Robust, high-growth companies such as NetComm Wireless are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. 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.
NetComm Wireless Limited (ASX:NTC)
NetComm Wireless Limited develops and sells broadband products for telecommunications carriers, core network providers, system integrators, and government and enterprise customers worldwide. NetComm Wireless was established in 1982 and has a market cap of AUD A$174.13M, putting it in the small-cap stocks category.
NTC is expected to deliver an extremely high earnings growth over the next couple of years of 69.02%, bolstered by an equally impressive revenue growth of 90.61%. 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 positive return on equity of 18.44%. NTC ticks the boxes for high-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? Other fundamental factors you should also consider can be found here.
Corporate Travel Management Limited (ASX:CTD)
Corporate Travel Management Limited, a travel management solutions company, manages the purchase and delivery of travel services for the corporate market worldwide. Started in 1994, and now run by Jamie Pherous, the company employs 2,200 people and with the company’s market cap sitting at AUD A$2.65B, it falls under the mid-cap group.
CTD is expected to deliver an extremely high earnings growth over the next couple of years of 21.15%, driven by a positive double-digit revenue growth of 28.28% and cost-cutting initiatives. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 22.27%. CTD’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Check out its fundamental factors here.
Bionomics Limited (ASX:BNO)
Bionomics Limited, a clinical-stage biopharmaceutical company, discovers and develops novel drug candidates for the treatment of central nervous system disorders and cancer in Australia, France, and the United States. Bionomics was established in 1998 and with the market cap of AUD A$258.28M, it falls under the small-cap stocks category.
BNO’s forecasted bottom line growth is an exceptional 56.20%, driven by the underlying 70.78% sales growth over the next few years. It appears that BNO’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. BNO’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 BNO as a potential investment? Have a browse through its key 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.