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. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.

Echo Resources Limited (ASX:EAR)

Echo Resources Limited engages in the exploration and development of gold properties. Echo Resources was formed in 2010 and with the company’s market capitalisation at AUD A$117.28M, we can put it in the small-cap group.

An outstanding 66.51% earnings growth is forecasted for EAR, driven by strong underlying sales growth 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 return on equity coming in at a notable 53.90%. EAR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? I recommend researching its fundamentals here.

Paringa Resources Limited (ASX:PNL)

Paringa Resources Limited, together with its subsidiaries, engages in the exploration and development of resource projects. Paringa Resources was formed in 2012 and with the company’s market capitalisation at AUD A$136.28M, we can put it in the small-cap category.

Interested to learn more about PNL? Have a browse through its key fundamentals here.

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. Formed in 2011, and run by CEO Louis DiNardo, the company provides employment to 21 people and with the company’s market capitalisation at AUD A$198.66M, we can put it in the small-cap category.

An outstanding 67.30% earnings growth is forecasted for BRN, driven by strong underlying sales growth 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 15.29%. BRN ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.

For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
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.