Growth Stocks To Watch Out For In May
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. 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.
Snap Inc. (NYSE:SNAP)
Snap Inc. operates as a camera company in the United States and internationally. Formed in 2010, and headed by CEO Evan Spiegel, the company provides employment to 3,069 people and with the market cap of USD $13.58B, it falls under the large-cap stocks category.
SNAP’s projected future profit growth is a robust 37.96%, 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. 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. SNAP’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 SNAP to your portfolio? I recommend researching its fundamentals here.
Liberty Oilfield Services Inc. (NYSE:LBRT)
Liberty Oilfield Services Inc. provides hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. Founded in 2011, and currently run by Christopher Wright, the company employs 2,032 people and has a market cap of USD $2.35B, putting it in the mid-cap group.
Driven by the exceptional 74.26% sales growth over the next few years, LBRT is expected to deliver an excellent earnings growth of 55.95%. 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 high double-digit return on equity of 23.68%. LBRT’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 LBRT? Take a look at its other fundamentals here.
First Foundation Inc. (NASDAQ:FFWM)
First Foundation Inc., through its subsidiaries, provides financial services to individuals, businesses, and other organizations in the United States. Founded in 1985, and currently lead by Scott Kavanaugh, the company now has 391 employees and with the company’s market cap sitting at USD $719.03M, it falls under the small-cap group.
Considering FFWM as a potential investment? Check out its fundamental factors 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.
