Saracen Mineral Holdings is one of many stocks the market is bullish on. Its expected double-digit top-line and bottom-line growth exceeds its peers, and its financially stable position lessens the chances of risk. 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.
Saracen Mineral Holdings Limited (ASX:SAR)
Saracen Mineral Holdings Limited engages in the gold mining business in Australia. The company now has 317 employees and with the company’s market capitalisation at AUD A$1.28B, we can put it in the small-cap stocks category.
SAR is expected to deliver a triple-digit high earnings growth over the next couple of years, driven by a positive double-digit revenue growth of 29.40% 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 high top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 27.18%. SAR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
Linius Technologies Limited (ASX:LNU)
Linius Technologies Limited engages in the development of technology products, software development, and commercialization and licensing of computer software. Linius Technologies is headed by CEO Christopher Richardson. With the company’s market capitalisation at AUD A$63.54M, we can put it in the small-cap group
Extreme optimism for LNU, as market analysts projected an outstanding earnings growth rate of 78.72% for the stock, supported by an equally strong sales. 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. Furthermore, the 80.25% growth in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. LNU ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about LNU? Have a browse through its key fundamentals here.
Pro-Pac Packaging Limited (ASX:PPG)
Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes industrial, protective, and rigid packaging products in Australia. Formed in 1987, and currently headed by CEO Grant Harrod, the company employs 412 people and with the market cap of AUD A$241.62M, it falls under the small-cap group.