Want to add more growth to your portfolio but not sure where to look? Companies such as Magnis Resources and Dacian Gold are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Magnis Resources Limited (ASX:MNS)
Magnis Resources Limited explores for and develops mineral properties in Australia and East Africa. The company was established in 2005 and with the market cap of AUD A$277.97M, it falls under the small-cap group.
An outstanding 79.50% earnings growth is forecasted for MNS, driven by strong underlying sales growth over the next few years. It appears that MNS’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 49.86%. MNS ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about MNS? Have a browse through its key fundamentals here.
Dacian Gold Limited (ASX:DCN)
Dacian Gold Limited explores and develops gold properties in Australia. Formed in 2011, and now led by CEO Rohan Williams, the company now has 12 employees and with the market cap of AUD A$483.74M, it falls under the small-cap stocks category.
DCN’s forecasted bottom line growth is an exceptional 95.62%, driven by underlying sales, which is expected to more than double, 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 31.41%. DCN ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in DCN? I recommend researching its fundamentals here.
Avanco Resources Limited (ASX:AVB)
Avanco Resources Limited engages in the exploration and development of mineral properties in Brazil. The company provides employment to 58 people and with the stock’s market cap sitting at AUD A$218.66M, it comes under the small-cap stocks category.