High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
Quaker Chemical Corporation (NYSE:KWR)
Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications in North America, Europe, the Middle East, Africa, the Asia/Pacific, and South America. Founded in 1918, and currently lead by Michael Barry, the company provides employment to 2,110 people and has a market cap of USD $2.07B, putting it in the mid-cap stocks category.
KWR’s projected future profit growth is an exceptional 62.95%, with an underlying triple-digit growth from its revenues expected over the upcoming 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 10.60%. KWR’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in KWR? Take a look at its other fundamentals here.
Sogou Inc. (NYSE:SOGO)
Sogou Inc. provides search and search-related services in the People’s Republic of China. Formed in 2005, and currently run by Xiaochuan Wang, the company size now stands at 2,295 people and with the stock’s market cap sitting at USD $3.67B, it comes under the mid-cap category.
SOGO’s forecasted bottom line growth is an optimistic double-digit 40.92%, driven by the underlying 76.60% 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 return on equity coming in at a notable 22.12%. SOGO’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. Thinking of investing in SOGO? Take a look at its other fundamentals here.
PagSeguro Digital Ltd. (NYSE:PAGS)
PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. Formed in 2006, and run by CEO , the company now has 1,020 employees and with the market cap of USD $11.09B, it falls under the large-cap group.
PAGS’s forecasted bottom line growth is an optimistic double-digit 38.10%, driven by underlying sales, which is expected to more than double, 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 high double-digit return on equity of 25.16%. PAGS’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 PAGS? 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.