Companies such as Senex Energy and Avanco Resources 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. The list I've put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Senex Energy Limited ( ASX:SXY )
Senex Energy Limited explores, develops, and produces oil and gas resources in Australia. The company employs 137 people and has a market cap of AUD A$615.09M, putting it in the small-cap category.
An outstanding doubling of earnings is forecasted for SXY, driven by strong underlying sales growth 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 6.50%. SXY'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. Should you add SXY to your portfolio? Take a look at its other fundamentals here .
Avanco Resources Limited ( ASX:AVB )
Avanco Resources Limited operates as a mineral producing company in Brazil. The company now has 141 employees and with the company's market cap sitting at AUD A$393.11M, it falls under the small-cap group.
AVB's forecasted bottom line growth is an exceptional 74.90%, driven by the underlying double-digit sales growth of 40.62% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.64%. AVB ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering AVB as a potential investment? Have a browse through its key fundamentals here .
Westgold Resources Limited ( ASX:WGX )
Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets in Western Australia. Formed in 1987, and headed by CEO Peter Cook, the company size now stands at 371 people and with the company's market cap sitting at AUD A$548.25M, it falls under the small-cap stocks category.
An outstanding 89.84% earnings growth is forecasted for WGX, driven by the underlying 62.56% sales growth over the next few years. It appears that WGX's profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.52%. WGX 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 WGX? I recommend researching its fundamentals here .
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies .
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
