Market volatility remains high. While the economy is (mostly) in growth mode, the overall direction of the market remains in limbo. This has some investors questioning where they can invest today to make the greatest gains tomorrow.
Fortunately, there are some stocks on the market that are in a prime position to see those huge gains. Here are some of those to consider adding to your portfolio.
Everyone eats, but what does your food need?
Some of the best investments on the market are those that fulfill a necessary need and that we take for granted. Some of the investments in that group are more obvious. Think utilities and telecoms. Others, such as grocers and even railroads, are less obvious.
Nutrien (TSX:NTR)(NYSE:NTR) represents the next level down from that less-obvious point.
For those that are unfamiliar with the company, Nutrien is the largest producer of potash on the planet. The company is also a global leader in the field of other fertilizer products, such as phosphate, nitrogen, and sulfate nutrients.
So, where is that opportunity to invest today? The ongoing conflict between Russia and Ukraine has severely upset the global supply chain for wheat. Both countries are some of the largest exporters on the planet. In fact, Ukraine is often labeled as the breadbasket of Europe.
That turmoil is causing other markets, including Canada to pick up some of that gap. As a result, Nutrien is pushing up its potash production by 10% this year to 15 million metric tonnes. The stock has already surged this year, but further growth can be expected throughout the year.
Another point to keep in mind is that Nutrien’s busier season tends to be towards the fall when farmers will purchase their goods for the next growing season. In other words, it’s a good time to invest today and hold for that growth.
Power up (your portfolio)
Another stock that few investors will be familiar with is Cameco (TSX:CCO)(NYSE:CCJ). Cameco is one of the largest uranium miners on the planet. The company accounts for nearly one-fifth of all global production. That mined uranium is, in turn, used as fuel for nuclear reactors around the globe.
That fuel is then purchased at pre-determined prices under long-term regulated contracts. This makes revenue streams somewhat reliable and predictable.
So, where is the opportunity to invest today when it comes to Cameco? Following years of depressed prices, uranium prices are now creeping upward. This corresponds with a renewed interest in nuclear power as a cleaner and renewable asset. Additionally, there are over a dozen reactors under construction around the world, which could spell additional contracts for Cameco.
Finally, as with Nutrien, the ongoing conflict in Ukraine has impacted the uranium market. Like Canada, Russia is a top exporter of uranium to the global market. Recent events may spur some of those contracts to be routed to Cameco instead.
Apart from the stellar growth that Cameco has seen since the conflict began, the company is also ramping up its supply. The company plans to increase production by 10 million pounds over the next two years.
Final thoughts on where to invest today
No investment is without risk, and that applies to the stocks mentioned above. While I wouldn’t back up the truck on either of these stocks, they do both represent a unique opportunity to invest today.
That growth will come. Just buy them as a small part of a larger, well-diversified portfolio.
