Expectations are high that three names on the TSX could see massive growth amid the continuing threat of COVID-19. B2Gold Corp. (TSX:BTO), Arc Resources (TSX:ARX), and Facedrive (TSXV:FD) are potential winners. Each one could turn a $500 investment today into $5,000 in the medium to long term. The respective businesses are showing great promise in 2021.
Dramatic growth on the horizon
B2Gold is one of the actively traded TSX stocks lately despite the 15% year-to-date loss. The $6.33 billion company from Vancouver, Canada, is a low-cost international senior gold producer. It was established in 2007 and is now operating gold mines in Mali, Namibia, and the Philippines). B2Gold also has development and exploration projects in these countries and Colombia, Finland, and Uzbekistan.
Based on analysts’ forecast, the gold stock has a potential upside of 54% in the next 12 months. The current share price of $6.02 could climb to $9.28. Hence, they recommend a buy rating. Note that B2Gold also pays a 3.23% dividend, so your earnings potential is two-pronged, capital gain plus dividend income.
Management’s primary goal is simple, generate “dramatic growth” in gold production and cash flow. B2Gold hopes to achieve its goal through successful exploration and accretive acquisitions of development-stage precious metals properties. In 2020, the company posted $1.79 billion consolidated gold revenues, a significant 55% increase over 2019.
Sixth-largest upstream energy company
Like B2Gold, ARC Resources is a dividend payer. At $7.84 per share, the dividend yield is 3.21%. Market analysts are likewise bullish on the energy stock. They forecast the price to soar to a high of $15 (+91%) within a year or so. Thus far, in 2021, current investors are up 32%.
The $5.67 billion company prides itself as the largest pure-play Montney producer of crude oil, natural gas, and natural gas liquids (NGLs). ARC Resources’ strength lies in its commodity-diverse portfolio of world-class, low-cost assets. While the ARC reported a $547.2 million loss in 2020, the business outlook remains encouraging.
ARC signed an $8 billion merger deal with Seven Generations Energy in April 2021. The business combination will result in Canada’s sixth-largest upstream energy company, third-largest natural gas producer, and the largest condensate producer.
New tech ecosystem
Young professionals should find the $1.55 billion ride-sharing company Facedrive attractive, although it’s pricier ($16.30 per share) than B2Gold and ARC Resources. However, the growth potentials are equally tremendous. The tech stock climbed to a high of $59.95 on February 8, 2021. It could soar again to the same level for a 268% gain.
Facedrive promotes a Canadian “people-and-planet first” tech ecosystem. Besides ride sharing or green transportation solutions, the company is also into food delivery and health services. Ride-share drivers earn money on their own terms (up to 90% of ride fare and 100% of tips).
Facedrive Foods is the revelation. The food delivery vertical is steadily growing. In mid-April 2021, total customer delivery orders exceeded 5,000 per day, a 5% month-over-month growth. There are 280,000 registered active users on the platform, more than 6,800 drivers, and almost 5,000 restaurant partners. Facedrive operates in 19 Canadian cities.
Against the headstrong waves
The three companies in focus here are swimming against the headstrong waves. Growth investors with limited capital should scoop them today for future superior returns.
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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 Christopher Liew has no position in any of the stocks mentioned.