To get ahead when it comes to investing you have to find companies with profits and share prices on upward trajectories over the long term. Unfortunately, that's easier said than done, but if you can identify the winners and possess the emotional intelligence to add to your holdings on the way up you can generate the genuinely blockbuster capital gains.
Below I name four fast-rising businesses either on my shopping list to buy or to go back for a second helping of given their impressive track records and exciting outlooks.
Fisher & Paykel Healthcare Ltd (ASX: FPH) is the sleep treatment and medical device business that has been delivering consistent double-digit growth rates for a long time. The stock hit $10 today and ticks all the boxes except valuation in my opinion, which is why I'll be keeping it on my June shopping list while waiting for a better price.
MNF Group Ltd (ASX: MNF) is the online voice services provider that is growing through a mix of acquisitive and organic growth. Importantly, the acquisitive growth (through bolt-on acquisitions) is being managed without ballooning debt or equity issuances. The group plans to expand its voice over internet fee-earning services into Asia over the years ahead and under the expert guidance of its CEO I would not bet against more success. The shares don't come cheap at $4.39, but are on my shopping list.
Appen Ltd (ASX: APX) is a language translation services business that last week announced it expects its EBITDA (operating income) for the full year ending June 30 2017 to be 40% to 50% above the prior year's result. This kind of growth from a globally growing tech business that has commercial partnerships with 8 of the 10 world's largest tech companies is not to be ignored. At $3.56 Appen shares look reasonably priced and could be in for a strong run ahead.
XERO FPO NZ (ASX: XRO) I actually added to my small holding in cloud-accounting and software-as-service business Xero last week. Despite the recent share price rise, I remain keen on the valuation and bullish on the startup's outlook given the growth of the cloud-accounting space globally. Xero this week announced it can now facilitate BPAY online banking payments in another example of its growing network effect. Once trading rules permit, I will be looking to buy more shares.
