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. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Alamos Gold Inc. (TSX:AGI)
Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America. The company currently employs 1700 people and with the company’s market cap sitting at CAD CA$2.75B, it falls under the mid-cap stocks category.
AGI’s projected future profit growth is an exceptional 51.35%, with an underlying 21.42% growth from its revenues expected over the upcoming 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 AGI, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 5.92%. AGI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.
Anaconda Mining Inc. (TSX:ANX)
Anaconda Mining Inc. operates as a gold mining, development, and exploration company in Canada. The company currently employs 70 people and with the company’s market capitalisation at CAD CA$40.78M, we can put it in the small-cap group.
ANX’s forecasted bottom line growth is an exceptional 59.39%, driven by the underlying 63.49% 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. ANX ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in ANX? I recommend researching its fundamentals here.
The Hydropothecary Corporation (TSXV:THCX)
The Hydropothecary Corporation, together with its subsidiaries, produces and distributes medical marijuana products. The company size now stands at 101 people and with the stock’s market cap sitting at CAD CA$886.59M, it comes under the small-cap category.
THCX’s projected future profit growth is an exceptional triple-digit, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that THCX’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 18.09%. THCX 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 THCX? Have a browse through its key fundamentals here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.
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.