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Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. Select Harvests and Lovisa Holdings are examples of many potential outperformers that analysts are bullish on. 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.
Select Harvests Limited (ASX:SHV)
Select Harvests Limited engages in the processing, packaging, marketing, and distribution of edible nuts, dried fruits, seeds, and a range of natural health foods in Australia. The company employs 588 people and with the company’s market capitalisation at AUD A$459.07M, we can put it in the small-cap stocks category.
SHV’s forecasted bottom line growth is an optimistic 24.03%, driven by the underlying double-digit sales growth of 14.15% over the next few years. It appears that SHV’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 6.54%. SHV’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about SHV? I recommend researching its fundamentals here.
Lovisa Holdings Limited (ASX:LOV)
Lovisa Holdings Limited operates as a fashion jewelry retailer. Formed in 2010, and currently headed by CEO Steven Doyle, the company size now stands at 855 people and with the company’s market cap sitting at AUD A$745.61M, it falls under the small-cap stocks category.
LOV’s forecasted bottom line growth is an optimistic double-digit 14.14%, driven by the underlying double-digit sales growth of 35.92% over the next few years. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 62.80%. LOV’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 LOV? Take a look at its other fundamentals here.
DTI Group Limited (ASX:DTI)
DTI Group Limited develops, manufactures, and supplies integrated surveillance, passenger communication, and fleet management solutions for mass transit industrial and other related markets worldwide. The company was established in 1995 and with the company’s market capitalisation at AUD A$16.47M, we can put it in the small-cap group.