Best Growth Stock in June
Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. GBST Holdings and Leigh Creek Energy 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.
GBST Holdings Limited (ASX:GBT)
GBST Holdings Limited provides software products for the financial service sector. Started in 1984, and currently headed by CEO Robert DeDominicis, the company now has 500 employees and has a market cap of AUD A$156.88M, putting it in the small-cap group.
Extreme optimism for GBT, as market analysts projected an outstanding earnings growth rate of 31.49% for the stock, supported by a double-digit sales growth of 14.02%. It appears that GBT’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 20.02%. GBT’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Check out its fundamental factors here.
Leigh Creek Energy Limited (ASX:LCK)
Leigh Creek Energy Limited operates as an energy company in Australia. Leigh Creek Energy is currently run by Phillip Staveley. With a current market cap of AUD A$81.10M, we can put LCK in the small-cap group
Extreme optimism for LCK, as market analysts projected an outstanding earnings growth rate of 58.98% for the stock, supported by an equally strong sales growth of 100.00%. 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. LCK’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about LCK? Other fundamental factors you should also consider can be found here.
Senex Energy Limited (ASX:SXY)
Senex Energy Limited explores, develops, and produces oil and gas resources in Australia. The company employs 137 people and with the market cap of AUD A$607.85M, it falls under the small-cap category.
An outstanding doubling of earnings is forecasted for SXY, driven by strong underlying sales growth 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 7.07%. SXY ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about SXY? Have a browse through its key fundamentals 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.
