Yahoo Finance The Future Giants: 3 Emerging Stocks With Incredible (and Proven) Growth Potential
Written by Christopher Liew, CFA at The Motley Fool Canada
The energy sector has outperformed thus far in 2024, but some stocks outside the sector have incredible and proven growth potential. Two companies that have rebranded and one heavy metal mining company are TSX’s future giants.
AtkinsRéalis (TSX:ATRL), formerly SNC-Lavalin, continues to win contract awards in the engineering and construction industry. Mattr Corp. (TSX:MATR), formerly Shawcor, is now a growth-oriented, global materials technology company serving critical infrastructure markets. NexGen Energy (TSX:NXE) is developing the Rook I Project, the world’s largest, low-cost producing uranium mine.
Multiple contract wins
AtkinsRéalis is always in the news due to successive contract awards. In 2023, service revenue and backlog rose 20.8% and 16.1% year over year to record highs of $8 billion and $13.7 billion. Notably, adjusted net income climbed 143% to $274.1 million versus 2022.
Its president and chief executive officer (CEO), Ian L. Edwards, noted the exceptional results across businesses and in core geographies. The $9.44 billion fully integrated professional services and project management company operates globally but has implemented a new operational structure to sustain growth.
AtkinsRéalis won a $40 million contract to provide general engineering services for the Georgia Department of Transportation. The operations and maintenance work at the Centre Hospitalier de l’Université de Montreal, one of Canada’s largest hospital centres, spans 26 years.
The most recent contract win is for the new Île d’Orléans Bridge developed by Quebec’s Department of Transportation and Sustainable Mobility. ATRL trades at $53.15 per share and pays a modest 0.15% dividend. But with multiple contracts pouring in, expect the share price to soar in 2024 and beyond.
Significant opportunities
Last year was a breakout year for Mattr. Besides the revenue rising 7.4% year over year to $925.3 million, net income reached $87.2 million compared to the $30.9 million net loss in 2022. The $1.1 billion company operates a network of fixed manufacturing facilities and derives revenue from the Composite Technologies and Connection Technologies business segments.
Mattr is present in the communication, electrification, energy, transportation, and water management markets. Its president and CEO, Mike Reeves, said, “Our businesses serve large and growing end markets; we have a robust balance sheet, significant opportunities for investment in high-return organic growth and the capacity to seek and complete meaningful, accretive acquisitions.”
Based on market analysts’ buy rating, the upside potential in one year is 68.4%. The current share price is $16.63.
Growing demand
NexGen Energy owns a portfolio of highly prospective projects, and Rook I is the prime project. The $6.13 billion company sees a growing demand for uranium (127% and 200% by 2030 and 2040) and envisions delivering clean, secure energy solutions.
The growth potential is on the horizon, given that uranium fuels nuclear power plants. Because of climate change, demand and new investments in nuclear energy are fast-rising. According to management, 70% of demand comes from Organization for Economic Cooperation and Development (OECD) countries.
Besides the Rook I’s robust economics and high-grade production, its initial mine life is 10.7 years. NextGen can provide reliable, flexible supply. At $11.19 per share, investors are up 20.7% year to date.
Real deals
AtkinsRéalis, Mattr, and NexGen Energy are real deals, not speculative investments. Growth investors can take positions now before the stock price skyrockets.
The post The Future Giants: 3 Emerging Stocks With Incredible (and Proven) Growth Potential appeared first on The Motley Fool Canada.
Should you invest $1,000 in SNC-Lavalin right now?
Before you buy stock in SNC-Lavalin, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SNC-Lavalin wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 3/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
2024
