Westlake Chemical Partners and BP Midstream Partners can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Westlake Chemical Partners LP (NYSE:WLKP)
Westlake Chemical Partners LP operates, acquires, and develops ethylene production facilities and related assets in the United States. Westlake Chemical Partners is run by CEO Albert Chao. It currently has a market cap of USD $726.95M placing it in the small-cap category
An outstanding 31.70% earnings growth is forecasted for WLKP, driven by an underlying sales growth of 17.25% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 24.63%. WLKP’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about WLKP? Take a look at its other fundamentals here.
BP Midstream Partners LP (NYSE:BPMP)
BP Midstream Partners LP owns, acquires, operates, and develops pipelines and other midstream assets. BP Midstream Partners was established in 2017 and has a market cap of USD $1.85B, putting it in the small-cap stocks category.
Driven by the exceptional 54.24% sales growth over the next few years, BPMP is expected to deliver an excellent earnings growth of 60.50%. 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 high double-digit return on equity of 87.49%. BPMP’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 BPMP as a potential investment? I recommend researching its fundamentals here.
Diamondback Energy, Inc. (NASDAQ:FANG)
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Formed in 2007, and currently run by Travis Stice, the company currently employs 251 people and with the company’s market capitalisation at USD $12.68B, we can put it in the large-cap stocks category.
FANG’s projected future profit growth is a robust 22.78%, with an equally impressive underlying 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 16.99%. FANG ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering FANG as a potential investment? Have a browse through its key fundamentals here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.