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. 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.
Currency Exchange International, Corp. (TSX:CXI)
Currency Exchange International, Corp. provides currency exchange and related products in the United States and Canada. Established in 1998, and headed by CEO Randolph Pinna, the company size now stands at 294 people and with the company’s market capitalisation at CAD CA$189.09M, we can put it in the small-cap stocks category.
Interested to learn more about CXI? Take a look at its other fundamentals here.
Asanko Gold Inc. (TSX:AKG)
Asanko Gold Inc. engages in the exploration, development, and production of gold properties. Formed in 1999, and currently run by Peter Breese, the company employs 380 people and with the market cap of CAD CA$327.42M, it falls under the small-cap group.
Extreme optimism for AKG, as market analysts projected an outstanding earnings growth rate of 56.67% for the stock, supported by a double-digit sales growth of 39.28%. 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 AKG, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 9.99%. AKG ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering AKG as a potential investment? Check out its fundamental factors here.
Canopy Growth Corporation (TSX:WEED)
Canopy Growth Corporation, through its subsidiaries, produces and sells medical marijuana in Canada. The company now has 701 employees and with the market cap of CAD CA$5.60B, it falls under the mid-cap stocks category.
WEED is expected to deliver an extremely high earnings growth over the next couple of years of 75.02%, bolstered by a significant revenue which is expected to more than double. 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 6.55%. WEED ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? 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.