Beacon Lighting Group and Cochlear 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. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Beacon Lighting Group Limited (ASX:BLX)
Beacon Lighting Group Limited operates as a specialist retailer of lighting products in Australia. Founded in 1967, and headed by CEO Glen Robinson, the company provides employment to 1,000 people and with the company’s market cap sitting at AUD A$343.95M, it falls under the small-cap group.
An outstanding 11.96% earnings growth is forecasted for BLX, driven by an underlying sales growth of 18.14% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 25.83%. BLX 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 BLX? I recommend researching its fundamentals here.
Cochlear Limited (ASX:COH)
Cochlear Limited provides implantable hearing solutions. Established in 1983, and headed by CEO Diggory Howitt, the company employs 3,000 people and with the market cap of AUD A$9.67B, it falls under the mid-cap category.
Driven by the positive double-digit sales growth of 23.14% over the next few years, COH is expected to deliver an excellent earnings growth of 12.60%. 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 41.01%. COH’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. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
Galaxy Resources Limited (ASX:GXY)
Galaxy Resources Limited, a lithium-focused resources company, explores and produces lithium carbonate mineral properties. Galaxy Resources is currently led by CEO Anthony Tse. The company currently has a market cap of AUD A$1.76B, putting it in the small-cap category