The e-commerce industry has flourished in the last few years, and early investors reaped significant benefits from it. Who would have thought a decade ago that it would see such a steep growth? But smartphones, high-speed internet, and changing consumer behaviour drove the rally. Which emerging industries will deliver such returns 10 years from now?
Will cryptocurrencies continue their upward march in the coming years? Or will you find the growth story of electric or autonomous vehicles more believable? One thing is for sure: if you invest in emerging industries at the start of their growth cycle, the potential for higher returns is significantly higher. Here are three TSX stocks to bet on three emerging industries.
BlackBerry (TSX:BB)(NYSE:BB), the legacy security software provider, has notably expanded in mobility software platforms in the last few years. As EVs and connected cars could well be the future of the automobile industry, BlackBerry has a huge potential for growth going forward.
Its game-changer QNX software is already installed in 175 million cars globally. BlackBerry’s strong global presence in the automotive space and competitive advantage in futuristic car technology could be a healthy combination for investors. It has recently announced partnerships with Baidu for high-definition maps and Amazon for Intelligent vehicle data platform services.
BlackBerry stock has fallen to $13 levels recently after peaking to $36 in January. Despite the fall, it is still sitting at hefty gains of 125% for the last 12 months. The stock looks a tad overvalued at the moment. However, the premium is justified given the high growth potential and the recent boom in EV stocks.
Space technology is also among some of the high-growth areas right now. If you want to bet on it, consider Maxar Technologies (TSX:MAXR)(NYSE:MAXR) for the long term. It is a $3 billion space infrastructure and earth intelligence company.
The company offers services like robotics, earth imagery, and geospatial data analytics, which are used by private and government companies for navigation, security, and communication purposes.
For many years, space and allied tech domains have remained government-dominated areas. However, driven by its large growth potential, large private investment has come in the last few years.
Higher investments and a striving global space race could be beneficial for the entire industry. Higher investments will lower the technology cost over the period, which should eventually lift the profitability for companies like Maxar.
MAXR stock has gained more than 200% in the last 12 months. More contracts from government and commercial customers and promising top-line growth could continue to push the stock higher.
Cryptocurrencies like Bitcoin and Ethereum have remained the talk of the town for quite some time now. If you are looking for a relatively safer and convenient option to bet on these cryptos, consider HIVE Blockchain Technologies (TSXV:HIVE) stock.
HIVE stock has fallen almost 30% since last month. But it has gained 1,770% in the last 12 months. HIVE is a $1.8 billion cryptocurrency mining company that mines Bitcoin and Ethereum. It produces new crypto coins every day, which it can monetize for revenues.
The company’s exposure to two top-performing cryptos makes it an attractive bet for investors. The ongoing crypto exuberance can drive the HIVE stock higher. However, the volatile nature and underlying uncertainties can keep conservative investors at bay.
Before you consider Hive Blockchain, you may want to hear this.
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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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry, BlackBerry, and MAXAR TECHNOLOGIES LTD and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.