3 Stocks With Growth Potential That Could Stun Investors Before 2024 Is Over

Beaten-down stocks, making a recovery is exciting and highly profitable, even if it’s difficult to predict and capitalize upon. But it’s not impossible.

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It’s almost always good to see a beaten-down stock make a strong recovery, especially if you own that stock. It’s challenging to predict when a beaten-down stock may start recovering and which heavily discounted stocks are ready to make a good recovery.

But it’s not impossible, and if you are looking for stocks that may rise from their slump and experience a decent bull run before the year ends, three should be on your radar.

A telecom company

Telus (TSX:T), one of the largest telecom companies in the country and a decent 5G stock, has just started to recover from the months-long slump it had been in since the beginning of the year. But this wasn’t a Telus-only situation. All three major telecom giants in the country are battling some regulatory challenges, and the telecom industry as a whole is being reshaped.

It’s possible that the current growth phase, which has pushed the stock up by 4.7%, is a temporary fluke. The stock may go through multiple such phases before its trajectory stabilizes. But it can also mark the beginning of a new bull run that may take the stock to new heights.

Telus is one of Canada’s most resilient telecom stocks, has a diverse business model, and is ideally positioned to take advantage of the upcoming Internet of Things (IoT) boom.

These strengths may allow Telus to experience decent growth, possibly before the year is over, and you should consider buying when the stock is still discounted.

A marijuana stock

Cronos Group (TSX:CRON) is one of the few cannabis stocks that still have a market capitalization above $1 billion, even though it’s also trading at a fraction of its peak price. The current stock price of $3.6 per share represents a discount of about 87% from its 2019 peak, and it’s not an exceptional case.

Most cannabis companies in Canada are trading at similar or even more significant discounts.

But there is reason to hope that Cronos Group and most other cannabis stocks in Canada will make a strong recovery before the year is through, and it comes from across the border.

If the U.S. federal government legalizes marijuana, Canadian producers that already have a presence in the market (through strategic partners) may experience a surge in demand, boosting their financials and, hopefully, the stock’s value. This optimism was the reason behind the stock’s 28% growth since the beginning of this year.

A fuel cell company

Even though electric vehicles (EVs) are taking the world by storm, there is a dark horse that might lead to a different type of zero-emission vehicle gaining a larger market share in the coming years. Fuel cells rely on hydrogen and can be used to make EVs that don’t require batteries to store charge.

Ballard Power Systems (TSX:BLDP) is one of the most well-known names in Canada when it comes to fuel cells.

In the last 25 years, the stock has enjoyed two significant growth bursts, the most recent of which shot the stock up over 2,000% in fewer than six years.

That was primarily due to the hype and optimism, but if there is a breakthrough that makes hydrogen more accessible, safer, and cheaper as a fuel source, the following organic growth phase might be far more profound.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Cronos Group made the list!

Foolish takeaway

The three stocks are well-positioned for robust growth before the year is over, assuming favourable market, regulatory, and technological conditions are available. Of the three, only Telus is a buy for more than its upcoming growth potential; it can also be bought for its dividends.

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

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