Two of the top-performing stocks over the last 12 months have been Tesla Motors (NASDAQ:TSLA) and Lightspeed POS (TSX:LSPD)(NYSE:LSPD). Over the last year, there have been several opportunities to find great stocks like TSLA and LSPD. Finding the best stocks to buy today, though, is a much different story.
Several stocks have had impressive performances recently, whether it was high-quality stocks recovering or high-growth companies benefitting from the pandemic.
Today, though, as the world continues to recover from the pandemic, the forward-looking stock market is focused on the long term and life after COVID-19.
Stocks are not only no longer attractive for recovery potential. But they also aren’t seeing tailwinds from the pandemic like they were a year ago.
So, with that in mind, you may be wondering what the best stock to buy today is: TSLA or LSPD?
Tesla is a stock that needs no introduction. Investors know it well. It’s a revolutionary EV stock that you could argue is one of the main reasons there has been so much growth and innovation in the sector.
Not only has Elon Musk’s ingenuity pushed the auto sector to have to innovate more, but it’s also created a tonne of excitement around these stocks, pushing them to record highs.
That’s why TSLA stock has the potential to grow rapidly, much like LSPD. It’s also why they’ve been two of the top stocks to buy for the long term these past years.
Tesla isn’t just building electric cars either. It’s also pushing the limit on self-driving technology, as well as being a solar battery company.
There’s no doubt that Tesla will continue to make the world a better place and innovate for the future. The only question is how fast it can continue to grow and how profitable it can be.
Many investors doubted Amazon for years. Yet the stock has continued to keep growing and is showing no signs of slowing down. So, while TSLA stock has rallied considerably lately, there’s no reason it can’t continue to grow.
Just be careful of the valuation. The stock has been selling off for most of 2021 and coming back down to a more reasonable valuation. However, it still trades at 18 times sales and more than 600 times earnings. That’s considerably more than other automakers, which usually trade at less than one times sales and between 10 to 15 times earnings.
So, for now, I would keep my eye on Tesla. It’s a stock, though, that is definitely worth a buy for the long term if you can get it cheap enough. But is it a better bet than LSPD stock today?
Is LSPD stock a better buy than Tesla today?
Lightspeed is another high-potential growth stock, much like TSLA. Although it operates in a completely different industry, software as a service, it’s a stock that offers investors the potential for substantial growth over the coming years.
Lightspeed is well known for having a top software platform to serve small- and medium-sized businesses. The company’s omnichannel approach offers a tonne of tools and flexibility to customers.
This is crucial, because LSPD stock reports that, on average, its customers grow their gross transaction volume by 20% in just their first year using the platform.
The company has grown rapidly and now operates in over 100 countries. Plus, over the last 12 months, more than $26 billion of gross transaction volume was done on its platform.
As I said, it offers a tonne of potential like TSLA stock. The difference in which is the best stock to buy now could come down to valuation.
LSPD has certainly performed well and trades with a growth premium, as it should. However, it’s nowhere near as expensive as TSLA stock.
The stock has also seen a slight selloff, too, as have almost all tech stocks. This is giving investors the opportunity to buy Lightspeed at a significant bargain.
So, while I would always keep TSLA stock in the back of my mind, right now, it still seems a little overvalued. LSPD stock, however, offers compelling value today.
In addition to LSPD, here are 10 more of the best stocks to buy before Tesla today!
Should you invest $1,000 in Tesla right now?
Before you consider Tesla, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now… and Tesla wasn’t one of them.
The online investing service they’ve run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Amazon and Tesla. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.