Analysts are bullish on these following companies: Secure Trust Bank, Victoria, Kier Group. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
Secure Trust Bank Plc (LSE:STB)
Secure Trust Bank PLC provides retail banking products and services in the United Kingdom. Established in 1954, and now led by CEO Paul Lynam, the company currently employs 747 people and with the stock’s market cap sitting at GBP £363.96M, it comes under the small-cap category.
STB’s forecasted bottom line growth is an optimistic 24.68%, driven by the underlying strong triple-digit sales growth rate over the next few years. It appears that STB’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 15.86%. STB’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Take a look at its other fundamentals here.
Victoria plc (AIM:VCP)
Victoria PLC designs, manufactures, and distributes flooring products primarily in the United Kingdom and Australia. Formed in 1895, and now led by CEO Philippe Hamers, the company now has 1,800 employees and with the company’s market capitalisation at GBP £1.01B, we can put it in the small-cap stocks category.
VCP’s forecasted bottom line growth is an optimistic double-digit 32.57%, driven by the underlying double-digit sales growth of 48.93% 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 high double-digit return on equity of 22.35%. VCP’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 VCP? Have a browse through its key fundamentals here.
Kier Group plc (LSE:KIE)
Kier Group plc provides construction services in the United Kingdom, the Middle East, the Far East, and Australia. Started in 1992, and currently lead by Haydn Mursell, the company employs 16,534 people and with the company’s market capitalisation at GBP £1.03B, we can put it in the small-cap category.
Extreme optimism for KIE, as market analysts projected an outstanding earnings growth rate of 36.56% for the stock, supported by a double-digit sales growth of 14.78%. It appears that KIE’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 return on equity coming in at a notable 25.36%. KIE ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering KIE as a potential investment? Check out its fundamental factors 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.