High growth companies such as First Foundation and Carolina Financial has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
First Foundation Inc. (NASDAQ:FFWM)
First Foundation Inc., through its subsidiaries, provides personalized financial services to individuals, businesses, and other organizations in the United States. Started in 1990, and now led by CEO Scott Kavanaugh, the company now has 335 employees and with the market cap of USD $735.50M, it falls under the small-cap category.
FFWM’s forecasted bottom line growth is an optimistic 38.69%, driven by the underlying 67.82% sales growth 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 12.89%. FFWM ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add FFWM to your portfolio? I recommend researching its fundamentals here.
Carolina Financial Corporation (NASDAQ:CARO)
Carolina Financial Corporation operates as a bank holding company for CresCom Bank that provides a range of commercial and retail banking financial services in South Carolina and North Carolina. Founded in 1996, and currently lead by Jerold Rexroad, the company size now stands at 430 people and has a market cap of USD $812.59M, putting it in the small-cap stocks category.
CARO’s forecasted bottom line growth is an optimistic 42.25%, driven by the underlying 70.94% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 12.07%. CARO’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. Considering CARO as a potential investment? Check out its fundamental factors here.
Eros International Plc (NYSE:EROS)
Eros International Plc, together with its subsidiaries, co-produces, acquires, and distributes Indian films in various formats worldwide. Founded in 1977, and now run by Jyoti Deshpande, the company currently employs 448 people and with the stock’s market cap sitting at USD $653.84M, it comes under the small-cap group.
EROS is expected to deliver an extremely high earnings growth over the next couple of years of 87.99%, bolstered by an equally impressive revenue growth of 54.83%. It appears that EROS’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 5.37%. EROS 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? Have a browse through its key 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.