2 2019 Venture Graduates to Outperform the Market in 2020

Up-and-coming Venture graduates are always a great place to find the next big thing, such as Pro Real Estate Investment Trust (TSX:PRV.UN), which has been growing its business rapidly.

| More on:
Baubles On Snow With Snowy Christmas Tree

Image source: Getty Images

Up-and-coming stocks that just recently graduated from the TSX Venture Exchange offer investors some of the best growth opportunities and chances to get in on the name before it becomes widely known while trading on the TSX.

Another thing that these names come with, is a lot of momentum, with the share prices seeing major increases, which is what allows them to graduate from the Venture Exchange in the first place.

The TSX Venture 50 list is the ideal place to find these stocks before they graduate, as it’s a list of some of the highest potential companies listed on the Venture Exchange.

Both these two stocks were on the 2019 Venture 50 list and graduated during the year to the TSX, where they have kept up their strong operating performance.

The two 2019 venture grads that will have huge upside going into 2020 are OrganiGram Holdings Inc (TSX:OGI)(NASDAQ:OGI) and Pro Real Estate Investment Trust (TSX:PRV.UN).


OrganiGram has had a great couple of years building up its strong and low-cost model of cannabis cultivation.

Despite its stock trading just off its 52-week low, due to the entire cannabis market being highly volatile and losing a lot of confidence from investors, OrganiGram has still grown its business considerably in 2019.

It graduated in April and was on quite the rally before the entire sector began to get sold off, bring OrganiGram back down to bargain prices.

Today, its market cap is just over $500 million, extremely cheap for one of the top cannabis cultivators in the country.

Its high-quality and high-tech growing facility has been a major differentiator for OrganiGram, and will continue to help the company to produce high-quality cannabis at some of the lowest costs in the country.

The stock is clearly undervalued though and many analysts have it rated as a consensus buy, with a one-year consensus target price of roughly $5.50, a 60% increase from its current trading price.

The company has been very well run since day one, which has played a major part in leading it to be one of the best-positioned cannabis companies to reach profitability in 2020.


Pro REIT is a diversified commercial REIT with properties that span the country. Roughly 40% of its portfolio’s revenue comes from retail, 26% comes from mixed use, 21% from industrial and the last 13% coming from its office properties.

Its portfolio is well diversified across all the provinces, with its largest share of properties located in New Brunswick.

The company’s two main goals are to produce growing returns that are stable and to grow unitholder value.

In the last five years it has more than tripled its properties and more than quadrupled its gross leasable area, now with more than 4.4 million square feet.

This has represented a 56% compounded annual growth rate (CAGR) in its leasable area since 2013, which has driven a 91% CAGR in its revenue over the same period.

Over the last year it has improved its financial position and increased its interest coverage ratio. Its payout ratio also increased slightly, and is now sitting at roughly 110% of its adjusted funds from operations.

This isn’t too much of a worry yet as the company has been growing its business rapidly. Plus, the dividend yields a whopping 8.6% in the meantime.

Bottom line

Both companies have been on multi-year growth streaks and have the backing of strong management to lead them on their next chapter of growth and continue to beat the market.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends OrganiGram Holdings and OrganiGram Holdings.

More on Dividend Stocks

Paper Canadian currency of various denominations
Dividend Stocks

Set and Forget: 1 Dividend Stock That Could Create $1,000 in Tax-Free Passive Income in 10 Years

Enbridge operates a low-risk business that has allowed the TSX dividend giant to raise its payout by 10% annually since…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How to Make $106 Per Month Tax Free

Holding quality, high-yield dividend stocks such as Freehold Royalties in a TFSA can help you earn tax-free income for life.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

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

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

Down by 26.77%: Now Might Be the Perfect Time to Buy Nutrien Stock

This TSX stock has seen share prices fall by over 26% from its 52-week highs, but it might be the…

Read more »

Woman has an idea
Dividend Stocks

2 No-Brainer Stocks to Buy Now With $7,000

Two relatively cheap cash cows are no-brainer buys for investors with $7,000 to invest.

Read more »

dividends grow over time
Dividend Stocks

Buy This High-Yield Dividend Stock in July 2024

Buy this high-yielding dividend stock to lock in inflated yield into your portfolio to generate solid passive income for years.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Where Will Dollarama Stock Be in 3 Years?

Dollarama stock has done incredibly well during economic uncertainty, but what about when the markets recover in the next three…

Read more »