Best Growth Stock in January
Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Truly International Holdings and MicroPort Scientific are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.
Truly International Holdings Limited (SEHK:732)
Truly International Holdings Limited, an investment holding company, manufactures, sells, and trades in liquid crystal display products and electronic consumer products. The company size now stands at 25100 people and has a market cap of HKD HK$10.67B, putting it in the large-cap stocks category.
Driven by the positive double-digit sales growth of 26.86% over the next few years, 732 is expected to deliver an excellent earnings growth of 92.30%. 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 positive return on equity of 12.72%. 732’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about 732? Check out its fundamental factors here.
MicroPort Scientific Corporation (SEHK:853)
MicroPort Scientific Corporation, an investment holding company, develops, manufactures, and sells interventional medical devices worldwide. Established in 1998, and headed by CEO Zhaohua Chang, the company now has 3,123 employees and has a market cap of HKD HK$11.01B, putting it in the large-cap category.
853 is expected to deliver a buoyant earnings growth over the next couple of years of 28.87%, driven by a positive double-digit revenue growth of 26.55% and cost-cutting initiatives. 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 positive return on equity of 13.86%. 853’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. Interested to learn more about 853? Have a browse through its key fundamentals here.
Man Wah Holdings Limited (SEHK:1999)
Man Wah Holdings Limited, an investment holding company, manufactures and distributes sofas and ancillary products in the United States, Canada, the People’s Republic of China, and internationally. Started in 1992, and currently run by Man Li Wong, the company now has 13,899 employees and with the company’s market capitalisation at HKD HK$28.25B, we can put it in the large-cap category.
1999 is expected to deliver an extremely high earnings growth over the next couple of years of 13.53%, driven by a positive double-digit revenue growth of 32.82% and cost-cutting initiatives. It appears that 1999’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 31.66%. 1999’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 1999 as a potential investment? 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.
