Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
RedHill Education Limited (ASX:RDH)
RedHill Education Limited engages in the various education businesses in Australia. Formed in 2006, and currently lead by Glenn Elith, the company provides employment to 144 people and with the company’s market cap sitting at AUD A$73.90M, it falls under the small-cap group.
Want to know more about RDH? Other fundamental factors you should also consider can be found here.
MNF Group Limited (ASX:MNF)
MNF Group Limited provides voice, data, and cloud based communication and communication enablement services to residential, business, government, and wholesale customers in Australia and internationally. MNF Group was founded in 2004 and with the company’s market capitalisation at AUD A$397.78M, we can put it in the small-cap stocks category.
Driven by the positive double-digit sales growth of 33.23% over the next few years, MNF is expected to deliver an excellent earnings growth of 26.69%. 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 25.80%. MNF ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering MNF as a potential investment? Have a browse through its key fundamentals here.
Battery Minerals Limited (ASX:BAT)
Battery Minerals Limited engages in the exploration of mineral properties in Africa. Battery Minerals was established in 2011 and has a market cap of AUD A$59.56M, putting it in the small-cap stocks category.
BAT’s projected future profit growth is an exceptional 56.07%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that BAT’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 33.81%. BAT’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 BAT? Take a look at its other fundamentals here.