High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.

Xenith IP Group Limited (ASX:XIP)

Xenith IP Group Limited provides intellectual property (IP) services and advice relating to the identification, registration, management, commercialization, and enforcement of IP rights in Australia, New Zealand, and internationally. Started in 1859, and currently run by Craig Dower, the company size now stands at 100 people and with the stock’s market cap sitting at AUD A$106.02M, it comes under the small-cap group.

XIP’s forecasted bottom line growth is an optimistic 34.88%, driven by the underlying sales growth of 8.24% 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 top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.69%. XIP ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about XIP? I recommend researching its fundamentals here.

Veris Limited (ASX:VRS)

Veris Limited operates as a diversified infrastructure and survey solutions company in Australia and internationally. The company now has 360 employees and with the company’s market capitalisation at AUD A$64.20M, we can put it in the small-cap stocks category.

VRS is expected to deliver an extremely high earnings growth over the next couple of years of 83.27%, driven by a positive revenue growth of 8.23% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 13.01%. VRS ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about VRS? I recommend researching its fundamentals here.

Audinate Group Limited (ASX:AD8)

Audinate Group Limited provides professional digital audio networking technologies worldwide. The company was established in 2003 and has a market cap of AUD A$172.13M, putting it in the small-cap stocks category.

Driven by the exceptional 57.14% sales growth over the next few years, AD8 is expected to deliver an excellent earnings growth of 94.90%. 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 14.94%. AD8’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 AD8 to your portfolio? Take a look at its other fundamentals here.

For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.