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Robust, high-growth companies such as AMA Group are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
AMA Group Limited (ASX:AMA)
AMA Group Limited operates in the wholesale vehicle aftercare and accessories market in Australia. AMA Group is headed by CEO Raymond Malone. It currently has a market cap of AUD A$589.77M placing it in the small-cap category
AMA’s projected future profit growth is a robust 20.95%, with an underlying 51.22% growth from its revenues expected over the upcoming years. It appears that AMA’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 18.40%. AMA ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about AMA? Check out its fundamental factors here.
Sky and Space Global Limited (ASX:SAS)
Sky and Space Global Limited operates as a nano-satellite technology company. Sky andce Global is run by CEO Meir Moalem. With the stock’s market cap sitting at AUD A$254.31M, it falls under the small-cap group
SAS is expected to deliver an extremely high earnings growth over the next couple of years of 95.65%, from the current earnings level of $-14.86M. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 43.66%. SAS’s bullish prospects on its profitability make it an interesting stock to invest more time to understand how it can add value to your portfolio. Should you add SAS to your portfolio? Other fundamental factors you should also consider can be found here.
Northern Star Resources Limited (ASX:NST)
Northern Star Resources Limited engages in the exploration and development of gold deposits in Australia. Founded in 2000, and currently lead by Stuart Tonkin, the company size now stands at 1,000 people and with the company’s market capitalisation at AUD A$3.51B, we can put it in the mid-cap stocks category.
NST’s projected future profit growth is a robust 11.11%, with an underlying 18.65% growth from its revenues expected over the upcoming 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 24.83%. NST’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. Could this stock be your next pick? I recommend researching its fundamentals here.