Best Growth Stock Picks

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Analysts are bullish on these following companies: Freelancer, Redbubble, Macmahon Holdings. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.

Freelancer Limited (ASX:FLN)

Freelancer Limited operates a freelancing and crowdsourcing marketplace. Formed in 2009, and currently run by Robert Barrie, the company size now stands at 390 people and with the market cap of AUD A$207.86M, it falls under the small-cap stocks category.

FLN’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 19.85% over the next few years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of FLN, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 19.78%. FLN ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about FLN? Have a browse through its key fundamentals here.

ASX:FLN Future Profit Mar 4th 18
ASX:FLN Future Profit Mar 4th 18

Redbubble Limited (ASX:RBL)

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. Founded in 2006, and headed by CEO Martin Hosking, the company currently employs 201 people and with the stock’s market cap sitting at AUD A$402.04M, it comes under the small-cap category.

An outstanding 68.93% earnings growth is forecasted for RBL, driven by the underlying 62.09% sales growth 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 positive return on equity of 12.70%. RBL’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. Want to know more about RBL? I recommend researching its fundamentals here.