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. 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.
Altium Limited (ASX:ALU)
Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. Started in 1985, and currently lead by Aram Mirkazemi, the company currently employs 410 people and with the stock’s market cap sitting at AUD A$3.25B, it comes under the mid-cap stocks category.
Driven by the positive double-digit sales growth of 36.99% over the next few years, ALU is expected to deliver an excellent earnings growth of 22.11%. 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 31.97%. ALU’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add ALU to your portfolio? I recommend researching its fundamentals here.
Reckon Limited (ASX:RKN)
Reckon Limited provides software solutions for small and medium businesses, larger businesses, accountants, bookkeepers, and lawyers in Australia, the United States, and others. Reckon was established in 1987 and with the stock’s market cap sitting at AUD A$108.32M, it comes under the small-cap category.
RKN’s projected future profit growth is a robust 38.11%, with an underlying 2.48% growth from its revenues expected over the upcoming years. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 44.02%. RKN’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. Considering RKN as a potential investment? Have a browse through its key fundamentals here.
Pantoro Limited (ASX:PNR)
Pantoro Limited engages in the exploration of mineral properties. Pantoro is headed by CEO Paul Cmrlec. With the stock’s market cap sitting at AUD A$232.37M, it comes under the small-cap group