For investors looking for under-the-radar growth stocks worth buying today for the long-haul, there are plenty of options to choose from.
Of course, most investors will perhaps first look at some of the top large-cap tech stocks. That’s because size matters in the world of tech, from economies of scale and durable competitive advantages (moats) to network effects.
That said, I think there are some even better opportunities in the small to mid-cap range that are worth considering. But there’s one that stands out above the rest.
Let’s dive into my top long-term (slightly speculative) Canadian growth stock pick I’m looking at for my TFSA right now.
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The Metals Company
The Metals Company (NASDAQ: TMC) is one top Canadian growth stock I’ve covered in the past. Indeed, this is a company with a business model that deserves a look, regardless of where you stand on the whole discussion around rare earths and battery metals.
The Metals Company operates in the deep sea mining sector, having developed new technology to pull nodules of key battery minerals off the sea floor. Sucking these golf ball sized rocks to the surface, TMC is attempting to make the practice of deep sea resource extraction even more environmentally friendly (if that’s even possible) than aboveground mining.
Now, the jury is still out on whether or not this is even possible. After all, mining in any environment brings about some amount of ecological damage. And thus far, studies are being done on what the ultimate impact may be of removing these deep sea nodules and bringing them to the surface (stirring up plenty of sand along the way).
But if you’re of the view that AI and other electrification trends are likely to remain in place for years and decades to come, this is an intriguing space that’s at least worth paying attention to in my books.
How big could the opportunity be?
I’m of the view that the deep sea mining sector is one which could ultimately turn out to be a trillion-dollar plus opportunity. And in reading various reports on this space, competitors are popping up outside of The Metals Company with the potential to capture at least part of this market.
Indeed, where there’s profitability, there’s likely to be a surge of investor interest. Such has been the case with this nascent and early-stage (but potentially high-growth sector).
For now, though, TMC remains the leader in not only receiving permit approvals for actual mining activities, but also putting forward what I think is the best technology to actually siphon up these nodules to the surface. Thus, for investors looking for a first-mover in what could be a lucrative sector, TMC is one company I continue to pound the table on right now.
