Betting Big: 3 Growth Stocks Primed for a Breakout

Stocks to buy

Executive compensation in the United States has seen an astronomical surge over the decades. In 1965, CEOs of the nation’s largest corporations earned, on average, 20 times the salary of the typical worker. Today, this ratio has skyrocketed to 398 to 1. Top executives below CEOs have also seen strong growth in compensation. This has led to the rise of growth stocks to buy now.

To illustrate, the portion of corporate income allocated to rewarding the five highest-paid executives in large corporations has expanded dramatically from an average of 5% in 1993 to an alarming 15% today. Such generous compensation packages are instrumental in attracting top talent to executive roles, fostering innovation, and ultimately benefiting the stock market through increases in shareholder returns.

This will serve especially true for these trhee growth stocks to buy now.

Tidewater (TDW)

Source: Oil and Gas Photographer / Shutterstock.com

Tidewater (NYSE:TDW) is a petroleum service company headquartered in Houston, TX, operating a fleet of ships that allow it to carry out its services. Yahoo! Finance analysts predict a 1-year price range on ASAN between $55.00 and $90.00, with a mean of $76.00.

The Oil and Gas infrastructure industry is expected to reach $1 trillion in value from a 6% CAGR to 2030. There is still a high demand for crude oil and natural gas to fuel the power generation sector, especially in Europe and Asia. Furthermore, global oil demand is projected to increase by over 50 times the current demand level.

Tidewater boasts robust financials, with $214.9 million in Q2 2023 revenue growing at a 31.5% 1-year CAGR. Profitability has further improved evident in a 10.5% net profit margin growing 167.1% YoY. This improved profit margin is likely due to management better handling operational expenses, demonstrated through a $25.2 million FCF.

Tidewater has gained a contract and acquisition that poises it for high growth in the future. The company recently entered a $650 million contract through its subsidiary, Tidewater Midstream, with Altagas for natural gas assets. This contract will drive up the revenue for the coming quarter and has the potential to position Tidewater for future deals. Tidewater has also acquired 37 platform supply vessels from Solstad Offshore ASA, bolstering fleet strength in the future. All in all, it’s one of those growth stocks to buy now.

From its Oil and Gas infrastructure industry growth, robust financials, new fleet acquisitions, and a contract of $650 million, Tidewater is a growth stock investors do not want to miss out on.

AGBA Group (AGBA)

Source: Shutterstock

AGBA Group (NASDAQ:AGBA) is a leading financial supermarket that is a one-stop destination for financial services and healthcare products within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). AGBA has a lofty customer base of over 400,000 individuals.

AGBA stock is down -51.65% YTD and the revenue of $17.37 million has increased by 324.75%. Net income of -$10.59 million also increased by 2.81% YoY, and a net profit margin of -60.94% increased by 77.12% YoY.

The financial services market reached a value of nearly $23,328.73 billion in 2021 and is expected to grow to $33,313.50 billion in 2026 at a 7.4% CAGR. Mr. Wing-Fai Ng, Group President, stated that “AGBA will only raise capital to accelerate our growth, profitability, and competitive advantages. AGBA Group remains dedicated to delivering exceptional results and maximizing returns for our valued shareholders.”

AGBA has also just announced a standby equity purchase agreement with Williamsburg Venture Holdings (WVH) that will allow WVH to invest up to $50 million in ordinary shares of AGBA over the next 36 months. The standby equity purchase agreement with Williamsburg Venture Holdings not only adds much-needed capital to AGBA but also brings strategic advantages and provides financial flexibility to support the company’s growth and long-term success. 

Accordingly, Yahoo! Finance labels AGBA stock as having bullish patterns. Given that AGBA stock is cheaply valued at $0.74, AGBA will be at the forefront of the ever-growing financial services sector.

WiMi Hologram Cloud (WIMI)

Source: La1n/Shutterstock

WiMi Hologram Cloud (NASDAQ:WIMI) has continued to lead the way in cutting-edge technologies such as XR and digital technology for virtual people for several years based on deep technology accumulation and business practice experience. Through the research and development of advanced 3D real-time rendering, AI, and augmented reality, Wimi has created a rich application scene and new visual experience to benefit its consumers worldwide.

WIMI stock has grown 6.00% YTD. Recently, WIMI has grown due to its impressive recently released development opportunities of 5G+ applications. In the current industrial structure, the proportion of the industrial digital industry has increased from 52.9% to 81.7% and the proportion of the digital industrial industry has also increased to 64.8%. Digital technology has deeply penetrated various industries, and the traditional industries have undergone extensive and far-reaching transformations.

The VR market size is projected to reach $20.9 billion by 2025 at a 27.9% CAGR during the forecast period. This technology provides the user with a virtual environment with the help of computer hardware and software. It is reported that WiMi Hologram Cloud is equipped with an industry-leading virtual digital human interaction system and a large language model that provides visual, auditory, and language capabilities to mimic human interactions. The leadership at WiMi is planning on specifically capitalizing on the expansion of 5G, VR, and Holograms to challenge some of the biggest US companies to become the VR King. 

Accordingly, Yahoo! Finance analysts view WiMi as undervalued and with strong potential for future growth. Every analyst has rated it as a “Buy,” and Wimi through the industry-leading technology will only succumb to more growth moving forward. This makes it one of those growth stocks to buy now.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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