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Most investors find it challenging to find companies with prospective double-digit growth rates that are also financially robust. These hidden gems also add meaningful upside to a portfolio, should the companies meet expectations. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Dundee Precious Metals Inc. (TSX:DPM)
Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. Started in 1983, and currently headed by CEO Richard Howes, the company now has 3,540 employees and with the company’s market capitalisation at CAD CA$587.24M, we can put it in the small-cap stocks category.
An outstanding 74.65% earnings growth is forecasted for DPM, driven by an underlying sales growth of 43.17% over the next few years. 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 DPM, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 10.49%. DPM ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about DPM? I recommend researching its fundamentals here.
Evertz Technologies Limited (TSX:ET)
Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the production, post–production, and transmission of television content in Canada, the United States, and internationally. Started in 1966, and currently headed by CEO Romolo Magarelli, the company provides employment to 1,538 people and with the market cap of CAD CA$1.34B, it falls under the small-cap stocks category.
Extreme optimism for ET, as market analysts projected an outstanding earnings growth rate of 16.79% for the stock, supported by a double-digit sales growth of 11.85%. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 30.78%. ET ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in ET? Other fundamental factors you should also consider can be found here.