Looking to add potential meaningful upside to your portfolio, but unsure where to start? Stocks such as Wey Education and Haydale Graphene Industries are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Wey Education Plc (AIM:WEY)
Wey Education plc operates in the educational sector in the United Kingdom. Established in 2007, and currently run by Jacqueline Daniell, the company now has 37 employees and with the market cap of GBP £32.23M, it falls under the small-cap stocks category.
WEY’s forecasted bottom line growth is an exceptional triple-digit, driven by underlying sales, which is expected to more than double, over the next few years. It appears that WEY’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. WEY’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about WEY? Other fundamental factors you should also consider can be found here.
Haydale Graphene Industries plc (AIM:HAYD)
Haydale Graphene Industries plc, through its subsidiaries, sources, handles, functionalises, and processes nanomaterials with a suite of prototyping and analytical equipment in the United kingdom, rest of Europe, North America, and internationally. Formed in 2010, and currently run by Raymond Gibbs, the company size now stands at 70 people and with the company’s market capitalisation at GBP £33.61M, we can put it in the small-cap stocks category.
An outstanding 92.18% earnings growth is forecasted for HAYD, driven by strong underlying 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. HAYD’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. Thinking of investing in HAYD? Take a look at its other fundamentals here.
Eckoh plc (AIM:ECK)
Eckoh plc, together with its subsidiaries, provides secure payment products and customer contact solutions for customer contact centers in the United Kingdom, the United States, and internationally. Founded in 1997, and currently lead by Nicholas Philpot, the company size now stands at 273 people and with the stock’s market cap sitting at GBP £128.48M, it comes under the small-cap stocks category.
ECK is expected to deliver a triple-digit high earnings growth over the next couple of years, driven by a positive double-digit revenue growth of 21.68% and cost-cutting initiatives. 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 ECK, it does not appear extreme. Moreover, the substantial growth of over 100% 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. ECK ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in ECK? 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.