One mistake many investors make is not leveraging the potential of a bullish momentum just because they didn’t get in on it at the beginning or early enough in the trend. This way, they end up having none of the profits the trend could have offered.
But if you are happy with at least “some of it,” you may consider three TSX stocks that have been soaring high for some time now, and many continue to do that for a while.
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A photonics stock
While most artificial intelligence (AI)-oriented tech stocks in Canada failed to ride the AI hype train, POET Technologies (TSXV:PTK) stock catapulted to new heights because of it.
It’s a mature tech company focused on photonics (overlap of electronics and lightwaves), and the company started positioning itself and its technology as a viable alternative or, at least, an augmentation of the classic semiconductor-based computing hardware AI requires.
Hardware is one of the primary costs behind AI, and if POET Technologies can help mitigate it, it may emerge as a leader in this space (like Nvidia did in the semiconductor space). Its current growth certainly indicates this possibility, as the stock has risen over 600% in the last 12 months, and even though the growth isn’t linear, the stock is not showing any signs of slowing down.
The company recently made an international acquisition in its space. However, it’s smart not to ignore the risks. Hedge funds have about 6.7% stake in the company, and there has been no significant insider buying for several months.
A specialty semiconductor stock
Semiconductor stocks, even the ones that are not directly associated with AI are experiencing an influx of new investors. That’s the case with 5N Plus (TSX:VNP), and in its case, this is a good thing because its growth seemed to be tied to other mature (instead of hyped) technologies.
The company has experienced a decent revenue surge from its solar-power segment, which makes semiconductors for both spaceship and ground solar panels.
Its growth over the last 12 months has been more consistent, albeit slower than POET, though still higher than most conventional growth stocks. The 5N Plus stock surged over 119% over the period. What’s even more promising is that multiple brokerages have given a buy signal for this stock.
In addition to being a good growth stock, 5N Plus is also a good choice if you are interested in ESG (environmental, social, and governance) investing.
A retail clothing stock
Aritzia (TSX:ATZ) is another stock that has positive signals from brokerages despite its high valuation. The stock has grown over 120% in the last 12 months, and the prospects still look good. The price-to-earnings ratio of 64 doesn’t look healthy but its financials looked solid in the last quarter results, with revenue and net income increasing in double digits, driven primarily by U.S. retail surge.
As a clothing retail company, Aritzia’s growth can also be attributed, at least in part, to the lowered interest rates. This typically encourages people to increase their discretionary spending.
The stock is still trading below the target price, as per multiple experts, indicating that the stock might keep growing. But if you want to play it safe, wait till the next quarterly report.
Foolish takeaway
All three stocks can offer you decent returns if you buy now and exit at the right time. But if you are looking to hold any of these stocks long term, you may want to look deeper into the bullish surge to make sure you are not buying close to the curve.
