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. 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.
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Chipotle Mexican Grill, Inc., together with its subsidiaries, develops and operates Chipotle Mexican Grill restaurants. Formed in 1993, and headed by CEO M. Ells, the company employs 64,570 people and with the company’s market capitalisation at USD $8.34B, we can put it in the mid-cap stocks category.
Driven by the positive double-digit sales growth of 18.56% over the next few years, CMG is expected to deliver an excellent earnings growth of 99.91%. 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 CMG, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 23.43%. CMG’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about CMG? Have a browse through its key fundamentals here.
R1 RCM Inc. (NASDAQ:RCM)
R1 RCM Inc. provides revenue cycle management and physician advisory services for healthcare providers in the United States. Formed in 2003, and now led by CEO Joseph Flanagan, the company provides employment to 6,379 people and with the company’s market capitalisation at USD $470.27M, we can put it in the small-cap category.
RCM’s projected future profit growth is an exceptional 54.52%, with an underlying 75.16% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 27.93%. RCM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about RCM? Have a browse through its key fundamentals here.
Stemline Therapeutics, Inc. (NASDAQ:STML)
Stemline Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the discovering, acquiring, developing, and commercialization of proprietary oncology therapeutics in the United States. Formed in 2003, and currently headed by CEO Ivan Bergstein, the company size now stands at 32 people and with the market cap of USD $351.49M, it falls under the small-cap group.
Should you add STML to your portfolio? Check out its fundamental factors 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.