The Ultimate Growth Stock to Buy With $1,000 Right Now
Alex Smith
1 week ago
Buying a growth stock with $1,000 sounds like a small investment, but it can still matter if you pick a business with a real profit engine and give it time. With a starter amount, focus on durability, not drama. That means cash flow that can grow, a balance sheet that does not rely on cheap debt, and a valuation that is not pure hype. A $1,000 investment wonât change your year, but a pick can change your habits, and habits drive outcomes. So letâs look at one that could be a âgoldenâ opportunity.
LUG
Lundin Gold (TSX:LUG) can fit that âÂÂsmall money, big runwayâ idea as it operates the Fruta del Norte gold mine in Ecuador. It is a single-asset producer, but it runs a high-grade operation that can produce strong margins when execution stays tight. It sells ounces, turns that into cash, then decides how much to reinvest and how much to return to shareholders. When gold prices rise, its cash flow can move quickly, which is why investors treat it like a growth story.
There has been volatility in share price recently for the growth stock, but that volatility is not automatically bad when you start with $1,000. At roughly $120 per share, you are buying only a handful of shares, so you can learn the stockâÂÂs rhythm without making it your entire personality. If it keeps delivering, you can add over time. If it dips, you have room to average in rather than panic. The goal is to stay invested long enough for the business results to matter.
Into earnings
The most recent earnings release showed why investors keep paying attention. In Q3 2025, Lundin Gold reported revenues of $447.1 million and record net income of $207.7 million, or $0.86 per share. It generated free cash flow of $191.1 million, or $0.79 per share, driven by gold sales of 124,911 ounces at an average realized gold price of $3,634 per ounce. Cash operating costs were $861 per ounce sold and all-in sustaining costs were $1,036 per ounce sold.
It also shared that upside aggressively. With the Q3 2025 results, it declared cash dividends totalling $0.80 per share, made up of a fixed $0.30 and a variable $0.50. That policy can be a growth investorâÂÂs friend. It reduces the temptation to chase pricey deals, and it gives you a real return while you wait for the next leg higher. The growth stock also reported a cash balance of $494 million at September 30, 2025.
Looking ahead
The outlook has two main levers: mine execution and the gold tape. Management said it remained on track to meet revised 2025 production guidance of 490,000 to 525,000 ounces. It also flagged that higher gold prices lift royalties and statutory profit sharing, and it estimated every $100 per ounce increase in gold could raise cost metrics by about $10 per ounce. On growth, it expanded its 2025 exploration program to a minimum of 120,000 metres, the largest drill program ever on its land package. That spending aims to extend mine life and find new zones near the deposit.
Valuation is the obvious speed bump, even after a strong run, trading at about 30 times earnings, with the next earnings date in February 2026. If gold cools or costs surprise, that multiple can compress fast. The bigger risk is concentration: one mine, one country, and plenty of operational variables.
Bottom line
Still, LUG can be a compelling $1,000 growth starter. It just posted record profit, produced substantial free cash flow, and it has the kind of cash generation that can support growth through 2026. All solid signs in 2026.
The post The Ultimate Growth Stock to Buy With $1,000 Right Now appeared first on The Motley Fool Canada.
Should you invest $1,000 in Lundin Gold Inc. right now?
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More reading
- Top Canadian Stocks to Buy With $5,000 in 2026
- Where to Invest Your TFSA Contribution for Maximum GrowthĂÂ
- What is the TFSA Contribution Limit for 2026
- 3 Canadian Growth Stocks to Buy for Long-Term Returns
- Maximum TFSA Impact: 3 TSX Stocks to Help Multiply Your Wealth
Fool contributor Amy Legate-Wolfe 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.
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