Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. Collagen Solutions and Arbuthnot Banking Group are examples of many potential outperformers that analysts are bullish on. 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.
Collagen Solutions plc (AIM:COS)
Collagen Solutions plc develops, manufactures, and supplies medical grade collagen components and biomaterials for use in regenerative medicines, medical devices, and in-vitro diagnostics in Europe, the Middle East, Africa, North America, and Asia. Started in 2013, and headed by CEO Jamal Rushdy, the company now has 41 employees and with the market cap of GBP £8.60M, it falls under the small-cap stocks category.
Driven by the exceptional 94.94% sales growth over the next few years, COS is expected to deliver an excellent earnings growth of 68.86%. 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. Moreover, the 96.82% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. COS ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
Arbuthnot Banking Group PLC (AIM:ARBB)
Arbuthnot Banking Group PLC, together with its subsidiaries, provides private and commercial banking products and services in the United Kingdom. Formed in 1833, and now run by Henry Angest, the company size now stands at 287 people and with the company’s market cap sitting at GBP £205.47M, it falls under the small-cap stocks category.
ARBB’s forecasted bottom line growth is an exceptional 50.88%, driven by the underlying 70.59% 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 7.03%. ARBB’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Take a look at its other fundamentals here.
Mi-Pay Group plc (AIM:MPAY)
Mi-Pay Group plc engages in assessing, managing, and mitigating fraud risks in the cardholder-not-present payment solutions market in the United Kingdom, Europe, and internationally. The company size now stands at 40 people and with the stock’s market cap sitting at GBP £4.99M, it comes under the small-cap group.
MPAY’s projected future profit growth is an exceptional triple-digit, with an underlying 70.38% 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. MPAY’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about MPAY? 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.