Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Neonode and Trade Desk are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Neonode Inc. (NASDAQ:NEON)
Neonode Inc., together with its subsidiaries, develops and licenses user interfaces and optical interactive touch solutions in the United States, Sweden, Japan, China, Germany, Taiwan, South Korea, Italy, and internationally. The company provides employment to 43 people and with the company’s market cap sitting at USD $59.77M, it falls under the small-cap stocks category.
An outstanding 82.06% earnings growth is forecasted for NEON, driven by strong underlying sales growth 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 32.56%. NEON ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in NEON? Check out its fundamental factors here.
The Trade Desk, Inc. (NASDAQ:TTD)
The Trade Desk, Inc., a technology company, operates a self-service cloud-based platform that enables advertising buyers to create, manage, and optimize data-driven digital advertising campaigns using their own teams in the United States and internationally. Established in 2009, and headed by CEO Jeffrey Green, the company employs 467 people and with the company’s market capitalisation at USD $2.08B, we can put it in the mid-cap group.
TTD is expected to deliver an extremely high earnings growth over the next couple of years of 51.27%, bolstered by an equally impressive revenue growth of 67.96%. It appears that TTD’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 27.43%. TTD’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Have a browse through its key fundamentals here.
QuickLogic Corporation (NASDAQ:QUIK)
QuickLogic Corporation, a fabless semiconductor company, designs, markets, and supports silicon solutions for smartphones, wearable devices, tablets, and the Internet-of-Things (IoT). Founded in 1988, and currently lead by Brian Faith, the company provides employment to 76 people and with the market cap of USD $134.70M, it falls under the small-cap group.
QUIK’s projected future profit growth is an exceptional 84.98%, 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. QUIK’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. 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.