10 Best Aggressive Growth Stocks to Buy According to Hedge Funds

4. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Revenue Growth: 31.70%

Number of Hedge Fund Investors In Q2 2024: 69

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cloud based cybersecurity products and services provider. The firm provides a diversified set of security products such as identity management, threat intelligence, and threat detection. However, despite its portfolio depth, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is the talk of town in 2024 for all the wrong reasons. Its faulty software update that led to the estimated bricking of roughly 8.5 million computers in July led to a 23% share price drop.  It has also left CrowdStrike Holdings, Inc. (NASDAQ:CRWD) exposed to a growth deceleration as opposed to the acceleration that cloud investors are on the lookout for. Not only can the firm suffer from damage lawsuits because of the fault, as evidenced by Delta Airlines’ action, but customers might leave the platform for others like SentinelOne as hinted by Wells Fargo in a recent analyst note that increased the latter’s share price target to $29 from $19 after a survey showed thatCrowdStrike Holdings, Inc. (NASDAQ:CRWD) was losing favor in the industry. Speaking at a Citi conference in September, the firm’s CFO admitted that while the future of legal actions stemming from the outage was uncertain, so far CrowdStrike Holdings, Inc. (NASDAQ:CRWD) hadn’t seen a customer lawsuit.

Before the outage unfolded, Carillon Tower Advisors had mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2024 investor letter:

“CrowdStrike Holdings, a security software provider, reported strong earnings results, driven by strength in endpoint security, cloud security, and identity protection. Revenue growth and profitability metrics exceeded investor expectations for the quarter, and the forward guidance was ahead of expectations as well. The cyber threat environment remains elevated, and it is likely that the rise of artificial intelligence will make it easier for criminals and threat actors to design and launch sophisticated attacks, increasing the need for CrowdStrike.”