Most investors find it challenging to find companies with prospective double-digit growth rates that are also financially robust. These hidden gems also add meaningful upside to a portfolio, should the companies meet expectations. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
BIO-key International, Inc. (NASDAQ:BKYI)
BIO-key International, Inc. develops and markets fingerprint biometric identification and identity verification technologies, authentication-transaction security technologies, and related identity management and credentialing biometric hardware and software solutions. Founded in 1993, and currently lead by Michael DePasquale, the company provides employment to 25 people and with the company’s market cap sitting at USD $22.04M, it falls under the small-cap category.
BKYI is expected to deliver an extremely high earnings growth over the next couple of years of 98.41%, bolstered by a significant revenue which is expected to more than double. 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. BKYI’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 BKYI? I recommend researching its fundamentals here.
Revance Therapeutics, Inc. (NASDAQ:RVNC)
Revance Therapeutics, Inc., a biotechnology company, engages in the development, manufacturing, and commercialization of novel botulinum toxin products for various aesthetic and therapeutic indications. Started in 1999, and currently run by L. Browne, the company currently employs 136 people and with the company’s market cap sitting at USD $1.12B, it falls under the small-cap category.
RVNC’s projected future profit growth is a robust 28.23%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that RVNC’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. RVNC’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 RVNC to your portfolio? Check out its fundamental factors here.
Diamondback Energy, Inc. (NASDAQ:FANG)
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Started in 2007, and headed by CEO Travis Stice, the company size now stands at 251 people and with the company’s market capitalisation at USD $13.03B, we can put it in the large-cap group.
FANG is expected to deliver a buoyant earnings growth over the next couple of years of 24.04%, bolstered by an equally impressive revenue growth of 90.00%. 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 16.22%. FANG 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 FANG? I recommend researching its 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.