Value-Adding Growth Stocks To Buy Now
Analysts are bullish on these following companies: Bird Construction, Polaris Infrastructure, K-Bro Linen. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Bird Construction Inc. (TSX:BDT)
Bird Construction Inc. operates as a general contractor in Canada. Started in 1920, and now led by CEO Ian Boyd, the company employs 1,583 people and has a market cap of CAD CA$418.37M, putting it in the small-cap group.
BDT is expected to deliver a triple-digit high earnings growth over the next couple of years, driven by a positive revenue growth of 9.51% and cost-cutting initiatives. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 17.13%. BDT ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add BDT to your portfolio? Have a browse through its key fundamentals here.
Polaris Infrastructure Inc. (TSX:PIF)
Polaris Infrastructure Inc., a renewable energy company, acquires, explores, develops, and operates geothermal energy projects in Latin America. The company employs 128 people and with the stock’s market cap sitting at CAD CA$288.58M, it comes under the small-cap stocks category.
PIF’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 24.29% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. Moreover, the 27.74% 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. PIF ticks the boxes for robust growth generation on all levels of line items, 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.
K-Bro Linen Inc. (TSX:KBL)
K-Bro Linen Inc., together with its subsidiaries, engages in the processing, management, and distribution of general linen and operating room linen to healthcare institutions, hotels, and other commercial accounts in Canada. Formed in 1954, and currently run by Linda McCurdy, the company now has 1,930 employees and has a market cap of CAD CA$372.71M, putting it in the small-cap stocks category.
KBL’s projected future profit growth is an exceptional 59.68%, with an underlying 14.31% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of KBL, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 9.25%. KBL’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 KBL as a potential investment? 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.
