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Best Growth Stocks To Buy

Kristin Rankin

Investors seeking to increase their exposure to growth should consider companies such as James Hardie Industries and CV Check. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.

James Hardie Industries plc (ASX:JHX)

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement products. Established in 1888, and currently lead by Louis Gries, the company currently employs 3,333 people and with the stock’s market cap sitting at AUD A$10.16B, it comes under the large-cap group.

JHX is expected to deliver an extremely high earnings growth over the next couple of years of 15.95%, driven by a positive double-digit revenue growth of 38.98% and cost-cutting initiatives. It appears that JHX’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 223.44%. JHX ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add JHX to your portfolio? Check out its fundamental factors here.

ASX:JHX Future Profit Feb 20th 18

CV Check Ltd (ASX:CV1)

CV Check Ltd provides personal and professional information screening and verification check services to employers, industry associations, and individuals. CV Check was established in 2004 and with the stock’s market cap sitting at AUD A$17.22M, it comes under the small-cap stocks category.

An outstanding doubling of earnings is forecasted for CV1, driven by the underlying 65.21% sales growth over the next few 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 positive return on equity of 0.50%. CV1’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.

ASX:CV1 Future Profit Feb 20th 18

Galaxy Resources Limited (ASX:GXY)

Galaxy Resources Limited, a lithium-focused resources company, explores and produces lithium carbonate mineral properties. Galaxy Resources is currently run by Anthony Tse. With the company’s market capitalisation at AUD A$1.42B, we can put it in the small-cap category

GXY’s projected future profit growth is a robust 27.85%, with an equally impressive underlying 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 positive return on equity of 13.15%. GXY 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.

ASX:GXY Future Profit Feb 20th 18

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.