At the small end of the market there are a number of shares with the potential to grow significantly in the future.
Not all of these shares will ultimately deliver on their potential, but two that I’m watching very closely are listed below.
Food Revolution Group Ltd (ASX: FOD)
Food Revolution is a juice company with its eye on the massive China market. Its juice brands such as Juice Lab, Thirsty Brothers, and Bucha Shop Kombucha can be found on the shelves of supermarkets including Wesfarmers Ltd (ASX: WES) operated Coles.
In addition to this, today the company revealed that it has gained China Inspection and Quarantine Certification (CIQ) for its Fruit Farm Orange Juice products. This means that these products are now approved for sale in physical stores in China. Management will show off the products at the China International Import Expo in Shanghai next week in the hope of generating firm orders. I think it is well worth keeping an eye on its progress.
Megaport Ltd (ASX: MP1)
Megaport is a leading provider of elastic interconnection services in data centres across the world and could be a great way to gain exposure to the cloud computing boom. A growing data centre footprint and strengthening demand for its services led to the company posting an 85% increase in annual revenue in FY 2018.
Pleasingly, this strong form has continued in FY 2019. Last month the company released its first quarter update and revealed that its monthly recurring revenue grew an impressive 20% on the previous quarter to $2.4 million. This was driven by a 6% quarter on quarter rise in its data centre footprint to 234 centres, a 12% quarter on quarter increase in customer numbers to 1,161, and a 10% quarter on quarter lift in total ports to 3,026.
If you like the look of exciting shares such as Food Revolution and Megaport, then I think you'll love these shares which have been tipped as stars of the future.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.