It’s hard to decipher which stocks are growth stocks these days. It seems as if practically every stock is considered a growth stock. So when investors are looking for a strong recovery rally in 2021, they’ll want to consider growth stocks that will, frankly, keep on growing!
There are several TSX stocks that still stand a chance at being growth stocks in 2021, despite soaring valuations. What it comes down to is where you can get the best bang for your buck, even if that buck isn’t all that enormous. This year could still be big given the recovery from the pandemic and even oil prices these days. So if you want growth stocks, the first place to look is with growing industries.
BlackBerry
BlackBerry Ltd. (TSX: BB)(NYSE: BB) stock soared at the beginning of this year on the back of several pieces of news. Shares in BlackBerry stock climbed 243% in the first month of the year before falling back. As of writing, shares are up 68% year to date. But I expect BlackBerry to start really delivering to investors this year.
This comes from the company’s connection to the Electric Vehicle (EV) industry. There have been several announcements of late that have investors excited about the EV industry. There was the announcement from President Joe Biden that billions would be invested into green energy projects. This includes replacing 650,000 federal vehicles with EVs. That alone sent shares up.
Then there were multiple announcements from car manufacturers like Ford and General Motors. These companies have stated to have a full fleet of EVs or plug-in hybrids by 2030 in some cases. So what does this have to do with BlackBerry stock?
BlackBerry’s QNX software is in multiple car manufacturer’s vehicles. It’s become one of the leaders of the autonomous driving initiative. With so many cars turning to EVs and wanting to be state of the art, BlackBerry is going to see an enormous boost in revenue with new cars on the road. So this is something investors should be very interested in. As more news comes in, even this year, expect shares of BlackBerry to climb steadily upward.
theScore stock
Like BlackBerry stock, Score Media and Gaming Inc. (TSXV:SCR) has been on a tear this year, all thanks to the burgeoning business of the gaming industry. The stock has surged 152% year to date, and 455% in the last year alone!
The company has delivered strong results during the last earnings report, with its next report coming out in April. The company started the year strong, announcing its new theScore bet program into the United States. The company had an all-time quarterly record of 292 million views of video content across all platforms, a year-over-year growth of 243%.
Total revenue was of course down, but this was due to sports going on pause during the pandemic. Now that the sports calendar is back up and running, this year should see a substantial increase. This is the main reason the share price is lower than it could be. The share price will be boosted by its initial public offering (IPO) in the United States, so hence the reason it’s likely to explode in 2021.
Bottom line
Shares in both theScore stock and BlackBerry stock have proven in 2020 that there is still a lot of room for growth in the next few years. But in 2021, both have news coming down the pipeline that should send shares soaring. The companies are supported by strong financials, and have years ahead of them to keep growing. That makes both the perfect buy and hold stocks even if you just have $2,021 for 2021!
