Circassia Pharmaceuticals and Clinigen Group are a few noticeable companies with a strong future outlook. The market’s optimistic sentiment towards these stocks indicates a level of confidence in the future outlook of their businesses. 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.
Circassia Pharmaceuticals Plc (LSE:CIR)
Circassia Pharmaceuticals plc, a specialty biopharmaceutical company, focuses on the development and commercialization of products for the treatment of asthma and chronic obstructive pulmonary disease (COPD). Started in 2006, and now led by CEO Steven Harris, the company currently employs 344 people and with the company’s market cap sitting at GBP £283.45M, it falls under the small-cap group.
An outstanding 84.31% earnings growth is forecasted for CIR, driven by strong underlying 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 0.21%. CIR 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 CIR? Take a look at its other fundamentals here.
Clinigen Group Plc (AIM:CLIN)
Clinigen Group plc operates as a specialty pharmaceutical and services company. Established in 2008, and now run by Shaun Chilton, the company now has 500 employees and with the market cap of GBP £1.39B, it falls under the small-cap group.
CLIN is expected to deliver a triple-digit high earnings growth over the next couple of years, driven by a positive double-digit revenue growth of 44.99% and cost-cutting initiatives. 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 CLIN, it does not appear extreme. Furthermore, the 55.96% 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. CLIN’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about CLIN? Check out its fundamental factors here.