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Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Convatec Group and SOCO International are examples of many high-growth stocks that the market believe will be upcoming outperformers. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
Convatec Group Plc (LSE:CTEC)
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. Founded in 2008, and currently headed by CEO Paul Moraviec, the company currently employs 8,524 people and with the company’s market cap sitting at GBP £4.09B, it falls under the mid-cap stocks category.
CTEC’s forecasted bottom line growth is an optimistic double-digit 16.31%, driven by the underlying sales growth of 9.83% over the next few years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of CTEC, it does not appear too severe. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.10%. CTEC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in CTEC? Check out its fundamental factors here.
SOCO International plc (LSE:SIA)
SOCO International plc engages in the exploration and production of oil and gas properties. Started in 1997, and currently headed by CEO Edward Story, the company currently employs 17 people and with the market cap of GBP £320.09M, it falls under the small-cap group.
SIA’s projected future profit growth is a robust 36.28%, with an underlying 43.82% growth from its revenues expected over the upcoming 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 2.07%. SIA ticks the boxes for robust 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? Check out its fundamental factors here.
Water Intelligence plc (AIM:WATR)
Water Intelligence plc provides leak detection and remediation products and services for residential, commercial, and municipal customers in the United States, the United Kingdom, and internationally. Formed in 1974, and now run by , the company size now stands at 89 people and with the market cap of GBP £24.03M, it falls under the small-cap group.