Robust, high-growth companies such as Senex Energy 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. 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.
Senex Energy Limited (ASX:SXY)
Senex Energy Limited explores, develops, and produces oil and gas resources in Australia. The company now has 137 employees and with the stock’s market cap sitting at AUD A$651.27M, it comes under the small-cap group.
SXY is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by a significant revenue which is expected to more than double. 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 positive return on equity of 6.16%. SXY’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 SXY? Check out its fundamental factors here. ASX:SXY Future Profit May 16th 18
Avanco Resources Limited (ASX:AVB)
Avanco Resources Limited operates as a mineral producing company in Brazil. The company provides employment to 141 people and with the stock’s market cap sitting at AUD A$417.83M, it comes under the small-cap group.
AVB’s projected future profit growth is an exceptional 74.90%, with an underlying 40.62% growth from its revenues expected over the upcoming years. 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 high top-line expansion. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.64%. AVB ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering AVB as a potential investment? Have a browse through its key fundamentals here. ASX:AVB Future Profit May 16th 18
Westgold Resources Limited (ASX:WGX)
Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets in Western Australia. Started in 1987, and currently headed by CEO Peter Cook, the company currently employs 371 people and with the market cap of AUD A$571.85M, it falls under the small-cap group.
WGX’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 41.07% 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 WGX, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 21.51%. WGX’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about WGX? Have a browse through its key fundamentals here. ASX:WGX Future Profit May 16th 18
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.
The easiest way to discover new investment ideas
Save hours of research when discovering your next investment with Simply Wall St. Looking for companies potentially undervalued based on their future cash flows? Or maybe you’re looking for sustainable dividend payers or high growth potential stocks. Customise your search to easily find new investment opportunities that match your investment goals. And the best thing about it? It’s FREE. Click here to learn more.
This post was originally published on *this site*