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 Xenith IP Group and Altium are expected to outperform its peers in the future. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.

Xenith IP Group Limited (ASX:XIP)

Xenith IP Group Limited provides intellectual property (IP) services and advice relating to the identification, registration, management, commercialization, and enforcement of IP rights in Australia, New Zealand, and internationally. Started in 1859, and run by CEO Craig Dower, the company size now stands at 100 people and with the market cap of AUD A$113.96M, it falls under the small-cap group.

An outstanding doubling of earnings is forecasted for XIP, driven by the underlying 56.31% sales growth over the next few years. It appears that XIP’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 positive return on equity of 10.06%. XIP’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 XIP? Have a browse through its key fundamentals here.

Altium Limited (ASX:ALU)

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. Established in 1985, and now led by CEO Aram Mirkazemi, the company provides employment to 410 people and with the market cap of AUD A$1.67B, it falls under the small-cap category.

An outstanding 50.80% earnings growth is forecasted for ALU, driven by an underlying sales growth of 34.30% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 32.38%. ALU’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering ALU as a potential investment? Check out its fundamental factors here.

Ramsay Health Care Limited (ASX:RHC)

Ramsay Health Care Limited provides health care services to public and private patients. Formed in 1964, and headed by CEO Craig McNally, the company size now stands at 60,000 people and with the market cap of AUD A$13.66B, it falls under the large-cap group.