3 Hidden Stocks That Could Make You a Fortune

Three obscure or hidden stocks are potential fortune-makers in 2023 and beyond if investors give them a hard look.

| More on:
stock analysis

Image source: Getty Images

Three TSX stocks fly under the radar or are invisible to investors’ eyes. However, if you want to make a fortune, consider taking positions in Bombardier (TSX:BBD.B), Black Diamond Group Limited (TSX:BDI), or Valeura Energy (TSX:VLE). Performance-wise, all three have market-beating returns thus far in 2023.

Real growth plan

Bombardier has advanced 11% in the last 30 days, raising its year-to-date gain to 31.6%. At $68.78 per share, the total return in three years is 547.3%, which translates to a compound annual growth rate (CAGR) of 86.3%. Had you bought 1,454 shares ($15,267) in April 2020, your money would be worth $100,006.12 today.

The $6.5 billion aerospace company aims to achieve US$9 billion in revenue and US$900 million in free cash flow (FCF) by 2025. While the financial targets appear ambitious, a credible plan for real growth is in place, according to its CEO, Eric Martel.

Martel said, “There is some added volatility and uncertainty in the markets today.” He admits there’s a bit of turbulence but only in the short term. However, he is confident that fundamentals remain very strong in the long term. Market research firm IMARC Group projects the global business jet market to reach US$23.7 billion by 2028.

Management’s primary focus is on the flourishing business jet market, where it expects to reduce Bombardier’s debt load significantly. Furthermore, the EBITDA guidance for 2025 has increased to more than US$1.6 billion. However, higher costs will likely offset higher plane prices and services.

Diverse specialty rental platform

Industrial stock Black Diamond operates in the rental and leasing services industry, and two core business segments contribute to the revenues of the $401.5 million company. Modular Space Solutions provides modular space rentals to customers in various industries.

Meanwhile, Workforce Solutions provides workforce housing solutions in Canada, Australia, and the United States. Besides accommodations, the segment rents out surface equipment and provides turn-key lodging and travel management logistics services in Canada.

The business is thriving, as evidenced by the financial results last year. In 2022, profit climbed 29% to $26.4 million versus 2021 despite the 4% year-over-year decline in revenue to $324.5 million. Management said the diverse specialty rental platform delivers steadily growing, predictable rental revenues. At $6.65 per share (+38.1% year to date), Black Diamond pays a modest 1.2% dividend.

High-growth energy stock

The energy sector is in a slump due to falling oil prices, but not Valeura Energy. At only $3.26 per share, the obscure but high-growth stock is up 56% year to date versus the TSX’s 6.8% gain. Moreover, the total return in three years is 879.7% (113.8% CAGR).   

The assets of this $295.1 million upstream oil and gas company are in the offshore Gulf of Thailand and the Thrace Basin of Turkey. Last year, the net loss improved to US$13.6 million compared to US$66.4 million in 2021.

According to its President and CEO, Sean Guest, 2022 was a year of genuine transition for Valeura. He said the business evolved and shifted its focus to Southeast Asia. The company now owns a significant portfolio of cash-generating assets.

Fortune-makers

People hardly talk about Bombardier, Black Diamond, or Valeura Energy. However, these hidden stocks are potential fortune-makers in 2023 and beyond.

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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »