Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as West Fraser Timber and Imperial Oil are expected to outperform its peers in the future. 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.
West Fraser Timber Co. Ltd. (TSX:WFT)
West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. Formed in 1955, and run by CEO Edward Seraphim, the company now has 7,800 employees and with the company’s market capitalisation at CAD CA$7.09B, we can put it in the mid-cap stocks category.
An outstanding 14.06% earnings growth is forecasted for WFT, driven by an underlying sales growth of 14.43% 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 return on equity coming in at a notable 21.70%. WFT’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
Imperial Oil Limited (TSX:IMO)
Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. Founded in 1880, and now run by Richard Kruger, the company now has 5,400 employees and with the company’s market capitalisation at CAD CA$29.76B, we can put it in the large-cap stocks category.
IMO’s projected future profit growth is a robust 36.17%, with an underlying 15.99% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 6.47%. IMO 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 IMO? Check out its fundamental factors here.
Western Forest Products Inc. (TSX:WEF)
Western Forest Products Inc. operates as an integrated forest products company. Founded in 1955, and currently lead by Donald Demens, the company employs 2,078 people and with the company’s market cap sitting at CAD CA$1.08B, it falls under the small-cap stocks category.
WEF is expected to deliver a positive top-line growth of 14.53% over the next couple of years, according to market analysts. Furthermore, the 21.13% growth in operating cash flows indicates that a good portion of this revenue increase is high-quality, day-to-day cash generated by the business, rather than one-offs. The market’s bullish sentiment on WEF’s capacity to grow at such high rates makes it an interesting stock to dig into deeper. A potential addition to your portfolio? 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.