Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Aristocrat Leisure and Amcor are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.
Aristocrat Leisure Limited (ASX:ALL)
Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of gaming machines and systems in the Americas, Australia, New Zealand, and internationally. Started in 1984, and headed by CEO Trevor Croker, the company size now stands at 3,640 people and with the company’s market cap sitting at AUD A$15.06B, it falls under the large-cap stocks category.
ALL is expected to deliver a buoyant earnings growth over the next couple of years of 16.76%, bolstered by an equally impressive revenue growth of 61.34%. 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 46.53%. ALL ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Take a look at its other fundamentals here.
Amcor Limited (ASX:AMC)
Amcor Limited provides packaging solutions in Western Europe, North America, Australia, New Zealand, and internationally. Established in 1926, and currently lead by Ron Delia, the company now has 31,761 employees and with the company’s market cap sitting at AUD A$16.45B, it falls under the large-cap category.
AMC’s projected future profit growth is a robust 10.47%, with an underlying 10.95% growth from its revenues expected over the upcoming 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 66.49%. AMC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about AMC? I recommend researching its fundamentals here.