February Top Growth Companies
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. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Dundee Precious Metals Inc. (TSX:DPM)
Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. Started in 1983, and currently headed by CEO Richard Howes, the company now has 2,898 employees and with the market cap of CAD CA$515.84M, it falls under the small-cap category.
Extreme optimism for DPM, as market analysts projected an outstanding earnings growth rate of 74.65% for the stock, supported by a double-digit sales growth of 35.95%. 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 10.99%. DPM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering DPM as a potential investment? I recommend researching its fundamentals here.
Currency Exchange International, Corp. (TSX:CXI)
Currency Exchange International, Corp. provides currency exchange and related products in the United States and Canada. Established in 1998, and headed by CEO Randolph Pinna, the company currently employs 294 people and has a market cap of CAD CA$150.38M, putting it in the small-cap group.
CXI’s forecasted bottom line growth is an optimistic 33.76%, driven by the underlying double-digit sales growth of 35.17% 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 CXI, it does not appear too severe. CXI ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering CXI as a potential investment? Check out its fundamental factors here.
Tricon Capital Group Inc. (TSX:TCN)
Tricon Capital Group Inc. is a principal investor and asset manager focused on the residential real estate industry in North America. Established in 1988, and currently run by Gary Berman, the company currently employs 408 people and has a market cap of CAD CA$1.38B, putting it in the small-cap group.
TCN’s projected future profit growth is a robust 29.21%, with an underlying 62.14% 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. TCN ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about TCN? I recommend researching its 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.
