Up 500% in 5 years! I’m betting this red-hot growth stock still has explosive potential

Recently, I decided to diversify my investment portfolio by purchasing a high-growth stock listed on AIM instead of my usual FTSE 100 dividend stocks. The company I chose, Warpaint London, has proven to be a smart choice as it continues to drive my portfolio upwards.

Despite my lack of knowledge about the cosmetics industry, I recognized that Warpaint’s consistent increase in earnings guidance, strong cash reserves, lack of debt, and dividend payments were positive indicators of its potential for growth. This, along with the fact that its shares were performing well, convinced me to take the plunge and invest in the company.

Warpaint’s main brands, W7 and Technic, are not only popular in the UK but also have a presence in the US, Europe, and China through various distribution channels. The company’s recent financial performance has been impressive, with record profits and significant growth in all geographic regions.

While the stock’s trailing yield may seem modest at 1.53%, I believe that its progressive potential is undervalued. Since investing in Warpaint, I have seen a 40.96% increase in my investment, and I am optimistic about its future prospects.

The company’s recent share issuance to raise funds for future growth has not deterred existing shareholders, as the Warpaint share price has seen substantial gains over the past year. Despite being in a competitive industry with potential challenges ahead, such as changing fashion trends and global trade issues, I remain confident in Warpaint’s ability to continue its growth trajectory.

Overall, I am pleased with my investment in Warpaint and plan to increase my holdings in the company as opportunities arise. As I continue to explore potential growth stocks, I am excited about the possibilities that lie ahead, just like Warpaint’s promising future.