Everyone dreams of finding those one-in-a-million stocks that provide investors with incredible growth. The key to finding these millionaire-maker stocks is by searching for businesses with attractive long-term trends before they become widely known by the rest of the market.
Often some of the best stocks are high-quality businesses that are rapidly disrupting an industry. Other times they are the leading companies of a new industry that’s just starting to gain popularity.
Over the past few years, there have been several opportunities like this for investors. Pot stocks were highly rewarding leading up to legalization. Plus, tech stocks are always an industry with the potential to find these investments.
Today, though, the investments are in newly emerging high-growth industries.
There’s lots of potential in renewable energy
Renewable energy offers a tonne of potential, not just for the short-term but for decades to come. There is the traditional strategy of buying renewable energy generators. This is a quality strategy and can provide steady growth for years.
However, an even more opportunistic way to take advantage of the green energy wave is to buy a company like Xebec Adsorption Inc (TSX:XBC).
Xebec is one of the leading manufactures of industrial equipment in the hydrogen and renewable natural gas space. These are two technologies that will be critical to sustaining the environment in the future. So the fact that Xebec is a leader in the industry makes it extremely attractive.
Other investors have clearly agreed, as the stock is up 200% over the past year. The company has been growing rapidly by acquisition, and investors have started to take notice of the potential. Just recently, it even graduated to the TSX.
Xebec still has a market cap of less than $1.5 billion, though. So even though it’s had a significant rally over the past 12 months, with decades of potential, it’s still considerably undervalued for long-term investors.
The psychedelics industry is an excellent place to find millionaire-maker stocks
Another great growth industry for long-term investors is the psychedelics industry. Right now, the industry is being compared to the cannabis industry back when it was in its infant stages. Many think psychedelics could have significant pharmaceutical potential making these investments very attractive.
Although psychedelics is being compared to cannabis because of the potential to create so many millionaire-maker stocks, down the line, the opportunities are actually far broader.
The hype in the cannabis sector was always about the potential of legalization. With psychedelics, however, there’s a lot more opportunity with the science. This has many well-known investors like Kevin O’Leary and Peter Thiel getting in on the sector. So it’s no surprise that many think the industry could be full of millionaire-maker stocks.
Plus, in addition to the long-term prospects, the industry offers short-term potential now. Investors continue to jump on the bandwagon bringing more momentum to the sector. And with the psychedelic ETF that just launched last week, you can expect the demand for these shares to continue to increase rapidly.
If the potential for psychedelics is something that piques your interest, there are several opportunities to consider. However, one of the top potential millionaire-maker stocks in the sector is Mind Medicine (Mind Med) Inc.
One of the most important factors of finding millionaire-maker stocks are those in industries on the verge of a breakout. We’ve seen this in the past with various industries, from pot stocks to e-commerce and everything in between.
As much as the industry is crucial, though, it’s paramount you’re confident in the company’s ability to execute as well. If you can find a strong combination of both, you can be sure you have a remarkable long-term stock on your hands that will earn you some considerable returns.
Speaking of remarkable growth stocks that can make you a millionaire...
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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 Daniel Da Costa owns shares of XBC.