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3 Selloff Stocks That Could Help Set You Up for Life

·4 min read
Make a choice, path to success, sign
Make a choice, path to success, sign

Written by Jed Lloren at The Motley Fool Canada

When the market drops in value, many investors become hesitant to buy shares. If you ask me, I’d say that’s very odd. If you went to the grocery or department store and saw things selling at a 50% discount, it’s very likely that you’d take a look around and see if there’s anything that catches your eye. However, when investors see stocks trading at a 50% discount, they often want to “wait for a better time to invest.” It’s actually during times like these when investors should be looking for stocks that could set them up for life.

As Warren Buffett says, “Be fearful when others are greedy and greedy when others are fearful.” If you buy the right stocks during market selloffs, you could be putting yourself on track for a very comfortable retirement. Here are three selloff stocks that could help set you up for life!

Buy this top e-commerce stock

Shopify (TSX:SHOP)(NYSE:SHOP) is the first stock that I believe investors should be buying today. This e-commerce giant has fallen more than 70% from its all-time highs. That massive slide has caused many growth investors to turn sour on this stock. However, I think this is a great time to buy shares. Shopify’s business is as strong as ever, especially with the addition of YouTube to its enterprise partnership network.

Although many investors point out Shopify’s slowing growth rate as a sign of bad things to come, I don’t see it that way. Larger companies tend to grow slower than smaller startups. That’s simply the law of large numbers. What is important to look at is the fact that Shopify continues to grow. Over the past five years, Shopify’s monthly recurring revenue has risen at compound annual growth rate of 35%. I believe Shopify still has a lot of room for growth. This is an excellent time to buy shares.

This digital payments company could be a massive winner

As the e-commerce industry continues to grow, merchants will need to find ways to accept online payments. That’s where Nuvei (TSX:NVEI)(NASDAQ:NVEI) comes in. The company provides merchants with an omnichannel payments platform. Using its platform, merchants are able to accept online, mobile, in-store, and unattended payments. It’s that breadth in its offering that I think separates Nuvei from its competitors.

Nuvei has been in the headlines ever since its first day of trading. In October 2020, the company made news when it closed the largest tech initial public offering in Canadian history. In late 2021, Nuvei was in the headlines again, but this time for a negative reason. It was the subject of a short report, which has since been deemed as misleading by many analysts. However, since then, the stock hasn’t been able to recover due in large part to the economic environment that has caused many growth stocks to suffer.

I believe that digital payment companies have a lot of room to grow and that Nuvei could be a major player in that industry. This is an excellent stock to buy today.

The telehealth industry will continue to grow

If the COVID-19 pandemic has shown us anything, it’s that global healthcare systems need massive improvements. Further, many doctors resorted to phone call consultations, instead of in-person meetings. This can be very uncomfortable for patients, as it doesn’t give them very much peace of mind. That’s where telehealth solutions come in. Companies like WELL Health Technologies (TSX:WELL) provide platforms that healthcare providers can use to see patients virtually.

What separates WELL Health from other telehealth companies is that it provides so many other services. It offers cybersecurity, billing, and EMR services that telehealth providers can use to improve their own offerings. WELL Health also maintains an online marketplace that healthcare providers can use to obtain different apps. The telehealth industry is still a very new area and could look very different in 10 years’ time. However, WELL Health is shaping up to be a solid player in that space.

The post 3 Selloff Stocks That Could Help Set You Up for Life appeared first on The Motley Fool Canada.

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Fool contributor Jed Lloren has positions in Shopify. The Motley Fool has positions in and recommends Nuvei Corporation and Shopify.