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Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. 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.
Cardinal Resources Limited (ASX:CDV)
Cardinal Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral properties in Ghana. The company size now stands at 117 people and with the market cap of AUD A$169.79M, it falls under the small-cap group.
CDV’s projected future profit growth is an exceptional 62.10%, with an underlying 65.24% growth from its cash flow from operations expected over the upcoming years. It appears that CDV’s profitability may be sustainable as the fundamental push is operating cash flow expansion rather than unmaintainable cost-cutting activities. CDV ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in CDV? Check out its fundamental factors here.
Linius Technologies Limited (ASX:LNU)
Linius Technologies Limited engages in the development of technology products, software development, and commercialization and licensing of computer software. Linius Technologies is currently run by Christopher Richardson. With the stock’s market cap sitting at AUD A$72.10M, it comes under the small-cap stocks category
Driven by exceptional sales, which is expected to more than double over the next few years, LNU is expected to deliver an excellent earnings growth of 96.65%. 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. Furthermore, the 97.19% growth 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. LNU’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. Interested to learn more about LNU? Have a browse through its key fundamentals here.
McMillan Shakespeare Limited (ASX:MMS)
McMillan Shakespeare Limited provides salary packaging, vehicle leasing administration, fleet management, and retail financial services in Australia, the United Kingdom, and New Zealand. Started in 1988, and run by CEO Michael Salisbury, the company now has 1,195 employees and has a market cap of AUD A$1.48B, putting it in the small-cap group.