Best AIM Growth Stocks
Want to add more growth to your portfolio but not sure where to look? Companies such as CVS Group and Steppe Cement are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
CVS Group plc (AIM:CVSG)
CVS Group plc provides veterinary services in the United Kingdom. Established in 1999, and currently lead by Simon Innes, the company now has 5,500 employees and with the company’s market capitalisation at GBP £745.98M, we can put it in the small-cap stocks category.
CVSG’s forecasted bottom line growth is an optimistic 20.75%, driven by the underlying double-digit sales growth of 17.58% 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 positive return on equity of 19.60%. CVSG 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 CVSG to your portfolio? Other fundamental factors you should also consider can be found here.
Steppe Cement Ltd. (AIM:STCM)
Steppe Cement Ltd., an investment holding company, produces and sells cement in Kazakhstan. The company now has 724 employees and with the market cap of GBP £43.80M, it falls under the small-cap category.
STCM is expected to deliver a buoyant earnings growth over the next couple of years of 23.65%, driven by a positive double-digit revenue growth of 36.06% and cost-cutting initiatives. It appears that STCM’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 positive return on equity of 13.78%. STCM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? I recommend researching its fundamentals here.
Sinclair Pharma plc (AIM:SPH)
Sinclair Pharma plc, a specialty pharmaceutical company, engages in the manufacture, commercialization, and sale of dermatological products worldwide. Formed in 1971, and headed by CEO Christopher Spooner, the company now has 173 employees and with the company’s market cap sitting at GBP £121.66M, it falls under the small-cap stocks category.
SPH’s forecasted bottom line growth is an exceptional 52.50%, driven by the underlying 93.51% 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. SPH’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. Considering SPH as a potential investment? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
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.
