When looking for stocks that can help you meet your relatively short-term financial goals (with maturities of less than ten years), timing is everything. And there are four actions you might want to consider right now.
A stock of energy
The energy sector is making a comeback, which has catapulted small energy companies like Cardinal energy (TSX: CJ) through the roof. Cardinal’s share price has risen by around 500% in the past eight months, but its price-to-earnings ratio is only 5.8 and its price-to-book ratio is 1.1, which makes it a pretty attractive valuation.
The stock possesses has been normalizing since May, but if the company continues to ride the energy wave for a few years at this rate, it can provide you with decent capital appreciation. Growth in stocks is also being supported by a turnaround in income generation, and if second quarter earnings are on par (or better) than first quarter, it could give the stock another significant boost.
Another energy store
Another energy company that emulates the same model of attractive growth and valuation explosion is NuVista Energy (TSX: NVA). This Calgary-based company has a fairly unstable beta (3.6) and debt above the company’s market cap. Still, its balance sheet is strong and revenues have recovered significantly from 2020 levels.
NuVista is an exploration and development company focused on the Western Canadian Sedimentary Basin. Prior to 2020, its production of natural gas and condensates and liquids was increasing steadily, and the company could pick up where it left off in 2021. The share price rose almost 200% in 2021 alone, and the company still trades at a price-profit ratio of 1 and price-to-book ratio of 0.5 times.
If the two energy companies are good bets for short-term growth, Blackberry (TSX: BB) (NYSE: BB) is long term play. Although it is discounted (significantly from its annual peak and massively since its peak in 2007), the title is relatively overvalued. Profits in the first quarter were worse compared to both the same quarter last year and the previous quarter.
But whether triggered by subreddits or the company’s own breakthroughs and patents, the BB action is able to increase from time to time. He has climbed twice in the past two years. At its current valuation, even if the stock is at a better fraction of its glory days valuation than it currently is, it can easily double your investment.
A stock linked to crypto
Few stocks have a powerful short-term growth potential similar to crypto-related stocks. Thanks to the highly speculative nature of the crypto market and the volatility of the underlying assets, stocks like Galaxy digital backgrounds (TSX: GLXY) have the potential to grow over 2,000% in one year (it did increase by the same amount in the last 12 months).
The stock is currently trading at a 54% discount from its recent high, and it continues to decline. Bitcoin is expected to continue to fall and the Galaxy stock will most likely sink with this crypto vessel. Still, given that the cycle is set to continue, the chances of Galaxy climbing to impressive heights are pretty high.
The above growth stocks may be too volatile for the risk appetite of many conservative investors. But with high risk comes high reward. You might consider allocating a relatively small portion of your investment capital to these stocks, so if they accumulate, your overall portfolio might not suffer too much. But if they pay off, you can make the payoffs and have a decent amount of money to increase your core portfolio (or meet your short-term financial goals).
Speaking of the top TSX growth stocks you might be considering right now …
Should you invest $ 1,000 in Suncor Energy now?
Before you consider Suncor Energy, you might want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his team Stock Advisor Canada just revealed what they believe are the 10 best stocks investors can buy right now… and Suncor Energy was not one of them.
The online investment service they have been running since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market more than 3 times. And right now, they think there are 10 stocks that are better buys.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry.