Best Growth Stock Picks
Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
New Oriental Education & Technology Group Inc. (NYSE:EDU)
New Oriental Education & Technology Group Inc. Established in 1993, and run by CEO Chenggang Zhou, the company employs 34,217 people and has a market cap of USD $14.31B, putting it in the large-cap group.
EDU’s projected future profit growth is a robust 35.26%, with an underlying 72.72% 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 21.72%. EDU ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add EDU to your portfolio? Check out its fundamental factors here.
Bright Scholar Education Holdings Limited (NYSE:BEDU)
Bright Scholar Education Holdings Limited operates K-12 schools in China. Established in 1994, and run by CEO Junli He, the company employs 6,228 people and with the company’s market cap sitting at USD $2.29B, it falls under the mid-cap group.
BEDU is expected to deliver a buoyant earnings growth over the next couple of years of 35.24%, bolstered by an equally impressive revenue growth of 67.45%. It appears that BEDU’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 21.02%. BEDU ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about BEDU? Have a browse through its key fundamentals here.
Smart Sand, Inc. (NASDAQ:SND)
Smart Sand, Inc. engages in the excavation, processing, and sale of industrial sands for use in hydraulic fracturing operations in the oil and gas industry in the United States. Formed in 2011, and now run by Charles Young, the company provides employment to 198 people and with the company’s market cap sitting at USD $249.16M, it falls under the small-cap group.
SND’s projected future profit growth is a robust 23.98%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that SND’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 20.40%. SND’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? Take a look at its other fundamentals here.
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.
