Most investors find it challenging to find companies with prospective double-digit growth rates that are also financially robust. These hidden gems also add meaningful upside to a portfolio, should the companies meet expectations. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
Protagonist Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing peptide-based chemical entities to address various unmet medical needs. Formed in 2006, and currently lead by Dinesh Patel, the company currently employs 49 people and with the stock’s market cap sitting at USD $378.26M, it comes under the small-cap stocks category.
PTGX’s projected future profit growth is a robust 40.01%, with an underlying triple-digit growth from its revenues expected over the upcoming 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. Furthermore, the 10.48% growth in operating cash flows indicates that a good portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. PTGX’s bullish prospects make it an interesting stock to invest more time to understand how it can add value to your portfolio. A potential addition to your portfolio? I recommend researching its fundamentals here.
Viper Energy Partners LP (NASDAQ:VNOM)
Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. Viper Energy Partners was founded in 2013 and with the market cap of USD $2.51B, it falls under the mid-cap category.
Extreme optimism for VNOM, as market analysts projected an outstanding earnings growth, which is expected to more than double, supported by an equally strong sales growth of 89.89%. 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 19.90%. VNOM 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 VNOM? Check out its fundamental factors here.
ShotSpotter, Inc. (NASDAQ:SSTI)
ShotSpotter, Inc. provides software-as-a-service based gunshot detection solutions for law enforcement officials and security personnel worldwide. Founded in 1996, and currently run by Ralph Clark, the company currently employs 73 people and with the company’s market capitalisation at USD $135.78M, we can put it in the small-cap group.
SSTI’s forecasted bottom line growth is an exceptional 62.88%, driven by the underlying 84.86% 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. Furthermore, the high growth of over 100% in operating cash flows indicates that a large portion of this earnings increase is high-quality, day-to-day cash generated by the business, rather than one-offs. SSTI’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 SSTI as a potential investment? Take a look at its other 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.