Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Medlab Clinical Limited (ASX:MDC)
Medlab Clinical Limited, a medical research and development facility, engages in nutraceutical products and pharmaceutical research businesses in Australia. Started in 2012, and currently lead by Sean Hall, the company employs 14 people and with the stock’s market cap sitting at AUD A$141.46M, it comes under the small-cap group.
MDC’s projected future profit growth is an exceptional 79.42%, with an underlying triple-digit growth from its revenues expected over the upcoming years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 45.54%. MDC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add MDC to your portfolio? Other fundamental factors you should also consider can be found here.
Animoca Brands Corporation Limited (ASX:AB1)
Animoca Brands Corporation Limited develops and markets a portfolio of mobile games for smartphones and tablets worldwide. The company now has 125 employees and with the company’s market capitalisation at AUD A$7.38M, we can put it in the small-cap category.
Driven by exceptional sales, which is expected to more than double over the next few years, AB1 is expected to deliver an excellent earnings growth of 94.23%. 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 return on equity coming in at a notable 26.91%. AB1’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about AB1? Have a browse through its key fundamentals here.
Emerald Resources NL (ASX:EMR)
Emerald Resources NL engages in the exploration and development of gold properties in the Cambodia. Emerald Resources was formed in 1969 and with the company’s market cap sitting at AUD A$84.45M, it falls under the small-cap category.