Beacon Lighting Group and Cochlear are a few noticeable companies with a strong future outlook. The market’s optimistic sentiment towards these stocks indicates a level of confidence in the future outlook of their businesses. 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.
Beacon Lighting Group Limited (ASX:BLX)
Beacon Lighting Group Limited operates as a specialist retailer of lighting products in Australia. Founded in 1967, and currently run by Glen Robinson, the company employs 1,000 people and has a market cap of AUD A$337.46M, putting it in the small-cap group.
An outstanding 30.36% earnings growth is forecasted for BLX, driven by an underlying sales growth of 18.14% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 25.83%. BLX’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 BLX? Have a browse through its key fundamentals here.
Cochlear Limited (ASX:COH)
Cochlear Limited provides implantable hearing solutions. Formed in 1983, and now run by Christopher Smith, the company currently employs 3,000 people and has a market cap of AUD A$10.31B, putting it in the large-cap group.
An outstanding 25.63% earnings growth is forecasted for COH, driven by an underlying sales growth of 20.43% over the next few years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 40.81%. COH’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in COH? Take a look at its other fundamentals here.
Select Harvests Limited (ASX:SHV)
Select Harvests Limited engages in the processing, packaging, marketing, and distribution of edible nuts, dried fruits, seeds, and a range of natural health foods in Australia. The company provides employment to 588 people and with the company’s market capitalisation at AUD A$398.77M, we can put it in the small-cap category.