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Financially Sounds Stocks Poised For High Growth

Ray Foley

Companies such as Telenav and Diamondback Energy 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. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.

Telenav, Inc. (NASDAQ:TNAV)

Telenav, Inc., together with its subsidiaries provides connected car and location-based platform services in the United States and internationally. The company employs 746 people and with the company’s market cap sitting at USD $251.72M, it falls under the small-cap stocks category.

An outstanding 80.79% earnings growth is forecasted for TNAV, driven by the underlying 81.10% sales growth 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. TNAV’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 TNAV to your portfolio? Check out its fundamental factors here.

NasdaqGS:TNAV Future Profit Feb 24th 18

Diamondback Energy, Inc. (NASDAQ:FANG)

Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Started in 2007, and currently lead by Travis Stice, the company provides employment to 251 people and with the company’s market capitalisation at USD $12.11B, we can put it in the large-cap group.

FANG is expected to deliver a buoyant earnings growth over the next couple of years of 23.40%, bolstered by an equally impressive revenue growth. 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 positive return on equity of 17.24%. FANG’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Check out its fundamental factors here.

NasdaqGS:FANG Future Profit Feb 24th 18

Energy Focus, Inc. (NASDAQ:EFOI)

Energy Focus, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells energy-efficient lighting systems in the United States and internationally. Formed in 1985, and currently run by Theodore Tewksbury, the company size now stands at 131 people and with the company’s market capitalisation at USD $30.44M, we can put it in the small-cap stocks category.

EFOI’s projected future profit growth is an exceptional triple-digit, with an underlying 80.14% 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. Moreover, the 88.08% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. EFOI’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. Could this stock be your next pick? Take a look at its other fundamentals here.

NasdaqCM:EFOI Future Profit Feb 24th 18

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.