Buying small to mid-cap growth stocks at their inflection points -- that is, just as the investment community is discovering their hidden value, can deliver great returns. Investors can see awesome gains over the course of a few short weeks once everyone starts buying these stocks at the same time.

Marijuana producer Auxly Cannabis Group (TSX: XLY)(OTC:CBWTF) and uranium mining company Cameco (TSX: CCO)(NYSE:CCJ) both hold tremendous growth potential. What's more, they all rank No. 1 in their sector's market share, respectively. Let's look at how they can line investors' pockets. 

Four people discussing growth strategy at a meeting.

Image source: Getty Images.

1. Auxly Cannabis Group 

It's becoming harder and harder to find solid growth stocks in the Canadian marijuana sector. Indeed, producers have stashed more than 1.1 million kilograms of pot -- equivalent to about three years of consumption -- while growing more each month. Hypercompetition and price collapse are wreaking havoc across the sector.

Yet, Auxly has been on a momentous run. Last year, the cannabis producer grew its sales by a staggering 508% over 2019 to CA$50.8 million. Simultaneously, its gross margins expanded by 15.4 percentage points to 20.9%. The firm ranks No. 1 in the nation in edibles, extracts, topicals, capsules, and oils, with a market share of 14% across these segments.

The highlight is the popularity of its vapes, which account for 19% of the nation's sales volume. To sustain its growth, Auxly is now building up its efforts in the dried cannabis sector. Its strains and pre-rolls launched just in February and are well-poised to become consumer favorites. 

As of now, Auxly's common stock, options, warrants, and convertibles give the company a market cap of around CA$450 million on a fully diluted basis. Its stock valuation of five times revenue is pretty reasonable for the triple-digit percentage revenue gains. I'd check it out before it's too late. 

2. Cameco

Cameco is the world's largest publicly traded uranium company, and investing in it remains the one of the best ways to capitalize on the growing demand for nuclear energy. Cameco has 52 reactors under construction around the world as of this writing. Right now, nuclear power remains the most efficient option for the least amount of carbon generation. Since 2018, uranium prices have risen by 27% to $28.45 per pound.

With mines across the U.S., Canada, Kazakhstan, and Australia, Cameco controls approximately 227,250 tons of uranium deposits. That accounts for 4% of the world's supply. Last year, the company made $1.8 billion off uranium sales and lost $53 million overall. The numbers were largely unchanged from 2019 due to disruptions from the coronavirus pandemic.

Investors clearly have big expectations for Cameco. Fortunately, the company has just what it needs to live up to them. The company's mines are not expected to deplete until between 2029 and 2043.

It is also well capitalized, with nearly $1 billion in cash to offset just $113 million in total debt. When things go back to normal, Cameco has everything it needs to make capital purchases and expand its production capacity. Over the last 12 months, the stock is already up 68%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.