Best AMEX Growth Companies
Investors seeking to increase their exposure to growth should consider companies such as Ring Energy and Ultimate Software Group. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. 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.
Ring Energy, Inc. (AMEX:REI)
Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States. Established in 2004, and now led by CEO Kelly Hoffman, the company currently employs 30 people and has a market cap of USD $727.18M, putting it in the small-cap category.
REI’s forecasted bottom line growth is an exceptional triple-digit, driven by underlying sales, which is expected to more than double, over the next few years. It appears that REI’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. REI ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about REI? Check out its fundamental factors here.
The Ultimate Software Group, Inc. (NASDAQ:ULTI)
The Ultimate Software Group, Inc. provides cloud-based human capital management solutions primarily to enterprise companies in the United States and Canada. Founded in 1990, and now run by Scott Scherr, the company provides employment to 3,747 people and with the market cap of USD $6.33B, it falls under the mid-cap stocks category.
An outstanding doubling of earnings is forecasted for ULTI, driven by an underlying sales growth of 40.69% 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 ULTI, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.41%. ULTI 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 ULTI? Take a look at its other fundamentals here.
Pinnacle Financial Partners, Inc. (NASDAQ:PNFP)
Pinnacle Financial Partners, Inc. operates as a bank holding company for Pinnacle Bank that provides various banking products and services in the United States. Started in 2000, and now led by CEO Michael Turner, the company provides employment to 2,195 people and has a market cap of USD $5.17B, putting it in the mid-cap group.
An outstanding 93.14% earnings growth is forecasted for PNFP, driven by the underlying 75.60% sales growth over the next few years. It appears that PNFP’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 8.71%. PNFP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Take a look at its other fundamentals 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.
