Looking to enhance your portfolio with high-growth, financially-robust stocks, but not sure where you should even begin? Stocks such as Stingray Digital Group and STEP Energy Services are deemed to be superior in terms of how much they’re expected to earn and return to shareholders, according to analysts. 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.
Stingray Digital Group Inc. (TSX:RAY.A)
Stingray Digital Group Inc. provides business-to-business multi-platform music and in-store media solutions to businesses and individuals worldwide. Established in 2006, and currently lead by Eric Boyko, the company currently employs 400 people and has a market cap of CAD CA$561.60M, putting it in the small-cap stocks category.
RAY.A is expected to deliver an extremely high earnings growth over the next couple of years of 92.94%, driven by a positive double-digit revenue growth of 24.29% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.96%. RAY.A ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about RAY.A? Take a look at its other fundamentals here.
STEP Energy Services Ltd. (TSX:STEP)
STEP Energy Services Ltd. operates as an oilfield service company that provides specialized and integrated coiled tubing and fracturing solutions in Canada and the United States. Founded in 2011, and currently lead by Regan Davis, the company size now stands at 700 people and with the market cap of CAD CA$556.58M, it falls under the small-cap category.
STEP is expected to deliver a buoyant earnings growth over the next couple of years of 35.72%, bolstered by an equally impressive revenue growth. It appears that STEP’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 18.86%. STEP’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in STEP? Check out its fundamental factors here.
Aurora Cannabis Inc. (TSX:ACB)
Aurora Cannabis Inc., together with its subsidiaries, produces and distributes medical marijuana products in Canada. The company now has 171 employees and has a market cap of CAD CA$5.97B, putting it in the mid-cap stocks category.
An outstanding doubling of earnings is forecasted for ACB, driven by strong underlying sales growth over the next few years. 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. ACB ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in ACB? 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.