Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as Osprey Medical and Anatara Lifesciences are expected to outperform its peers in the future. 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.
Osprey Medical, Inc. (ASX:OSP)
Osprey Medical, Inc., a medical device company, focuses on protecting patients from the harmful effects of X-ray dye (contrast) used during commonly performed angiographic imaging procedures in the United States. Osprey Medical was founded in 2005 and with the company’s market cap sitting at AUD A$139.14M, it falls under the small-cap stocks category.
Extreme optimism for OSP, as market analysts projected an outstanding earnings growth rate of 75.32% for the stock, supported by an equally strong sales. 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. Moreover, the 21.24% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. OSP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about OSP? Other fundamental factors you should also consider can be found here.
Anatara Lifesciences Ltd (ASX:ANR)
Anatara Lifesciences Limited engages in the development of non-antibiotic oral solutions for gastro intestinal diseases in animals and humans in Australia. Anatara Lifesciences is currently run by Melvyn Bridges. With the stock’s market cap sitting at AUD A$86.47M, it falls under the small-cap group
ANR’s forecasted bottom line growth is an exceptional 64.81%, driven by underlying sales, which is expected to more than double, over the next few years. 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 20.62%. ANR’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? I recommend researching its fundamentals here.