In This Article:
Companies such as Western Areas and IOOF Holdings have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, high-growth stocks. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Western Areas Limited (ASX:WSA)
Western Areas Limited engages in the mining, processing, and sale of nickel sulphide concentrates. Western Areas was established in 1999 and has a market cap of AUD A$853.84M, putting it in the small-cap group.
WSA’s forecasted bottom line growth is an optimistic 34.88%, driven by the underlying double-digit sales growth of 34.56% over the next few years. It appears that WSA’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 positive return on equity of 12.21%. WSA’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about WSA? Have a browse through its key fundamentals here.
IOOF Holdings Ltd (ASX:IFL)
IOOF Holdings, Ltd. engages in the development, distribution, management, and administration of various financial products and services. Started in 1846, and now led by CEO Christopher Kelaher, the company currently employs 1,600 people and with the company’s market cap sitting at AUD A$3.72B, it falls under the mid-cap stocks category.
IFL is expected to deliver a buoyant earnings growth over the next couple of years of 20.45%, driven by a positive double-digit cash flow from operations growth of 36.38% and cost-cutting initiatives. It appears that IFL’s profitability may be sustainable as the fundamental push is operating cash flow expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 77.10%. IFL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in IFL? Have a browse through its key fundamentals here.
Aurelia Metals Limited (ASX:AMI)
Aurelia Metals Limited, a junior mining company, explores for and develops mineral properties in Australia. Aurelia Metals is headed by CEO James Simpson. The company currently has a market cap of AUD A$320.95M, putting it in the small-cap stocks category