Investors are forever on the lookout for growth stocks. Investing in high-growth stocks provides an opportunity for significant capital appreciation, as they tend to outperform broader markets in a bull run.

The cannabis boom went bust in 2019, and investors have lost over 50% in market value after stocks peaked in October 2018. Now the pot industry is grappling with oversupply, lower-than-expected demand, and much more, which means there is a good chance that cannabis stocks will remain volatile this year as well.

So, where do growth investors park their funds? There is one Canadian tech stock that has the potential to crush market returns in 2020 and beyond.

Patriot One Technologies

Patriot One Technologies (TSX:PAT) is a small-cap Canadian tech stock focusing on making the world a safer place. Global tensions continue to remain high, and the macro environment is pretty volatile. PAT is involved in commercializing systems to detect concealed weapons using radar technologies.

It has developed and launched cognitive microwave radar technology products used in the detection of concealed weapons. This provides first responders and security personnel valuable time in active threat scenarios. These technologies can be employed in public areas and have the ability to detect guns and knives as well as threat assessments.

Shares are trading close to 52-week lows

While the markets continue to touch record levels, PAT shares are trading close to its 52-week lows. The company went public back in May 2012, and its stock fell from $3.20 post IPO to a low of $0.10 in November 2015. It has since gained a staggering 1,100% since then to currently trade at $1.25.

The company is valued at $187 million, or 24.4 times fiscal 2020 sales, which might seem expensive. However, the company is estimated to grow sales by 288.5% in 2021 to $29.8 million and by 70% to $50 million in 2022. This growth will also help PAT improve the bottom line. Analysts expect EBITDA to increase from -$17 million in 2020 to $4.6 million in 2022.

The market opportunity for Patriot One remains huge. Its products can be installed across several public arenas including train stations, concerts, schools, stadiums, shopping complexes, and more.

PAT is looking to leverage artificial intelligence (AI) capabilities in the PATSCAN, which is a multi-sensor covert threat detection platform. The PATSCAN is reportedly a cost-effective network that uses cognitive learning software.

The company has invested heavily in research and product development. According to the company presentation, PAT’s product was under development for seven years (between 2009 and 2016) with a market rollout in 2019.

This means that investors will need to bank on future growth and the company’s management team to successfully execute plans. PAT has acquired several tech companies in the AI and machine learning space to integrate the same with proprietary technologies.

Investing in Patriot One is high risk, but this can also result in high rewards if the company gains traction in a space with significant growth potential.

This tiny TSX stock could be the next Shopify

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

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