High Growth Stocks To Profit From
Endeavour Silver and Real Matters can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
Endeavour Silver Corp. (TSX:EDR)
Endeavour Silver Corp., a mid-tier precious metals mining company, engages in the mining, evaluation, acquisition, exploration, development, extraction, processing, refining, and reclamation of silver in Mexico and Chile. Formed in 1981, and currently run by Bradford Cooke, the company employs 1,445 people and with the stock’s market cap sitting at CAD CA$466.61M, it comes under the small-cap group.
Extreme optimism for EDR, as market analysts projected an outstanding earnings growth rate of 63.73% for the stock, supported by a double-digit sales growth of 33.79%. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with high top-line expansion. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. EDR 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 EDR? I recommend researching its fundamentals here.
Real Matters Inc. (TSX:REAL)
Real Matters Inc. develops and provides network management solutions to mortgage lending and insurance industries in Canada and the United States. Founded in 2004, and currently run by Jason Smith, the company size now stands at 800 people and with the company’s market capitalisation at CAD CA$615.32M, we can put it in the small-cap category.
REAL is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by an equally impressive revenue growth of 52.23%. 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. REAL’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 REAL? Have a browse through its key fundamentals here.
Boyd Group Income Fund (TSX:BYD.UN)
Boyd Group Income Fund operates as an unincorporated open-ended mutual fund trust. The company employs 7547 people and with the company’s market capitalisation at CAD CA$2.13B, we can put it in the mid-cap group.
BYD.UN is expected to deliver a buoyant earnings growth over the next couple of years of 22.09%, driven by a positive double-digit revenue growth of 32.49% and cost-cutting initiatives. 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 19.94%. BYD.UN’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering BYD.UN as a potential investment? Have a browse through its key 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.
