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.
Marriott International, Inc. (NASDAQ:MAR)
Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. Established in 1927, and run by CEO Arne Sorenson, the company currently employs 177,000 people and with the company’s market capitalisation at USD $49.89B, we can put it in the large-cap group.
MAR is expected to deliver a buoyant earnings growth over the next couple of years of 15.62%, bolstered by a significant revenue which is expected to more than double. It appears that MAR’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 77.71%. MAR’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 MAR? Take a look at its other fundamentals here.
OvaScience, Inc. (NASDAQ:OVAS)
OvaScience, Inc., a fertility company, discovers, develops, and commercializes fertility treatment options for women worldwide. Established in 2011, and now led by CEO Christopher Kroeger, the company currently employs 118 people and with the company’s market cap sitting at USD $34.53M, it falls under the small-cap group.
Driven by exceptional sales, which is expected to more than double over the next few years, OVAS is expected to deliver an excellent earnings growth of 52.01%. It appears that OVAS’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. Furthermore, the 44.30% growth in operating cash flows indicates that a good portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. OVAS’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Have a browse through its key fundamentals here.
Simmons First National Corporation (NASDAQ:SFNC)
Simmons First National Corporation operates as a bank holding company for Simmons Bank that provides financial services to individuals and businesses. Formed in 1903, and run by CEO George Makris, the company provides employment to 1,875 people and with the stock’s market cap sitting at USD $2.69B, it comes under the mid-cap stocks category.
SFNC is expected to deliver a buoyant earnings growth over the next couple of years of 42.33%, bolstered by an equally impressive revenue growth of 72.85%. 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 10.18%. SFNC ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Have a browse through its key 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.