3 Stocks That Could Go Gangbusters This Month

Three momentum stocks could explode this month to deliver massive gains to current investors.

| More on:

The TSX remains in record territory as of writing on November 16, 2021, despite closing lower than its fresh high of 21,768.50 two days ago. Many growth investors continue to scout the market for some compelling buys. If you’re shooting for massive gains, three momentum stocks could go gangbusters this month.

HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT), NexGen Energy (TSX:NXE), and Village Farms International (TSX:VFF)(NASDAQ:VFF) are probably in the year-end buy lists of Canadian investors. The share prices are relatively cheap vis-à-vis their upside potential.     

Ascending like Bitcoin

HIVE has mirrored Bitcoin’s performance thus far in 2021. The world’s most popular cryptocurrency currency has been trading above US$60,000 since October 15, 2021. Meanwhile, the TSXV crypto stock has gained by 875% in one year. At $5.07 per share, the year-to-date gain is 112.13%.

Bitcoin’s ascent starting in mid-June this year was driven by mainstream adoption of digital currencies, notwithstanding the ban in Chine. The launching of futures-based Bitcoin exchange-traded funds (ETFs) in the U.S. was a big boost for crypto loyalists. As Bitcoin regains strength, HIVE becomes more attractive to investors wanting exposure to Bitcoin but minus the extreme volatility.

The $1.95 billion cryptocurrency mining firm monetize newly minted crypto coins for revenue and cash flow. Unlike Bitcoin, investors have financial statements to review or analyze before investing. Your exposure would be in the operating margins from crypto mining and not direct ownership in Bitcoin.

High growth with inherent risks

NexGen Energy is a $3.15 billion exploration and development company that boasts high-impact projects. It operates in the large-scale southwestern Athabasca Basin, where it owns vast lands (199,576 hectares). The expertise, however, is in the evaluation of uranium properties.

Interestingly, NexGen is among TSX’s high flyers with its 88.03% year-to-date gain. At $6.60 per share, the trailing one-year price return is 175%. Market analysts recommend a strong buy rating and sees a further climb to $9.26 (+40.34%) in 12 months. This energy stock is obscure but not a mediocre performer. The total return in the last 8.57 years is 1,733.33% (40.41% CAGR).

Still, you must understand the high degree of risk before investing in NexGen. Among the hurdles are obtaining adequate capital for exploration of minerals and project developments.

Bargain stock

Village Farms International is a bargain at $10.91 (-15.36% year to date). Also, the 12-month average price target of market analysts is $21.34 — a 95.6% return potential. This $935.05 million greenhouse grower and now cannabis producer made it to the TSX30 growth stocks list in two of the three editions. It ranked 13th in 2020 and third in 2019.

The compelling reason to invest in Village Farms is its 30-year experience as a vertically integrated Controlled Environment Agriculture (CAE) pioneer. It is well positioned to leverage its expertise to gain entry into new, large markets or capitalize on high-value, plant-based consumer product opportunities.

Management’s specific focus is on cannabinoid (high- and low-THC) and related health and wellness opportunities. The target market is North America, Europe, and the Asia-Pacific region. In Q3 2021, Village Farms reported 59% and 140% growths in total gross sales and net income versus Q3 2020.    

Potential explosion

The three stocks can potentially explode and sustain their upward momentum. However, you must be aware of the inherent risks to the respective businesses.   

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Village Farms International, Inc.

More on Tech Stocks

investment research
Tech Stocks

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

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

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

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »