Growth investing is back after an interruption in 2022 due to sky-high inflation and rising interest rates. The fight to reduce inflation isn’t over, although stocks with enormous growth potential have emerged. You don’t need substantial capital to invest in them for ultimate growth.
Carbon-free energy source
NexGen Energy (TSX: NXE) is the ultimate TSX growth stock candidate. At only $9.15 per share, the year-to-date gain is 52.75%. Also, the overall return in three years is 282.8%. Had you invested $3,000 three years ago ($2.39 per share), your money would be worth $11,485.36 today.
The $4.77 billion company is developing the Rook I Project and hopes to make it the largest, low-cost producing uranium mine globally. It received the full Provincial Environmental Assessment (EA) approval for the greenfield uranium project.
Management said nuclear energy is a carbon-free energy source and NexGen intends to lead and become a supplier of choice for utilities. More importantly, the Rook I Project could address the growing demand for uranium and deliver clean and secure energy solutions.
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Scaling the global business
MDA Ltd. (TSX: MDA), an aerospace and defence stock, is a steal at $11.78 per share (+84.06% year to date). The $1.4 billion Brampton-based global space technology company provides geo-intelligence, robotics and space operations, and satellite systems. It banks on the rapidly expanding global space industry for business growth.
Management recently announced plans to expand its talent base and operational capacity across the U.K. where the global space economy is vibrant and growing. According to Anita Bernie, managing director of MDA U.K., the company needs to scale its global business and accelerate in-country investment.
Income-wise, MDA is profitable and doing well amid a challenging environment. In the first three quarters of 2023, revenue and net income rose 32.4% and 101.7% to $602.6 million and $35.3 million, respectively.
Besides the significant growth pipeline and healthy business book, MDA will use its technology offerings to capitalize on strong customer demand and robust market activity.
Strong growth profile
Equinox Gold (TSX: EQX) has turned the corner and is on track to realize its vision of producing one million ounces of gold annually. At $6.70 per share, the mining stock is up 51.24% year to date. Market analysts forecast a return potential between 25.4% and 71% in one year.
The $2.09 billion growth-focused gold producer operates seven gold mines in the Americas: four in Brazil, two in the U.S., and one in Mexico. Equinox is also advancing four development and expansion projects that could add around 600,000 ounces to annual production.
The Greenstone Project, the largest gold mine in Canada, is almost complete (96%) and could start production in the first half of 2024. This 60/40 partnership with Orion Mine Finance Group could produce more than 400,000 ounces of gold, on average, in the first five years. Moreover, it can produce over five million ounces over its initial 14-year mine life.
In the third quarter (Q3) of 2023, Equinox achieved new records for production (149,089 ounces of gold), revenue (US$285 million), and EBITDA (US$65 million). Net income reached US$2.2 million compared to the US$30.1 million net loss in Q3 2022. Its president and chief executive officer, Greg Smith, assures that the company is fully funded to complete the Greenstone construction.
Attractive prospects
NexGen should rank high with growth investors, although MDA and Equinox Gold have noteworthy attributes for consideration.
