As we head deeper into Q4 and year-end, the TSX continues its momentum. At this time, I’ve been looking for top stocks that will continue this momentum. I have found three top stocks to buy that are all on the cusp on significant growth. And while they are all still unable to generate earnings yet, this too is about to happen.
Top stock Ballard Power Systems (TSX: BLDP)NASDAQ:BLDP) is a leading global provider of fuel cells. This company will thrive, as the world moves to emissions-free energy. BlackBerry (TSX: BB)(NYSE: BB) is a quality player in cybersecurity and connected cars. This company will thrive as these industries see rapid growth next year and well into the future. Lastly, top stock Lightspeed POS (TSX: LSPD)(NYSE: LSPD) will continue to ride the wave of a rapidly growing e-commerce industry.
Let’s take a closer look at these three top stocks.
Ballard Power stock will rally, as fuel cells are destined for significant growth
Ballard Power Systems is a leading global provider of innovative clean energy and fuel cell solutions. Fuel cell vehicles are fast becoming the electric vehicle of choice for heavy duty trucks and buses. China, California, and some countries in Europe are leading the way in this transformation. But the market for fuel cells doesn’t stop there. Ballard is making progress in the rail, marine, and the passenger car industries as well.
Fuel cells will be a significant part of the electrification of vehicles. An estimated $130 billion opportunity will be up for grabs by 2030, as vehicles move to emission-free engines. Based on this, Ballard estimates that it can generate $5 billion in revenue in 2030. This represents a compound annual growth rate of 49%.
Ballard Power stock price continues to be one of the best performers on the TSX. The stock has soared 168% in 2020 and 300% in the last three years. Ballard reports its third-quarter earnings on November 6.
BlackBerry stock will surge on cybersecurity and connected cars growth
BlackBerry is currently trading at trough valuations, as it continues its transformation. The stock is trading just slightly above book value and at a price-to-sales multiple of 2.8 times. The cybersecurity industry is expected to grow at a compound annual growth rate (CAGR) of 15% until 2026. The global connected car market is expected to grow at a CAGR of 25% from 2020 to 2025.
In this pandemic, the digitization of every facet of life has been accelerating at lightspeed. And with this comes the need for security. This means that BlackBerry’s cybersecurity offering has significant growth ahead of it. Recent wins for BlackBerry’s cybersecurity offering put it on a solid footing. BlackBerry’s endpoint security systems and endpoint management systems are already seeing increased demand and increased billings.
While autonomous cars are at least a decade away, cars are quickly becoming increasingly connected. And many of them are equipped with BlackBerry’s technology. BlackBerry QNX is at the forefront of transforming automobiles into connected systems today and autonomous vehicles tomorrow.
Lightspeed POS stock is riding momentum on its rapidly growing e-commerce business
Finally, Lightspeed POS stock is growing rapidly, which is being driven by the pandemic. But this is a trend that was going to happen with or without the pandemic. E-commerce is a must in a digitizing economy. Companies must offer consumers omni-channel online systems as well as or instead of physical locations.
The company doesn’t have earnings, but its revenue is growing at a 50% plus rate. It is one of the many e-commerce stocks that have outperformed this year.
Motley Fool: The bottom line
For Ballard Power stock, BlackBerry stock, and Lightspeed stock, Q4 should continue to be rewarding. Furthermore, these companies are all on growth trajectories that will span decades. These top stocks will make you rich today and in the long run.
