Why invest in a stock whose growth outlook that lags behind the market? Investors looking for companies with extraordinary future prospects in terms of profitability and returns should look at the following high-growth stocks. If a buoyant growth prospect is what you’re after in your next investment, I’ve put together a list of high-growth stocks you may be interested in, based on the latest financial data from each company.
Installed Building Products, Inc. (NYSE:IBP)
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, garage doors, rain gutters, shower doors, closet shelving and mirrors, and other products in the continental United States. Formed in 1977, and currently headed by CEO Jeffrey Edwards, the company employs 5,292 people and with the market cap of USD $2.37B, it falls under the mid-cap group.
Driven by the positive double-digit sales growth of 28.69% over the next few years, IBP is expected to deliver an excellent earnings growth of 70.32%. 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 29.20%. IBP’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering IBP as a potential investment? Take a look at its other fundamentals here.
Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Established in 1987, and now run by John Higgins, the company provides employment to 22 people and with the company’s market cap sitting at USD $2.73B, it falls under the mid-cap category.
LGND is expected to deliver a triple-digit high earnings growth over the next couple of years, driven by a positive revenue growth of 49.84% and cost-cutting initiatives. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of LGND, it does not appear too severe. LGND ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Check out its fundamental factors here.
Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA)
Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and markets cement and its by-products in Argentina and Paraguay. Founded in 1926, and currently headed by CEO Sergio Faifman, the company now has 3,258 employees and with the company’s market cap sitting at USD $2.62B, it falls under the mid-cap category.
Extreme optimism for LOMA, as market analysts projected an outstanding earnings growth, which is expected to more than double, supported by an equally strong sales growth of 56.16%. It appears that LOMA’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 47.19%. LOMA’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. Interested to learn more about LOMA? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
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.