10 Best Guru Stocks To Buy Now

7. Elastic N.V. (NYSE:ESTC)

Number of Hedge Fund Holders In Q2 2024: 58

Average Analyst Share Price Target: $102.14

Average Analyst Share Price Target Upside: 36%

Elastic N.V. (NYSE:ESTC) is a Dutch software company headquartered in Amsterdam. It operates in the data analysis sector of the software as a service (SaaS) market. Elastic N.V. (NYSE:ESTC)’s products enable businesses to generate insights and analyze their data, which provides them with key advantages in today’s data and computing driven world. In fact, working with data is key for training artificial intelligence software, and for Elastic N.V. (NYSE:ESTC), this means that its products are seeing greater demand as businesses seek to build their in house AI products and try to decide which data out of their repositories is needed for AI and how to extract it. Additionally, Elastic N.V. (NYSE:ESTC)’s SaaS business model makes it a high margin business with stable recurring revenue in the form of subscriptions. It also means that these metrics are baked into the firm’s hypothesis, and any disappointment on this front can create tailwinds for the stock.

Artisan Partners mentioned Elastic N.V. (NYSE:ESTC) in its Q2 2024 investor letter. Here is what the fund said:

“Elastic is a software company that specializes in search and data analysis solutions. Elastic’s search, observability and security solutions are built on the Elastic Search AI Platform, which thousands of companies use, including more than 50% of the Fortune 500. Customers use the software to gain visibility into their data, reduce mean-time-to-resolution and drive actionable outcomes. We believe the company will benefit from the rise of generative artificial intelligence (AI). It provides a differentiated offering due to the combination of a unique pricing model based on consumption, products that handle numerous data types and volumes, and an open architecture environment that offers generative AI development flexibility.”