Analysts are bullish on these following companies: Cardinal Resources, Change Financial, West African Resources. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. 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.

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 company’s market capitalisation at AUD A$187.54M, we can put it in the small-cap category.

Driven by exceptional sales, which is expected to more than double over the next few years, CDV is expected to deliver an excellent earnings growth of 65.32%. 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. CDV’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about CDV? Check out its fundamental factors here.

Change Financial Limited (ASX:CCA)

Change Financial Limited provides mobile banking services through the ChimpChange mobile application in the United States. Started in 2011, and now led by CEO Ashley Shilkin, the company employs 25 people and with the stock’s market cap sitting at AUD A$91.71M, it comes under the small-cap group.

An outstanding 62.57% earnings growth is forecasted for CCA, 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 42.58%. CCA’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. Want to know more about CCA? Check out its fundamental factors here.

West African Resources Limited (ASX:WAF)

West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. Formed in 2006, and currently headed by CEO Richard Hyde, the company size now stands at 62 people and with the market cap of AUD A$237.27M, it falls under the small-cap stocks category.

WAF’s projected future profit growth is an exceptional 63.49%, with an underlying 59.54% growth from its cash flow from operations expected over the upcoming years. It appears that WAF’s profitability may be sustainable as the fundamental push is operating cash flow expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 23.52%. WAF’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Take a look at its other fundamentals here.

For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.