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. If a buoyant growth prospect is what you’re after in your next investment, I’ve put together a list of high-growth stocks you may be interested in, based on the latest financial data from each company.
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. Started in 1916, and currently lead by Paul Perreault, the company currently employs 16,000 people and has a market cap of AUD A$64.18B, putting it in the large-cap stocks category.
CSL’s forecasted bottom line growth is an optimistic double-digit 13.18%, driven by the underlying double-digit sales growth of 17.98% over the next few 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. 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. Could this stock be your next pick? Check out its fundamental factors here.
Class Limited (ASX:CL1)
Class Limited develops and distributes cloud-based accounting, investment reporting, and administration software for accountants, administrators, and advisers in Australia. Formed in 2005, and run by CEO Kevin Bungard, the company provides employment to 55 people and has a market cap of AUD A$334.16M, putting it in the small-cap group.
CL1’s projected future profit growth is a robust 18.05%, with an underlying 40.58% 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 40.36%. CL1’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. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.