Yahoo Finance June Top Growth Stocks
Want to add more growth to your portfolio but not sure where to look? Companies such as Paragon Care and Magellan Financial Group are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Paragon Care Limited (ASX:PGC)
Paragon Care Limited supplies durable medical equipment, medical devices, and consumable medical products to the acute, aged, primary, community, and hospital care markets in Australia and New Zealand. Paragon Care is currently led by CEO Andrew Just. It currently has a market cap of AUD A$219.80M placing it in the small-cap group
PGC’s forecasted bottom line growth is an optimistic 29.92%, driven by the underlying 94.05% 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 13.75%. PGC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in PGC? I recommend researching its fundamentals here.
Magellan Financial Group (ASX:MFG)
Magellan Financial Group is a publicly owned investment manager. Established in 2004, and currently run by Hamish Douglass, the company size now stands at 104 people and with the market cap of AUD A$4.07B, it falls under the mid-cap stocks category.
Extreme optimism for MFG, as market analysts projected an outstanding earnings growth rate of 26.06% for the stock, supported by a double-digit sales growth of 27.00%. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 46.97%. MFG’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. Want to know more about MFG? Other fundamental factors you should also consider can be found here.
Pinnacle Investment Management Group Limited (ASX:PNI)
Pinnacle Investment Management Group Limited operates as an investment management company in Australia. Formed in 1895, and currently run by Ian Macoun, the company provides employment to 125 people and has a market cap of AUD A$801.18M, putting it in the small-cap group.
Driven by the positive double-digit sales growth of 44.84% over the next few years, PNI is expected to deliver an excellent earnings growth of 33.43%. It appears that PNI’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 high double-digit return on equity of 42.76%. PNI 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 PNI? I recommend researching its fundamentals 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.
