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. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Dream Unlimited Corp. (TSX:DRM)
Dream Unlimited Corp. formerly known as Dundee Realty Corporation is a real estate investment firm. Formed in 1996, and headed by CEO Michael Cooper, the company size now stands at 241 people and with the company’s market cap sitting at CAD CA$774.48M, it falls under the small-cap group.
DRM’s projected future profit growth is a robust 23.29%, with an underlying 60.31% growth from its revenues expected over the upcoming years. It appears that DRM’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. DRM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in DRM? Take a look at its other fundamentals here.
Cardiome Pharma Corp. (TSX:COM)
Cardiome Pharma Corp., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the treatment of patients suffering from heart diseases. Formed in 1986, and currently lead by William Hunter, the company currently employs 75 people and with the company’s market capitalisation at CAD CA$62.35M, we can put it in the small-cap group.
COM is expected to deliver an extremely high earnings growth over the next couple of years of 52.39%, bolstered by an equally impressive revenue growth of 95.43%. It appears that COM’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. Moreover, the 27.42% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. COM 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? Take a look at its other fundamentals here.
Versapay Corporation (TSXV:VPY)
VersaPay Corporation, a financial technology company, provides cloud-based invoicing, accounts receivable (A/R) management, and payment solutions for businesses in Canada and the United States. Established in 2005, and currently run by Craig O’Neill, the company currently employs 51 people and with the company’s market capitalisation at CAD CA$79.36M, we can put it in the small-cap stocks category.
VPY is expected to deliver a buoyant earnings growth over the next couple of years of 40.51%, bolstered by a significant revenue which is expected to more than double. 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. VPY’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. Should you add VPY to your portfolio? 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.