3 Growth Stocks To Make You The Millionaire Next Door: October Edition

Stocks to buy

Threats of a recession have risen since July. Oil prices have reached beyond $90 per barrel, interest rates have risen to levels not witnessed since 2007, and during this period, the markets–Dow, S&P 500, and Nasdaq Composite–have all experienced a decline of approximately 6%. These factors affecting growth stocks should not be overlooked.

As the 10-year Treasury note’s yield rose, it started a chain reaction, leading to higher mortgage, auto loans, and credit card debt expenses. According to Goldman, growth will slow to a 0.7% annual rate in the final three months of this year. The slowdown means that with the current economic state, consumers (who make up 70% of the economy) will spend much less.

This makes it the perfect time to hunker down and weather the storm with some ‘make-me-a-millionaire’ growth stocks.

Block (SQ)

Block logo over a background with former square logo. SQ stock.

Source: Sergei Elagin / Shutterstock

Block (NYSE:SQ) is a world-leading fintech conglomerate company with subsidiaries such as Square, Cashapp, and Tidal. Yahoo! Finance has 38 analysts predicting a 1-year price range on SQ to be between $35.00 and $110.00, with a mean of $78.43

The global fintech industry is forecasted to reach a valuation of $698.4 billion by 2030 from a 20.3% CAGR. Projected growth comes from a lack of banking infrastructure in the developing Asia-Pacific economies, which are expected to grow at a 27% CAGR. This lack of infrastructure and high growth rate gives the financial technology industry a chance to be the backbone of these economies. 

Block boasts strong financials. $5.53 billion in revenue for Q2 2023 grew at a 25.6% CAGR, $0.39 EPS grew 116.6% YoY and a 12.2% EPS FWD growth. Management demonstrates superior operational management and managing liabilities and equity through $113.32 cash from operations growing 198.8% YoY and $31.08 billion growing 7.5% YoY.

Block is positioned for growth through partnerships that expand its global customer base and improve performance. The company has partnered with the African Crypto Exchange Yellow Card to assist in cross-border payments between 16 countries in Africa. This partnership allows Block to expand its fintech infrastructure to African countries like Nigeria and Ghana, growing its global customer base. Additionally, Block enters a 4-year extension in its partnership with Brazilian credit card company Marqeta due to 25% YoY revenue growth, aided by collaboration with Block’s subsidiary Cashapp. This renewed partnership, combined with a growing Brazilian economy, ensures a sustainable revenue stream for Block over the next 4 years.

With its projected growth from analysts, strong financials, and partnerships that expand its global customer base, Block is a growth stock that prospective investors don’t want to miss out on.

Ocean Biomedical (OCEA)

Photo of test tubes and droplet with purple and reddish-orange sunset visual effect, representing biotech

Source: shutterstock.com/Romix Image

Ocean Biomedical (NASDAQ:OCEA) is a leading biopharma company that accelerates the development and commercialization of scientifically compelling assets from research universities and medical centers. The company is currently developing five promising discoveries that have the potential to achieve life-changing outcomes in lung cancer, brain cancer, pulmonary fibrosis, and the prevention and treatment of malaria. 

Although OCEA stock declined to $2.34 from $4.51 six months ago, analysts still label it as a stable long-term investment with growth potential. The global biopharmaceuticals market size was valued at $333.09 billion in 2022 and is expected to grow at a 12.5% CAGR to  $856.1 billion by 2030. This is surely one of those growth stocks you should pay attention to.

Financials are faring well, with net income increasing 72.16% YoY to a record high of 17.36 Million. Operating expenses declined by 74.14% to $16.12 million YoY, and total assets increased over 2000% to $2 million. 

Ocean Biomedical is making strategic moves with the Polar Multi-Strategy Master Fund to enhance its financial footing. The new Side Letter agreement introduces an $8.00 per share reset price, broadening the circumstances for Polar’s financial support. Additionally, since the agreement further reinforces Ocean Biomedical’s financial standing, it potentially enables them to pursue further groundbreaking treatments in oncology, fibrosis, and infectious diseases. Notably, this agreement doesn’t result in any dilution in financials for Ocean Biomedical as no new fees or considerations were provided to Polar in connection with the Side Letter. This signifies a strategic move without compromising the company’s financial structure.

This revolutionary deal has primed OCEA for an explosion and accordingly, Yahoo! Finance reports every analyst labeling it as a “buy.” Moreover, the average analyst 12-month price target is $17.45, and OCEA stock is valued at $2.34, displaying undervalued growth potential. 

The Biomedical sector shows no signs of slowing down, and OCEA is already ahead of the competition through its innovative strategies and robust financials to create successful drugs in the future. 

VCI Global (VCIG)

A group of analysts reviewing data on a computer screen

VCI Global (NASDAQ:VCIG) is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The company provides business and boardroom strategy services, investor relations services, and technology consultancy services. Its one of those key growth stocks.

VCIG stock is down around 13.41% in the past 6 months, a strong indicator for growth as VCIG IPO’d in April 2023. The global management consulting services market will grow from $976.3 billion in 2022 to $1,022.2 billion in 2023 at a CAGR of more than 4%

Financials are faring extremely well, with revenue for Q1 2023 being RM44.5 million ($9.5 million), a staggering 108.0% YoY increase, and Business strategy consultancy fees reaching  RM20.8 million ($4.5 million), and saw an 83.0% YoY increase. Moreover, Technology development, solutions, and consultancy pulled in RM19.7 million ($4.2 million), doubling with a 104.3% YoY increase, and an impressive other services revenue saw RM3.9 million ($0.8 million), which was a Tenfold increase.

VCI Global’s clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries, even working with very large companies such as Microsoft and OpenAI. Dato’ Victor Hoo, Chief Executive Officer of VCI Global commented, “We are very pleased with our results and progress now that we are a publicly traded company…VCI Global demonstrated strong growth in our business strategy consultancy and technology solutions segments, and we are optimistic regarding the remainder of 2023 and beyond.” It is always important for a CEO to be optimistic in their own company, and strong growth in such a competitive industry means VCI Global is truly special. 

This newfound success has primed VCIG for an explosion and the stock is poised for undervalued growth potential. The consulting sector shows no signs of slowing down, and VCIG is already ahead of the competition through its contracts with big companies and robust financials. This makes it one of those growth stocks to consider.

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.