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BrainChip Holdings and Pro Medicus can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. 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.
BrainChip Holdings Limited (ASX:BRN)
BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. Started in 2011, and currently lead by Louis DiNardo, the company provides employment to 21 people and has a market cap of AUD A$179.28M, putting it in the small-cap stocks category.
BRN is expected to deliver an extremely high earnings growth over the next couple of years of 56.15%, bolstered by a significant revenue which is expected to more than double. It appears that BRN’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 81.33%. BRN’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about BRN? I recommend researching its fundamentals here.
Pro Medicus Limited (ASX:PME)
Pro Medicus Limited provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualization solutions worldwide. Founded in 1983, and currently lead by Sam Hupert, the company employs 69 people and has a market cap of AUD A$841.42M, putting it in the small-cap category.
PME’s forecasted bottom line growth is an optimistic double-digit 36.36%, driven by the underlying 55.70% sales growth 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 40.28%. PME ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add PME to your portfolio? Check out its fundamental factors here.
West African Resources Limited (ASX:WAF)
West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. Started in 2006, and headed by CEO Richard Hyde, the company provides employment to 62 people and with the stock’s market cap sitting at AUD A$235.39M, it comes under the small-cap group.