Top Growth Stocks in January
Want to add more growth to your portfolio but not sure where to look? Companies such as Aristocrat Leisure and RedHill Education are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. 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.
Aristocrat Leisure Limited (ASX:ALL)
Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of gaming machines and systems in the Americas, Australia, New Zealand, and internationally. Established in 1984, and now led by CEO Trevor Croker, the company currently employs 3,640 people and with the market cap of AUD A$14.42B, it falls under the large-cap category.
ALL’s projected future profit growth is a robust 16.13%, with an underlying 56.85% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 45.91%. ALL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about ALL? Other fundamental factors you should also consider can be found here.
RedHill Education Limited (ASX:RDH)
RedHill Education Limited engages in the various education businesses in Australia. Established in 2006, and now run by Glenn Elith, the company provides employment to 144 people and with the market cap of AUD A$60.78M, it falls under the small-cap category.
RDH is expected to deliver an extremely high earnings growth over the next couple of years of 52.76%, bolstered by an equally impressive revenue growth of 50.96%. 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 return on equity coming in at a notable 27.70%. RDH’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in RDH? Other fundamental factors you should also consider can be found here.
Altium Limited (ASX:ALU)
Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. Started in 1985, and currently headed by CEO Aram Mirkazemi, the company size now stands at 410 people and with the market cap of AUD A$1.83B, it falls under the small-cap group.
ALU’s projected future profit growth is a robust 21.02%, with an underlying 39.71% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 32.63%. ALU’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. Thinking of investing in ALU? Have a browse through its key 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.
