Argonaut Gold is one of many stocks the market is bullish on. Its expected double-digit top-line and bottom-line growth exceeds its peers, and its financially stable position lessens the chances of risk. 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.
Argonaut Gold Inc. (TSX:AR)
Argonaut Gold Inc. engages in the exploration, mine development, and production activities in North America. The company employs 681 people and with the company’s market capitalisation at CAD CA$460.45M, we can put it in the small-cap stocks category.
AR’s projected future profit growth is a robust 32.74%, with an underlying 74.15% 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. 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. AR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about AR? I recommend researching its fundamentals here.
Tahoe Resources Inc. (TSX:THO)
Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. Started in 2009, and now led by CEO Ronald Clayton, the company size now stands at 2,684 people and with the stock’s market cap sitting at CAD CA$1.97B, it comes under the small-cap stocks category.
THO’s forecasted bottom line growth is an optimistic 32.35%, driven by the underlying 72.27% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 6.18%. THO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about THO? Check out its fundamental factors here.
Sandstorm Gold Ltd. (TSX:SSL)
Sandstorm Gold Ltd. operates as a gold streaming and royalty company. Formed in 2007, and currently run by Nolan Watson, the company now has 19 employees and has a market cap of CAD CA$1.11B, putting it in the small-cap group.
SSL’s forecasted bottom line growth is an optimistic 33.40%, driven by the underlying double-digit sales growth of 30.42% 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 2.00%. SSL’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. Considering SSL 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.