Hooray! 2 Stocks That Have Massive Growth Outlooks

Investing in growth stocks is one of the easiest ways to grow your capital at a decent enough pace. There are two stocks that might help you with massive growth.

| More on:
Portrait of woman having fun in the street.

Image source: Getty Images

Risk is one of the most common attributes associated with growth stocks and growth-oriented funds. But one thing many investors fail to understand that risk is relative. Many stocks are relatively riskier in certain market conditions and stable in others.

Take energy stocks as an example. Once considered rock-solid investments, many energy stocks are now counted among risky holdings with shaky long-term prospects. The risk comes from multiple factors: i.e., sanctions on energy businesses, breakthroughs in electrical power production, electric vehicles dominating the market, etc.

Similarly, for many growth stocks, growth potential and outlook are tied to several different factors. And it needs to be revised in a timely fashion. A great growth stock will only be “great” for you if you can get the timing right and realize your gains at or near the peak.

With that in mind, there are two companies that you might consider for massive growth outlooks. One is already on a tear, and the other might be explosive in the distant future.

A silver company

While it’s nowhere near its all-time peak, the silver price has risen quite sharply in 2021. The fear of inflation is forcing many investors to look towards safe-haven assets, and precious metals are experiencing increased demands. That’s partly the reason for Discovery Silver’s (TSXV:DSV) powerful 244% growth in the last 12 months.

It has pushed the valuation to new heights and raised five-year CAGR to epic proportions (204%). That’s enough to double your investment capital in less than one year if the company can keep it up. Right now, it’s all speculation, but even if inflation strikes and we start seeing its obvious impact, the demand for silver and other precious metals might shoot through the roof.

If that happens, Discovery, even in its current expensive state, might offer impressive growth. But it’s difficult to predict how long the growth phase will last and when the stock will start to normalize. It would be prudent to make an exit before the stock starts slumping in response to a powerful stock market and vanishing inflation fear.

A battery company

Electrovaya (TSX:EFL) is a Mississauga-based company that has been operating for about 27 years and focuses on Lithium-ion batteries, which are still the best battery technology we have when it comes to high-energy-density and maintenance. Electrovaya markets itself as a clean energy company that, through its “battery-powered” solutions, has saved 702 MWh energy till now and helped remove 1.2 million pounds of carbon dioxide in 2020 alone.

The company offers battery solutions and technologies in three major areas: mobility, material handling, and energy storage solutions. Both mobility and energy storage have massive future potential. Thanks to its patented technologies unique designs, the company might have the potential to land large EV, windfarm, and solar farms projects. A few such contracts can push Electrovaya’s financials and its stock desirability (and consequently, its valuation) through the roof.

Foolish takeaway

The massive growth outlook of the two companies is tied to some industry-specific and general stock market factors. But if a few factors align in favour of these companies, you might benefit from a significant payoff.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

ETF chart stocks
Metals and Mining Stocks

3 Best Commodity ETFs to Buy Now

Investors looking to get in on security during volatility should consider these three commodity ETFs, which do well no matter…

Read more »

gold stocks gold mining
Metals and Mining Stocks

Gold Prices Are on the Rise: Time to Invest?

Gold prices are rising, but short of buying up some bullion, what are some ways that Canadian investors can get…

Read more »

silver metal
Metals and Mining Stocks

Silver Surge: 2 Mining Stocks to Play the Recent Rally

Pan American Silver (TSX:PAAS) stock and another top value play to ride the silver bull run.

Read more »

gold stocks gold mining
Metals and Mining Stocks

With Gold Soaring, Here’s 1 Mining Stock I’d Buy Now

Barrick Gold (TSX:ABX) stock could continue to move higher as the precious metal skyrockets in 2024.

Read more »

silver metal
Metals and Mining Stocks

Why Endeavour Silver Stock Jumped 10% on Friday

Endeavour (TSX:EDR) stock rose significantly last week after earnings that blew past estimates and a drawdown that means more growth.

Read more »

Metals
Stocks for Beginners

Steel Is in Demand: 2 Canadian Stocks That Should Benefit

Steel stocks are making a comeback, with 2024 and 2025 marked as huge years for the industry. And these two…

Read more »

Dice engraved with the words buy and sell
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell, or Hold?

Teck Resources is a Canadian mining stock that likely has a bright future due to the company's focus on copper.

Read more »

Paper airplanes flying on blue sky with form of growing graph
Tech Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

Sure, these soaring stocks have already climbed by immense amounts. But I would all but guarantee these companies have more…

Read more »