Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. 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.
Redbubble Limited (ASX:RBL)
Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. Formed in 2006, and currently lead by Martin Hosking, the company currently employs 201 people and with the market cap of AUD A$387.34M, it falls under the small-cap group.
RBL’s projected future profit growth is an exceptional 68.93%, with an underlying 62.09% growth from its revenues expected over the upcoming years. It appears that RBL’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 12.70%. RBL’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. Thinking of investing in RBL? Check out its fundamental factors here.
Macmahon Holdings Limited (ASX:MAH)
Macmahon Holdings Limited provides contract mining services to clients in Australia, New Zealand, South East Asia, Mongolia, and Africa. Established in 1963, and now led by CEO Michael Finnegan, the company currently employs 1,659 people and has a market cap of AUD A$428.40M, putting it in the small-cap stocks category.
An outstanding 50.81% earnings growth is forecasted for MAH, driven by strong underlying sales growth 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. Moreover, the substantial growth of over 100% in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. MAH’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. Want to know more about MAH? Take a look at its other fundamentals here.