In This Article:
Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as Grand Baoxin Auto Group and CRCC High-Tech Equipment are expected to outperform its peers in the future. 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.
Grand Baoxin Auto Group Limited (SEHK:1293)
Grand Baoxin Auto Group Limited, an investment holding company, engages in the sale and service of motor vehicles primarily in Mainland China. Started in 1999, and currently headed by CEO Xinming Wang, the company employs 7,586 people and with the stock’s market cap sitting at HKD HK$9.82B, it comes under the mid-cap stocks category.
1293’s forecasted bottom line growth is an optimistic 20.49%, driven by the underlying double-digit sales growth of 31.49% 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 14.85%. 1293’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
CRCC High-Tech Equipment Corporation Limited (SEHK:1786)
CRCC High-Tech Equipment Corporation Limited researches, develops, manufactures, and sells large railway track maintenance machinery in Mainland China and internationally. Formed in 1954, and run by CEO Pujiang Tong, the company currently employs 1,967 people and with the company’s market capitalisation at HKD HK$3.13B, we can put it in the mid-cap category.
Extreme optimism for 1786, as market analysts projected an outstanding earnings growth rate of 51.90% for the stock, supported by an equally strong sales growth of 97.71%. 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 8.21%. 1786’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. A potential addition to your portfolio? Check out its fundamental factors here.