December Top Growth Stocks To Buy
Most investors find it challenging to find companies with prospective double-digit growth rates that are also financially robust. These hidden gems also add meaningful upside to a portfolio, should the companies meet expectations. 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.
The Descartes Systems Group Inc (TSX:DSG)
The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. Descartes Systems Group was started in 1981 and has a market cap of CAD CA$2.70B, putting it in the mid-cap category.
Extreme optimism for DSG, as market analysts projected an outstanding earnings growth rate of 64.45% for the stock, supported by a double-digit sales growth of 27.94%. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of DSG, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.89%. DSG’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. Interested to learn more about DSG? Take a look at its other fundamentals here.
Enerflex Ltd. (TSX:EFX)
Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power equipment in Canada, the United States, and internationally. Founded in 1980, and now led by CEO John Goertzen, the company size now stands at 1,800 people and has a market cap of CAD CA$1.35B, putting it in the small-cap category.
EFX’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 23.34% over the next few years. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with high top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 11.13%. EFX’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 EFX to your portfolio? Have a browse through its key fundamentals here.
Stantec Inc. (TSX:STN)
Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. Formed in 1954, and currently lead by Robert Gomes, the company size now stands at 22,000 people and with the stock’s market cap sitting at CAD CA$3.99B, it comes under the mid-cap category.
STN’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 14.77% over the next few years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of STN, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 12.48%. STN 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 STN 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.
