High growth companies such as Myomo and Cymabay Therapeutics 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. 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.
Myomo, Inc. (AMEX:MYO)
Myomo, Inc., a commercial stage medical robotics Company, provides expanded mobility solutions for patients suffering from neurological disorders and upper limb paralysis in the United States. The company now has 21 employees and with the market cap of USD $57.18M, it falls under the small-cap stocks category.
An outstanding 65.93% earnings growth is forecasted for MYO, driven by strong underlying sales growth 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. Furthermore, the 17.43% growth in operating cash flows indicates that a good portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. MYO’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 MYO to your portfolio? Check out its fundamental factors here.
Cymabay Therapeutics, Inc. (NASDAQ:CBAY)
Cymabay Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to treat specialty and orphan diseases. Established in 1988, and run by CEO Sujal Shah, the company currently employs 22 people and with the company’s market capitalisation at USD $810.63M, we can put it in the small-cap group.
CBAY’s forecasted bottom line growth is an optimistic 28.86%, driven by the underlying double-digit sales growth of 41.39% over the next few 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 CBAY, it does not appear too severe. CBAY 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 CBAY? I recommend researching its fundamentals here.
Workhorse Group Inc. (NASDAQ:WKHS)
Workhorse Group Inc. designs, manufactures, and builds battery-electric vehicles and aircraft in the United States. Established in 2007, and currently lead by Stephen Burns, the company currently employs 87 people and with the company’s market capitalisation at USD $122.56M, we can put it in the small-cap stocks category.
Driven by exceptional sales, which is expected to more than double over the next few years, WKHS is expected to deliver an excellent earnings growth of 51.87%. 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. WKHS ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Take a look at its other 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.