- Cryptocurrencies are on an exponential growth trajectory
- Clean energy companies set for growth going into the future
- A fintech company that operates in Russia
Anyone who bought into big tech stocks in the 2000s has made a significant return on investment by now.
Such gains can trigger investors, especially those new in the market, to try and find the next Amazon, Facebook, or Google. Unfortunately, it’s not easy to tell which stocks will turn into a jackpot in a few years.
However, there is an approach that one can take and increase the chances of buying into a stock that could give exponential returns in a short time.
The approach involves buying companies that have a significant presence in disruptive industries. It also entails buying into stocks that are attractive to the next generation of investors. Currently, millennials are entering the top levels of their careers, which means they will shape the stock market direction for the next couple of decades.
Using this approach, Argo Blockchain (ARB), Ceres Power (CWR), and Zaim Credit (ZAIM) are three UK stocks that fit this description.
Argo Blockchain (ARB)
Argo has all the hallmarks of a growth company that can turn £1،000 into £5,000 within a very short time.
The ARB company operates in the fast-growing blockchain industry, which looks set to disrupt the multi-billion pound banking and finance industry.
Cryptocurrencies are changing how people create value, how it’s traded, and even how it is stored. The potential is so huge that the crypto market is now one of the best-performing markets ever.
Bitcoin went from a few pennies in 2010 to highs of $64k in April 2021. Due to the scarcity aspect of it, Bitcoin is only set to grow in value, and Argo has the potential to grow with it.
With expert predictions putting Bitcoin’s potential value at over $500k after the 2024 block halving, the intrinsic value of companies that hold Bitcoin in their balance sheets, such as Argo Blockchain, could go up significantly.
On top of that, the company operates in a market that is very popular with young investors. Millennials make up the bulk of investors in cryptocurrencies.
This means crypto-related companies are likely to get even more attractive to them as the crypto market matures. Such demographic advantages put Argo in a good position for growth going into the future.
Ceres Power (CWR)
Like Argo, Ceres operates in what would be considered an industry of the future. The company produces hydrogen fuel cells to help the world transition towards clean energy.
At the moment, there is a global rush to save the planet from getting to a point where the effects of climate change become irreversible.
One of the ways that have gained traction in this quest is the use of clean energy. Moving away from fossil fuels has become a matter of top priority for most governments. This has led to an increase in policy directives that favour clean energy companies like Ceres.
Besides being in a growth market that is receiving lots of policy support, Ceres has been innovating a lot and also building the networks that will help it grow going into the future.
It has a partnership with Bosch and Doosan, a company using Ceres designs in building fuel-cell factories. This is huge for Ceres in two ways. First, it will give Ceres a long-term passive revenue stream, hence bolstering its bottom line.
Secondly, it increases its brand visibility, which opens the way to even more deals going into the future. Since its partnership with Bosch and Doosan, the company has managed to sign a host of other deals. It’s a pointer to growing brand equity.
In terms of innovation, Ceres is in the process of making an electrolysis product. This is a huge deal in terms of the future for clean energy. The process of electrolysis involves generating energy by breaking down water molecules into oxygen and hydrogen.
The biggest benefit of electrolysis is that it is convenient for future power systems to generate and store energy. The cost savings that could accrue from this puts Ceres in a pole position for growth as the world transitions to clean energy solutions.
Ceres also has the advantage of investor demographics on its side. Millennials make up the bulk of the people calling for a structural shift away from fossil fuels. Therefore, as more of them gain the disposable income to invest in shares, UK shares like Ceres could see a huge boost in their valuations.
This makes Ceres a UK stock that could easily turn £1,000 into £5,000 or more in a very short time.
Zaim Credit (ZAIM)
Zaim is not only in a fast-growing market, but it’s also relatively low-priced. At a little over £4 a share, one can buy quite a sizeable chunk of these shares with £1000.
This stock’s potential stems from the fact that it operates in the fast-growing fintech market. The company has built a niche giving micro-loans in Russia and has seen its market share grow exponentially.
It has a presence in 95 locations in Moscow and other urban areas and has over 200 employees.
Because it targets people who may not find it tenable to seek loans from a bank, its growth potential is huge, especially amongst young people.
In terms of investor demographics, fintech is one area that young investors mostly dominate. Such investors are seeking innovative solutions that more conventional companies may be unable to offer. This places Zaim in a good position for growth going into the future.
Aside from its fundamentals, those most in the know about this company seem pretty bullish about its prospects. In 2020, insiders increased their holdings of this stock by 36%. The largest of these transactions was by Simon Retter, the company’s finance director, who bought GBP 57k worth of the stock.
A combination of these factors makes Zaim a high UK potential stock that could turn £1,000 into £5,000 or more in a very short time.
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