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. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
Canaccord Genuity Group Inc. (TSX:CF)
Canaccord Genuity Group Inc., an independent and full-service financial services company, provides investment solutions, and brokerage and investment banking services to individual, institutional, corporate, and government clients. Established in 1950, and now run by Daniel Daviau, the company size now stands at 1,939 people and with the company’s market capitalisation at CAD CA$547.23M, we can put it in the small-cap stocks category.
Interested to learn more about CF? I recommend researching its fundamentals here.
Equity Financial Holdings Inc. (TSX:EQI)
Equity Financial Holdings Inc., a financial services company, through its subsidiary, Equity Financial Trust Company, provides alternative residential mortgage loans to non-prime and near-prime customers in Canada. The company currently employs 98 people and has a market cap of CAD CA$98.11M, putting it in the small-cap stocks category.
EQI is expected to deliver an extremely high earnings growth over the next couple of years of 50.09%, bolstered by an equally impressive revenue growth of 72.52%. 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 19.41%. EQI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in EQI? I recommend researching its fundamentals here.
Wesdome Gold Mines Ltd. (TSX:WDO)
Wesdome Gold Mines Ltd. explores for, extracts, processes, produces, and sells gold in Canada. Established in 1976, and currently run by Duncan Middlemiss, the company now has 263 employees and with the market cap of CAD CA$255.73M, it falls under the small-cap stocks category.
WDO is expected to deliver a buoyant earnings growth over the next couple of years of 44.04%, bolstered by an equally impressive revenue growth of 61.95%. 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. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. WDO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering WDO as a potential investment? Take a look at its other 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.