3 Stocks That Could Go Gangbusters This Month

Three momentum stocks could explode this month to deliver massive gains to current investors.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

The TSX remains in record territory as of writing on November 16, 2021, despite closing lower than its fresh high of 21,768.50 two days ago. Many growth investors continue to scout the market for some compelling buys. If you’re shooting for massive gains, three momentum stocks could go gangbusters this month.

HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT), NexGen Energy (TSX:NXE), and Village Farms International (TSX:VFF)(NASDAQ:VFF) are probably in the year-end buy lists of Canadian investors. The share prices are relatively cheap vis-à-vis their upside potential.     

Ascending like Bitcoin

HIVE has mirrored Bitcoin’s performance thus far in 2021. The world’s most popular cryptocurrency currency has been trading above US$60,000 since October 15, 2021. Meanwhile, the TSXV crypto stock has gained by 875% in one year. At $5.07 per share, the year-to-date gain is 112.13%.

Bitcoin’s ascent starting in mid-June this year was driven by mainstream adoption of digital currencies, notwithstanding the ban in Chine. The launching of futures-based Bitcoin exchange-traded funds (ETFs) in the U.S. was a big boost for crypto loyalists. As Bitcoin regains strength, HIVE becomes more attractive to investors wanting exposure to Bitcoin but minus the extreme volatility.

The $1.95 billion cryptocurrency mining firm monetize newly minted crypto coins for revenue and cash flow. Unlike Bitcoin, investors have financial statements to review or analyze before investing. Your exposure would be in the operating margins from crypto mining and not direct ownership in Bitcoin.

High growth with inherent risks

NexGen Energy is a $3.15 billion exploration and development company that boasts high-impact projects. It operates in the large-scale southwestern Athabasca Basin, where it owns vast lands (199,576 hectares). The expertise, however, is in the evaluation of uranium properties.

Interestingly, NexGen is among TSX’s high flyers with its 88.03% year-to-date gain. At $6.60 per share, the trailing one-year price return is 175%. Market analysts recommend a strong buy rating and sees a further climb to $9.26 (+40.34%) in 12 months. This energy stock is obscure but not a mediocre performer. The total return in the last 8.57 years is 1,733.33% (40.41% CAGR).

Still, you must understand the high degree of risk before investing in NexGen. Among the hurdles are obtaining adequate capital for exploration of minerals and project developments.

Bargain stock

Village Farms International is a bargain at $10.91 (-15.36% year to date). Also, the 12-month average price target of market analysts is $21.34 — a 95.6% return potential. This $935.05 million greenhouse grower and now cannabis producer made it to the TSX30 growth stocks list in two of the three editions. It ranked 13th in 2020 and third in 2019.

The compelling reason to invest in Village Farms is its 30-year experience as a vertically integrated Controlled Environment Agriculture (CAE) pioneer. It is well positioned to leverage its expertise to gain entry into new, large markets or capitalize on high-value, plant-based consumer product opportunities.

Management’s specific focus is on cannabinoid (high- and low-THC) and related health and wellness opportunities. The target market is North America, Europe, and the Asia-Pacific region. In Q3 2021, Village Farms reported 59% and 140% growths in total gross sales and net income versus Q3 2020.    

Potential explosion

The three stocks can potentially explode and sustain their upward momentum. However, you must be aware of the inherent risks to the respective businesses.   

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. The Motley Fool owns shares of and recommends Village Farms International, Inc.

More on Tech Stocks

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »

Different industries to invest in
Tech Stocks

Why This AI Stock Surged 363% in Just 1 Year

This AI stock has surged this year by almost 400%! And yet this could only be the beginning for this…

Read more »

Online shopping
Tech Stocks

2 Growth Stocks Bay Street Might Be Sleeping On, but I’m Not

I'm not sleeping on Taiwan Semiconductor (NYSE:TSM) stock. Shopify (TSX:SHOP) is a Canadian stock with similar growth rates.

Read more »

Various Canadian dollars in gray pants pocket
Tech Stocks

3 No-Brainer Stocks to Buy With $50 Right Now

Looking for high growth? Dividends? How about just a huge portfolio? We've got it all with these three top stocks…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

Canada Is About to Spend $2 Billion on Homegrown AI: 2 Stocks to Reap the Benefits

Here's how Canada intends to invest $2.4 billion in artificial intelligence. Nvidia (NSADQ:NVDA) and IBM (NYSE:IBM) stock could benefit.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

A Growth Stock I’d Buy Over Lightspeed in 2024

Lightspeed is a tech stock that is growing at an enviable pace. But this TSX growth stock is a much…

Read more »

A colourful firework display
Tech Stocks

Prediction: This Stock Is the TSX’s Next Growth Star

One outperforming tech stock is rising fast and likely to be TSX’s next growth star.

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »