Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as FirstService and Equity Financial Holdings are expected to outperform its peers in the future. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
FirstService Corporation (TSX:FSV)
FirstService Corporation provides property services to residential and commercial customers in the United States and Canada. Founded in 1988, and currently headed by CEO D. Patterson, the company now has 17,000 employees and with the stock’s market cap sitting at CAD CA$3.13B, it comes under the mid-cap stocks category.
Driven by the positive double-digit sales growth of 17.81% over the next few years, FSV is expected to deliver an excellent earnings growth of 24.36%. 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 29.50%. FSV 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 FSV? Have a browse through its key fundamentals here.
Equity Financial Holdings Inc. (TSX:EQI)
Equity Financial Holdings Inc., a financial services company, through its subsidiary, Equity Financial Trust Company, provides alternative residential mortgage loans to non-prime and near-prime customers in Canada. The company size now stands at 98 people and with the company’s market cap sitting at CAD CA$98.11M, it falls under the small-cap category.
An outstanding doubling of earnings is forecasted for EQI, driven by the underlying 72.52% sales growth 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 positive return on equity of 19.41%. EQI ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about EQI? Take a look at its other fundamentals here.