AMC Entertainment Holdings (NYSE:AMC) stock, the meme stock that was pumped by investors on Reddit earlier this year during the GameStop saga, rallied again this past week. The stock shot up by 116% in the five trading days last week.
You may be wondering with growth like that if it’s worth an investment. However, much like many of these meme stocks pumped on Reddit are, it’s pure speculation.
AMC is a movie theatre chain, a business that’s been impacted heavily by the pandemic. Of course, there is potential for recovery, but even analysts think the stock is worth far less than what it’s trading at today.
The average analyst target price is just $5, and even the highest target price is just $16. Compare that to an intra-day high of $26 last Friday, and the stock clearly looks overvalued.
With nothing new to give it value (i.e., acquisition or new strategy), buying it today in hopes that the stock price will go up is pure speculation.
So rather than speculating on AMC, here are two Canadian growth stocks to buy instead.
A leading psychedelic stock
If you’re looking for a stock with massive growth potential, one of the best Canadian growth stocks to buy today instead of AMC is Numinus Wellness (TSXV:NUMI). You may have to wait a few months or even a few years, but taking a long-term position in a top psychedelic stock like NUMI today offers massive growth potential, that if it comes to fruition, will be well worth the wait.
The entire psychedelic industry offers a tonne of potential in healthcare. The growth potential of these stocks could be similar to cannabis stocks back in the day too. However, the industries have some considerable differences.
With psychedelics, it’s not about the recreational market. However, the medical benefits could be vast and potentially even more extensive than Cannabis.
This has many companies trying to take advantage of the potential, but Numinus Wellness is one of the top leaders in the space.
The impressive Canadian growth stock has come well off its highs and is worth less than $200 million, making it extremely cheap today. So rather than speculate on AMC stock, I’d take a long-term position in this high-potential company.
A top Canadian growth stock to buy instead of AMC
Another high-quality Canadian stock I’d strongly recommend investors consider over AMC today is Equinox Gold (TSX:EQX).
The entire gold industry has a tonne of potential to rally these days as gold has been cheap for a while and building momentum. So while there will be a tonne of Canadian gold stocks that offer great potential these days, buying a high-quality growth stock like Equinox will be one of the best.
Equinox is a relatively new stock that only commenced production in 2018. Yet already, with impressive management and strong acquisitions, the growth stock is rapidly passing the junior stage and rising to be a top intermediate producer.
Last year Equinox produced just under 500,000 ounces of gold, and the company is targeting up to 1 million ounces of annual production by 2023.
So if the price of gold continues to rise and Equinox can effectively double its current output, the stock has significant potential over the coming years.
Gold is always something that’s worth having at least a small position in your portfolio. So instead of speculating on AMC stock today, I’d strongly consider a top Canadian growth stock like Equinox.
