Buying small to mid-cap growth stocks at their inflection points — that is, just as the investment community is discovering their hidden value, can deliver great returns. Investors can see awesome gains over the course of a few short weeks once everyone starts buying these stocks at the same time…
Marijuana producer Auxly Cannabis Group (TSX: XLY)(OTC:CBWTF) and uranium mining company Cameco (TSX: CCO)(NYSE:CCJ) both hold tremendous growth potential. What’s more, they all rank No. 1 in their sector’s market share, respectively. Let’s look at how they can line investors’ pockets.
1. Auxly Cannabis Group
It’s becoming harder and harder to find solid growth stocks in the Canadian marijuana sector. Indeed, producers have stashed more than 1.1 million kilograms of pot — equivalent to about three years of consumption — while growing more each month. Hypercompetition and price collapse are wreaking havoc across the sector.
Yet, Auxly has been on a momentous run. Last year, the cannabis producer grew its sales by a staggering 508% over 2019 to CA$50.8 million. Simultaneously, its gross margins expanded by 15.4 percentage points to 20.9%. The firm ranks No. 1 in the nation in edibles, extracts, topicals, capsules, and oils, with a market share of 14% across these segments.
The highlight is the popularity of its vapes, which account for 19% of the nation’s sales volume. To sustain its growth, Auxly is now building up its efforts in the dried cannabis sector. Its strains and pre-rolls launched just in February and are well-poised to become consumer favorites.
As of now, Auxly’s common stock, options, warrants, and convertibles give the company a market cap of around CA$450 million on a fully diluted basis. Its stock valuation of five times revenue is pretty reasonable for the triple-digit percentage revenue gains. I’d check it out before it’s too late.
Cameco is the world’s largest publicly traded uranium company, and investing in it remains the one of the best ways to capitalize on the growing demand for nuclear energy. Cameco has 52 reactors under construction around the world as of this writing. Right now, nuclear power remains…
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