Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Convatec Group and SOCO International 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.
Convatec Group Plc (LSE:CTEC)
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. Founded in 2008, and currently headed by CEO Paul Moraviec, the company currently employs 8,524 people and with the company’s market cap sitting at GBP £4.09B, it falls under the mid-cap stocks category.
CTEC’s forecasted bottom line growth is an optimistic double-digit 16.31%, driven by the underlying sales growth of 9.83% over the next few 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 CTEC, it does not appear too severe. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.10%. CTEC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in CTEC? Check out its fundamental factors here.
AIM:WATR Future Profit Feb 17th 18
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.