Looking to enhance your portfolio with high-growth, financially-robust stocks, but not sure where you should even begin? Stocks such as Northern Star Resources and AMA Group are deemed to be superior in terms of how much they’re expected to earn and return to shareholders, according to analysts. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
Northern Star Resources Limited (ASX:NST)
Northern Star Resources Limited engages in the exploration and development of gold deposits in Australia. Started in 2000, and now run by Stuart Tonkin, the company provides employment to 1,000 people and has a market cap of AUD A$3.52B, putting it in the mid-cap group.
NST is expected to deliver an extremely high earnings growth over the next couple of years of 10.17%, driven by a positive double-digit revenue growth of 18.26% and cost-cutting initiatives. 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 24.35%. NST ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering NST as a potential investment? Take a look at its other fundamentals here.
AMA Group Limited (ASX:AMA)
AMA Group Limited operates in the wholesale vehicle aftercare and accessories market in Australia. AMA Group is currently run by Raymond Malone. With the company’s market capitalisation at AUD A$559.33M, we can put it in the small-cap group
AMA is expected to deliver a buoyant earnings growth over the next couple of years of 20.08%, driven by a positive double-digit revenue growth of 42.47% and cost-cutting initiatives. 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 18.15%. AMA’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. Want to know more about AMA? Other fundamental factors you should also consider can be found here.