U.S. Markets close in 2 hrs 49 mins

Best Growth Stock in May

Declan Brown

Want to add more growth to your portfolio but not sure where to look? Companies such as Redfin and Monolithic Power Systems are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. If a buoyant growth prospect is what you’re after in your next investment, I’ve put together a list of high-growth stocks you may be interested in, based on the latest financial data from each company.

Redfin Corporation (NASDAQ:RDFN)

Redfin Corporation operates as a real estate brokerage company in the United States. Founded in 2002, and currently lead by Glenn Kelman, the company now has 2,422 employees and with the company’s market capitalisation at USD $1.77B, we can put it in the small-cap stocks category.

Driven by the exceptional 61.57% sales growth over the next few years, RDFN is expected to deliver an excellent earnings growth of 82.83%. 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. 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. RDFN’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. Could this stock be your next pick? Check out its fundamental factors here.

NasdaqGS:RDFN Future Profit May 2nd 18

Monolithic Power Systems, Inc. (NASDAQ:MPWR)

Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for consumer, computing and storage, industrial, automotive, and communications markets. Formed in 1997, and currently lead by Michael Hsing, the company size now stands at 1,534 people and has a market cap of USD $4.93B, putting it in the mid-cap group.

An outstanding 21.22% earnings growth is forecasted for MPWR, driven by an underlying sales growth of 36.16% over the next few 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 33.17%. MPWR’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 MPWR? Have a browse through its key fundamentals here.

NasdaqGS:MPWR Future Profit May 2nd 18

GDS Holdings Limited (NASDAQ:GDS)

GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People’s Republic of China. Started in 2006, and currently headed by CEO William Huang, the company currently employs 740 people and with the company’s market capitalisation at USD $3.67B, we can put it in the mid-cap stocks category.

GDS’s projected future profit growth is an exceptional 90.60%, with an underlying triple-digit 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 positive return on equity of 9.14%. GDS’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. Want to know more about GDS? Have a browse through its key fundamentals here.

NasdaqGM:GDS Future Profit May 2nd 18

For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.


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.