Analysts are bullish on these following companies: TSO3, Ballard Power Systems, Stingray Digital Group. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. 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.
TSO3 Inc. (TSX:TOS)
TSO3 Inc. engages in the research, development, production, maintenance, sale, and licensing of sterilization processes, related consumable supplies, and accessories for heat and moisture sensitive medical devices worldwide. Established in 1998, and headed by CEO Richard Rumble, the company now has 80 employees and with the company’s market cap sitting at CAD CA$84.53M, it falls under the small-cap stocks category.
An outstanding 51.64% earnings growth is forecasted for TOS, driven by the underlying 56.62% 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. TOS ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about TOS? Have a browse through its key fundamentals here.
Ballard Power Systems Inc. (TSX:BLDP)
Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products worldwide. Founded in 1979, and now run by R. MacEwen, the company now has 395 employees and has a market cap of CAD CA$828.12M, putting it in the small-cap group.
BLDP is expected to deliver an extremely high earnings growth over the next couple of years of 60.17%, driven by a positive revenue growth of 23.08% and cost-cutting initiatives. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. BLDP’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 BLDP? I recommend researching its fundamentals here.
Stingray Digital Group Inc. (TSX:RAY.A)
Stingray Digital Group Inc. provides business-to-business multi-platform music and in-store media solutions to businesses and individuals worldwide. Started in 2006, and now run by Eric Boyko, the company currently employs 400 people and with the market cap of CAD CA$603.57M, it falls under the small-cap stocks category.
RAY.A’s forecasted bottom line growth is an exceptional 92.94%, driven by the underlying double-digit sales growth of 24.29% over the next few years. 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 RAY.A, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.96%. RAY.A’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about RAY.A? Have a browse through its key 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.