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ANTA Sports Products and Hong Kong Exchanges and Clearing can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
ANTA Sports Products Limited (SEHK:2020)
ANTA Sports Products Limited design, researches, develops, manufactures, markets, distributes, and retails sporting goods in the People’s Republic of China and internationally. Started in 1994, and now run by Shizhong Ding, the company employs 18,000 people and with the company’s market capitalisation at HKD HK$93.15B, we can put it in the large-cap stocks category.
An outstanding 18.76% earnings growth is forecasted for 2020, driven by an underlying sales growth of 46.58% over the next few years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 26.84%. 2020 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering 2020 as a potential investment? Check out its fundamental factors here.
Hong Kong Exchanges and Clearing Limited (SEHK:388)
Hong Kong Exchanges and Clearing Limited, through its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong. The company size now stands at 1685 people and with the market cap of HKD HK$319.76B, it falls under the large-cap stocks category.
An outstanding 16.49% earnings growth is forecasted for 388, driven by an underlying sales growth of 37.95% over the next few years. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 29.98%. 388’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Interested to learn more about 388? Other fundamental factors you should also consider can be found here.