3 Australian Growth Stocks With Strong Earnings Outlooks

Services activity in the US is currently strong, which keeps attention on companies that can grow earnings even if conditions elsewhere are mixed. That is where the Healthy high growth potential screener comes in. It filters for stocks that analysts expect to grow earnings over the next 3 years while keeping finances in check. This article highlights 3 of the strongest candidates from that screener.

The stocks covered below are just a sample. The full screen surfaced 91 more companies that also align with this healthy high growth potential theme but are not discussed in this article. To identify and analyze the ideas that best fit your own criteria, head straight to the Healthy high growth potential screener.

Mesoblast (ASX:MSB)

Overview: Mesoblast is a biotech company focused on developing regenerative cell therapies, with its lead product Remestemcel L in late stage trials for severe inflammatory diseases, chronic heart failure and chronic low back pain. These mesenchymal lineage cell programs are central to why Mesoblast appears in the Healthy high growth potential screener, as they are the projects analysts expect to drive future earnings.

Operations: Mesoblast currently generates about $65 million in revenue from developing its cell technology platform for commercialization.

Market Cap: A$3.07 billion

Mesoblast gives you exposure to late stage cell therapies that analysts expect to translate into earnings growth, supported by Phase III programs in steroid refractory graft versus host disease, inflammatory bowel disease, chronic heart failure and chronic low back pain. Forecasts for revenue and earnings growth are positive, and recent completion of patient treatment in the pivotal Phase III chronic low back pain trial in mid 2026 indicates the pipeline is progressing. The flip side is meaningful risk around clinical outcomes, timelines and funding, especially while the company is still loss making and carries external debt. For investors comfortable with biotech risk, the combination of high growth expectations and active late stage trials makes Mesoblast a stock worth watching more closely.

Mesoblast’s late stage cell therapy pipeline could reshape its earnings profile, and analyst expectations may still be only part of the story. Get the full picture with the analyst forecasts for Mesoblast

Build your own high growth shortlist

Mesoblast and the other stocks in this article all came from a single Simply Wall St screen, but your best ideas will come from filters tailored to you. Use our flexible Screener to combine growth, valuation and balance sheet strength in one place, or start with any of our curated Investing Ideas.

Westgold Resources (ASX:WGX)

Overview: Westgold Resources is an Australian gold producer focused on its Murchison and Southern Goldfields operations in Western Australia, where active mining and exploration underpin the earnings growth profile that places the company in the Healthy high growth potential screener.

Operations: Westgold Resources generates about A$2.0b in revenue, with roughly A$1.3b from Murchison and A$691 million from Southern Goldfields, all from Australia.

Market Cap: A$5.9b

Westgold Resources is worth a closer look if you want direct exposure to growing gold production backed by meaningful scale. The Murchison and Southern Goldfields hubs, now supported by the new Fletcher reserve and the Cue Expansion Plan, are central to analysts’ expectations for earnings growth and margin improvement over the next few years. Integration of the Karora assets, mine upgrades and cost control aims to turn this production base into higher free cash flow, while a debt free balance sheet with hundreds of millions in liquidity provides room to fund projects and handle gold price swings. The catch is that lower grade ore, cost inflation and integration risks could quickly pressure margins if execution slips.

Westgold Resources is increasing production on a debt free balance sheet, which many investors may not have fully priced in. Get the full story and pressure points in the analysis report for Westgold Resources

Lynas Rare Earths (ASX:LYC)

Overview: Lynas Rare Earths is a rare earths miner and processor that supplies neodymium and praseodymium oxides and other rare earth materials from its Mt Weld mine in Western Australia and downstream plants in Kalgoorlie and Malaysia. These are key inputs for high performance magnets used in electric vehicles and renewable energy equipment and are central to its inclusion in the Healthy high growth potential screener.

Operations: Lynas Rare Earths generates about A$716 million in revenue from its Rare Earth Operations segment.

Market Cap: A$16.3 billion

Lynas Rare Earths provides direct exposure to rare earth oxides used in EV motors and wind turbines. Analysts expect earnings and revenue growth well ahead of the Australian market as Mt Weld, Kalgoorlie and Gebeng continue to support supply. Improving net profit margins and an expected 19.4% ROE in 3 years are cited as indicators that the business may convert that growth into stronger profitability. Government interest in non Chinese supply is also noted as adding an additional layer of demand visibility. Key considerations include a reliance on external borrowing, a premium valuation and a narrow product mix, which make execution, pricing and policy risks more important to monitor.

For Lynas Rare Earths, the real story is how rare earth exposure, margin trends and policy support all intersect. See how these forces play through in the analysis report for Lynas Rare Earths

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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