Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Western Areas and IOOF Holdings are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.

Western Areas Limited (ASX:WSA)

Western Areas Limited engages in the mining, processing, and sale of nickel sulphide concentrates. The company was established in 1999 and with the company’s market cap sitting at AUD A$864.46M, it falls under the small-cap stocks category.

WSA’s projected future profit growth is a robust 36.49%, with an underlying 33.68% growth from its revenues expected over the upcoming 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 positive return on equity of 12.27%. WSA’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? I recommend researching its fundamentals here.

IOOF Holdings Ltd (ASX:IFL)

IOOF Holdings, Ltd. engages in the development, distribution, management, and administration of various financial products and services. Founded in 1846, and currently headed by CEO Christopher Kelaher, the company employs 1,600 people and with the company’s market capitalisation at AUD A$3.65B, we can put it in the mid-cap group.

IFL’s forecasted bottom line growth is an optimistic double-digit 20.82%, driven by the underlying double-digit cash flow from operations growth of 36.38% over the next few years. Profit growth, coupled with operating cash flow 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 high double-digit return on equity of 77.07%. IFL ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about IFL? Have a browse through its key fundamentals here.

Aurelia Metals Limited (ASX:AMI)

Aurelia Metals Limited, a junior mining company, explores for and develops mineral properties in Australia. Aurelia Metals is headed by CEO James Simpson. With a current market cap of AUD A$333.79M, we can put AMI in the small-cap category