Electrocomponents 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. 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.
Electrocomponents plc (LSE:ECM)
Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, North America, and internationally. Founded in 1937, and currently headed by CEO Lindsley Ruth, the company employs 5,771 people and with the company’s market capitalisation at GBP £2.77B, we can put it in the mid-cap group.
Driven by the positive double-digit sales growth of 12.34% over the next few years, ECM is expected to deliver an excellent earnings growth of 14.30%. 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 return on equity coming in at a notable 30.30%. ECM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about ECM? Have a browse through its key fundamentals here.
LiDCO Group plc (AIM:LID)
LiDCO Group Plc develops, manufactures, and sells cardiac monitoring equipment in the United Kingdom, the United States, Continental Europe, Japan, and internationally. Formed in 1991, and now run by Matthew Sassone, the company provides employment to 49 people and with the market cap of GBP £15.26M, it falls under the small-cap category.
LID is expected to deliver an extremely high earnings growth over the next couple of years of 97.89%, driven by a positive double-digit revenue growth of 38.53% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 21.46%. LID ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in LID? Other fundamental factors you should also consider can be found here.
Tissue Regenix Group plc (AIM:TRX)
Tissue Regenix Group plc, a medical technology company, develops and commercializes platform technologies in the field of tissue engineering and regenerative medicine in the United States and internationally. Founded in 2006, and headed by CEO Steven Couldwell, the company size now stands at 100 people and with the company’s market capitalisation at GBP £132.89M, we can put it in the small-cap group.
Extreme optimism for TRX, as market analysts projected an outstanding earnings growth rate of 64.21% for the stock, supported by an equally strong sales. 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. Moreover, the 44.97% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. TRX ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in TRX? 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.