Investors seeking to increase their exposure to growth should consider companies such as Autohome and PBF Logistics. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Autohome Inc. (NYSE:ATHM)
Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. Started in 2008, and now run by Min Lu, the company provides employment to 4,034 people and has a market cap of USD $9.85B, putting it in the mid-cap stocks category.
Driven by the positive double-digit sales growth of 24.60% over the next few years, ATHM is expected to deliver an excellent earnings growth of 23.50%. 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 23.16%. ATHM ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in ATHM? Take a look at its other fundamentals here.
PBF Logistics LP (NYSE:PBFX)
PBF Logistics LP owns, leases, acquires, develops, and operates crude oil and refined petroleum products terminals, pipelines, storage facilities, and other logistics assets in the United States. PBF Logistics was founded in 2012 and with the market cap of USD $862.75M, it falls under the small-cap stocks category.
PBFX’s projected future profit growth is a robust 20.92%, with an underlying 35.69% 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 32.62%. PBFX’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about PBFX? I recommend researching its fundamentals here.
Carolina Financial Corporation (NASDAQ:CARO)
Carolina Financial Corporation operates as a bank holding company for CresCom Bank that provides a range of commercial and retail banking financial services in South Carolina and North Carolina. Started in 1996, and currently run by Jerold Rexroad, the company now has 430 employees and with the company’s market cap sitting at USD $853.46M, it falls under the small-cap category.
CARO is expected to deliver a buoyant earnings growth over the next couple of years of 38.73%, bolstered by an equally impressive revenue growth of 59.75%. 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 positive return on equity of 11.90%. CARO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add CARO to your portfolio? Other fundamental factors you should also consider can be found 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.