Q: I am thinking of adding either LMN or VPN to my TFSA. Appreciate knowing which stock has the best growth potential and the risk associated with each.
Wayne
Wayne
5i Research Answer:
For a long-term holding, with the acknowledgement that patience will be required, we would give LMN the slight edge due to its strong management team, historical execution, but currently it is under pressure alongside other software names. But, its current momentum is quite weak.
We would put VNP as a close second, but being in the critical minerals space, there is potential for headline risk, significant volatility, and it is not as capital-light as LMN.
For near-term growth, we think VNP has better momentum and is executing well, but for a long-term hold, we would give LMN the slight edge today.