After an adequate amount of recovery, 2021 was expected to be a bit more stagnant compared to 2020, but so far, the year has defied expectations and has its fair share of stocks with jaw-dropping returns. There are several stocks that have doubled investors’ money in fewer than four-and-a-half months. Let’s take a look at three of them, and if you believe their current momentum might carry them to new heights, you might consider adding them to your portfolio.
A digital media company
Enthusiast Gaming Holdings (TSX: EGLX) is a Toronto-based digital media company with a market capitalization of $1.08 billion. As the name of the company suggests, its primary focus is gaming. It controls over a hundred gaming sites, +1,000 YouTube channels (focused on gaming), and it reaches out to over 300 million gamers every month.
The company partners up with influencers, hosts over 50 events each year, and supports e-sports teams. It covers a broad spectrum of the gaming industry (the marketing side). The company was founded in 2014, and it has been trading on the TSX since 2017. Its valuation cratered way before the market crash. It started recovering before 2020 ended, and it has returned over 104% in 2021 so far.
A chemical industry company
AirBoss of America (TSX: BOS) has a diversified range of products, divided into three companies/businesses, all focused on specialty rubber products. The Rubber Solution business has created over 2,000 proprietary rubber compounds so far and has a yearly compound production capacity of over 450 million pounds.
The engineering company has 15 different product lines that use 100 different rubber types. The defence group focuses on survivability products (safety gear) for the military.
2021 has been unusually good for the company’s valuation, because its value started climbing in early February, and it grew by almost 130% before March ended. The total year-to-date growth has been over 155%.
A Bitcoin company
Bitcoin and Bitcoin-related companies like Bitfarms (TSXV:BITF) have had a crazy 2021. The company has an installed Bitcoin mining capacity of 1,420 PH/s across five computing centres. All are located in Quebec and have total power consumption of 69 MW. The company spends about US$7,500 per Bitcoin it mines, which is currently trading for more than seven times the cost. Since the cost of mining can be controllable, the higher the price of the Bitcoin, the better companyâs returns would be.
Bitfarms’s valuation doesn’t precisely track the value of Bitcoin, but it gets pretty close. It has returned a whopping 165% in 2021 so far. And if Bitcoin starts rising in value again, the chances are that Bitfarmsâs returns will only increase over time.
Foolish takeaway
We are not even halfway into the year, and some stocks have already doubled their investorsâ money. How many of them will be able to sustain that level of growth for the rest of there is difficult to gauge, but even if two of the three can continue at this growth rate, the collective returns for you can be pretty significant.
