In This Article:
Looking to enhance your portfolio with high-growth, financially-robust stocks, but not sure where you should even begin? Stocks such as discoverIE Group and First Derivatives are deemed to be superior in terms of how much they’re expected to earn and return to shareholders, according to analysts. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
discoverIE Group plc (LSE:DSCV)
discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide. Formed in 1986, and now led by CEO Nicholas Jefferies, the company provides employment to 3,757 people and with the stock’s market cap sitting at GBP £307.81M, it comes under the small-cap category.
DSCV’s projected future profit growth is a robust 21.36%, with an underlying 17.13% growth from its revenues expected over the upcoming years. It appears that DSCV’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 positive return on equity of 15.20%. DSCV’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. A potential addition to your portfolio? Take a look at its other fundamentals here.
First Derivatives plc (AIM:FDP)
First Derivatives plc designs, develops, implements, and supports a range of data and trading systems for front, middle, and back-office operations worldwide. Formed in 1996, and currently lead by Brian Conlon, the company currently employs 2,000 people and with the company’s market capitalisation at GBP £975.57M, we can put it in the small-cap category.
FDP is expected to deliver a buoyant earnings growth over the next couple of years of 21.98%, driven by a positive double-digit revenue growth of 30.95% and cost-cutting initiatives. 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 positive return on equity of 10.10%. FDP ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about FDP? Have a browse through its key fundamentals here.