Alert! 2 High-Growth Stocks to Buy Before 2020

Zymeworks Inc. (TSX:ZYME)(NYSE:ZYME) and Stars Group Inc. (TSX:TSGI)(NASDAQ:TSG) are well-positioned to benefit from big growth in their respective markets.

| More on:

Investors on the hunt for high-growth opportunities have their work cut out for them as cannabis stocks have started to look more like normal equities at the midway point in 2019. The slim TSX tech sector, aside from Shopify’s incredible run, has been unpredictable. We are going to veer away from these sectors today and look at two stocks that should attract the interest of investors on the hunt for big potential growth.

Zymeworks

Zymeworks (TSX:ZYME)(NYSE:ZYME) rose above the $30 mark for the first time in 2019 in early July. The Vancouver-based biotechnology company boasts two product candidates that have attracted a great deal of interest over the past year. Those are ZW25, which just entered Phase II Trials, and ZW49, which just received approval for Phase I Trials.

When the year started, I’d recommended that investors look to scoop up Zymeworks for the long haul. As well as the stock has performed in 2019, it is possible that Zymeworks has not even scratched the surface of its potential.

Zymeworks closed a public offering in late June that it will use to expand the global development of ZW25. The drug has game-changing potential in the breast cancer therapeutics market. Beyond that, Zymeworks boasts a deep pipeline of partnerships and assets that will fuel revenue for the foreseeable future.

Zymeworks topped out its 52-week at the time of this writing, but I’m bullish on the stock as we look ahead to the next decade. Shares may be pricey in the near term, as its RSI suggests it is on the edge of technically overbought territory, but investors seeking growth should look for an entry point in the second half of 2019.

Stars Group

Stars Group (TSX:TSGI)(NASDAQ:TSG) stock has halved its value from the all-time highs it reached in the summer of 2018. The company had a strong 2018, but splurged on acquisitions, which in turn weighed on earnings. Stars Group has moved aggressively into European and Australian markets. Of course, the big story over the past year has been its effort to establish a foothold in legalized sports gambling in the United States.

The recent partnership with FOX Sports holds huge promise as both hope to win big in the growing US sports betting market. More states are expected to follow through with legalization before the end of this year. A Zion Market Research report recently projected that the global sports betting market would reach $155.5 billion by 2024, which represents a solid CAGR of 8.8% from 2018 to 2024.

Stars Group is well positioned to benefit from growth in the US market and internationally. It will take time for the U.S. market to mature, but investors who exercise patience could be well rewarded. Stars Group is currently trading at the low end of its 52-week range. Investors can expect its second quarter 2019 results to be released in August. Stars Group stock is worth the gamble at the midway point in 2019.

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.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

More on Investing

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Investing

Is Canadian National Railway Worth Buying for its 2.2% Dividend Yield?

Let's dive into whether Canadian National Railway (TSX:CNR) is a top buy for long-term investors at this point in the…

Read more »

nuclear power plant
Energy Stocks

Is Cameco Stock Still a Buy?

Cameco stock recently reported earnings that showed the Westinghouse investment is creating some major costs. But that could change.

Read more »

cloud computing
Dividend Stocks

Insurance Showdown: Better Buy, Great-West Life or Manulife Stock?

GWO stock and MFC stock are two of the top names in insurance, but which holds the better outlook?

Read more »

analyze data
Dividend Stocks

Here’s Why the Average TFSA for Canadians Aged 41 Isn’t Enough

The average TFSA simply isn't enough for most Canadians in their early 40s. Here's how to catch up.

Read more »

A plant grows from coins.
Dividend Stocks

The Smartest Dividend-Growth Stocks to Buy With $1,000 Right Now

New dividend-growth investors should consider CN Rail (TSX:CNR) stock and another top play if they're looking to build wealth over…

Read more »

concept of real estate evaluation
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on It

Canadian REITs can turn your TFSA into a monthly paycheque machine for life. Here's how Morguard North American Residential REIT…

Read more »

Start line on the highway
Investing

2 No-Brainer Growth Stocks to Buy Now With $5,000 and Hold Long Term

Market conditions today are ideal for growth investing, and two rising stocks are no-brainer buys in November.

Read more »