Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Protagonist Therapeutics and Viper Energy Partners are examples of many high-growth stocks that the market believe will be upcoming outperformers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
Protagonist Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing peptide-based chemical entities to address various unmet medical needs. Formed in 2006, and run by CEO Dinesh Patel, the company size now stands at 49 people and with the company’s market capitalisation at USD $378.26M, we can put it in the small-cap group.
PTGX’s projected future profit growth is a robust 40.01%, with an underlying triple-digit growth from its revenues expected over the upcoming 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. Moreover, the 10.48% 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. PTGX’s bullish prospects make it an interesting stock to invest more time to understand how it can add value to your portfolio.
Interested to learn more about PTGX? Have a browse through its key fundamentals here.
Viper Energy Partners LP (NASDAQ:VNOM)
Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. Viper Energy Partners was formed in 2013 and with the market cap of USD $2.51B, it falls under the mid-cap category.
An outstanding doubling of earnings is forecasted for VNOM, driven by the underlying 89.89% 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 19.90%. VNOM’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about VNOM? Take a look at its other fundamentals here.
ShotSpotter, Inc. (NASDAQ:SSTI)
ShotSpotter, Inc. provides software-as-a-service based gunshot detection solutions for law enforcement officials and security personnel worldwide. Formed in 1996, and currently headed by CEO Ralph Clark, the company size now stands at 73 people and with the company’s market cap sitting at USD $135.78M, it falls under the small-cap group.
SSTI’s projected future profit growth is an exceptional 62.88%, with an underlying 84.86% growth from its revenues expected over the upcoming 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. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. SSTI’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. Should you add SSTI to your portfolio? I recommend researching its fundamentals 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.