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Updater and Catapult Group International 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. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Updater, Inc. (ASX:UPD)
Updater, Inc. develops and markets tools for consumers to complete their moving-related tasks in the United States. Started in 2010, and now led by CEO David Greenberg, the company size now stands at 80 people and has a market cap of AUD A$667.20M, putting it in the small-cap category.
UPD’s forecasted bottom line growth is an exceptional 89.57%, driven by underlying sales, which is expected to more than double, 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. Furthermore, the 90.62% growth in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. UPD’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 UPD? I recommend researching its fundamentals here.
Catapult Group International Limited (ASX:CAT)
Catapult Group International Limited develops and sells wearable athlete tracking and analytics solutions worldwide. Catapult Group International was established in 2006 and with the company’s market capitalisation at AUD A$202.82M, we can put it in the small-cap category.
CAT is expected to deliver an extremely high earnings growth over the next couple of years of 76.83%, bolstered by an equally impressive revenue growth of 58.67%. It appears that CAT’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 positive return on equity of 8.62%. CAT ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering CAT as a potential investment? Have a browse through its key fundamentals here.
Kogan.Com Limited (ASX:KGN)
Kogan.Com Limited operates as an online retailer in Australia and internationally. The company was established in 2006 and with the stock’s market cap sitting at AUD A$829.10M, it comes under the small-cap group.