You Could Make a Fortune From 3 TSX Growth Stocks

Three TSX growth stocks should gain momentum soon and deliver outsized gains, if not a fortune, to would-be investors.

| More on:
Growing plant shoots on coins

Image source: Getty Images

Investors were upbeat when the COVID situation improved due to widespread vaccination and successful containment of its spread. Many anticipated business growth to accelerate post-pandemic. However, rising inflation and geopolitical tensions have stalled the growth of several companies, except perhaps constituents in the energy and basic materials sectors.

Crew Energy (TSX:CR) and Capstone Mining (TSX:CS) are potential multi-baggers because of rising commodity prices. In the tech sector, Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) should be in your watchlist while the crypto stock trades at a deep discount. You can make a fortune through capital gains when they regain momentum very soon.

Growth oriented

Crew Energy is relatively cheap at $3.48 per share, although the trailing one-year price return is 190%. With oil prices expected to surge some more due to supply constraints, analysts’ high price target of $6 (+72.4%) in 12 months is realizable.

In 2021, management reported sales growth (petroleum and natural gas) of 143.1% to $332.84 million versus 2020. The full-year net income of this $597.93 million growth-oriented oil and natural gas producer was $205.29 million compared to the $203.18 million net loss in the prior year.

Crew’s cash from operating activities also ballooned 213.7% year over year to $119.15 million. Besides the impressive financial results, average production in Q4 2021 was 35% higher than Q4 2020. Also, the company successfully reduced net operating costs by 20%.

Dale Shwed, Crew’s president and CEO, said the company is excited to advance its two-year asset-development plan. The objectives through 2022 are to increase production by 20% and generate more free adjusted funds flow to reduce debt significantly. Crew can then transfer enterprise value to its shareholders, according to Shwed.

TSX30 winner

Capstone Mining’s impressive run from three years ago continues. The mining stock’s total return in 3.01 years is 955.22% (119.02% CAGR). In the 2021 TSX30 List, it ranked fifth among the Index’s top growth stocks. At $7.07 per share today, investors are up 26.7% year to date.

The Canadian base metals mining company focuses on copper and operates two producing mines (Arizona, U.S., and Zacatecas, Mexico). On March 11, 2022, the Mexican Federal Economic Competition Commission approved the business combination of Capstone Mining and Mantos Copper (Bermuda) Limited.

Once the transaction or acquisition by Mantos is complete, the resulting entity would be named Capstone Copper Corporation. The common shares will still trade on the TSX under the same ticker symbol.

Bright outlook

Technology stocks are underperformers in 2022, although Hut 8 Mining could break out soon. The crypto stock has massive growth potential, as Alberta prepares to diversify its economy and become the cryptocurrency destination. Two mining sites (Drumheller and Medicine Hat) of this $1.18 billion crypto mining company are in the province.

HUT is a bona fide growth stock, owing to its 437.4% (74.98% CAGR) in 3.01 years. Market analysts’ 12-month average price target is $18.25. Its current share price of $6.61 could climb 176.1%. Besides Bitcoin, Hut 8 also mines Ethereum. Last, a third mining facility will soon open in North Bay, Ontario.

Gaining momentum

Growth investors can take positions in Crew Energy, Capstone Mining, or Hut 8 Mining today, as the stocks gather momentum for their eventual breakouts.

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 and recommends Bitcoin and Ethereum.

More on Investing

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Investing

2 No-Brainer Stocks to Buy With $5,000

These two stocks could be excellent buys amid this uncertain outlook.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

5 Canadian Stocks to Hold in Your TFSA For Decades

The TFSA is the perfect place to compound wealth over decades. Don't pay any tax on these top five growth…

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Should You Invest in BCE Stock for its Dividend?

BCE stock is not yet out of the woods. But this article could change your perspective about the stock and…

Read more »

sale discount best price
Dividend Stocks

Bargain Hunting for Dividends: 3 High-Yield Stocks Haven’t Been This Cheap in Years

Enbridge (TSX:ENB) stock's key enterprise value multiple reached a new multi-year low recently. BCE remains a high-yield dividend play while…

Read more »

An airplane on a runway
Stocks for Beginners

Where Will Air Canada Stock Be in 3 Years?

Here’s why I wouldn’t be surprised if Air Canada (TSX:AC) stock more than doubles in value in the next few…

Read more »

Lady holding mobile phone and shopping bags
Tech Stocks

The Ultimate Growth Stock to Buy With $1,000 Right Now 

Here's why Shopify (TSX:SHOP) could be the ultimate growth stock long-term investors want to consider at this current point in…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Cash in Your Pocket: 3 TSX Dividend Stocks That Pay Out Monthly

Bolster your monthly income with these three dividends stocks that act like regular paycheques.

Read more »

clock time
Stocks for Beginners

Is It Too Late to Buy Dollarama Stock?

Dollarama stock (TSX:DOL) is up a whopping 48% in the last year, but growth is slowing for this great low-cost…

Read more »