Successfully investing in the stock market doesn’t necessarily mean having millions to play with. Even an amount as small as $5,000 can be a great place to start a high-quality, self-directed investment portfolio. With the right initial investments, you can get the kind of returns you can spread across several stocks to build a more well-balanced portfolio.
If you are an investor with a slightly bigger appetite for risk than others, investing in growth stocks can be an excellent way to put your money to work. The Canadian equity market has been volatile, and it’s impossible to predict how things will pan out in the short term. Having the ability to ignore the noise and look at the bigger picture can help you make investments that can potentially double in value.
Even amid all this chaos in the market, there are stocks that have the potential to deliver such returns. Today, I will discuss two of the brightest prospects that I can see to this end.
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MDA Space
MDA Space Ltd. (TSX: MDA) is a major player in the global space industry. Humanity isn’t exactly flying to the stars yet, but the space economy is growing. There is a growing need for satellite communications, global defence capabilities, and Earth observation that can only be facilitated by this industry. The sector is well-positioned to deliver substantial long-term returns, and MDA Space is one of the companies leading the charge.
The company provides space technology solutions to clients worldwide, and there is a massive demand for what it offers. MDA Space has a $4 billion backlog that reflects the demand, and a huge $400 billion growth pipeline across several markets. If there is one company to invest in to gain exposure to the growing space industry while remaining in the Canadian stock market, it is MDA Space.
Celestica
Where MDA Space offers tech-based solutions for space, Celestica Inc. (TSX: CLS) addresses more immediate concerns here on Earth. The world needs improved global supply chains, and the infrastructure necessary to facilitate that is critical. Celestica, a $52.1 billion market-cap Canadian company, is one of the strongest names in this area.
The manufacturing and supply-chain specialist has plenty of exposure to Artificial Intelligence (AI) infrastructure and data centre hardware. It is helping all the hyperscalers build data centres while maintaining a strong presence across several sectors of the economy. As the company continues to expand its footprint to meet the rising demand, it can deliver substantial long-term growth to its investors.
Foolish takeaway
There is solid expected demand for the services, products, and technological solutions that these two companies offer. Rising space spending means more business for MDA Space. In turn, it will help the company drive more value for its shareholders. Celestica’s help in managing supply chains will be increasingly critical for businesses in the coming years. While there is never a guarantee that any stock will double your investment, some have a greater chance of helping you accomplish that than others. To this end, MDA Space and Celestica are two tech stocks that can be good holdings to consider for your self-directed portfolio.
