Just released: our top 3 stocks to consider buying in October [PREMIUM PICKS]

Premium content from Motley Fool Hidden Winners UK

Our monthly Best Buys are now designed to highlight three of our team’s favorite, most timely Buys from our growing list of small-cap recommendations, to help Foles build their stock portfolio.

Why we love it: “Tristel (LSE: TSTL), is an innovative healthcare firm based in Cambridge. Its unique disinfectant products are high-margin, fast-shipping, and cost-effective. The recent regulatory approval of its DUO ultrasound product in the US has seen it enter the world’s largest ultrasound market – a significant opportunity that has been a long time in the making. It is encouraging that it is already on board with a growing number of US hospital clients.“The company has also received regulatory approval in Canada for advanced sterilization ultrasound probes, strengthening its growth prospects in North America. We hope that Tristel can build on its recent progress and eventually take a position as a global market leader. The opportunity for investors in this company is that growth Tristel’s top line is growing fast and its profitability is increasing as the benefits from the North American product rollout come in large numbers.”

Why we love you now: In its most recent financial year, Tristel saw sales and earnings increase by 16% and 32% respectively, while generating more revenue. The company ended the year with cash and equity of £11.8m and no debt. The company is expected to receive revenue from its sales Tristel ULT again Tristel DUO products in the US – which should be a major source of sales and profit growth in the future. Earlier this year, it said its US partner, Parker Laboratories, is doubling its sales which should help initial growth. Parker thinks “impulse” he builds despite the encounter “bureaucracy to buy more than originally expected.” The company appears to be growing at its valuation, and while the recent change in CEO may introduce risk, the company expects to see further growth in the new financial year while the long-term outlook remains significant.