Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as Edwards Lifesciences and Qiwi are expected to outperform its peers in the future. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Edwards Lifesciences Corporation (NYSE:EW)
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients in the United States and internationally. Founded in 1999, and currently lead by Michael Mussallem, the company provides employment to 12,200 people and has a market cap of USD $29.41B, putting it in the large-cap stocks category.
EW’s projected future profit growth is a robust 21.54%, with an underlying 22.28% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 26.56%. EW’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering EW as a potential investment? Other fundamental factors you should also consider can be found here.
Qiwi plc (NASDAQ:QIWI)
Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. Started in 2007, and currently lead by Sergey Solonin, the company employs 1,375 people and with the company’s market cap sitting at USD $1.14B, it falls under the small-cap category.
QIWI is expected to deliver a buoyant earnings growth over the next couple of years of 22.34%, driven by a positive double-digit cash flow from operations growth of 45.20% and cost-cutting initiatives. Profit growth, coupled with operating cash flow 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 high double-digit return on equity of 21.85%. QIWI ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about QIWI? I recommend researching its fundamentals here.
Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Soleno Therapeutics, Inc. focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Established in 1999, and headed by CEO Anish Bhatnagar, the company currently employs 14 people and with the market cap of USD $36.36M, it falls under the small-cap stocks category.
Considering SLNO as a potential investment? 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.