3 Super Stocks That You Might Not Have Heard of

Finding hidden gems in the stock exchange is rarely easy, but it’s certainly possible. And if you can find the right stocks, you might add a lot of value to your portfolio.

| More on:

One of the reasons why independent stock research is a good idea instead of just following stock news is that not all great stocks get the spotlight they deserve. Several hidden gems, many with well-established performance potential, slip through the cracks. If you want to give your portfolio an edge, it might be a good idea to track such stocks and, when the time and price are right, add them to your portfolio.

A capital market company

Partners Value Investments (TSXV:PVF.UN), with its market capitalization of $5.1 billion, is one of the largest securities currently trading on the junior exchange. It’s an investment partnership with most of its capital invested in Brookfield Asset Management, in which the company has a 9% stake. The company is also exploring other investment options.

While not a rapid grower, PVF is growing at a decent pace, at least for the last five years. The market crash was rough for the company, and the stock fell over 40% at its worst, but it started recovering at a powerful pace and has grown almost 59% in the last 12 months alone. The five-year CAGR of 20% can add a decent bit of growth to your portfolio.

A drilling company

Mineral drilling and drilling for water is a niche market, and France-based Foraco International (TSX:FAR) is the third-largest player in this market. The company offers routine mining services (for both water and mineral extraction) as well as case-specific solutions and has undertaken projects in 22 countries across the globe. The company has an impressive drilling fleet.

The company peaked right after the Great Recession, and, in the course of fewer than four years, the stock grew well over 1,300%. After its decline from its 2012 peak, the stock fell below $1 per share, and it couldn’t break through this threshold till 2021. In the last 12 months, the stock has grown almost 290%, and it’s still moderately overpriced. If the company is gearing up for a growth phase like 2008-2012, now might be a perfect time to buy it.

A new software company

Topicus (TSXV:TOI) is a Toronto-based software company that has only just started trading on the junior exchange (Feb. 2021) and has already grown 100% from its inception. It emerged when Constellation Software bought a Netherland-based vertical software provider by the name of Topicus and spun it out (along with another operating group).

This gives Topicus a powerful pedigree. The company recently announced its second-quarter results, and it’s already moving in the right direction. It saw a 54% revenue growth and a substantial increase in net income. The company also completed a few acquisitions, and they have been absorbed into the fold, unlike Total Specific Solutions, formerly a business group of Constellation that exists as one of the companies inside the Topicus group.

Foolish takeaway

While none of the three companies offer dividends, all three companies offer decent capital appreciation potential. If they keep growing at their current pace, they can contribute a lot to the overall growth of your portfolio. You might consider buying them now or wait till they become undervalued stocks and are trading at a more attractive price.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management, Constellation Software, and Topicus.Com Inc. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV.

More on Tech Stocks

A plant grows from coins.
Tech Stocks

3 Growth Stocks Wall Street Might Be Sleeping on, But I’m Not

Don’t miss your chance to load up on these three beaten-down stocks.

Read more »

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

money goes up and down in balance
Tech Stocks

1 “Magnificent 7” Stock I’d Buy Over Nvidia Right Now

Here's why Meta Platforms stock is a better choice for Canadian investors compared to Nvidia in November 2024.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »