High growth companies such as Canopy Growth and Aurinia Pharmaceuticals 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. 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.
Canopy Growth Corporation (TSX:WEED)
Canopy Growth Corporation, through its subsidiaries, produces and sells medical marijuana in Canada. The company size now stands at 637 people and with the stock’s market cap sitting at CAD CA$3.51B, it comes under the mid-cap stocks category.
WEED’s forecasted bottom line growth is an exceptional 97.11%, driven by underlying sales, which is expected to more than double, over the next few years. 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 1.00%. WEED’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.
Aurinia Pharmaceuticals Inc. (TSX:AUP)
Aurinia Pharmaceuticals Inc., a clinical stage biopharmaceutical company, engages in the development of a therapeutic drug to treat autoimmune diseases in Canada and internationally. Founded in 1993, and now run by Richard Glickman, the company size now stands at 20 people and with the stock’s market cap sitting at CAD CA$550.86M, it comes under the small-cap category.
AUP’s forecasted bottom line growth is an optimistic 35.82%, driven by the underlying double-digit cash flow from operations growth of 8.30% over the next few years. An affirming signal is when net income increase also comes with operating cash flow growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of AUP, it does not appear extreme. AUP’s bullish prospects 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? Take a look at its other fundamentals here.
TSO3 Inc. (TSX:TOS)
TSO3 Inc. engages in the research, development, production, maintenance, sale, and licensing of sterilization processes, related consumable supplies, and accessories for heat and moisture sensitive medical devices. Established in 1998, and currently lead by Richard Rumble, the company provides employment to 75 people and with the market cap of CAD CA$241.42M, it falls under the small-cap group.
TOS’s projected future profit growth is an exceptional 56.41%, with an underlying triple-digit growth from its revenues expected over the upcoming years. 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. TOS’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? 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.