Yahoo Finance Best Growth Stocks To Buy
Investors seeking to increase their exposure to growth should consider companies such as Fanhua and Glu Mobile. Analysts are generally optimistic about the future of these stocks, based on how much they’re expected to earn and return. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Fanhua Inc. (NASDAQ:FANH)
Fanhua Inc. distributes insurance products in China. Founded in 1998, and headed by CEO Chunlin Wang, the company provides employment to 3,504 people and with the stock’s market cap sitting at USD $2.16B, it comes under the mid-cap category.
FANH’s forecasted bottom line growth is an optimistic 30.99%, driven by the underlying double-digit sales growth of 46.77% 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 18.47%. FANH ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about FANH? I recommend researching its fundamentals here.
Glu Mobile Inc. (NASDAQ:GLUU)
Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. Established in 2001, and headed by CEO Nick Earl, the company now has 546 employees and has a market cap of USD $860.31M, putting it in the small-cap category.
GLUU’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 38.52% over the next few years. 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 28.22%. GLUU ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Take a look at its other fundamentals here.
Edwards Lifesciences Corporation (NYSE:EW)
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients in the United States and internationally. Formed in 1999, and now led by CEO Michael Mussallem, the company currently employs 12,200 people and with the stock’s market cap sitting at USD $32.03B, it comes under the large-cap stocks category.
An outstanding 20.13% earnings growth is forecasted for EW, driven by an underlying sales growth of 25.35% over the next few 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 27.81%. EW’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. Considering EW as a potential investment? Take a look at its other 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.
