West African Resources is one of many stocks the market is bullish on. Its expected double-digit top-line and bottom-line growth exceeds its peers, and its financially stable position lessens the chances of risk. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
West African Resources Limited (ASX:WAF)
West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. Established in 2006, and currently run by Richard Hyde, the company size now stands at 62 people and with the company’s market capitalisation at AUD A$219.91M, we can put it in the small-cap stocks category.
WAF’s projected future profit growth is a robust 30.73%, with an underlying 33.14% growth from its cash flow from operations expected over the upcoming years. An affirming signal is when net income increase is supported by operating cash flow 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 41.49%. WAF ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add WAF to your portfolio? Other fundamental factors you should also consider can be found here.
Change Financial Limited (ASX:CCA)
Change Financial Limited provides mobile banking services through the ChimpChange mobile application in the United States. Formed in 2011, and run by CEO Ashley Shilkin, the company size now stands at 25 people and has a market cap of AUD A$66.98M, putting it in the small-cap group.
Extreme optimism for CCA, as market analysts projected an outstanding earnings growth rate of 70.21% for the stock, supported by an equally strong sales. 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 42.58%. CCA’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 CCA? I recommend researching its fundamentals here.