5 rising TSXV stocks for long-term growth: BQE, NXH, SGMD, COV, REKO

Highlights

• BQE’s proportional revenues rose 128 per cent year-over-year (YoY) in Q3 FY2022.
• NXH scrip swelled by over 16 per cent in one month.
• Reko International reported increased sales of C$ 13.35 million in Q1 2022.

Investors with high-risk tolerance are generally open to stocks that can significantly grow in the long horizon. Such investors can explore some TSXV companies that are up-and-coming entities gaining attraction for their performance. 

The following are five TSXV rising stocks that one can consider if aiming for long-term growth exposure.

BQE Water Inc (TSXV: BQE)

BQE Water is a waste management company focused on providing water treatment and management solutions to three key sectors – mining, smelting & refining, and hydrometallurgy.

This junior water solutions provider reported a year-over-year (YoY) surge of 128 per cent in its proportional revenues in the first three months of FY2022. The company also reported a ‘historic high’ net profit in the latest quarter. 

BQE stock has grown by approximately 30 per cent in three months.

Salona Global Medical Device Corporation (TSXV:SGMD)

Salona Global Medical Device Corporation is an American company that acquires privately held small medical device businesses to increase revenues globally.

On May 27, Salona Global executed an agreement to buy a company (with positive cash flow) of medical devices and equipment for physical therapy clinics located in the United States.

SGMD stock galloped by over 35 per cent in the last three months.

Also read: 3 TSX growth stocks for young investors - DOL, H and DSG

Covalen Technologies Ltd (TSXV: COV)

Covalen Technologies is a biotechnology company headquartered in Mississauga. The healthcare company leverages its patented medical techs in advanced wound care, infection and surgical process.

Covalen Technologies has posted a return on equity (ROE) of almost 104 per cent, signalling high profitability. Also, its debt-to-equity (D/E) ratio stood at 0.08, reflecting its preference for equity financing over debt. However, despite these two, other metrics should be considered while making investment decisions.

COV stock soared by nearly 41 per cent month-to-date (MTD).

Also read: 3 TSX green stocks to fight climate change - AQN, BLDP and NPI

Reko International Group Inc (TSXV:REKO)

Reko International is an industrial company developing robotic factory automation solutions and providing engineering, machining and tooling services in Canada and the U.S.

Reko International reported increased sales of C$ 13.35 million in Q1 2022 compared to C$ 12.41 million in the same quarter of 2021. However, the company saw its net profit slump to C$ 0.09 million in the latest quarter compared to C$ 0.8 million in Q1 2021.

REKO stock gained by almost 16 per cent in a year.

Next Hydrogen Solutions Inc (TSXV:NXH)

Next Hydrogen Solutions, an industrial firm that designs and builds electrolyzers to produce green hydrogen, posted notable revenues in Q1 FY2022, backed by the CleanFuel Systems acquisition completed last year.

NXH scrip swelled by over 16 per cent in one month.

Bottomline

Equity investors seeking growth can explore these TSXV rising stocks. Some of these stocks, like BQE Water and Next Hydrogen Solutions, are likely to benefit from the growing emphasis on the clean energy transition. On the other hand, health stocks like Salona Global Medical Device and Covalen Technologies can see some impact with an increasing focus on the healthcare infrastructure amid COVID-19 and rising monkeypox cases.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.