With the United States labor market beginning to stabilize after the pandemic lockdowns and the Federal Reserve system tightening down on monetary policy by its decision to raise interest rates to 5.5%, the economy has a very positive outlook for the near future. The economy does not show any shows no signs of a slowdown either. Major indexes such as the Dow Jones and S&P 500 are up 6.48% and 18.02% YTD, respectively. It is no secret that these gains can be greatly attributed to the technology sector, which is currently up 44.7%.
While not all investors have been able to catch the greatest climbers in the tech sector, there are growth stocks that are still greatly undervalued. Here are three of the top growth stocks billionaires buy that we found to be at an attractive entry point for investors. That’s because of the high upside and profitability in portfolios from strategic product shifts.
WillScot Mobile Mini Holdings (WSC)
WillScot Mobile Mini Holdings (NASDAQ:WSC) leases portable, modular storage units and office spaces in the storage solutions market. A merger of two previous individual companies, WillScot is unique in that industries from construction to education can utilize its services. The portable storage solutions market is forecasted to grow at a 4.1% compound annual growth rate (CAGR) from $3,201 million in 2023 to $4,068.4 million by 2029.
WSC stock has risen 7% year-to-date, and the company saw impressive earnings for its latest quarter. Revenue of $565.47 million exceeded expectations by $31.75 million, and EPS of $0.40 outperformed by $0.10. Analysts and brokerages such as Baird and Deutsche Bank have raised target prices for WSC stock to the $55 to $56 range.
WillScot continues to release new projects that allow it to maintain its dominating position in the market. One such project is PRORACK, an innovative collapsible unit that consumers can configure into a workstation, pipe rack, tool organizer or general material storage space. It is designed to cater to all the stages seen in a project’s life and appeals to millions of consumers. Based on WillScot’s history of success, this new project will likely have the same profitable effect as past endeavors and act as a catalyst for future growth. This development, alongside the fact that many people are switching to modular storage spaces because it’s cost-effective and saves space, is guaranteed for growth in WSC stock.
WSC stock is a highly sought-after growth stock with long-term success, and its continual support from investors and strong financial performance after all of the reasons covered above will boost your portfolio.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) is a clean energy company that provides turnkey hydrogen fuel cell (HFC) solutions. HFCs are likely the cleanest way to power cars, even more so than electric cars.
In Q1 earnings, the company reported revenue of $210 million, a 49% year-over-year (YoY) increase. Its net income, however, decreased by 32%, and the company’s earnings per share (EPS) was $-0.35.
Still, Plug Power has always been a leader in its market. The growth rate for the global green hydrogen market is astronomical, with a report estimating a 55% growth rate to reach $331.98 billion by 2032 from its current valuation of $6.07 in 2023. As a leader in the market, Plug Power will benefit from this growth across many product categories. It earned a contract to supply 9,500 forklifts to Walmart and a contract to supply hydrogen fuel-cell outfit H2 Energy Europe that could bring in $500 million in 2024. These deals will provide additional revenue to reach profitability and validate the market.
Analysts are generally very bullish on PLUG stock, with estimates ranging from $7.50 to $78. Billionaires Bill Cohen and Ken Griffin, the heads of Point72 and Citadel, respectively, have also purchased significant positions in the company. Overall, Plug Power will become profitable through these current and future deals, marking the stock as a worthwhile investment for the long term.
Match Group (MTCH)
Match Group (NASDAQ:MTCH) is an internet and technology company that runs the largest portfolio of online dating services, such as Tinder and Match.com. The company has even gained interest from billionaire James Simons who bought 1.6 million shares during Q1 2023.
According to Yahoo Finance, analysts have given Match Group 55 Buy ratings since April, predicting an average 12-month price target of $55.05 and a range spanning from $38.00 to $95.00. The CAGR of the online dating market is expected to grow by 9.2% through the year 2032.
MTCH stock is up 11.42% year-to-date. Financials are faring well from the dating app Hinge. This dating service has delivered growth for Match Group by ending Q1 with over 1 million payers with roughly $25 per payer, while Match Group’s revenue per payer was $16.26.
Tinder has been leading the dating industry, and more than 50% of Match Group’s revenue is from Tinder. As Match Group develops Hinge into a powerful dating app similar to Tinder, the company can earn more than enough when the demand for Hinge rises. Moreover, MTCH’s market value may climb even taller if ongoing efforts to rebuild Tinder succeed.
MTCH stock stands out as a valuable investment that billionaires are purchasing, as its shift towards Hinge and reduced reliance on Tinder will give it more room to expand in the dating sector. MTCH stock is adequately recovering and poised for long-term growth.
On the date of publication, Michael Que did not hold (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.
