Companies such as Emblem and Aeterna Zentaris have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, high-growth stocks. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Emblem Corp. (TSXV:EMC)
Emblem Corp. produces and sells medical cannabis in Canada. The company currently employs 42 people and with the market cap of CAD CA$185.23M, it falls under the small-cap group.
Extreme optimism for EMC, as market analysts projected an outstanding earnings growth rate of 55.11% for the stock, supported by an equally strong sales. It appears that EMC’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 10.93%. EMC 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? Have a browse through its key fundamentals here.
Aeterna Zentaris Inc. (TSX:AEZS)
Aeterna Zentaris Inc., a specialty biopharmaceutical company, engages in developing and commercializing novel treatments in oncology, endocrinology, and women’s health. Established in 1991, and now led by CEO Michael Ward, the company currently employs 56 people and has a market cap of CAD CA$35.35M, putting it in the small-cap stocks category.
AEZS’s projected future profit growth is a robust 36.84%, 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. AEZS’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 AEZS? I recommend researching its fundamentals here.
Xtreme Drilling Corp. (TSX:XDC)
Xtreme Drilling Corp. provides onshore drilling services in Canada and the United States. Founded in 2005, and run by CEO Matthew Porter, the company size now stands at 282 people and with the company’s market capitalisation at CAD CA$149.97M, we can put it in the small-cap category.
An outstanding doubling of earnings is forecasted for XDC, driven by the underlying 71.62% sales growth over the next few years. It appears that XDC’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 0.40%. XDC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Other fundamental factors you should also consider can be found 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.