Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. 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.
BigTinCan Holdings Limited (ASX:BTH)
Bigtincan Holdings Limited provides software as a services (Saas) application platform. BigTinCan Holdings is run by CEO David Keane. The company currently has a market cap of AUD A$75.83M, putting it in the small-cap group
BTH is expected to deliver an extremely high earnings growth over the next couple of years of 53.21%, bolstered by a significant revenue which is expected to more than double. 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 36.80%. BTH ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add BTH to your portfolio? Take a look at its other fundamentals here.
Compumedics Limited (ASX:CMP)
Compumedics Limited researches, develops, manufactures, sells, and distributes medical equipment in Australia, New Zealand, the United States, Europe, the Middle East, Africa, and Asia. Compumedics was founded in 1987 and has a market cap of AUD A$74.41M, putting it in the small-cap category.
CMP is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by an equally impressive revenue growth of 70.27%. 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 36.09%. CMP’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 CMP? Other fundamental factors you should also consider can be found here.
TopBetta Holdings Limited (ASX:TBH)
TopBetta Holdings Limited engages in the online racing and sports wagering businesses in Australia. TopBetta Holdings is currently run by Todd Buckingham. With the stock’s market cap sitting at AUD A$65.88M, it falls under the small-cap group