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Highlights
- Undervalued stocks with the ability to outpace the broader market consistently can significantly boost return potential in the long run.
- Nuvei Corporation (TSX:NVEI) and Mogo Inc (TSX:MOGO) are fintech duos that were at their highest level at a point in 2021.
- A fintech company listed below reported a year-over-year (YoY) rise of 83 per cent in its revenue to US$ 211.9 million in Q4 FY2021.
Undervalued stocks with the ability to outpace the broader market consistently can significantly boost return potential in the long run. However, identifying such stocks can be a real task for many investors. Hence, focusing on a particular group of stocks or sectors, like fintech, could help investors spot quality undervalued stocks currently available at a discounted price.
Nuvei Corporation (TSX:NVEI) and Mogo Inc (TSX:MOGO) are fintech duos that were at their highest level at a point in 2021. However, these stocks appear to have taken a hard hit as investors moved away from tech equities.
Today, let us look at these two TSX fintech stocks that could fetch quality returns in the future.
Nuvei Corporation (TSX: NVEI)
Nuvei Corporation recently extended its global partnership to a European sports betting and casino, Novibet. Under the partnership agreement, Novibet will be able to accept payment and grow globally via a single integration.
The payment technology company reported a year-over-year (YoY) rise of 83 per cent in its revenue to US$ 211.9 million in the last quarter of fiscal 2021. However, the fintech’s net profit slipped to US$ 12.3 million in Q4 2021 compared to US$ 22.6 million a year ago.
Stocks of Nuvei Corporation dropped by about 17 per cent YoY. Based on EODHD/Others findings, NVEI stock attained a 52-week high of C$ 180 on September 17, 2021, after which it breached several support levels. Its Relative Strength Index (RSI) value stood at 38.03 on May 4.
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Mogo Inc (TSX:MOGO)
Mogo Inc recorded a YoY growth of 70 per cent in its total revenue to C$ 17 million in Q4 FY2021. The financial technology firm noted a 135 per cent surge in its subscription and services revenue to C$ 10.7 million in the latest quarter compared to Q4 2020. The firm posted a net loss of C$ 29.6 million in the last quarter of 2021 against C$ 2.8 million in Q2 2020.
Mogo expects its total revenue to grow to C$ 75 million to C$ 80 million in fiscal 2022.
MOGO stock decreased by over 74 per cent in 52 weeks and held an RSI value of 41.92 on May 4 (as per EODHD/Others).
Bottomline
Stocks of Nuvei Corporation and Mogo Inc appear to be deeply discounted at current prices compared to their 52-week highs. If favourable market sentiments return, they could improve the stock prices of such fintech.
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Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
