© Reuters. 1 Top long-term stock trades with a discount of more than 80%
Growing concerns about the economic recession and slowing demand wiped out significant value from high-growth stocks. For example, shares of commerce platform provider Lightspeed (:LSPD)(NYSE:LSPD) are down more than 84% from the 52-week high.
The fall in Lightspeed shares followed Spruce Point’s short report, which questioned the company’s key performance indicators. In addition, worsening macro headwinds put additional pressure on its stock.
Regardless of concerns and weakening digital commerce demand, Lightspeed continued to impress with its financial performance. It continues to show strong organic growth and expects momentum to continue. Additionally, its growing customer base, increasing revenue from existing customers, and opportunistic acquisitions will likely support the stock price rally.
I’m optimistic about Lightspeed’s long-term prospects. However, if I could only invest in one stock, it would be Shopify (TSX:TSX:)(NYSE:SHOP) at current levels. Shares of this internet trading platform provider recently hit a new 52-week low. Additionally, Shopify’s stock is down about 82% from the 52-week high.
In this article, I’ll focus on the factors that make Shopify my best long-term stock pick.
Growth Will Accelerate for Shopify Investing in tech stocks may seem risky in the current market scenario, but there are several reasons to get bullish on Shopify stocks. Despite slowing demand, its growth could pick up pace as it tops tough comparisons in the second half.
Shopify’s increased investments in sales and marketing and new business initiatives will likely expand its addressable market, increase the penetration of its offerings, and position it well to capitalize on the digital shift. It’s worth mentioning that Shopify’s initiatives to drive long-term growth have started to gain momentum and will positively contribute to its performance over the coming quarters.
Shopify is expanding the reach of its existing products to new geographies and rolling out new features for merchants. Meanwhile, the growing adoption of its payment offerings and focus on consolidating its fulfillment network (SFN) bodes well for growth. Additionally, Shopify Capital’s penetration continues to grow.
It recently announced the acquisition of Deliverr, which would reduce delivery time, support its fulfillment offerings and attract more merchants to its platform. Meanwhile, Shopify’s partnerships with major social media companies add fast-growing sales and marketing channels for its merchants and create a platform for long-term growth.
Overall, Shopify is a solid company with shares trading at a multi-year low, creating a great entry for shoppers who aren’t in a rush to make a quick buck. This company has the right ingredients to make serious money for its long-term shareholders.
Given the current economic situation, it’s hard to predict how low Shopify’s stock may go. However, the massive erosion in its share price suggests that the decline is limited. Additionally, Shopify stock has plenty of growth catalysts to fuel long-term growth, which could see its stock price rally as benchmarks and economic pressure gradually ease and consumer sentiment ebbs. investors are improving.
The post 1 Top Long Stock Trades With Over 80% Discount appeared first on The Motley Fool Canada.
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool holds posts and recommends Shopify. The Motley Fool recommends Lightspeed Commerce (TSX:).
This article first appeared on The Motley Fool