High growth companies such as Brambles and Bravura Solutions has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Brambles Limited (ASX:BXB)
Brambles Limited operates as a supply-chain logistics company based on the provision of reusable pallets, crates, and containers for shared use by various participants in the supply chain. Founded in 1875, and currently run by Graham Chipchase, the company currently employs 14,000 people and with the market cap of AUD A$15.88B, it falls under the large-cap group.
BXB is expected to deliver an extremely high earnings growth over the next couple of years of 16.15%, driven by a positive double-digit revenue growth of 11.92% and cost-cutting initiatives. It appears that BXB’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.50%. BXB 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 BXB? Take a look at its other fundamentals here.
Bravura Solutions Limited (ASX:BVS)
Bravura Solutions Limited provides enterprise software and software-as-a-service (SaaS) to the wealth management, life insurance, and funds administration industries in Australia, New Zealand, the United Kingdom, Europe, Africa, Asia, and internationally. Established in 2004, and currently lead by Anthony Klim, the company size now stands at 1,130 people and with the company’s market capitalisation at AUD A$379.22M, we can put it in the small-cap stocks category.
Driven by the positive double-digit sales growth of 21.41% over the next few years, BVS is expected to deliver an excellent earnings growth of 18.50%. It appears that BVS’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 23.96%. BVS’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. Thinking of investing in BVS? Have a browse through its key fundamentals here.