Best Growth Stock in January

Robust, high-growth companies such as Tahoe Resources 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. 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.

Tahoe Resources Inc. (TSX:THO)

Tahoe Resources Inc., together with its subsidiaries, explores, develops, and operates mines in the Americas. Formed in 2009, and run by CEO Ronald Clayton, the company now has 2,820 employees and has a market cap of CAD CA$1.74B, putting it in the small-cap stocks category.

THO’s projected future profit growth is a robust 28.16%, with an underlying 28.49% growth from its revenues expected over the upcoming 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 6.82%. THO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Have a browse through its key fundamentals here.

TSX:THO Future Profit Jan 23rd 18
TSX:THO Future Profit Jan 23rd 18

Strad Energy Services Ltd. (TSX:SDY)

Strad Energy Services Ltd., an energy services company, provides rental equipment and matting solutions to the oil and gas and energy infrastructure sectors in Canada and internationally. Established in 2003, and now run by Andrew Pernal, the company currently employs 195 people and with the market cap of CAD CA$96.45M, it falls under the small-cap category.

Extreme optimism for SDY, as market analysts projected an outstanding earnings growth, which is expected to more than double, supported by a double-digit sales growth of 32.16%. 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 positive return on equity of 4.50%. SDY’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. Interested to learn more about SDY? I recommend researching its fundamentals here.

TSX:SDY Future Profit Jan 23rd 18
TSX:SDY Future Profit Jan 23rd 18

The Descartes Systems Group Inc (TSX:DSG)

The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. The company was established in 1981 and with the stock’s market cap sitting at CAD CA$2.79B, it comes under the mid-cap group.

DSG is expected to deliver a buoyant earnings growth over the next couple of years of 25.52%, driven by a positive double-digit revenue growth of 27.94% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.89%. DSG’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 DSG as a potential investment? Take a look at its other fundamentals here.

TSX:DSG Future Profit Jan 23rd 18
TSX:DSG Future Profit Jan 23rd 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.