A conservative investment approach is one of the safest ways to protect your capital. But you should also understand that with risk comes reward. If you are willing to try your hand at some fast-growing stocks to expedite the growth of your wealth, you might want to consider Silvercorp Metals (TSX:SVM)(NYSE:SVM), goeasy (TSX:GSY), and Equitable Group (TSX:EQB) as your investing options.
All three companies have the potential of doubling up your investment inside a couple of years. The growth pace might seem a bit too good to be true, but these companies have been at it for at least five years.
From silver to gold
Gold has a way of shining so bright that it doesn’t let any of silver’s brightness reach investors’ eyes. But Silvercorp’s growth is too magnificent to ignore. Market cap-wise, the company is relatively small compared to other metal and mining companies. But this $1.29 billion underdog has grown its market value four times in the past five years. The company grew 162% just this year.
The stock is valued at $7.46 per share at the time of writing this. With a PEG ratio of 0.07, the stock is relatively undervalued. The company has multiple mines in China, and thanks to effective mining techniques and well-priced labour, Silvercorp is one of the most low-cost silver producers in the sector.
Alternative financial company
goeasy provides small, comfortable, and low-value loans. The company’s loan benchmark starts from $500, a number that would definitely get a laugh if you asked a conventional bank for it. goeasy claims a very high, 76%, loan approval rate and an astoundingly low loan-processing time of fewer than 30 minutes. These small loans might not look like a very profitable idea, but the company’s growth says otherwise.
The current market value of $68.33 per share is the result of a 290% growth in the past five years. The company grew more than 100% this year, doubling investors’ money in fewer than 12 months. The year-to-year revenue growth of the company is 16.8%, and net income increased by 38%. goeasy is definitely not going easy on growth.
Though the yield is low at 1.8%, goeasy has increased its payouts for five consecutive years.
A financial services business
Equitable Group is another alternative lender that operates through its own Schedule I Bank, Equitable Bank. In the country’s giant banking sector, this $1.91 billion underdog tends to stay below investor radars. But its growth and stability warrant attention. Equitable Group is a Dividend Aristocrat, with eight years of consecutive payout increases.
The 1.23% yield is not very glamorous, but the company’s growth certainly is. Just this year, the Equitable Group has increased by 78%. The company has grown its revenue and income by almost 21% and 15%, respectively, from the same time last year. With a price-to-book ratio of 1.42 and a price-to-earnings ratio of 10.26, the company is relatively undervalued.
All three of the companies have the potential to increase your capital gains at least two times in the next five years. Fast growth is usually associated with high risk, but the companies have been consistently climbing for the past many years, without any significant nose-diving of stock value. If you are looking to speed up your wealth accumulation, you might want to consider Silvecorp, goeasy, and Equitable Group.
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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 Adam Othman has no position in any of the stocks mentioned.