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.
Empired Limited (ASX:EPD)
Empired Limited provides information technology solutions in Australia, New Zealand, and North America. Established in 1999, and currently headed by CEO Russell Baskerville, the company size now stands at 900 people and with the company’s market cap sitting at AUD A$70.43M, it falls under the small-cap group.
EPD is expected to deliver a buoyant earnings growth over the next couple of years of 28.30%, driven by a positive double-digit revenue growth of 11.60% and cost-cutting initiatives. It appears that EPD’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 11.00%. EPD ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about EPD? Take a look at its other fundamentals here.
BWX Limited (ASX:BWX)
BWX Limited, together with its subsidiaries, engages in the development, manufacture, marketing, distribution, and wholesale of natural body, hair, and skin care products in Australia and internationally. BWX was founded in 2013 and with the company’s market capitalisation at AUD A$929.08M, we can put it in the small-cap category.
BWX is expected to deliver a buoyant earnings growth over the next couple of years of 22.07%, bolstered by a significant revenue which is expected to more than double. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 21.20%. BWX’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. Interested to learn more about BWX? Take a look at its other fundamentals here.