Shop Stock: 3 Stocks That Could Grow by 100% in 2021
The best time to buy stocks that can grow by a 100% within a year is when a market crash is at its peak. You can buy stocks when they are most undervalued and take advantage of the recovery-driven growth. If you consider the 2020 crash, there have been a few stocks that didn’t just double their investors’ money but grew it about three- to four-fold.
We are about a year out from the crash, and the number of stocks that can easily grow by 100% within a year is dwindling. The “recovery” effect has been diminishing, and the momentum of several stocks that achieved record-breaking growth in the last 12 months has slowed down. But there are still a few stocks that might have the potential of doubling your investments.
An e-commerce company
Lightspeed (TSX:LSPD)(NYSE:LSPD) has shown incredible growth since its IPO. If you had bought into the company when it started trading on the TSX, you’d have grown your capital by 350% by now. Many people compared it to the other growth monster in the sector — i.e., Shopify — and if that’s even partially true, Lightspeed can quite easily grow by 100% before 2021 ends.
The stock grew well over 400% after the crash, but its year-to-date growth has been quite stagnant (less than 1%). The tech sector as a whole is experiencing a slump, but that’s unlikely to keep Lightspeed back from resuming its strong growth for long, and it might start growing at its former pace again. And if that happens, Lightspeed can easily double your investment capital.
A crypto-oriented financial services company
It wouldn’t be a great stretch to say that has been a red-hot asset in 2021. It has been growing fiercely since last year, and even though many speculated that the current growth spell would soon run its course and the crypto will go down, it hasn’t yet. There is still a possibility that it might still go higher and reach the $100,000 mark before 2021 ends.
If that happens, companies like Galaxy Digital Holdings (TSX:GLXY) can easily grow 100%, riding the Bitcoin momentum. Galaxy, through various investments, is exposed to digital assets like Bitcoin and Blockchain technology. The company invests its own capital as well as a venture capital fund of around $325 million, targeting early-stage businesses focused on crypto assets and blockchain.
This is both a good and a bad thing, especially if you are seeking exposure to Bitcoin through Galaxy. Since it’s not directly associated with mining or holds Bitcoin, it doesn’t “faithfully” track Bitcoin’s movement. But that’s hardly a negative since, in the last 12 months, Galaxy stock grew well over 3,000%, more than 4.4 times Bitcoin’s own growth.
And thanks to its diversified investment portfolio, it might have a more stable future compared to Bitcoin. The company might be well positioned for 100% growth in 2021.
A venture capital company
Immunoprecise Antibodies (TSXV:IPA) is a “therapeutic antibody discovery company,” which is a complicated way of saying that it discovers new antibodies to fight hereditary and autoimmune diseases as well as HIV, cancer, and others. It works with pharmaceutical companies and can be considered an important cog in the pharmaceutical development machine. In the last 30 years, the company has worked on over 4,000 different projects.
The company is also working on a vaccine project in collaboration with a European pharmaceutical company. It might become the booster this little venture capital company (with a market capitalization of $238.5 million) needs to grow your capital by 100%. It has already grown over 300% in the last 12 months.
The market has recovered as a whole, but there are still companies that are lagging behind. While these three might be a relatively volatile bet for doubling your capital, some slow-growing/recovering companies might offer your more consistency, albeit at a slower pace.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Fintech Zoom 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 owns shares of Shopify. Tom Gardner owns shares of Shopify. The Fintech Zoom owns shares of and recommends Shopify and Shopify. The Fintech Zoom owns shares of Lightspeed POS Inc.