3 Unstoppable Stocks to Buy With $1,000

Growth stocks are growing in numbers as the TSX’s continues its advance. If you have $1,000 to spare, the Nuvei stock, Vermilion Energy stock, and OrganiGram stock are screaming buys.

| More on:
sad concerned deep in thought

Image source: Getty Images

Growth stocks are sprouting as the TSX continues to maintain its strength at the start of Q3 2021. If you have $1,000 to invest right now, Nuvei (TSX:NVEI), Vermilion Energy (TSX:VET)(NYSE:VET), and OrganiGram Holdings (TSX:OGI)(NASDAQ:OGI) are superb choices.

Payment technology

Nuvei is a hot pick because of the steadfast growth of the global digital payments industry. Contactless payments are trending, with tech giants Apple, Google, and Korean Samsung leading the way. The $14.02 billion provider of payment technology solutions from Montreal should thrive in the post-pandemic era.

Yuval Ziv, Nuvei’s Managing Partner, Digital Payments, can’t be more specific when he said, “We are always ahead of trends, booming verticals, and emergent payment processing developments.” The company’s website also said, “We injected our DNA into the payment industry.”

Nuvei is currently the payment partner of companies in online retail, digital goods & services, financial services, and gaming, among others. The financial results in Q1 2021 (quarter ended March 31, 2021) says it all. Revenue growth versus Q1 2020 was 80%. From a net loss of $62.3 million, Nuvei reported a net income of $27.8 million.

Major comeback

Energy stocks were severely beaten in 2020 but are staging a major comeback in 2021. Vermilion Energy, for example, lost a staggering $1.3 billion in Q1 2020. In Q1 2021 (quarter ended March 31, 2021), management reported nearly $500 million in net earnings.

Even the fund flows from operations (FFO) increased 20% to $162 million from Q4 2020. Management points to higher commodity prices, particularly global crude oil and European natural gas benchmarks, as the growth drivers. Both are Vermilion’s dominant products that contribute the most to revenues.

Another business highlight was meeting its debt reduction targets. Vermilion reduced the outstanding debt under its revolving credit facility by over $190 million, about 11% since Q2 2020. Based on the current forward strip, Vermilion forecasts an excess of $350 million in free cash flow (FCF) for 2021.

Brightest outlook

OrganiGram should be the talk of the town next following its 41% revenue growth in Q3 fiscal 2021 (quarter ended May 31, 2021) versus the same period in fiscal 2020. Notably, net loss was down to $4 million from a sizeable $88.9 million.

Paolo De Luca, OGI’s Chief Strategy Officer, said, “We were better staffed to fulfill the demand for our revitalized product portfolio, which continues to resonate well with consumers.” He adds that sales are trending higher to date in Q4, supported by a strong outlook for the industry.

On the expense side, OGI’s CFO, Derrick West, said, “We are encouraged by the progress we have made in reducing cultivation costs and capturing economies of scale as we ramp up cultivation.” Investors should include this producer of high-quality, indoor-grown cannabis in their shopping lists. The company could garner a significant marker share.

Great portfolio mix

A $1,000 capital is enough to take positions in TSX’s top performers Nuvei Corporation (+33.64), Vermillion Energy (+74.30%), and OrganiGram Holdings (+94.08%). The tech stock is the most expensive ($103.96 per share), while the energy and cannabis stock trades at $9.90 and $3.28, respectively. You’ll have a great mix of growth stocks with massive upside potentials.

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, and OrganiGram Holdings. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.

More on Energy Stocks

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

Despite its recent sharp gains, Enbridge (TSX:ENB) stock has the potential to continue inching up in the years to come…

Read more »

Nuclear power station cooling tower
Energy Stocks

Is Cameco Stock the Best Renewable Energy Stock for You?

While it's true that Cameco stock (TSX:CCO) looks like a strong clean energy solution, it's not actually even a renewable…

Read more »

Target. Stand out from the crowd
Energy Stocks

Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today

Brookfield Renewable (TSX:BEP.UN) stock saw shares rise by about 35% since earnings, but even more is on the way.

Read more »

oil and natural gas
Energy Stocks

How Baytex Energy Lost 12% Last Month

Baytex Energy (TSX:BTE) stock fell 12% last month.

Read more »

bulb idea thinking
Energy Stocks

This Stock Is Miles Ahead of Its Industry: Is It a Buy Now?

This stock has proven to be well worth the investment, especially at a time with increasing demand for clean energy…

Read more »

Oil pumps against sunset
Energy Stocks

Is Suncor Energy Stock a Buy in 2024? 

Let's dive into whether Suncor Energy (TSX:SU) is a stock that's worth buying in this current environment or if investors…

Read more »

oil tank at night
Energy Stocks

Is CNQ a Buy Before its Upcoming Stock Split?

CNQ stock is a high-dividend TSX energy giant with a growing dividend yield. Is CNQ stock a good buy right…

Read more »

Solar panels and windmills
Energy Stocks

How Brookfield Renewable Stock Gained 40% in a Month

Brookfield Renewable stock (TSX:BEP.UN) surged in share price from a landmark deal and strong earnings, leading to a 40% jump.

Read more »