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Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as Roxy-Pacific Holdings and Dyna-Mac Holdings are expected to outperform its peers in the future. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Roxy-Pacific Holdings Limited (SGX:E8Z)
Roxy-Pacific Holdings Limited, an investment holding company, operates in the property and hospitality businesses in the Asia-Pacific. Established in 1967, and headed by CEO Hong Teo, the company now has 278 employees and with the company’s market capitalisation at SGD SGD672.60M, we can put it in the small-cap stocks category.
E8Z is expected to deliver a buoyant earnings growth over the next couple of years of 42.30%, bolstered by an equally impressive revenue growth of 59.21%. 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 11.62%. E8Z ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in E8Z? Other fundamental factors you should also consider can be found here.
Dyna-Mac Holdings Ltd. (SGX:NO4)
Dyna-Mac Holdings Ltd., an investment holding company, engages in the engineering, fabrication, and construction of offshore floating production storage offloading (FPSO) and floating storage offloading (FSO) topside modules, onshore plants, and other sub-sea products for the oil and gas industries primarily in the Asia Pacific and Europe. Established in 1990, and now led by CEO Tze Jong Lim, the company employs 920 people and with the stock’s market cap sitting at SGD SGD129.95M, it comes under the small-cap category.
NO4 is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by a significant revenue which is expected to more than double. 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 7.40%. NO4’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. Should you add NO4 to your portfolio? Other fundamental factors you should also consider can be found here.