High growth companies such as Hunting and XP Power has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. 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.
Hunting plc (LSE:HTG)
Hunting PLC manufactures, supplies, and distributes products that enable the extraction of oil and gas to upstream oil and gas companies worldwide. Formed in 1874, and currently headed by CEO Arthur Johnson, the company provides employment to 2,359 people and with the company’s market cap sitting at GBP £1.02B, it falls under the small-cap group.
Driven by the exceptional 61.34% sales growth over the next few years, HTG is expected to deliver an excellent earnings growth of 58.74%. 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 4.78%. HTG’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering HTG as a potential investment? Check out its fundamental factors here.
XP Power Limited (LSE:XPP)
XP Power Limited, an investment holding company, provides power supply solutions in Europe, North America, and Asia. XP Power was formed in 1988 and with the company’s market cap sitting at GBP £685.48M, it falls under the small-cap category.
XPP is expected to deliver an extremely high earnings growth over the next couple of years of 13.89%, driven by a positive double-digit revenue growth of 25.21% and cost-cutting initiatives. It appears that XPP’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 high double-digit return on equity of 22.78%. XPP ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? I recommend researching its fundamentals here.
Secure Trust Bank Plc (LSE:STB)
Secure Trust Bank PLC provides retail banking products and services in the United Kingdom. Established in 1954, and currently lead by Paul Lynam, the company size now stands at 726 people and with the stock’s market cap sitting at GBP £350.11M, it comes under the small-cap group.
STB is expected to deliver a buoyant earnings growth over the next couple of years of 29.66%, bolstered by an equally impressive revenue growth of 93.26%. It appears that STB’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 17.18%. STB’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 STB as a potential investment? I recommend researching its fundamentals 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.