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High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
Livehire Limited (ASX:LVH)
LiveHire Limited, a talent technology company, provides business intelligence and data services to c and large enterprises in Australia. Livehire was formed in 2001 and with the market cap of AUD A$242.83M, it falls under the small-cap category.
An outstanding 67.13% earnings growth is forecasted for LVH, driven by strong underlying sales growth over the next few years. 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 9.86%. LVH’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. Interested to learn more about LVH? Check out its fundamental factors here.
Qantm Intellectual Property Limited (ASX:QIP)
QANTM Intellectual Property Limited providing IP services for start-up technology businesses, multinationals, public research institutions, and universities in Australia and internationally. Qantm Intellectual Property was founded in 1879 and with the company’s market capitalisation at AUD A$151.51M, we can put it in the small-cap group.
QIP’s projected future profit growth is a robust 21.66%, with an underlying 9.15% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of QIP, it does not appear too severe. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.66%. QIP ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in QIP? Check out its fundamental factors here.
Australian Potash Limited (ASX:APC)
Australian Potash Limited operates as a minerals exploration company in Australia. Australian Potash was established in 2011 and with the company’s market capitalisation at AUD A$24.35M, we can put it in the small-cap category.