High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
Gama Aviation Plc (AIM:GMAA)
Gama Aviation Plc provides business aviation services. Formed in 1983, and headed by CEO Marwan Abdel-Khalek, the company size now stands at 586 people and with the stock’s market cap sitting at GBP £154.89M, it comes under the small-cap stocks category.
GMAA’s projected future profit growth is a robust 24.83%, with an underlying 29.98% growth from its revenues expected over the upcoming 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 17.20%. GMAA’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add GMAA to your portfolio? Have a browse through its key fundamentals here.
Scientific Digital Imaging plc (AIM:SDI)
Scientific Digital Imaging plc, through its subsidiaries, designs and manufactures scientific and technology products based on digital imaging in the United Kingdom, Europe, the United States, rest of Asia, and internationally. Established in 2007, and headed by CEO Michael Creedon, the company size now stands at 109 people and with the market cap of GBP £28.01M, it falls under the small-cap category.
Interested to learn more about SDI? I recommend researching its fundamentals here.
DFS Furniture plc (LSE:DFS)
DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails a range of sofas, upholstered furniture, and other living room furniture products. Started in 1969, and currently headed by CEO Ian Filby, the company size now stands at 5,000 people and with the stock’s market cap sitting at GBP £389.88M, it comes under the small-cap stocks category.
An outstanding 20.82% earnings growth is forecasted for DFS, driven by an underlying sales growth of 29.75% over the next few years. It appears that DFS’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 20.73%. DFS 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 DFS to your portfolio? Take a look at its other fundamentals here.