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2 High-Growth Stocks That Could Boom in 2020

It’s often said that you can’t expect any reward without taking the risk, and there is no place where that’s truer than in the stock market.

Stocks that have the biggest upside and growth potential are usually those that are riskiest; otherwise, investors would already be in the stock and it would be worth a lot more, which would severely reduce the reward that’s available.

Finding high-growth-potential stocks is a competition between you and other investors of determining who has the better idea of risk versus reward.

If you believe a company is cheaper than it should be and have weighed its growth potential against the danger that lies within it, that’s when you make an investment. What you rely on, though, is many other investors passing on the stock to keep it cheap enough to make the risk worth it.

Two stocks that look too cheap to ignore and have excellent potential to boom in 2020 are Score Media and Gaming (TSXV:SCR) and Drone Delivery Canada (TSXV:FLT).

Score Media and Gaming

Score is best known by consumers as the company that operates one of the top — if not the top — sports app for iOS and Android. Its app gets more than 270 million mobile sessions per quarter because of the quality integration of it, the sports it offers, and up-to-the-minute information it provides.

Score saw this strong market position as a natural transition into the sports betting industry, especially as the States has become more lenient on gambling in the last few years.

Score has now launched its sportsbook completely in New Jersey and is targeting a launch in up to 11 more states over the near term.

The company knows how popular sports gambling is and has strategically built its operations and position in what will be an extremely lucrative industry over the coming years.

It continues to refine its mobile apps to better suit the needs of its users, while driving additional traffic and potential customers through its improved media business.

The media business includes a variety of social media, videos, and articles designed to engage sports fans and bring them to its app, where it can convert some of the users to potential customers.

Its stock is already up roughly 100% this year, but at a market cap of just roughly $250 million, there is still plenty of room for it to continue to grow.

Drone Delivery Canada

Drone Delivery Canada has been making the strongest push to improve the logistics and costs associated with drone delivery and is the market leader in Canada.

Drone delivery has been getting ever more popular as the technology continues to improve, with massive companies such as Alphabet, Google’s parent company, even participating.

When drone delivery becomes commercially viable, it will be an absolute game changer in the delivery industry, which is what makes Drone Delivery Canada such a high-potential investment.

The work it has been doing testing payload capacity, flight paths, and other logistics is giving it a major advantage over any potential competitors that may come into play in the future and solidifies itself as the leader in Canada, or at least as a solid takeover target.

It currently has been working with pilot partners to improve its operations and refine its procedures to ensure that when it’s launched, there aren’t any hiccups that will set the company back.

As it improves its services and adds more clients, look for Drone Delivery’s stock to explode, especially as more investors hear about it for the first time and rush into the stock to gain some exposure.

Bottom line

These two are some of the top two stocks in Canada that could absolutely boom in 2020. If you have some funds that you can allocate to higher-risk stocks, these two companies are the ones that offer the best risk/reward potential.

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Suzanne Frey, an executive at Alphabet, 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 Alphabet (A shares) and Alphabet (C shares). Tom Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares).

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