Robust, high-growth companies such as Senetas are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. 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.
Senetas Corporation Limited (ASX:SEN)
Senetas Corporation Limited provides network data security solutions worldwide. Founded in 1999, and headed by CEO Andrew Wilson, the company currently employs 29 people and with the stock’s market cap sitting at AUD A$124.34M, it comes under the small-cap stocks category.
SEN 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 32.17% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.40%. SEN’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 SEN as a potential investment? Check out its fundamental factors here.
Yowie Group Limited (ASX:YOW)
Yowie Group Limited operates as a brand licensing company in the United States. Yowie Group is headed by CEO Humberto Alfonso. With the stock’s market cap sitting at AUD A$47.36M, it falls under the small-cap category
YOW’s projected future profit growth is an exceptional 63.30%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that YOW’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 positive return on equity of 7.05%. YOW’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. Thinking of investing in YOW? I recommend researching its fundamentals here.
REA Group Limited (ASX:REA)
REA Group Limited provides advertising services to the real estate industry in Australia and Asia. Formed in 1995, and now run by Tracey Fellows, the company provides employment to 1,423 people and with the company’s market capitalisation at AUD A$10.24B, we can put it in the large-cap category.