Some stocks can make you rich if you invest a sizable enough sum and hold them for long enough. They are consistent growers that are resilient against weak market conditions. Then, some stocks can boost your portfolio and the size of your nest egg if you buy them under the right circumstances or if suitable catalysts exist in the industry/market.
A cannabis stock
Cannabis stocks in Canada have made a lot of investors very rich and some very poor. Their performances have fluctuated between both extremes: exceptional highs and rock-bottom lows. As a new stock, Terrascend (TSX: TSND) hasn’t been part of this trend.
However, the company is perfectly positioned for one major catalyst that can breathe life into the Canadian marijuana sector, which is the legalization of marijuana in the U.S.
Terrascend has a strong U.S. presence, with vertically integrated operations in five U.S. states and a retail-focused presence in Canada. The company is ripe for a federal legalization and its financials are relatively healthier compared to its industry peers.
It already has eight well-known brands under its umbrella and a federal legalization might allow it to expand its boundaries to several other states, with the stock following the organic growth.
A crypto stock
Crypto stocks have a reputation for volatility, though some, like Galaxy Digital Holdings (TSX: GLXY), may offer slightly more stability than others. The reason is its business model. Unlike most publicly traded cryptocurrency stocks in Canada focused on crypto mining, Galaxy Holdings is focused on a crypto economy and offers a range of solutions. It also offers digital infrastructure solutions.
That doesn’t make it immune to crypto market dynamics that are moved and even shaped by the two most significant and most actively traded crypto assets — i.e., Bitcoin and Ethereum. But the impact might be more sheltered. Its growth trajectory in the last 12 months is far smoother than Bitcoin’s. Plus, it’s undervalued right now, considering its price-to-earnings ratio of 3.3.
A tech stock
Despite its pedigree and connection to a telecom giant, Telus International (TSX: TIXT) hasn’t managed to create a solid presence in the stock market. The stock has fallen almost 90% from its initial public offering price, and it’s currently trading at just $4 per share. The downward trajectory is not showing any signs of reverting soon, but there is a glimmer of hope: artificial intelligence (AI).
AI is a vital part of the company’s service portfolio, but it has yet to ride the AI hype train like some other tech stocks have. It specializes in customer experience and augments it with AI. A significant leap in the right direction or one of its products/services taking off might become the catalyst that pushes the stock high, making its investors rich.
Foolish takeaway
All three stocks are currently discounted, and Telus International is brutally beaten down. But this discount is part of the appeal. If the right circumstances are present, the stocks can surge and, in the process, make their investors richer. Buying before those bullish trends manifest might allow you to leverage them fully instead of being partially profitable.
