High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Centennial Resource Development, Inc. (NASDAQ:CDEV)
Centennial Resource Development, Inc., together with its subsidiary, Centennial Resource Production, LLC, operates as an independent oil and natural gas company in the United States. Established in 2015, and currently headed by CEO Mark Papa, the company provides employment to 57 people and with the market cap of USD $5.01B, it falls under the mid-cap group.
CDEV’s forecasted bottom line growth is an optimistic 45.86%, driven by the underlying strong triple-digit sales growth rate 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.07%. CDEV’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.
First Bank (NASDAQ:FRBA)
First Bank provides various banking products and services to individuals, businesses, and governmental entities in New Jersey and Pennsylvania. Formed in 2007, and now led by CEO Patrick Ryan, the company size now stands at 150 people and has a market cap of USD $243.33M, putting it in the small-cap stocks category.
FRBA’s forecasted bottom line growth is an optimistic 46.16%, driven by the underlying 63.44% sales growth over the next few years. It appears that FRBA’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 positive return on equity of 11.50%. FRBA’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. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.
Meta Financial Group, Inc. (NASDAQ:CASH)
Meta Financial Group, Inc. operates as the holding company for MetaBank that offers various banking products and services to individuals, small businesses, financial institutions, and other businesses. Started in 1954, and currently headed by CEO J. Haahr, the company now has 827 employees and with the market cap of USD $1.06B, it falls under the small-cap category.
Could this stock be your next pick? 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.