Source: Getty Images
TSX Growth stocks have fallen amid recent market selling. This presents a solid opportunity to TFSA investors to purchase these beaten-down stock in bulk and reap the benefits of their recovery. Let’s zoom in on a few such TSX stocks that have lost significant value. These companies also have strong growth potential and could easily double your TFSA cash over the medium-to-long term.
Two stocks under $10 that you can invest in
TFSA investors might consider purchasing the shares WELL Health (TSX.WELL) BlackBerry (TSX:BB)(NYSE:BB). These under-$10 stocks are well within every investor’s reach and have strong potential for growth.
WELL Health provides digital healthcare services. It has experienced rapid growth due to solid organic sales as well as strategic acquisitions. It’s worth mentioning that WELL Health stock lost substantial value in anticipation that economic reopening could weigh on its performance and erase its demand. However, that hasn’t played out yet, and the company continues to benefit from the ongoing momentum in its omnichannel patient visits.
Recent announcements by WELL Health indicated that its momentum was continuing in Q2, with record patient visits and strong growth. WELL Health has also reiterated its full-year guidance, and anticipates profitable growth for 2022.
Its growing patient base, strong U.S. business and potential acquisitions could all continue to increase its revenue and EBITDA. WELL Health stock trades at a very low valuation, making it a solid entry point for TFSA investors.
Well Health continues to grow in sales and EBITDA, but BlackBerry is well-positioned to benefit from the digital shift as well as the continued electrification of the auto industry and automation.
BlackBerry projects that its top line will grow at a CAGR 13% between 2027 and 2027. This is due to a double-digit rise in cybersecurity and IoT revenues. Furthermore, BlackBerry’s margins could expand by 100 basis points per annum during the same period, which is positive.
This stock, which is less than $10, has the potential to return multi-fold long-term returns due to its momentum, growing addressable markets, recurring revenue streams and customer growth.
One oversold TSX Growth stock
Besides these cheap tech stocks, TFSA investors could consider investing in the shares of the financial services company Goeasy (TSX:GSY). It provides subprime consumer leasing and lending services. Since its inception, it has grown its revenue and profitability at an almost double-digit rate over the past decade.
Meanwhile, goeasy has enhanced its shareholders’ value through increased dividend payouts and offers a decent yield.
Goeasy continues to grow its loan portfolio and transforms into a one-stop-shop for non-prime borrowers. Growth is also assured by its strong offerings and dedication to expanding its product line. It is expanding its distribution channels and its retail network. It is also looking at strategic acquisitions to increase its growth rate.
Going forward, goeasy may see an increase in loan volumes, channel expansion, product expansion, as well as ticket sizes. Additionally, goeasy’s solid repayment volumes, increased penetration of secured loans and operating leverage will likely increase its earnings and boost its stock price.