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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. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Silver Lake Resources Limited (ASX:SLR)
Silver Lake Resources Limited, together with its subsidiaries, operates as a gold producing and exploration company in Australia. The company currently employs 152 people and with the company’s market capitalisation at AUD A$194.02M, we can put it in the small-cap category.
SLR’s forecasted bottom line growth is an exceptional 64.70%, driven by the underlying double-digit sales growth of 10.93% over the next few 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 high top-line expansion. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 11.10%. SLR ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Have a browse through its key fundamentals here.
CSL Limited (ASX:CSL)
CSL Limited engages in the research, development, manufacture, marketing, and distribution of biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, and internationally. Established in 1916, and now run by Paul Perreault, the company provides employment to 16,000 people and with the company’s market cap sitting at AUD A$63.52B, it falls under the large-cap group.
Extreme optimism for CSL, as market analysts projected an outstanding earnings growth rate of 12.93% for the stock, supported by a double-digit sales growth of 16.57%. 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 high double-digit return on equity of 35.74%. CSL’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 CSL as a potential investment? Have a browse through its key fundamentals here.