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

online shopping
Tech Stocks

Shopify Stock: Can it Stay Above $400?

Shopify (TSX:SHOP)(NYSE:SHOP) stock has sunk over 80% from its peak level. Is there any value to be had by catching…

Read more »

Online shopping
Tech Stocks

Shopify (TSX:SHOP) Stock: Is the Bottom Here Yet?

If you can predict when a stock has fully bottomed out, you can maximize the return potential by locking in…

Read more »

Tech Stocks

2 Cheap Tech Stocks to Buy After Their Impressive Earnings

Given their healthy growth prospects and discounted stock prices, I am bullish on these two tech stocks.

Read more »

value for money
Tech Stocks

3 Tech Stocks Trading for a Significant Discount

These tech stocks have corrected quite a lot, despite the strength in their business, making them attractive long-term bets.

Read more »

Shopping and e-commerce
Tech Stocks

Shopify Stock: What Investors Should Do if it Falls to $300

Shopify (TSX:SHOP)(NYSE:SHOP) stock fell another 10% on Tuesday, as it nears the $300 range. So, what happens if that comes…

Read more »

consider the options
Tech Stocks

Will Enthusiast Gaming Stock Change Course After the Activist Attack?

Last week's cheer in Enthusiast Gaming stock is reversing this week.

Read more »

sale discount best price
Tech Stocks

Tech Selloff: 3 Bargains to Pick Up Now

Thanks to the current slump, you can buy many tech stocks at a discount price or valuation that's usually quite…

Read more »

TSX Today
Tech Stocks

TSX Today: What to Watch for in Stocks on Wednesday, May 25

Apart from bank earnings, TSX investors may want to keep an eye on the FOMC meeting minutes today.

Read more »