Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Volution Group and 4imprint Group are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. 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.
Volution Group plc (LSE:FAN)
Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom and internationally. Started in 2014, and currently headed by CEO Ronnie George, the company employs 1,460 people and with the market cap of GBP £428.96M, it falls under the small-cap stocks category.
FAN is expected to deliver a buoyant earnings growth over the next couple of years of 22.89%, driven by a positive revenue growth of 16.87% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. Furthermore, the 31.64% growth in operating cash flows indicates that a good portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. FAN’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. Considering FAN as a potential investment? Other fundamental factors you should also consider can be found here.
4imprint Group plc (LSE:FOUR)
4imprint Group plc operates as a direct marketer of promotional products in the United Kingdom, Ireland, and North America. Established in 1921, and headed by CEO Kevin Lyons-Tarr, the company employs 953 people and with the company’s market cap sitting at GBP £503.20M, it falls under the small-cap stocks category.
FOUR’s projected future profit growth is a robust 14.14%, with an underlying 22.63% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 56.25%. FOUR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in FOUR? Check out its fundamental factors here.
Ted Baker Plc (LSE:TED)
Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker name. Founded in 1987, and now led by CEO Raymond Kelvin, the company size now stands at 3,582 people and with the market cap of GBP £1.12B, it falls under the small-cap category.
TED’s forecasted bottom line growth is an optimistic double-digit 13.81%, driven by the underlying double-digit sales growth of 19.19% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 24.95%. TED’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. Want to know more about TED? 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.