December Top Growth Companies
Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. Broadcom and Advanced Accelerator Applications are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.
Broadcom Limited (NASDAQ:AVGO)
Broadcom Limited designs, develops, and supplies a range of semiconductor devices worldwide. Started in 2005, and currently headed by CEO Hock Tan, the company size now stands at 15,700 people and has a market cap of USD $111.81B, putting it in the large-cap stocks category.
Extreme optimism for AVGO, as market analysts projected an outstanding earnings growth, which is expected to more than double, supported by a double-digit sales growth of 25.96%. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with high top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 34.81%. AVGO’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. Interested to learn more about AVGO? Check out its fundamental factors here.
Advanced Accelerator Applications S.A. (NASDAQ:AAAP)
Advanced Accelerator Applications S.A., a radiopharmaceutical company, develops, produces, and commercializes radiolabeled pharmaceuticals and diagnostic nuclear medicines in France and internationally. Established in 2002, and currently run by Stefano Buono, the company size now stands at 563 people and with the company’s market capitalisation at USD $3.61B, we can put it in the mid-cap stocks category.
AAAP’s projected future profit growth is a robust 20.92%, 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. AAAP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper.
Should you add AAAP to your portfolio? Have a browse through its key fundamentals here.
Ribbon Communications Inc. (NASDAQ:RBBN)
Ribbon Communications Inc. provides networked solutions worldwide. Founded in 1997, and now led by CEO Raymond Dolan, the company now has 1,152 employees and with the stock’s market cap sitting at USD $768.97M, it comes under the small-cap stocks category.
RBBN is expected to deliver an impressive triple-digit top-line growth over the next couple of years, according to market analysts. Furthermore, the equally impressive growth in operating cash flows indicates that a large portion of this revenue increase is high-quality, day-to-day cash generated by the business, rather than one-offs. The market’s bullish sentiment on RBBN’s capacity to grow at such high rates makes it an interesting stock to dig into deeper. Want to know more about RBBN? 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.
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.
