Yahoo Finance Top Growth Stocks in June
Companies such as Majestic Wine and Clinigen Group have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, high-growth stocks. 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.
Majestic Wine plc (AIM:WINE)
Majestic Wine plc, together with its subsidiaries, engages in the retailing of wines, beers, and spirits. Established in 1980, and currently headed by CEO Rowan Gormley, the company provides employment to 1,589 people and has a market cap of GBP £321.09M, putting it in the small-cap stocks category.
WINE’s forecasted bottom line growth is an optimistic 41.20%, driven by the underlying double-digit sales growth of 11.97% 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 positive return on equity of 11.62%. WINE ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in WINE? Other fundamental factors you should also consider can be found here.
Clinigen Group Plc (AIM:CLIN)
Clinigen Group plc operates as a specialty pharmaceutical and services company. Started in 2008, and currently run by Shaun Chilton, the company employs 500 people and with the market cap of GBP £1.06B, it falls under the small-cap category.
CLIN is expected to deliver a buoyant earnings growth over the next couple of years of 23.79%, driven by a positive revenue growth of 27.38% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. Moreover, the 14.37% 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. CLIN’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. Want to know more about CLIN? Other fundamental factors you should also consider can be found here.
Eckoh plc (AIM:ECK)
Eckoh plc, together with its subsidiaries, provides secure payment products and customer contact solutions for customer contact centers in the United Kingdom, the United States, and internationally. Founded in 1997, and currently run by Nicholas Philpot, the company size now stands at 273 people and with the market cap of GBP £106.53M, it falls under the small-cap stocks category.
ECK’s projected future profit growth is a robust 25.09%, with an underlying 24.19% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of ECK, it does not appear too severe. Moreover, the 30.91% 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. ECK’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
