Robust, high-growth companies such as NetComm Wireless 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. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
NetComm Wireless Limited (ASX:NTC)
NetComm Wireless Limited develops and sells broadband products for telecommunications carriers, core network providers, system integrators, and government and enterprise customers worldwide. NetComm Wireless was established in 1982 and has a market cap of AUD A$174.13M, putting it in the small-cap stocks category.
NTC is expected to deliver an extremely high earnings growth over the next couple of years of 69.02%, bolstered by an equally impressive revenue growth of 90.61%. 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 positive return on equity of 18.44%. NTC 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.
Corporate Travel Management Limited (ASX:CTD)
Corporate Travel Management Limited, a travel management solutions company, manages the purchase and delivery of travel services for the corporate market worldwide. Started in 1994, and now run by Jamie Pherous, the company employs 2,200 people and with the company’s market cap sitting at AUD A$2.65B, it falls under the mid-cap group.
CTD is expected to deliver an extremely high earnings growth over the next couple of years of 21.15%, driven by a positive double-digit revenue growth of 28.28% and cost-cutting initiatives. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 22.27%. CTD’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Check out its fundamental factors here.