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Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Data#3 and Blackmores are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
Data#3 Limited (ASX:DTL)
Data#3 Limited, together with its subsidiaries, provides information technology (IT) solutions in Australia and the Asia Pacific. Started in 1977, and now led by CEO Laurence Baynham, the company now has 1,177 employees and has a market cap of AUD A$252.52M, putting it in the small-cap stocks category.
Extreme optimism for DTL, as market analysts projected an outstanding earnings growth rate of 15.03% for the stock, supported by a double-digit sales growth of 15.94%. 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 33.60%. DTL ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add DTL to your portfolio? I recommend researching its fundamentals here.
Blackmores Limited (ASX:BKL)
Blackmores Limited develops, sells, and markets natural health products for humans and animals in Australia, New Zealand, and Asia. Founded in 1930, and currently run by Richard Henfrey, the company currently employs 1,000 people and with the market cap of AUD A$2.22B, it falls under the mid-cap stocks category.
Driven by the positive double-digit sales growth of 40.74% over the next few years, BKL is expected to deliver an excellent earnings growth of 21.16%. 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 high double-digit return on equity of 41.64%. BKL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in BKL? Have a browse through its key fundamentals here.