Companies such as Vecima Networks and OrganiGram Holdings have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, 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.
Vecima Networks Inc. (TSX:VCM)
Vecima Networks Inc. provides technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. Established in 1988, and currently run by Sumit Kumar, the company size now stands at 334 people and with the market cap of CAD CA$212.38M, it falls under the small-cap category.
Should you add VCM to your portfolio? Take a look at its other fundamentals here.
OrganiGram Holdings Inc. (TSXV:OGI)
OrganiGram Holdings Inc., through its subsidiaries, produces and sells medical marijuana to individuals and physicians in Canada. Founded in 2013, and now run by Greg Engel, the company currently employs 133 people and with the company’s market cap sitting at CAD CA$527.86M, it falls under the small-cap stocks category.
OGI is expected to deliver a triple-digit high earnings growth over the next couple of years, 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. OGI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add OGI to your portfolio? I recommend researching its fundamentals here.
Constellation Software Inc. (TSX:CSU)
Constellation Software Inc., together with its subsidiaries, engages in the development, installation, and customizations of software to various industries in the public and private sector markets primarily in the United States, Canada, the United Kingdom, Europe, and internationally. Started in 1995, and run by CEO Mark Leonard, the company currently employs 12,124 people and has a market cap of CAD CA$17.08B, putting it in the large-cap group.
An outstanding 20.77% earnings growth is forecasted for CSU, driven by an underlying sales growth of 35.67% over the next few 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 67.33%. CSU ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about CSU? Other fundamental factors you should also consider can be found 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.