3 TSX Stocks That Could Double in 6 Months

There are a lot of companies that, under the right circumstances, could double your capital in months — something most stocks can’t do in years.

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A lot of healthy growth stocks can double your capital given enough time. Some might take only a couple of years to do it (if they are on a tear), while others might take half a decade. But there are a few stocks capable of doubling your capital within months. But this kind of growth is rarely linear and doesn’t last very long. It usually goes into correction once the triggers that kickstarted the growth are removed from the market.

If you are looking for stocks that are capable of doubling your capital in under half a year, then you should also look into the specific conditions that can trigger this rapid growth. That would require you to keep an eye on the sector in general and not just the stock.

An e-commerce stock

WeCommerce Holdings (TSXV:WE) is slightly different from companies that can offer rapid growth thanks to specific market-wide triggers. The company is certainly capable of such powerful growth. It grew almost 900% in the six months between Aug. 2020 and Jan. 2021. However, it has mostly been downhill ever since.

WeCommerce has a lot of exposure to Shopify. It cultivates or acquires businesses in the Shopify landscape, and the current holdings include Shopify themes companies, app development, and a marketing platform.

And because Shopify stock has fallen to great depths in the last few months, it seems only natural that a company wishes such direct exposure to it might suffer as well. However, Shopify’s underlying fundamentals remain strong, and if it makes a swift and powerful recovery, it can become the trigger for WeCommerce as well.

A crypto miner

Bitfarms (TSXV:BITF)(NASDAQ:BITF) is one of the few publicly listed crypto miners in the country. It has a lot of mining/computing power at its disposal, which is 100% hydro-powered, so it’s a smart investment from an ESG perspective as well. The company has an enormous collection of Bitcoin, most of which it has mined and some that it has bought.

It recently bought about a thousand coins, taking advantage of the low prices. Though it’s lower than the numbers, it racked up organically — i.e., through mining, which added about 3,452 coins into the company’s cache in 2021 alone.

Thanks to its exposure to Bitcoin, the company can easily grow its value and investors’ capital by 100% in six months or less. It did so two times in 2021 alone. And if Bitcoin gains enough momentum, doubling your capital will not be the extent of its growth.

A marijuana company

Marijuana — once one of the most hyped-up assets in Canada — is currently the most downtrodden asset. It has even weighed down the healthcare sector, where marijuana companies dominate. However, the highly discounted nature of its giants like Aurora Cannabis (TSX:ACB)(NYSE:ACB) makes it highly poised for rapid growth — the kind that can double or even triple investors’ capital in a matter of months.

Aurora is currently trading at a fraction of its glory days. The company used to trade at over $160 in 2018. Now, it’s down to $5.2 per share. This 96.8% decline from the peak can be useful, especially if broad market triggers, like U.S. marijuana legalization, come into play.

Foolish takeaway

Not all growth stocks appease all investors the same way. The linear growth stocks that are predictable and have proven their growth potential repeatedly appeal to a broad spectrum of investors.

The growth stocks that are more likely to offer spikes than predictable long-term growth might be too risky and unpredictable for most investors. However, they are worth considering, especially if you understand the market conditions that might trigger their growth.

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 owns and recommends Shopify and Bitcoin.

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