Robust, high-growth companies such as Kina Securities are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Kina Securities Limited (ASX:KSL)
Kina Securities Limited provides a range of financial products and services in Papua New Guinea. Formed in 1985, and currently headed by CEO Greg Pawson, the company size now stands at 300 people and with the company’s market capitalisation at AUD A$127.91M, we can put it in the small-cap category.
KSL’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying 63.80% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.30%. KSL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about KSL? Have a browse through its key fundamentals here.
Volpara Health Technologies Limited (ASX:VHT)
Volpara Health Technologies Limited provides breast imaging analytics and analysis products for the early detection of breast cancer in the medical device software industry. Established in 2009, and now run by Ralph Highnam, the company now has 39 employees and with the company’s market cap sitting at AUD A$94.38M, it falls under the small-cap stocks category.
VHT is expected to deliver an extremely high earnings growth over the next couple of years of 59.25%, 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 194.69%. VHT ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.