Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Viveve Medical and Orion Energy Systems are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.
Viveve Medical, Inc. (NASDAQ:VIVE)
Viveve Medical, Inc. designs, develops, manufactures, and markets medical devices for the non-invasive treatment of various post-partum conditions. Formed in 2005, and now run by Scott Durbin, the company currently employs 103 people and with the market cap of USD $60.35M, it falls under the small-cap group.
VIVE’s projected future profit growth is a robust 38.18%, 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. Moreover, the 32.15% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. VIVE ticks the boxes for high-growth generation, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Take a look at its other fundamentals here.
Orion Energy Systems, Inc (NASDAQ:OESX)
Orion Energy Systems, Inc. researches, designs, develops, manufactures, implements, markets, and sells energy management systems for the commercial office and retail, area lighting, and industrial markets in North America. Started in 1996, and headed by CEO Michael Altschaefl, the company provides employment to 181 people and with the market cap of USD $23.07M, it falls under the small-cap stocks category.
OESX is expected to deliver an extremely high earnings growth over the next couple of years of 69.62%, bolstered by an equally impressive revenue growth of 52.14%. It appears that OESX’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. OESX’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering OESX as a potential investment? Have a browse through its key fundamentals here.
Radius Health, Inc. (NASDAQ:RDUS)
Radius Health, Inc., a biopharmaceutical company, develops and commercializes endocrine therapeutics in the areas of osteoporosis and oncology. Formed in 2003, and currently headed by CEO Jesper Høiland, the company provides employment to 536 people and with the stock’s market cap sitting at USD $1.50B, it comes under the small-cap category.
RDUS is expected to deliver a buoyant earnings growth over the next couple of years of 40.48%, bolstered by a significant revenue which is expected to more than double. 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. RDUS’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about RDUS? Check out its fundamental factors 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.