Yahoo Finance Best-In-Class TSX Growth Stocks
Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. Enerflex and Avigilon are examples of many potential outperformers that analysts are bullish on. 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.
Enerflex Ltd. (TSX:EFX)
Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power equipment in Canada, the United States, and internationally. Founded in 1980, and currently headed by CEO John Goertzen, the company currently employs 2,100 people and with the stock’s market cap sitting at CAD CA$1.30B, it comes under the small-cap group.
EFX’s forecasted bottom line growth is an optimistic 26.88%, driven by the underlying sales growth of 7.81% over the next few 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 EFX, it does not appear too severe. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 9.19%. EFX ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering EFX as a potential investment? Take a look at its other fundamentals here.
Avigilon Corporation (TSX:AVO)
Avigilon Corporation designs, develops, and manufactures video analytics, network video management software and hardware, surveillance cameras, and access control solutions. Established in 2004, and now led by CEO Alexander Fernandes, the company now has 1,181 employees and with the company’s market cap sitting at CAD CA$1.20B, it falls under the small-cap group.
AVO’s projected future profit growth is a robust 28.69%, with an underlying 26.23% 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 AVO, it does not appear too severe. AVO’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in AVO? Other fundamental factors you should also consider can be found here.
SNC-Lavalin Group Inc. (TSX:SNC)
SNC-Lavalin Group Inc. provides consulting, design, engineering, construction, and operation and maintenance services worldwide. Formed in 1911, and run by CEO Neil Bruce, the company size now stands at 52,448 people and has a market cap of CAD CA$10.10B, putting it in the large-cap group.
SNC’s projected future profit growth is a robust 34.02%, with an underlying 18.36% growth from its revenues expected over the upcoming years. It appears that SNC’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 11.83%. SNC’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 SNC? 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.
