Many stocks trade below their intrinsic or real values in 2022. You can own them at bargain prices and realize sizable gains in the near term. Based on analysts’ price forecasts, Mogo (TSX:MOGO)(NASDAQ:MOGO) and Acuity Ads Holdings (TSX:AT)(NASDAQ:ATY) are buying opportunities.
With an average return potential of 257.35%, a $1,000 investment today could grow to $3,573.50 in one year. The current underperformance could be due to the general pullback of tech stocks. Thus far this year, the information technology sector is worst performer among 11 primary sectors. However, the business outlooks for Mogo and AcuityAds are both positive.
Financial health in the modern world
Mogo’s simple digital solutions attract investors, particularly the younger folks or millennials. The $222.93 million fintech and digital payments firm is also a crypto company. Its founder and CEO, David Feller, said, “We are still in the very early days of fintech adoption, as consumers look for solutions that are built for the modern world.”
With a slew of financial products and services, the member base is growing significantly. After the first three quarters of last year, membership is close to 1.8 million. In Q3 2021, management reported 58% and 126% growth, respectively, in total revenue and subscription & services revenue versus Q3 2020.
Mogo, however, incurred a net loss of $9.8 million compared to the $1 million net income in the same quarter in 2020. Management said it proactively scaled back on growth spending during the pandemic. Still, the diversified set of products continues to drive revenue streams.
Greg Feller, Mogo’s president and CFO, said, “Our third-quarter results were again highlighted by another quarter of accelerating growth in subscription and services revenue.” He added that the company will invest heavily to build a next-gen fintech platform.
Mogo wants to capture a significant share in a huge addressable market with long-term tailwinds. MogoTrade, a commission-free stock trading solution, is the company’s most significant product development to date. The fintech stock carries a strong buy rating from analysts. It trades at $2.92 per share but could potentially climb 351% to $13.17 in 12 months.
Leader in the digital ad space
AcuityAds has yet to report its full-year 2021 results, although the financial results after the first three quarters were mighty impressive. Net income reached $8.08 million compared to the $474,410 net loss in the same period in 2020. Illumin, an advertising automation platform is the key growth driver.
This $210.41 million technology company provides a powerful and holistic solution for digital advertising across all ad formats and screens to amplify the reach of marketers. AcuityAds boasts an industry-leading activation platform based on proprietary AI technology.
AcuityAds leverages an integrated ecosystem in the digital era to meet the demand and requirements of marketers. The near-term goal is to extend the company’s leading position in the digital space. Management will continue to support Illumin by putting additional marketing, sales, and product development resources. It should enhance its long-term growth trajectory.
If you invest now, the tech stock trades at $3.47 per share. The 12-month average price target of market analysts is $9.15, or a 163.7% upside potential.
Visible growth
The investment thesis for Mogo and AcuityAds is visible growth that should lead to profitability. Both companies are well positioned to cement the foothold in their respective industries.
