Smartgroup and Sandfire Resources are a few noticeable companies with a strong future outlook. The market’s optimistic sentiment towards these stocks indicates a level of confidence in the future outlook of their businesses. 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.
Smartgroup Corporation Ltd (ASX:SIQ)
Smartgroup Corporation Ltd provides employee benefits administration, and workforce modelling and consultancy services to government, health, and corporate sectors in Australia. Started in 1999, and currently run by Deven Billimoria, the company currently employs 343 people and with the stock’s market cap sitting at AUD A$1.40B, it comes under the small-cap category.
Extreme optimism for SIQ, as market analysts projected an outstanding earnings growth rate of 21.40% for the stock, supported by a double-digit sales growth of 35.18%. 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 37.05%. SIQ’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? I recommend researching its fundamentals here.
Sandfire Resources NL (ASX:SFR)
Sandfire Resources NL engages in the exploration and evaluation of the mineral tenements in Australia and internationally. Sandfire Resources is run by CEO Karl Simich. The company currently has a market cap of AUD A$1.14B, putting it in the small-cap group
SFR’s projected future profit growth is a robust 20.83%, with an underlying 21.22% growth from its revenues expected over the upcoming years. It appears that SFR’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 24.59%. SFR’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 SFR? I recommend researching its fundamentals here.
Linius Technologies Limited (ASX:LNU)
Linius Technologies Limited engages in the development of technology products, software development, and commercialization and licensing of computer software. Linius Technologies is headed by CEO Christopher Richardson. With a current market cap of AUD A$128.20M, we can put LNU in the small-cap stocks category