Micro-X and Praemium can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. 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.
Micro-X Limited (ASX:MX1)
Micro-X Limited designs, develops, manufactures, and commercializes ultra-lightweight carbon nano tube based X-ray products for the healthcare and counter improvised explosive device imaging security markets in Australia. Micro-X was formed in 2011 and with the company’s market capitalisation at AUD A$54.85M, we can put it in the small-cap stocks category.
MX1’s projected future profit growth is an exceptional 70.47%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that MX1’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 8.20%. MX1’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 MX1 as a potential investment? Other fundamental factors you should also consider can be found here.
Praemium Limited (ASX:PPS)
Praemium Limited provides portfolio administration, investment platforms, and financial planning tools to the wealth management industry worldwide. Formed in 2001, and currently run by Michael Ohanessian, the company employs 215 people and with the stock’s market cap sitting at AUD A$340.22M, it comes under the small-cap stocks category.
PPS’s projected future profit growth is an exceptional 51.15%, with an underlying 45.50% growth from its revenues expected over the upcoming years. 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 36.27%. PPS’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 PPS? Take a look at its other fundamentals here.