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Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Bubs Australia and Macmahon Holdings are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Bubs Australia Limited (ASX:BUB)
Bubs Australia Limited produces a range of infant food products under the BUBS brand in Australia and internationally. Bubs Australia was established in 2005 and with the stock’s market cap sitting at AUD A$313.31M, it comes under the small-cap stocks category.
Extreme optimism for BUB, as market analysts projected an outstanding earnings growth rate of 69.00% for the stock, supported by an equally strong sales. 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 6.53%. BUB’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 BUB to your portfolio? Take a look at its other fundamentals here.
Macmahon Holdings Limited (ASX:MAH)
Macmahon Holdings Limited provides contract mining services to clients in Australia, New Zealand, South East Asia, Mongolia, and Africa. Started in 1963, and run by CEO Michael Finnegan, the company employs 1,659 people and with the stock’s market cap sitting at AUD A$460.53M, it comes under the small-cap category.
MAH’s projected future profit growth is an exceptional 50.81%, with an underlying triple-digit 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. Moreover, the substantial growth of over 100% in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. MAH’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about MAH? Other fundamental factors you should also consider can be found here.