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High growth companies such as Veris and Lovisa Holdings has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. 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.
Veris Limited (ASX:VRS)
Veris Limited operates as a diversified infrastructure and survey solutions company in Australia and internationally. The company provides employment to 360 people and has a market cap of AUD A$77.71M, putting it in the small-cap stocks category.
VRS’s forecasted bottom line growth is an exceptional 83.27%, driven by the underlying double-digit sales growth of 8.23% over the next few years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of VRS, it does not appear too severe. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 13.01%. VRS’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about VRS? I recommend researching its fundamentals here.
Lovisa Holdings Limited (ASX:LOV)
Lovisa Holdings Limited operates as a fashion jewelry retailer. Established in 2010, and now led by CEO , the company provides employment to 855 people and with the market cap of AUD A$1.19B, it falls under the small-cap group.
LOV is expected to deliver an extremely high earnings growth over the next couple of years of 12.15%, driven by a positive double-digit revenue growth of 28.73% and cost-cutting initiatives. It appears that LOV’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 72.30%. LOV ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in LOV? Check out its fundamental factors here.
Sky and Space Global Limited (ASX:SAS)
Sky and Space Global Limited operates as a nano-satellite technology company. Sky andce Global is currently led by CEO Meir Moalem. With the company’s market capitalisation at AUD A$167.48M, we can put it in the small-cap category