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Want to add more growth to your portfolio but not sure where to look? Companies such as Lovisa Holdings and DTI Group are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Lovisa Holdings Limited (ASX:LOV)
Lovisa Holdings Limited operates as a fashion jewelry retailer. Formed in 2010, and now led by CEO Steven Doyle, the company currently employs 855 people and with the company’s market capitalisation at AUD A$958.80M, we can put it in the small-cap stocks category.
Extreme optimism for LOV, as market analysts projected an outstanding earnings growth rate of 13.34% for the stock, supported by a double-digit sales growth of 29.48%. It appears that LOV’s profitability may be sustainable as the fundamental push is top-line 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 61.75%. LOV’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.
DTI Group Limited (ASX:DTI)
DTI Group Limited develops, manufactures, and supplies integrated surveillance, passenger communication, and fleet management solutions for mass transit industrial and other related markets worldwide. The company was established in 1995 and has a market cap of AUD A$13.71M, putting it in the small-cap category.
Driven by the exceptional 51.59% sales growth over the next few years, DTI is expected to deliver an excellent earnings growth of 95.25%. 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. DTI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in DTI? I recommend researching its fundamentals here.
Netwealth Group Limited (ASX:NWL)
Netwealth Group Limited operates in the wealth management industry in Australia. Netwealth Group was established in 1999 and with the stock’s market cap sitting at AUD A$1.67B, it comes under the small-cap stocks category.
NWL is expected to deliver a buoyant earnings growth over the next couple of years of 46.74%, bolstered by an equally impressive revenue growth of 61.18%. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 48.97%. NWL’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. Should you add NWL to your portfolio? I recommend researching its fundamentals here.