Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. 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.
SEC S.p.A. (AIM:SECG)
SEC S.p.A., together with its subsidiaries, provides public relations, advocacy, communications, and public affairs services to corporates, trade associations, regional governments, and municipalities in Italy, Belgium, Spain, Germany, and the United Kingdom. Formed in 1989, and currently run by Fiorenzo Tagliabue, the company employs 226 people and with the stock’s market cap sitting at GBP £14.79M, it comes under the small-cap category.
Considering SECG as a potential investment? Check out its fundamental factors here.
Kainos Group plc (LSE:KNOS)
Kainos Group plc, a digital services and platforms company, provides information technology products and services to customers in government, healthcare, and financial service markets in the United Kingdom and internationally. Established in 1986, and currently lead by Brendan Mooney, the company employs 958 people and has a market cap of GBP £426.03M, putting it in the small-cap category.
An outstanding 14.24% earnings growth is forecasted for KNOS, driven by an underlying sales growth of 31.76% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 35.20%. KNOS ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in KNOS? Check out its fundamental factors here.
Revolution Bars Group plc (LSE:RBG)
Revolution Bars Group plc operates premium bars located in towns or city high streets across the United Kingdom. Formed in 1991, and headed by CEO , the company provides employment to 2,743 people and with the market cap of GBP £84.20M, it falls under the small-cap stocks category.
RBG is expected to deliver a buoyant earnings growth over the next couple of years of 22.22%, driven by a positive double-digit revenue growth of 22.59% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. RBG ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about RBG? Take a look at its other fundamentals here.