February Top Growth Stocks To Buy
Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Imdex and BSA 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.
Imdex Limited (ASX:IMD)
Imdex Limited engages in the minerals business worldwide. Formed in 1980, and currently headed by CEO Bernard Ridgeway, the company size now stands at 468 people and has a market cap of AUD A$354.87M, putting it in the small-cap category.
IMD is expected to deliver a buoyant earnings growth over the next couple of years of 45.78%, driven by a positive double-digit revenue growth of 29.57% and cost-cutting initiatives. 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 positive return on equity of 13.40%. IMD’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in IMD? Have a browse through its key fundamentals here.
BSA Limited (ASX:BSA)
BSA Limited operates as a technical services contracting company in Australia. BSA is currently run by Nicholas Yates. With the stock’s market cap sitting at AUD A$145.90M, it comes under the small-cap stocks category
Driven by the positive double-digit sales growth of 20.86% over the next few years, BSA is expected to deliver an excellent earnings growth of 31.30%. It appears that BSA’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 21.30%. BSA’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. Thinking of investing in BSA? Have a browse through its key fundamentals here.
Altium Limited (ASX:ALU)
Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. Established in 1985, and run by CEO Aram Mirkazemi, the company provides employment to 410 people and with the stock’s market cap sitting at AUD A$1.95B, it comes under the small-cap stocks category.
ALU is expected to deliver an extremely high earnings growth over the next couple of years of 21.48%, driven by a positive double-digit revenue growth of 39.78% and cost-cutting initiatives. 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 31.52%. ALU’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. A potential addition 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.
