Yahoo Finance Growth Stocks To Watch Out For In June
Investors tend to look for stocks that have a strong future outlook. Why invest in something that will grow slower than the rest of the market? In terms of profitability and returns, stocks such as New Oriental Education & Technology Group and Sunlands Online Education Group are expected to outperform its peers in the future. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
New Oriental Education & Technology Group Inc. (NYSE:EDU)
New Oriental Education & Technology Group Inc. Established in 1993, and run by CEO Chenggang Zhou, the company currently employs 34,217 people and has a market cap of USD $15.44B, putting it in the large-cap category.
EDU is expected to deliver a buoyant earnings growth over the next couple of years of 31.73%, bolstered by an equally impressive revenue growth of 73.42%. 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 24.94%. EDU’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 EDU? Check out its fundamental factors here.
Sunlands Online Education Group (NYSE:STG)
Sunlands Online Education Group, through its subsidiaries, provides online education services in the People’s Republic of China. Formed in 2003, and currently run by Tongbo Liu, the company now has 9,146 employees and with the market cap of USD $1.63B, it falls under the small-cap category.
Extreme optimism for STG, as market analysts projected an outstanding earnings growth rate of 99.29% for the stock, supported by an equally strong sales. It appears that STG’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 338.75%. STG 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 STG to your portfolio? Other fundamental factors you should also consider can be found here.
Hexindai Inc. (NASDAQ:HX)
Hexindai Inc., through its subsidiaries, operates an online consumer lending marketplace connecting borrowers and investors in the People’s Republic of China. Founded in 2013, and now led by CEO Xinming Zhou, the company employs 315 people and has a market cap of USD $576.94M, putting it in the small-cap stocks category.
HX’s projected future profit growth is a robust 32.42%, 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 34.99%. HX’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 HX? Check out its fundamental factors 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.
