Over the last year, there have been certain investing themes that have been highly popular. Companies or industries that the market thinks have significant growth potential have the potential to rally rapidly. For the most part, these have been crypto, space, or EV stocks. But of all three high-potential industries, which has the best stocks to buy now?
These days, space stocks look like incredible long-term investments as space exploration is picking up. There is more funding to the industry, whether it’s from governments or private investors.
Cryptocurrency is another industry with huge potential these days. It’s gone through a huge revolution and proved that these assets could grow rapidly in price.
Then, of course, EV stocks continue to be popular, as the technology improves, and companies and consumers are more incentivized to reduce their carbon footprints.
With all three industries offering incredible growth potential, here’s the industry with the best stocks to buy now.
Space stocks: Some of the best to buy now?
Space has always been fascinating. However, it was complicated, dangerous, and costly to go to space in the past. Naturally, space programs were run by governments.
Recently, though, space exploration and the companies involved are becoming more and more privatized. This is crucial for the industry’s growth. When it became privatized, the competition helped improved innovation while driving down costs across the industry.
Today, there are several ways to invest in the growing space industry. And just like crypto and EV stocks, there continue to be new companies going public all the time.
Whether it’s a company like Virgin Galactic, which is looking to bring tourism to space, or a company like SpaceX that serves NASA, there are tonnes of opportunities. You could even buy a Canadian stock like Magellan Aerospace, which makes rockets and other crucial parts of spacecraft.
There’s a lot of potential in space stocks, making this one of the best industries you can invest in today. And although some of these stocks could take a while to reach their full potential, they are still easily some of the best stocks to buy now.
Another great industry with some of the best stocks to buy now is cryptocurrency. Unfortunately, while these investments can have a tonne of great long-term potential, they can also be highly volatile.
So, if you’re going to invest in crypto stocks, it’s crucial to be careful and ensure you’re making a long-term investment. With that being said, though, there is a tonne of potential across the industry, much like space and EV stocks.
Whether it’s an ETF that gives investors direct exposure to a specific cryptocurrency, like Bitcoin, or whether you’d rather own a mining company like Hut8 Mining, there are several ways to gain exposure to the crypto industry.
Of the three industries, EV stocks have arguably been the most popular over the last few years. Companies like Tesla Motors have been driving innovation, which has brought a bunch of optimism to these stocks.
Even Canadian stocks like Facedrive, a ride-sharing company with a sustainable business model, have benefitted from the EV stock trend.
However, because EV stocks have been the most popular industry, they’re generally also the priciest. So, while you can still find investments in EV stocks that have long-term growth potential, you’ll find better value in space stocks or crypto.
Facedrive, for example, trades at a price-to-sales ratio of 181 times. Its two biggest competitors meanwhile trade at roughly nine times sales. This suggests Facedrive is 20 times more expensive. And while an equitable and sustainable business model is attractive, it doesn’t make the stock worth 20 times more on a price-to-sales basis.
All three industries offer incredible prospects for growth. The key, as I said before, is making sure you’re not overpaying. There are plenty of stocks in each industry that are worth an investment.
If I had to choose one industry, though, it would be space. Space stocks certainly offer some of the best potential for years to come and are generally cheaper than EV stocks or crypto, which is why I think the industry has the best stocks to buy now.
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 Virgin Galactic Holdings Inc. The Motley Fool owns shares of and recommends Tesla and Virgin Galactic Holdings Inc.