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Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. ANTA Sports Products and Sino Biopharmaceutical 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.
ANTA Sports Products Limited (SEHK:2020)
ANTA Sports Products Limited designs, researches, develops, manufactures, markets, trades in, and retails sporting footwear, apparel, and accessories in the People’s Republic of China. Formed in 1994, and now run by Shizhong Ding, the company employs 18,800 people and with the company’s market capitalisation at HKD HK$123.10B, we can put it in the large-cap stocks category.
2020 is expected to deliver an extremely high earnings growth over the next couple of years of 15.77%, driven by a positive double-digit revenue growth of 49.88% and cost-cutting initiatives. It appears that 2020’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 29.97%. 2020 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 2020? Take a look at its other fundamentals here.
Sino Biopharmaceutical Limited (SEHK:1177)
Sino Biopharmaceutical Limited, researches, develops, manufactures, and sells Chinese medicines and chemical medicines in Hong Kong, Mainland China, and internationally. Started in 2000, and headed by CEO Ping Tse, the company currently employs 18,649 people and with the stock’s market cap sitting at HKD HK$163.11B, it comes under the large-cap group.
1177’s projected future profit growth is a robust 18.36%, with an underlying 67.42% growth from its revenues expected over the upcoming years. It appears that 1177’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 23.57%. 1177’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. Considering 1177 as a potential investment? I recommend researching its fundamentals here.