Hooray! 2 stocks with massive growth prospects
Risk is one of the most common attributes associated with growth stocks and growth-oriented funds. But one thing that many investors don’t understand is that the risk is relative. Many stocks are relatively riskier in some market conditions and stable in others.
Take the example of energy stocks. Once considered solid investments, many energy stocks are now counted as risky holdings with fragile long-term prospects. The risk comes from multiple factors: sanctions on energy companies, breakthroughs in electricity production, electric vehicles dominating the market, etc.
Likewise, for many growth stocks, growth potential and outlook are related to several different factors. And it must be revised in a timely manner. A good growth stock will only be “right” for you if you can find the right time and make your earnings closer to the top.
With that in mind, there are two companies that you might want to consider for massive growth prospects. One is already on a tear, and the other could be explosive in the distant future.
A money business
Although far from its all-time high, the price of silver has risen quite sharply in 2021. Fear of inflation is forcing many investors to look to safe-haven assets, and precious metals are experiencing increased demand. . This is part of the reason why Discovery Money‘s (TSXV: DSV) powerful growth of 244% over the past 12 months.
It took the valuation to new heights and increased the five-year CAGR to epic proportions (204%). Enough to double your investment capital in less than a year if the business can continue. Right now it’s all speculation, but even if inflation hits and we start to see its obvious impact, the demand for silver and other precious metals could explode.
If that happens, Discovery, even in its current expensive state, could offer impressive growth. But it’s hard to predict how long the growth phase will last and when the stock will start to normalize. It would be prudent to make an exit before the stock begins to collapse in response to a strong stock market and the fear of inflation subsiding.
A battery company
Electrovaya (TSX: EFL) is a Mississauga-based company that has been in business for approximately 27 years and focuses on lithium-ion batteries, which are still the best battery technology we have when it comes to high energy density and maintenance. Electrovaya is promoting itself as a clean energy company that, through its ‘battery powered’ solutions, has saved 702 MWh of energy so far and helped remove 1.2 million pounds of carbon dioxide alone. ‘in 2020.
The company offers battery solutions and technologies in three main areas: mobility, material handling and energy storage solutions. Mobility and energy storage have enormous future potential. With its unique designs of patented technologies, the company could have the potential to complete large EV, wind farm and solar farm projects. A few of these deals can push Electrovaya’s financial data and interest in stocks (and therefore, its valuation) through the roof.
The prospects for massive growth for both companies are tied to some general and industry-specific stock market factors. But if a few factors line up in favor of these companies, you could stand to benefit from a big payoff.
Speaking of two stocks that may offer powerful growth in the near future …
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Foolish contributor Adam othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.