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High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
China Mengniu Dairy Company Limited (SEHK:2319)
China Mengniu Dairy Company Limited, an investment holding company, manufactures and distributes dairy products in the People’s Republic of China. Formed in 1999, and currently run by Minfang Lu, the company now has 41,141 employees and with the stock’s market cap sitting at HKD HK$115.46B, it comes under the large-cap stocks category.
2319’s projected future profit growth is a robust 26.73%, with an underlying 23.93% growth from its revenues expected over the upcoming 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 16.13%. 2319’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. Should you add 2319 to your portfolio? Have a browse through its key fundamentals here.
Shun Tak Holdings Limited (SEHK:242)
Shun Tak Holdings Limited, an investment holding company, engages in property, transportation, hospitality, and investment businesses in Hong Kong, Macau, and internationally. Founded in 1961, and headed by CEO Pansy Ho Chiu King, the company employs 3,390 people and with the stock’s market cap sitting at HKD HK$10.97B, it comes under the large-cap category.
242’s projected future profit growth is an exceptional 50.03%, with an underlying triple-digit growth from its revenues expected over the upcoming 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 13.55%. 242’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. Could this stock be your next pick? Take a look at its other fundamentals here.