Ultimate Software Group is one of many stocks the market is bullish on. Its expected double-digit top-line and bottom-line growth exceeds its peers, and its financially stable position lessens the chances of risk. 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.
The Ultimate Software Group, Inc. (NASDAQ:ULTI)
The Ultimate Software Group, Inc. provides cloud-based human capital management solutions primarily to enterprise companies in the United States and Canada. Started in 1990, and currently headed by CEO Scott Scherr, the company employs 3,747 people and with the stock’s market cap sitting at USD $6.75B, it comes under the mid-cap stocks category.
ULTI is expected to deliver an extremely high earnings growth over the next couple of years of 47.85%, driven by a positive double-digit revenue growth of 40.69% and cost-cutting initiatives. 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 return on equity coming in at a notable 20.41%. ULTI ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about ULTI? Check out its fundamental factors here.
Pinnacle Financial Partners, Inc. (NASDAQ:PNFP)
Pinnacle Financial Partners, Inc. operates as a bank holding company for Pinnacle Bank that provides various banking products and services in the United States. Started in 2000, and now run by Michael Turner, the company size now stands at 2,195 people and with the company’s market cap sitting at USD $5.17B, it falls under the mid-cap category.
PNFP is expected to deliver a buoyant earnings growth over the next couple of years of 34.27%, bolstered by an equally impressive revenue growth of 75.04%. It appears that PNFP’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 9.11%. PNFP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about PNFP? I recommend researching its fundamentals here.
Ring Energy, Inc. (AMEX:REI)
Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States. Established in 2004, and currently headed by CEO Kelly Hoffman, the company now has 30 employees and with the market cap of USD $798.86M, it falls under the small-cap stocks category.
REI’s projected future profit growth is an exceptional 67.55%, with an underlying triple-digit growth from its revenues expected over the upcoming 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. 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. REI’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about REI? Other fundamental factors you should also consider can be found 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.