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Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. BP and RedstoneConnect are examples of many high-growth stocks that the market believe will be upcoming outperformers. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
BP p.l.c. (LSE:BP.)
BP p.l.c. operates as an integrated oil and gas company worldwide. Established in 1889, and run by CEO Robert Dudley, the company now has 69,900 employees and with the stock’s market cap sitting at GBP £95.81B, it comes under the large-cap stocks category.
BP.’s forecasted bottom line growth is an optimistic 21.38%, driven by the underlying double-digit sales growth of 17.86% over the next few 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 10.18%. BP.’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.
RedstoneConnect Plc (AIM:REDS)
RedstoneConnect Plc, together with its subsidiaries, provides software, technology, and services in the smart buildings and commercial spaces market in the United Kingdom. Formed in 2000, and currently headed by CEO Mark Braund, the company size now stands at 317 people and with the company’s market capitalisation at GBP £21.82M, we can put it in the small-cap group.
REDS is expected to deliver a buoyant earnings growth over the next couple of years of 38.79%, driven by a positive double-digit revenue growth of 35.39% and cost-cutting initiatives. 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 12.15%. REDS ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering REDS as a potential investment? Have a browse through its key fundamentals here.