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Looking to enhance your portfolio with high-growth, financially-robust stocks, but not sure where you should even begin? Stocks such as Dunelm Group and YouGov are deemed to be superior in terms of how much they’re expected to earn and return to shareholders, according to analysts. 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.
Dunelm Group plc (LSE:DNLM)
Dunelm Group plc engages in the retail of homewares in the United Kingdom. Founded in 1979, and now run by Nick Wilkinson, the company now has 10,000 employees and has a market cap of GBP £1.14B, putting it in the small-cap group.
DNLM is expected to deliver an extremely high earnings growth over the next couple of years of 13.44%, driven by a positive double-digit revenue growth of 11.76% and cost-cutting initiatives. It appears that DNLM’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 62.53%. DNLM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add DNLM to your portfolio? Check out its fundamental factors here.
YouGov plc (AIM:YOU)
YouGov plc provides online market research services in the United Kingdom, the United States, Germany, the Nordic countries, the Middle East, France, and the Asia Pacific. Formed in 2000, and run by CEO Stephan Shakespeare, the company employs 779 people and has a market cap of GBP £414.06M, putting it in the small-cap stocks category.
YOU is expected to deliver a buoyant earnings growth over the next couple of years of 35.45%, driven by a positive revenue growth of 19.78% and cost-cutting initiatives. 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 YOU, it does not appear too severe. Moreover, the 45.88% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. YOU ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about YOU? Take a look at its other fundamentals here.
Bilby Plc (AIM:BILB)
Bilby Plc, through its subsidiaries, provides gas heating and general building services to housing associations, local authorities, and domestic customers in London and the South East. Started in 2014, and currently lead by , the company provides employment to 300 people and with the market cap of GBP £38.48M, it falls under the small-cap category.