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Value-Adding Growth Stocks To Buy Now

Blake Harford

Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. CV Check and Adslot are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.

CV Check Ltd (ASX:CV1)

CV Check Ltd provides personal and professional information screening and verification check services to employers, industry associations, and individuals. CV Check was founded in 2004 and has a market cap of AUD A$18.46M, putting it in the small-cap group.

An outstanding 52.75% earnings growth is forecasted for CV1, driven by the underlying 65.20% 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 0.50%. CV1’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 CV1? Other fundamental factors you should also consider can be found here.

ASX:CV1 Future Profit Nov 1st 17
ASX:CV1 Future Profit Nov 1st 17

Adslot Ltd (ASX:ADJ)

Adslot Ltd operates as an advertising technology and marketing company. Adslot is currently led by CEO Ian Lowe. The company currently has a market cap of AUD A$56.52M, putting it in the small-cap category

ADJ’s forecasted bottom line growth is an exceptional 51.33%, driven by underlying sales, which is expected to more than double, over the next few years. It appears that ADJ’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. ADJ ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about ADJ? Other fundamental factors you should also consider can be found here.

ASX:ADJ Future Profit Nov 1st 17
ASX:ADJ Future Profit Nov 1st 17

Redbubble Limited (ASX:RBL)

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. Founded in 2006, and headed by CEO Martin Hosking, the company currently employs 201 people and with the market cap of AUD A$162.58M, it falls under the small-cap stocks category.

An outstanding 70.89% earnings growth is forecasted for RBL, driven by the underlying 52.42% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 25.82%. RBL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering RBL as a potential investment? Take a look at its other fundamentals here.

ASX:RBL Future Profit Nov 1st 17
ASX:RBL Future Profit Nov 1st 17

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.