Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as CSL and Imdex are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
CSL Limited (ASX:CSL)
CSL Limited engages in the research, development, manufacture, marketing, and distribution of biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, and internationally. Founded in 1916, and run by CEO Paul Perreault, the company provides employment to 16,000 people and with the market cap of AUD A$64.24B, it falls under the large-cap category.
CSL is expected to deliver an extremely high earnings growth over the next couple of years of 32.29%, driven by a positive double-digit revenue growth of 12.98% and cost-cutting initiatives. 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 35.37%. CSL ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Have a browse through its key fundamentals here.
Imdex Limited (ASX:IMD)
Imdex Limited engages in the minerals business worldwide. Established in 1980, and currently headed by CEO Bernard Ridgeway, the company now has 468 employees and with the market cap of AUD A$334.39M, it falls under the small-cap category.
IMD’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 29.56% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 13.00%. IMD’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. Want to know more about IMD? I recommend researching its fundamentals here.