Investors seeking to increase their exposure to growth should consider companies such as SITO Mobile and National Commerce. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
SITO Mobile, Ltd. (NASDAQ:SITO)
SITO Mobile, Ltd. operates a mobile location-based advertising platform in the United States and Canada. Started in 2000, and headed by CEO Thomas Pallack, the company currently employs 88 people and with the market cap of USD $91.17M, it falls under the small-cap stocks category.
SITO is expected to deliver an extremely high earnings growth over the next couple of years of 76.97%, bolstered by an equally impressive revenue growth of 70.07%. 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. SITO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in SITO? Take a look at its other fundamentals here.
National Commerce Corporation (NASDAQ:NCOM)
National Commerce Corporation operates as the bank holding company for National Bank of Commerce that provides various financial services to businesses, business owners, and professionals. Formed in 2004, and now run by Richard Murray, the company currently employs 433 people and with the company’s market cap sitting at USD $753.69M, it falls under the small-cap stocks category.
NCOM’s forecasted bottom line growth is an optimistic 46.50%, driven by the underlying 55.24% sales growth 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 9.87%. NCOM 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 NCOM? Take a look at its other fundamentals here.
Sun Hydraulics Corporation (NASDAQ:SNHY)
Sun Hydraulics Corporation designs, manufactures, and sells screw-in hydraulic cartridge valves, manifolds, and integrated fluid power packages and subsystems used in hydraulic systems worldwide. Founded in 1970, and now led by CEO Wolfgang Dangel, the company employs 1,150 people and has a market cap of USD $1.59B, putting it in the small-cap stocks category.
SNHY’s projected future profit growth is a robust 34.18%, with an underlying 66.49% growth from its revenues expected over the upcoming years. It appears that SNHY’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 positive return on equity of 10.85%. SNHY’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in SNHY? I recommend researching its fundamentals 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.