Investors seeking to increase their exposure to growth should consider companies such as Corporate Travel Management and Temple & Webster Group. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
Corporate Travel Management Limited (ASX:CTD)
Corporate Travel Management Limited, a travel management solutions company, manages the purchase and delivery of travel services for the corporate market worldwide. Founded in 1994, and currently headed by CEO Jamie Pherous, the company currently employs 2,200 people and with the company’s market capitalisation at AUD A$2.18B, we can put it in the mid-cap group.
CTD’s projected future profit growth is a robust 20.12%, with an underlying 33.65% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 21.25%. CTD’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. Thinking of investing in CTD? Check out its fundamental factors here.
Temple & Webster Group Limited (ASX:TPW)
Temple & Webster Group Limited engages in the online retail of furniture, homewares, and other lifestyle products in Australia. Started in 2011, and run by CEO Mark Coulter, the company currently employs 100 people and has a market cap of AUD A$62.91M, putting it in the small-cap stocks category.
TPW’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 26.24% over the next few 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 28.96%. TPW ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add TPW to your portfolio? Other fundamental factors you should also consider can be found here.