March Growth Stocks To Look Out For
High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
The Descartes Systems Group Inc (TSX:DSG)
The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. Descartes Systems Group was founded in 1981 and with the company’s market capitalisation at CAD CA$2.84B, we can put it in the mid-cap category.
DSG is expected to deliver a buoyant earnings growth over the next couple of years of 21.98%, driven by a positive double-digit revenue growth of 27.69% and cost-cutting initiatives. 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 10.36%. DSG ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? I recommend researching its fundamentals here.
People Corporation (TSXV:PEO)
People Corporation provides group benefits, group retirement, and human resource services in Canada. Formed in 2006, and now led by CEO Laurie Goldberg, the company provides employment to 715 people and with the company’s market capitalisation at CAD CA$382.85M, we can put it in the small-cap stocks category.
PEO’s forecasted bottom line growth is an optimistic 45.41%, driven by the underlying double-digit sales growth of 45.61% 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 13.63%. PEO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering PEO as a potential investment? Check out its fundamental factors here.
Pason Systems Inc. (TSX:PSI)
Pason Systems Inc. provides specialized data management systems for drilling rigs worldwide. Formed in 1978, and now led by CEO Marcel Kessler, the company size now stands at 610 people and has a market cap of CAD CA$1.52B, putting it in the small-cap group.
PSI is expected to deliver a buoyant earnings growth over the next couple of years of 33.78%, driven by a positive double-digit revenue growth of 18.72% and cost-cutting initiatives. It appears that PSI’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 19.40%. PSI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? 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.
