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. 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.
Noah Holdings Limited (NYSE:NOAH)
Noah Holdings Limited, through its subsidiaries, operates as a wealth management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People’s Republic of China. Founded in 2005, and now run by Jingbo Wang, the company size now stands at 2,823 people and with the company’s market cap sitting at USD $2.81B, it falls under the mid-cap stocks category.
NOAH is expected to deliver a buoyant earnings growth over the next couple of years of 23.28%, bolstered by an equally impressive revenue growth of 56.97%. It appears that NOAH’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 23.09%. NOAH 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 NOAH to your portfolio? Other fundamental factors you should also consider can be found here.
BEST Inc. (NYSE:BSTI)
BEST Inc. operates as a smart supply chain service provider in the People’s Republic of China. Started in 2007, and currently lead by Shao-Ning Chou, the company currently employs 8,784 people and with the stock’s market cap sitting at USD $3.76B, it comes under the mid-cap group.
BSTI’s projected future profit growth is an exceptional 96.26%, with an underlying triple-digit growth from its revenues expected over the upcoming years. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 37.21%. BSTI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? I recommend researching its fundamentals here.
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 employs 45 people and with the market cap of USD $26.11M, it falls under the small-cap category.
Driven by the exceptional 75.76% sales growth over the next few years, NEON is expected to deliver an excellent earnings growth of 96.32%. 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.43%. NEON’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about NEON? Other fundamental factors you should also consider can be found 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.