Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Westgold Resources Limited (ASX:WGX)
Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets in Western Australia. Started in 1987, and currently lead by Peter Cook, the company currently employs 371 people and with the company’s market capitalisation at AUD A$547.09M, we can put it in the small-cap stocks category.
WGX 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 37.14% 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 22.99%. WGX’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering WGX as a potential investment? Take a look at its other fundamentals here.
Senex Energy Limited (ASX:SXY)
Senex Energy Limited explores, develops, and produces oil and gas resources in Australia. The company provides employment to 137 people and with the company’s market capitalisation at AUD A$513.78M, we can put it in the small-cap category.
SXY is expected to deliver an extremely high earnings growth over the next couple of years of 89.80%, bolstered by a significant revenue which is expected to more than double. It appears that SXY’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 positive return on equity of 10.73%. SXY ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering SXY as a potential investment? Have a browse through its key fundamentals here.
Praemium Limited (ASX:PPS)
Praemium Limited provides portfolio administration, investment platforms, and financial planning tools to the wealth management industry worldwide. Started in 2001, and now led by CEO Michael Ohanessian, the company employs 215 people and with the market cap of AUD A$246.16M, it falls under the small-cap group.