3 Stocks Set to Soar in the Coming Years

Three stocks with market-beating returns in a highly volatile environment are set to soar even higher in the coming years.

| More on:
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

Image source: Getty Images

There is no crystal ball that can tell the future performances of stocks, but the price usually reflects the company’s performance. As of this writing, some stocks attract investors, despite the elevated market volatility.

Computer Modelling Group (TSX:CMG) and Ag Growth International (TSX:AFN) keep surging, while the bull case for high-growth stock NuVista Energy (TSX:NVA) remains strong. These three stocks have plenty of room to run and soar higher in the coming years.

Rare dividend payer

Information technology is the hottest sector thus far in 2023, and Computer Modelling is one of its top-performing constituents. The $818.6 million computer software company produces reservoir simulation software for the oil and gas industry.

CMG boasts the most advanced recovery processes, and its superior technology is well known in the industry for breaking new grounds for capabilities. In the first quarter (Q1) of fiscal 2024 (three months that ended June 30, 2023), total revenue and net income grew 29% and 81% to $20.75 million and $6.9 million versus Q1 fiscal 2023.

Notably, CMG’s perpetual software licenses climbed 349% year over year to $1.85 million. According to its chief executive officer (CEO), Pramod Jain, strong market dynamics in energy transition and the core business drove profitability. He expects technology to add scale, intelligence, and efficiency to CMG’s current operating model.

Jain added that CMG commits to delivering science-based, fit-for-purpose workflows and solutions to receptive end users as the industry races to digitization. Performance-wise, the tech stock’s 77.22% year-to-date gain ($10.13 per share) dwarfs the sector’s +31.62% positive return. CMG also pays a 2.2% dividend.

Food security

Ag Growth International, or AGI, engages in planning, project management, engineering, and manufacturing of solutions and systems for fertilizer, seed, grain, feed, and food (the five platforms). The $1.01 billion company is synonymous with global food infrastructure. Its two core segments, Farm and Commercial, bring in sales and income.

The Q2 2023 sales revenue was flat, but profit reached $18 million compared to the $2.26 million net loss in Q2 2022 due to strong margin performance.

“A clear focus on manufacturing efficiency, centralized procurement, structured pricing programs, workforce optimization and many other operational excellence initiatives are yielding clear benefits in terms of margin expansion,” said AGI’s president and CEO, Paul Householder.

Mr. Householder anticipates the benefits of management’s efforts to sustain through the rest of 2023 and into 2024. At $53.25 per share (+23.88% year to date), AFN pays a modest 1.13% dividend.

High-growth stock

NuVista Energy is on my buy list for its inclusion in the 2023 TSX30 List (rank number two). The gains it has delivered are also astronomical. At $12.90 per share, the year-to-date gain is only 3.37%, but the overall return in 3.01 years is 1,553.85%. Market analysts see a return potential between 21% and 59% in one year.

The $2.79 billion oil & natural gas company operates primarily on scalable and repeatable condensate-rich Montney formation at Alberta Deep Basin (Pipestone and Wapiti areas). The high-value condensate volumes associated with natural gas production and the vast scope of NuVista’s resource play are competitive advantages.  

Business success

CMG, AGI, and NuVista Energy stand out in 2023 because of their market-beating returns. The share prices today could rise much higher if business success continues.

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 recommends Ag Growth International. The Motley Fool has a disclosure policy.

More on Investing

Payday ringed on a calendar
Dividend Stocks

3 Top TSX Passive-Income Stocks That Pay Out Every Month

Here are some of the best TSX stocks for passive monthly income. Investors should explore to see if they're a…

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Remarkably Cheap TSX Stocks to Buy Right Now

These three cheap TSX stocks are some of the best buys on the TSX, and yet their share price is…

Read more »

think thought consider
Dividend Stocks

This Dividend Stock Could Create $1,353 in Passive Income in 2024

This dividend stock can create massive passive income from two sources, so don't miss out before a recovery in 2024!

Read more »

Increasing yield
Dividend Stocks

TFSA Investors: Buy This Top Bank Stock for High-Yielding Dividends

Generate a superior passive-income stream by investing in this high-yielding dividend stock from Canada’s Big Six banks.

Read more »

grow money, wealth build
Dividend Stocks

2 of the Best TSX Dividend Stocks I Plan on Holding Forever

High-yield TSX dividend stocks, such as Enbridge, offer you tasty yields and trade at significant discounts to consensus price targets.

Read more »


CNR Stock: Should You Buy Today?

Canadian National Railway has been hit in recent quarters, as economic growth has slowed, with CNR stock declining 10% in…

Read more »

Family relationship with bond and care
Dividend Stocks

TFSA Investors: 3 Cheap Canadian Stocks for Retirees

These three Canadian stocks are super cheap for retirees looking for a great buy that will last the test of…

Read more »

calculate and analyze stock
Dividend Stocks

CPP Disability Benefits: Here’s How Much You Could Get

Not everybody can get CPP disability benefits. If you want some passive income, consider investing in Royal Bank of Canada…

Read more »