Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Stantec and theScore are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
Stantec Inc. (TSX:STN)
Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. Established in 1954, and headed by CEO Gordon Johnston, the company currently employs 22,000 people and has a market cap of CAD CA$3.99B, putting it in the mid-cap category.
STN is expected to deliver a buoyant earnings growth over the next couple of years of 33.65%, driven by a positive double-digit revenue growth of 14.22% and cost-cutting initiatives. 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 12.43%. STN’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 STN? Have a browse through its key fundamentals here.
theScore, Inc. (TSXV:SCR)
theScore, Inc. creates mobile-first sports experiences in North America and Europe. Established in 2012, and currently run by John Levy, the company currently employs 189 people and with the company’s market cap sitting at CAD CA$36.98M, it falls under the small-cap category.
SCR is expected to deliver an extremely high earnings growth over the next couple of years of 65.58%, driven by a positive revenue growth of 20.89% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. SCR’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. Interested to learn more about SCR? Have a browse through its key fundamentals here.
DIRTT Environmental Solutions Ltd. (TSX:DRT)
DIRTT Environmental Solutions Ltd. designs, manufactures, and installs customized prefabricated interiors. Founded in 2003, and currently headed by CEO Michael Goldstein, the company employs 1,041 people and with the company’s market cap sitting at CAD CA$446.39M, it falls under the small-cap stocks category.
Driven by the positive double-digit sales growth of 33.42% over the next few years, DRT is expected to deliver an excellent earnings growth of 79.02%. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. 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. DRT ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Take a look at its other 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.