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There are investors who are happy with slow and consistent yields. They prefer low-risk stocks that provide low gains over a more predictable period of time. Then there are those who say to such people: “Stop being all logical and stuff. Moon or Doom.”
Somebody actually said that in a conversation I was in. Got to admire his ambition, at least!
So, if you are looking for high-risk high-reward stocks, which ones can make you the 30 baggers?
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Well, I at least try to minimize the risk (because why the heck not?). To that end, I like commodities at the moment. They are very early in a potential bull market. But the upside potential is very exciting for those seeking high-risk high-reward stocks.
They can be volatile and the road ahead will be volatile too, but the commodities sector is smiling on us right now.
Here are three high-risk high-reward commodity stocks in the realm of uranium and precious metals mining.
Ur-Energy (URG)
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Ur-Energy (NYSEAMERICAN:URG) acquires, explores, develops and ultimately operates uranium operation processing. With 12 projects across Nevada and Wyoming, URG has lots of infrastructure baked into its cake.
As far as its future potential, URG’s biggest property (the Lost Creek Project) has 1,800 as-yet un-patented mining claims. Should the uranium sector as a whole move up, URE’s expansion can proceed at pace.
On the technical charts, URG is sitting right in support of a channel dating back to the start of 2024. Let’s say support holds at around $1.40. A first move up to the upper resistance of the channel is the first short-term goal — around $1.80.
But uranium as a sector is touted to explode as global energy needs become desperate. Should this materialize, URG is one of the more exciting high-risk high-reward stocks. A blast past $1.80 would be extremely bullish.
Should current support levels fail, a drop to $1.30 is the next support line to look for entries.
Fission Uranium (FCUUF)
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Fission Uranium (OTCMKTS:FCUUF), is another uranium company. Like URE, FCU explores and develops uranium assets. Its sole project is the Patterson Lake South project (PLS) in Canada.
What makes FCU a high-risk high-reward stock is that it is also a junior mining company. Junior miners are always much more volatile than the seniors. That could mean if the uranium sector falls, juniors like FCUUF will fall more sharply than the seniors.
But that works the other way, too. If the uranium sector starts to rip, juniors like Fission tend to spike sharply. So, if you’re willing to navigate those waters, FCUUF is one of the more exciting high-risk high-reward stocks.