Attractive stocks have exceptional fundamentals. In the case of China New Higher Education Group Limited (HKG:2001), there’s has a a great history of performance as well as a excellent growth outlook going forward. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on China New Higher Education Group here.

High growth potential with proven track record

Bullish market analysts are forecasting fast-growing 2001 to deliver an exceptional triple-digit sales growth rate over the next year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that revenue is driven by high-quality cash from 2001’s day-to-day business as opposed to one-off income. 2001 delivered a bottom-line expansion of 94.3% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 2001 outperformed its past performance, its growth also surpassed the Consumer Services industry expansion, which generated a 24.6% earnings growth. This is an optimistic signal for the future.

Next Steps:

For China New Higher Education Group, I’ve put together three key factors you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is 2001 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 2001 is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2001? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.