In This Article:
High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
SRG Limited (ASX:SRG)
SRG Limited provides various services for construction and mining industries in Australia, Hong Kong, and the United Arab Emirates. Founded in 1961, and now led by CEO David MacGeorge, the company provides employment to 649 people and with the stock’s market cap sitting at AUD A$152.47M, it comes under the small-cap group.
SRG is expected to deliver a buoyant earnings growth over the next couple of years of 39.28%, bolstered by an equally impressive revenue growth of 89.86%. 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. SRG ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in SRG? Take a look at its other fundamentals here.
Clean TeQ Holdings Limited (ASX:CLQ)
Clean TeQ Holdings Limited, together with its subsidiaries, provides pollution control solutions in Australia. Formed in 1990, and currently run by Sam Riggall, the company size now stands at 23 people and with the stock’s market cap sitting at AUD A$734.97M, it comes under the small-cap category.
Could this stock be your next pick? Take a look at its other fundamentals here.
Qantm Intellectual Property Limited (ASX:QIP)
QANTM Intellectual Property Limited providing IP services for start-up technology businesses, multinationals, public research institutions, and universities in Australia and internationally. Qantm Intellectual Property was established in 1879 and with the company’s market capitalisation at AUD A$150.18M, we can put it in the small-cap stocks category.
QIP is expected to deliver an extremely high earnings growth over the next couple of years of 21.66%, driven by a positive revenue growth of 9.15% and cost-cutting initiatives. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of QIP, it does not appear too severe. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.66%. QIP’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 QIP? Check out its fundamental factors here.