High growth companies such as ACM Research and Barracuda Networks has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. 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.
ACM Research, Inc. (NASDAQ:ACMR)
ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. Formed in 1998, and currently lead by David Wang, the company now has 185 employees and with the stock’s market cap sitting at USD $84.86M, it comes under the small-cap group.
Should you add ACMR to your portfolio? Other fundamental factors you should also consider can be found here.
Barracuda Networks, Inc. (NYSE:CUDA)
Barracuda Networks, Inc. designs and delivers security and data protection solutions. Founded in 2003, and currently lead by William Jenkins, the company provides employment to 1,490 people and with the company’s market cap sitting at USD $1.49B, it falls under the small-cap stocks category.
CUDA’s forecasted bottom line growth is an exceptional 95.99%, driven by the underlying double-digit sales growth of 15.24% over the next few years. 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 high double-digit return on equity of 72.77%. CUDA ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add CUDA to your portfolio? Have a browse through its key fundamentals here.
Park City Group, Inc. (NASDAQ:PCYG)
Park City Group, Inc., a software-as-a-service provider, designs, develops, markets, and supports proprietary software products. Founded in 1990, and run by CEO Randall Fields, the company size now stands at 77 people and with the company’s market cap sitting at USD $205.16M, it falls under the small-cap category.
PCYG is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by an equally impressive revenue growth of 75.68%. It appears that PCYG’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. Moreover, the substantial growth of over 100% 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. PCYG’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. Want to know more about PCYG? 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.