2 Growth Stocks That Could See a Late Surge in 2020

Growth investors can choose from among the 2020 TSX30 list, which showcases the top performers during the pandemic. However, Ballard Power Systems stock and Goodfood Market stock are likely to surge in Q4 2020.

The second edition of the flagship program of the Toronto Stock Exchange (TSX) is out. It features the TSX’s 30 top-performing stocks in 2020. According to Loui Anastasopoulos, president, Capital Formation, TMX Group, this year’s winners are some of the exciting companies that could be the next engines of growth.

Two of them, Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP) and Goodfood Market (TSX: FOOD), could even see a late surge in 2020 because the growth potentials are highly visible. The stock prices are relatively cheap and good entry points. You can take positions today before both become expensive buys in 2021.

Clean energy revolution

Ballard Power Systems ranks second on the Top 30 list with its +459% three-year performance. Its year-to-date gain is 131.47%. This $5.6 billion company has lots of growth potential, because it’s at the forefront of the ever-growing renewable energy space. Hydrogen is part of renewables, and Ballard is the leader in hydrogen fuel cell technology.

Management’s vision for Ballard is to deliver fuel cell power for a sustainable Earth. Its zero-emission PEM fuel cells enable electrification of mobility in buses, commercial trucks, trains, marine vessels, passenger cars, and forklift trucks.

The immediate plan is to expand the manufacturing capacity to produce more of its proprietary membrane electrode assemblies (MEAs) by early 2021. MEA is a critical component of every fuel cell. The goal is to upgrade the capacity of its Vancouver facility and produce six million MEAs yearly.

Some analysts say a Biden presidency favours Ballard. If the former U.S. vice-president wins, the company will benefit from the promised clean energy revolution.

Monster growth ahead                                            

Goodfood’s inclusion in the Top 30 list should heighten investor attention on the upcoming growth stock. The $569.39 million online grocery company delivers fresh meals and grocery products in Canada.

Analysts covering Goodfood are bullish and recommend a buy rating. The stock price has been trending upward since its COVID low of $1.90 on March 13, 2020. As of November 3, 2020, shares are trading at $8.79 — a stunning 363% jump. The year-to-date gain is 181%.

Expect the surge to continue as at-home demand for meal kits swell due to the second wave of COVID-19. Goodfood is a great success story. After operating for only four years, Goodfood is now one of Canada’s most significant biggest subscription delivery services. The company logs more than 1,000,000 meal deliveries every month.

This company that delivers fresh meal solutions and grocery items to members will also deliver monster returns to would-be investors. Goodfood is one of the select few businesses that is well positioned for spectacular growth in the pandemic and beyond.

Varied selection

The TSX30 list offers various growth stocks from different sectors. Each company posted solid returns during the pandemic and not less than 129% over the last three years. Notable mentions are four in the top five: Shopify, Cronos, Kirkland Lake Gold, and Alacer Gold.

While any stock in the list has upside potential and could stand out, Ballard Power Systems and Goodfood Market can surge ahead of the field in Q4 2020. In the post-COVID world, both companies will continue to demonstrate resiliency while navigating the changing business landscape and recovering economy.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends Goodfood Market and TMX GROUP INC. / GROUPE TMX INC.

More on Investing

young adult uses credit card to shop online
Tech Stocks

Is Shopify Stock Too Expensive? A Great Quarter Meets a Sky-High Valuation

Shopify's latest quarter was impressive, but its expensive valuation could make investors think twice before buying.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

For BCE vs. Enbridge, a 5.7% Yield vs. 5.9% (And the One I’d Prefer for Income)

Both BCE and Enbridge offer attractive income, but BCE is a higher-risk turnaround opportunity, whereas Enbridge offers a more predictable…

Read more »

man shops in a drugstore
Dividend Stocks

How Much to Invest in RioCan for $300 a Month in Dividends

How much should you invest in RioCan for $300 a month in dividends? Explore its retail business, monthly payout and…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Telus Dividend Safety: Is the Stock Still Worth Buying for Income?

Explore the latest insights on Telus dividend amid a challenging earnings report and management's new Transformation Strategy.

Read more »

Quality Control Inspectors at Waste Management Facility
Stocks for Beginners

Would I Buy Waste Connections for a 10-Year TFSA? Here’s My Case

Waste Connections earns my interest for a 10-year TFSA, with recurring demand and cash generation balanced against a demanding valuation.

Read more »

AI image of a face with chips
Tech Stocks

Thomson Reuters Sells the Majority of Its Print Business as It Bets on AI: Can the Suffering Stock Bounce Back?

Learn how Thomson Reuters recovered from a 62% dip and what the future holds for its major revenue segments.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

BCE Just Reported: What $10,000 Could Earn You in Dividends Today

BCE is yielding a very generous 5.2%, as the company's telecom business improves and long-term investments drive growth.

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

Is Intact’s Rough Quarter a Blip or the New Normal for Canadian Insurers?

Intact reported $660 million in pre-tax catastrophe losses during the quarter, which dragged its net operating income per share lower.

Read more »