million in the year-ago quarter.

Meanwhile, the demand for telehealth services is increasing, which benefits the business. WELL Health also announced the acceleration of its acquisition strategy, which could boost its finances in the coming quarters. After its strong performance in the first quarter, the company raised its revenue forecast to $525 million from $500 million. Its adjusted EBITDA could approach $100 million. So, given the favorable market conditions, improving financials and attractive valuation, I am bullish on WELL Health.

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