Companies such as Fisher & Paykel Healthcare and Gentrack Group have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, 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.
Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH)
Fisher & Paykel Healthcare Corporation Limited, together with its subsidiaries, designs, manufactures, and markets medical device products and systems for use in respiratory and acute care, and surgery; and for the treatment of obstructive sleep apnea (OSA). Started in 1934, and currently headed by CEO Lewis Gradon, the company employs 4,000 people and with the company’s market cap sitting at NZD NZ$8.07B, it falls under the mid-cap category.
FPH’s projected future profit growth is a robust 38.87%, with an underlying 28.55% growth from its revenues expected over the upcoming 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 29.22%. FPH’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in FPH? Have a browse through its key fundamentals here.
Gentrack Group Limited (NZSE:GTK)
Gentrack Group Limited engages in the development, integration, and support of enterprise billing and customer management software solutions for the energy and water utility, and airport industries worldwide. Formed in 1989, and run by CEO Ian Black, the company now has 350 employees and with the company’s market cap sitting at NZD NZ$560.77M, it falls under the small-cap group.
GTK’s projected future profit growth is an exceptional triple-digit, with an underlying 58.62% 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 20.71%. GTK’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add GTK to your portfolio? I recommend researching its fundamentals here.