Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. Emblem and Aeterna Zentaris are examples of many potential outperformers that analysts are bullish on. Below I’ve put together a list of great potential investments for you to consider adding to your portfolio if growth is a dimension you would like to firm up.
Emblem Corp. (TSXV:EMC)
Emblem Corp. produces and sells medical cannabis in Canada. The company now has 42 employees and with the stock’s market cap sitting at CAD CA$185.23M, it comes under the small-cap stocks category.
EMC’s projected future profit growth is an exceptional 55.11%, with an underlying triple-digit growth from its revenues expected over the upcoming years. It appears that EMC’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 10.93%. EMC’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in EMC? Check out its fundamental factors here.
Aeterna Zentaris Inc. (TSX:AEZS)
Aeterna Zentaris Inc., a specialty biopharmaceutical company, engages in developing and commercializing novel treatments in oncology, endocrinology, and women’s health. Formed in 1991, and currently headed by CEO Michael Ward, the company size now stands at 56 people and has a market cap of CAD CA$35.35M, putting it in the small-cap stocks category.
AEZS is expected to deliver a buoyant earnings growth over the next couple of years of 36.84%, bolstered by a significant revenue which is expected to more than double. 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. AEZS’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 AEZS? Have a browse through its key fundamentals here.
Xtreme Drilling Corp. (TSX:XDC)
Xtreme Drilling Corp. provides onshore drilling services in Canada and the United States. Established in 2005, and run by CEO Matthew Porter, the company size now stands at 282 people and with the company’s market cap sitting at CAD CA$149.97M, it falls under the small-cap stocks category.
XDC is expected to deliver a triple-digit high earnings growth over the next couple of years, bolstered by an equally impressive revenue growth of 71.62%. 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 0.40%. XDC 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 XDC? 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.