Growth Stocks To Watch Out For In April
Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. discoverIE Group and Charles Stanley Group are examples of many potential outperformers that analysts are bullish on. 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.
discoverIE Group plc (LSE:DSCV)
discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide. Formed in 1986, and currently run by Nicholas Jefferies, the company currently employs 3,757 people and with the stock’s market cap sitting at GBP £296.38M, it comes under the small-cap stocks category.
DSCV’s forecasted bottom line growth is an optimistic 23.15%, driven by the underlying double-digit sales growth of 16.85% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 7.10%. DSCV’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.
Charles Stanley Group plc (LSE:CAY)
Charles Stanley Group PLC provides wealth management services in the United Kingdom. Formed in 1792, and now led by CEO Paul Abberley, the company employs 810 people and with the market cap of GBP £172.02M, it falls under the small-cap category.
CAY’s projected future profit growth is a robust 28.87%, with an underlying 11.75% 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 15.54%. CAY’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. Thinking of investing in CAY? Have a browse through its key fundamentals here.
First Derivatives plc (AIM:FDP)
First Derivatives plc designs, develops, implements, and supports a range of data and trading systems for front, middle, and back-office operations worldwide. Founded in 1996, and currently run by Brian Conlon, the company size now stands at 2,000 people and with the stock’s market cap sitting at GBP £937.07M, it comes under the small-cap category.
FDP’s projected future profit growth is a robust 21.48%, with an underlying 28.26% 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 12.40%. FDP ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about FDP? Other fundamental factors you should also consider can be found 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.
