High growth companies such as BWX and Magellan Financial Group 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 a buoyant growth prospect is what you’re after in your next investment, I’ve put together a list of high-growth stocks you may be interested in, based on the latest financial data from each company.
BWX Limited (ASX:BWX)
BWX Limited, together with its subsidiaries, engages in the development, manufacture, marketing, distribution, and wholesale of natural body, hair, and skin care products in Australia and internationally. The company was established in 2013 and with the company’s market cap sitting at AUD A$594.02M, it falls under the small-cap group.
BWX is expected to deliver a buoyant earnings growth over the next couple of years of 21.51%, bolstered by an equally impressive revenue growth. 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 15.06%. BWX’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Have a browse through its key fundamentals here.
Magellan Financial Group (ASX:MFG)
Magellan Financial Group is a publicly owned investment manager. Founded in 2004, and currently lead by Hamish Douglass, the company now has 104 employees and with the market cap of AUD A$4.20B, it falls under the mid-cap category.
MFG is expected to deliver an extremely high earnings growth over the next couple of years of 26.71%, driven by a positive double-digit revenue growth of 28.67% 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 return on equity coming in at a notable 47.05%. MFG’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. A potential addition to your portfolio? I recommend researching its fundamentals here.