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Reaching a million-dollar net worth has long been a financial milestone for many, and while the landscape of retirement planning has evolved, aiming for this figure remains a worthy pursuit. Alongside traditional strategies like growing regular income and diligent saving, investing in TSX growth stocks can accelerate wealth accumulation, with Nuvei emerging as a potential avenue to millionaire status.
Nuvei (TSX:NVEI), a $4.5 billion Canadian fintech company, is expanding its global footprint in payments processing software, bolstered by recent partnerships and acquisitions. Despite its recent struggles, with the stock down 81.3% from its peak in late 2021, Nuvei presents a compelling recovery opportunity. While revenue surged at a 47.4% compound annual growth rate (CAGR) over the past three years, diluted earnings per share declined by 62% annually during the same period.
The stock's downturn can be attributed to a market downturn in 2022 and investor aversion to highly priced growth stocks with weak earnings. However, with organic growth in key markets and strategic acquisitions like Paya, Nuvei aims to consolidate its position in the global payments market.
Investors eyeing a potential recovery may be drawn to Nuvei's past performance, with the stock poised for significant gains if it returns to its prior peak price. Analysts forecast a 28% CAGR in Nuvei's sales over the next two years, supported by reasonable valuation multiples. Additionally, a potential expansion in valuation multiples or a substantial increase in dividends could further boost investor returns.
While Nuvei's growth trajectory and stock volatility warrant caution, the company's efforts to improve profitability and strengthen its balance sheet make it an attractive long-term investment. With Nuvei trading at a reasonable valuation, investors have an opportunity to capitalize on its growth potential and potentially achieve millionaire status over time.
