Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. BSA and Volpara Health Technologies are examples of many high-growth stocks that the market believe will be upcoming outperformers. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
BSA Limited (ASX:BSA)
BSA Limited operates as a technical services contracting company in Australia. BSA is headed by CEO Nicholas Yates. With the company’s market capitalisation at AUD A$145.90M, we can put it in the small-cap group
BSA is expected to deliver a buoyant earnings growth over the next couple of years of 33.38%, driven by a positive revenue growth of 8.16% and cost-cutting initiatives. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 19.70%. BSA’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering BSA as a potential investment? Have a browse through its key fundamentals here.
Volpara Health Technologies Limited (ASX:VHT)
Volpara Health Technologies Limited provides breast imaging analytics and analysis products for the early detection of breast cancer in the medical device software industry. Founded in 2009, and currently run by Ralph Highnam, the company employs 39 people and with the market cap of AUD A$100.39M, it falls under the small-cap category.
Driven by exceptional sales, which is expected to more than double over the next few years, VHT is expected to deliver an excellent earnings growth of 86.72%. 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 0.83%. VHT ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering VHT as a potential investment? Take a look at its other fundamentals here.
Class Limited (ASX:CL1)
Class Limited develops and distributes cloud-based accounting, investment reporting, and administration software for accountants, administrators, and advisers in Australia. Formed in 2005, and currently lead by Kevin Bungard, the company employs 55 people and with the market cap of AUD A$264.74M, it falls under the small-cap group.