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Want to add more growth to your portfolio but not sure where to look? Companies such as Superloop and PWR Holdings are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Superloop Limited (ASX:SLC)
Superloop Limited engages in the development and operation of independent telecommunications infrastructure in the Asia Pacific region. Superloop was formed in 2014 and with the stock’s market cap sitting at AUD A$491.25M, it comes under the small-cap category.
An outstanding 73.48% earnings growth is forecasted for SLC, driven by an underlying sales growth of 42.70% over the next few years. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with high top-line expansion. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 5.39%. SLC’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. Considering SLC as a potential investment? I recommend researching its fundamentals here.
PWR Holdings Limited (ASX:PWH)
PWR Holdings Limited designs, engineers, produces, tests, validates, and sells customized aluminum cooling products and solutions in Australia and internationally. Started in 1987, and now run by Kees Weel, the company employs 203 people and with the market cap of AUD A$248.00M, it falls under the small-cap category.
Extreme optimism for PWH, as market analysts projected an outstanding earnings growth rate of 21.83% for the stock, supported by a double-digit sales growth of 27.34%. 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 29.07%. PWH ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about PWH? Have a browse through its key fundamentals here.
Praemium Limited (ASX:PPS)
Praemium Limited provides portfolio administration, investment platforms, and financial planning tools to the wealth management industry worldwide. Started in 2001, and now led by CEO Michael Ohanessian, the company provides employment to 215 people and with the company’s market capitalisation at AUD A$278.18M, we can put it in the small-cap group.