Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Singapore Exchange and Bukit Sembawang Estates are examples of many high-growth stocks that the market believe will be upcoming outperformers. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
Singapore Exchange Limited (SGX:S68)
Singapore Exchange Limited operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. Started in 1999, and currently lead by Boon Chye Loh, the company provides employment to 700 people and with the stock’s market cap sitting at SGD SGD8.94B, it comes under the mid-cap category.
Driven by the positive double-digit sales growth of 13.85% over the next few years, S68 is expected to deliver an excellent earnings growth of 12.28%. It appears that S68’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 34.00%. S68’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.
Want to know more about S68? Have a browse through its key fundamentals here.
Bukit Sembawang Estates Limited (SGX:B61)
Bukit Sembawang Estates Limited, an investment holding company, engages in the property development, investment, and other property-related activities primarily in Singapore. Bukit Sembawang Estates was founded in 1911 and with the company’s market capitalisation at SGD SGD1.67B, we can put it in the small-cap group.
B61’s forecasted bottom line growth is an exceptional 68.96%, driven by underlying sales, which is expected to more than double, over the next few years. 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 13.95%. B61’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.