The stock market is recovering from the slump of 2022, and many growth stocks are trading at attractive valuations. Growth stocks are those that have a strong history of improvement in business metrics such as sales or earnings, and are expected to continue to outperform in the future. Here are some of the top growth stocks for October 2023, based on their value, growth, and momentum.
Reata Pharmaceuticals: A Leader in Rare Diseases
Reata Pharmaceuticals Inc. (RETA) is a biopharmaceutical company that develops novel therapies for rare and life-threatening diseases. The company’s lead product candidate, bardoxolone methyl, is in late-stage clinical trials for several indications, including chronic kidney disease, pulmonary arterial hypertension, and Alport syndrome. Bardoxolone methyl has the potential to be the first approved treatment for these diseases, which have high unmet medical needs and limited options.
Reata Pharmaceuticals is one of the fastest-growing growth stocks, with a projected earnings growth rate of 439% for 2023. The company also has a strong pipeline of other candidates, such as omaveloxolone, which is in phase 3 trials for Friedreich’s ataxia, a rare neurological disorder. Reata Pharmaceuticals has a market capitalization of $8.7 billion and a 12-month trailing price-to-earnings (P/E) ratio of 18.9, which is below the industry average of 25.6.
NVIDIA: A Powerhouse in Artificial Intelligence
NVIDIA Corp. (NVDA) is a leading provider of graphics processing units (GPUs) and artificial intelligence (AI) platforms. The company’s GPUs are used for gaming, professional visualization, data center, and automotive applications. The company’s AI platforms are used for deep learning, computer vision, natural language processing, and self-driving cars. NVIDIA also offers software, cloud services, and developer tools to support its hardware products.
NVIDIA is one of the most valuable growth stocks, with a market capitalization of $1.1 trillion and a 12-month trailing P/E ratio of 87.9, which reflects its premium position in the market. The company has a projected earnings growth rate of 50% for 2023, driven by strong demand for its products across various sectors. NVIDIA also pays a quarterly dividend of $0.16 per share, which yields 0.06%.
Weatherford International: A Turnaround Story in Oil and Gas
Weatherford International PLC (WFT) is a global oilfield service company that provides equipment and services for drilling, completion, production, and intervention of oil and gas wells. The company operates in over 80 countries and has a diversified portfolio of products and technologies. Weatherford International has been undergoing a major restructuring and transformation program since 2022, when it emerged from Chapter 11 bankruptcy protection. The company has been focusing on reducing its debt, improving its profitability, and enhancing its operational efficiency.
Weatherford International is one of the most momentum-driven growth stocks, with a share price increase of 537% in the last year. The company has a market capitalization of $4.3 billion and a 12-month trailing P/E ratio of 3.4, which is well below the industry average of 17.9. The company has a projected earnings growth rate of 233% for 2023, as it benefits from the recovery of the oil and gas industry and its own strategic initiatives.
These are some of the top growth stocks for October 2023, based on their value, growth, and momentum. Investors looking for high-potential returns and long-term growth prospects may want to consider adding these stocks to their portfolios.