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 Snap and C&J Energy Services 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.
Snap Inc. (NYSE:SNAP)
Snap Inc. operates as a camera company in the United States and internationally. Founded in 2010, and currently run by Evan Spiegel, the company now has 3,069 employees and with the company’s market capitalisation at USD $19.47B, we can put it in the large-cap category.
Driven by exceptional sales, which is expected to more than double over the next few years, SNAP is expected to deliver an excellent earnings growth of 62.68%. 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. Furthermore, the 46.15% growth in operating cash flows indicates that a good portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. SNAP’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. Want to know more about SNAP? Other fundamental factors you should also consider can be found here.
C&J Energy Services, Inc. (NYSE:CJ)
C&J Energy Services, Inc. provides well construction, well completion, well support, and other complementary oilfield services to oil and gas exploration and production companies throughout the continental United States. Established in 1997, and currently lead by Donald Gawick, the company now has 6,274 employees and has a market cap of USD $1.77B, putting it in the small-cap category.
CJ’s forecasted bottom line growth is an exceptional 60.70%, driven by the underlying 85.93% sales growth 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 16.53%. CJ ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add CJ to your portfolio? Check out its fundamental factors here.
Gulfmark Offshore, Inc. (AMEX:GLF)
GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to the companies involved in the offshore exploration and production of oil and natural gas. Established in 1996, and currently run by Quintin Kneen, the company employs 450 people and with the company’s market capitalisation at USD $204.22M, we can put it in the small-cap group.
An outstanding 99.48% earnings growth is forecasted for GLF, driven by an underlying sales growth of 36.35% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 1.08%. GLF’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 GLF? 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.