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 Chip Eng Seng and mm2 Asia are expected to outperform its peers in the future. 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.
Chip Eng Seng Corporation Ltd (SGX:C29)
Chip Eng Seng Corporation Ltd, an investment holding company, engages in the construction, property development and investment, and hospitality businesses primarily in Singapore, Australia, Malaysia, and Maldives. Chip Eng Seng was established in 1998 and with the stock’s market cap sitting at SGD SGD589.96M, it comes under the small-cap stocks category.
C29’s forecasted bottom line growth is an optimistic 25.82%, driven by the underlying double-digit sales growth of 10.08% over the next few 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 6.27%. C29’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in C29? Other fundamental factors you should also consider can be found here.
mm2 Asia Ltd. (SGX:1B0)
mm2 Asia Ltd., an investment holding company, produces, distributes, and sponsors films, television (TV), and online content in Singapore, Malaysia, Hong Kong, Taiwan, China, and internationally. Formed in 2008, and currently run by Long Jong Chang, the company currently employs 30 people and with the market cap of SGD SGD558.15M, it falls under the small-cap group.
1B0’s projected future profit growth is a robust 22.65%, with an underlying 94.83% 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 positive return on equity of 16.37%. 1B0’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. Could this stock be your next pick? I recommend researching its fundamentals here.
Sarine Technologies Ltd. (SGX:U77)
Sarine Technologies Ltd. develops, manufactures, markets, and sells precision technology products for the planning, processing, evaluation, and measurement of diamonds and gems worldwide. Sarine Technologies was started in 1988 and has a market cap of SGD SGD361.68M, putting it in the small-cap stocks category.
Driven by the positive double-digit sales growth of 44.90% over the next few years, U77 is expected to deliver an excellent earnings growth of 41.67%. It appears that U77’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 return on equity coming in at a notable 32.99%. U77’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about U77? 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.