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.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

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.

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 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

Oil industry worker works in oilfield
Top TSX Stocks

Just Released: 5 Top Stocks to Buy in June 2024 [PREMIUM PICKS]

This month’s collection of our five favourite stocks leans hard on the energy sector.

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Gas pipelines
Energy Stocks

Buy, Sell, or Hold Enbridge Stock

Are you considering Enbridge (TSX:ENB)? Enbridge stock is a popular holding, but not all investors agree on whether you should…

Read more »

Arrowings ascending on a chalkboard
Dividend Stocks

The 5.5% Dividend Stock Set to Dominate the TSX

TD Bank (TSX:TD) stock looks severely undervalued while the yield is around 5.5%.

Read more »

protect, safe, trust
Dividend Stocks

Passive Income: How to Earn Safe Dividends With Just $10,000

These three dividend stocks with resilient business models and a growing earnings base can provide durable passive income.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

woman analyze data

The Best Stocks to Invest $2,000 in Right Now

For investors seeking the best stocks to buy for an opportunity to generate life-changing wealth, here are three options to…

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

How to Use Your TFSA to Earn $34,150 Per Year in Tax-Free Income

Canadian investors can hold undervalued TSX dividend stocks in a TFSA and benefit from outsized gains 2024 and beyond.

Read more »