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Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. 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.
Northern Star Resources Limited (ASX:NST)
Northern Star Resources Limited engages in the exploration and development of gold deposits in Australia. Started in 2000, and currently run by Stuart Tonkin, the company provides employment to 1,000 people and has a market cap of AUD A$3.97B, putting it in the mid-cap stocks category.
NST is expected to deliver an extremely high earnings growth over the next couple of years of 14.00%, driven by a positive double-digit revenue growth of 13.50% and cost-cutting initiatives. It appears that NST’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 return on equity coming in at a notable 25.28%. NST ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Have a browse through its key fundamentals here.
AMA Group Limited (ASX:AMA)
AMA Group Limited operates in the wholesale vehicle aftercare and accessories market in Australia. AMA Group is currently led by CEO Raymond Malone. With a current market cap of AUD A$630.49M, we can put AMA in the small-cap stocks category
AMA’s projected future profit growth is a robust 28.32%, with an underlying 44.80% growth from its revenues expected over the upcoming 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 18.22%. AMA’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. Interested to learn more about AMA? Other fundamental factors you should also consider can be found here.
Sky and Space Global Limited (ASX:SAS)
Sky and Space Global Limited operates as a nano-satellite technology company. Sky andce Global is headed by CEO Meir Moalem. With the stock’s market cap sitting at AUD A$231.58M, it comes under the small-cap group