In this article, we will be taking a look at the 10 best long term growth stocks to invest in. To skip our detailed analysis of these stocks and growth investing, you can go directly to see the 5 Best Long Term Growth Stocks To Invest In.
Growth investing can be a highly profitable investment strategy despite the fact that it involves more creative guesswork and risk since many growth stocks offer huge profits in the long run, provided an investor makes the right call at the right time. According to a Vanguard Research report published in April 2021, growth stocks outperformed US value stocks by an average of 7.8% annually over the past decade.
All the market hype goes to major names like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG). However, many institutional investors today are beginning to consider smaller companies that have the potential to expand and grow into much more profitable assets in the future as well.
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Our Methodology
We have picked growth stocks that have long-term upside potential based on strong fundamentals and innovative products and services. Most of these are relatively small companies are also the favorite choices of the elite hedge funds tracked by Insider Monkey.
Best Long Term Growth Stocks To Invest In
10. HighPeak Energy, Inc. (NASDAQ:HPK)
Number of Hedge Fund Holders: 4
HighPeak Energy, Inc. (NASDAQ:HPK) is an oil and gas exploration and production company based in Fort Worth, Texas. The company engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids reserves in the Midland Basin in West Texas. By December 2021, it had about 64,213 MBoe of proved reserves.
HighPeak Energy, Inc. (NASDAQ:HPK) is among the high-margin oil and gas exploring and mining companies investors should keep an eye on in light of the Russia-Ukraine crisis as oil and natural gas prices continue to skyrocket. The company demonstrated its rapid growth strategy in the second quarter of 2022 as its operations delivered a sequential increase in oil equivalent sales volume of over 80%, with an average of 21,995 barrels per day. The company has also recently completed a series of highly profitable acquisitions adding over 22,000 acres of land for its exploration and mining operations, such as its $335.5 million acquisition of Hannathon Petroleum LLC.
Four hedge funds were long HighPeak Energy, Inc. (NASDAQ:HPK) in the second quarter, with a total stake value of $4.8 million.
9. AdvanSix Inc. (NYSE:ASIX)
Number of Hedge Fund Holders: 16
AdvanSix Inc. (NYSE:ASIX) is a commodity chemicals company manufacturing and selling polymer resins in the US and internationally. The company offers chemicals such as caprolactam which is used to manufacture polymer resins, alongside other products such as ammonium sulfate fertilizers, among more. It is based in Parsippany, New Jersey.
Piper Sandler’s Charles Neivert holds an Overweight rating on shares of AdvanSix Inc. (NYSE:ASIX) as of October 10. The analyst also placed a $46 price target on the stock.
This August, AdvanSix Inc. (NYSE:ASIX) announced a 16% increase in its dividend, bringing the company’s quarterly dividend up to $0.145 per share. In October, it also offered its adjusted EBITDA outlook for the third quarter of 2022, standing at $31 million to $34 million. AdvanSix Inc. (NYSE:ASIX) had revenue of $583.74 million in the second quarter, up 33.37% year-over-year and beating estimates by $26.24 million.
There were 16 hedge funds long AdvanSix Inc. (NYSE:ASIX) in the second quarter, with a total stake value of $41.7 million. Bailard Inc was the largest stakeholder in the company, holding 8,911 shares worth about $286,000.
8. Jackson Financial Inc. (NYSE:JXN)
Number of Hedge Fund Holders: 19
Jackson Financial Inc. (NYSE:JXN) is a diversified financial services company primarily providing a suite of annuities to retail investors in the US. The company is based in Lansing, Michigan, and operates through its Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks segments. It offers a range of retirement income and savings products and lifetime income solutions, among more.
On September 8, Suneet Kamath at Jefferies raised his price target on shares of Jackson Financial Inc. (NYSE:JXN) from $38 to $40. The analyst also reiterated a Buy rating on the stock.
Jackson Financial Inc. (NYSE:JXN) has significant upside potential in light of the rising demand for investing in annuities alongside rising interest rates. The company’s top and bottom-line performance have improved over the last four quarters, showing a second-quarter net income of $2.9 billion and revenue of $6.52 billion. Jackson Financial Inc. (NYSE:JXN) currently has a goal of returning about $525 million to its shareholders in 2022, and in the second quarter, the company demonstrated its dedication to this by returning about $116 million to its shareholders through repurchases and dividends.
There were 19 hedge funds long Jackson Financial Inc. (NYSE:JXN) in the second quarter and 30 hedge funds long the stock in the previous quarter. Their total stake values were $186.4 million and $368.7 million, respectively.
Curreen Capital, an investment management firm, mentioned Jackson Financial Inc. (NYSE:JXN) in its third-quarter 2022 investor letter. Here’s what the firm said:
“We sold Jackson in large part because the inverted yield curve signals that a weak stock market and high volatility are likely to continue. High volatility increases Jackson’s cost of hedging the annuities that it has sold, and a weak stock market makes it difficult to sell new variable annuities. These operational headwinds make Jackson a weed. We sold at $31.11 per share.
7. Axcelis Technologies Inc. (NASDAQ:ACLS)
Number of Hedge Fund Holders: 22
Axcelis Technologies Inc. (NASDAQ:ACLS) is an information technology company working to design, manufacture, and service ion implantation and other processing equipment used in the fabrication of semiconductor chips in the US, Europe, and Asia. The company provides high energy, high current, and medium current implanters for a range of application requirements. It is based in Beverly, Massachusetts.
A Buy rating was reiterated on shares of Axcelis Technologies Inc. (NASDAQ:ACLS) by Craig Ellis at B. Riley on August 5. The analyst also raised his price target on the stock from $80 to $95.
In total, 22 hedge funds were long Axcelis Technologies Inc. (NASDAQ:ACLS) in the second quarter, and 23 hedge funds were long the stock in the previous quarter. Their total stake values were $184 million and $232 million, respectively.
6. GoPro, Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 25
GoPro, Inc. (NASDAQ:GPRO) is a consumer discretionary company working to develop and sell consumer electronics such as cameras, mountable and wearable accessories, and subscription services and software in the US and internationally. The company is based in San Mateo, California, and offers waterproof cameras under the HERO10 Black, HERO9 Black, and HERO8 Black brands, alongside the MAX brand, among more. Its subscription service under the brand name GoPro includes the Quik app, cloud storage supporting source video and photo quality, and more.
Morgan Stanley’s Erik Woodring holds a $6.1 price target on shares of GoPro, Inc. (NASDAQ:GPRO) as of October 17. The analyst also reiterated an Equal Weight rating on the stock.
GoPro, Inc. (NASDAQ:GPRO) has demonstrated significant growth since its IPO in 2014, boasting an improved subscription service with better image quality and a new subscription base. It ended the second quarter of 2022 with 1.91 million GoPro subscribers, showcasing an increase of 65% over the same period last year. The company’s subscription service is arguably its most profitable product, recording gross margins of 70% to 80%. GoPro, Inc.’s (NASDAQ:GPRO) massive subscriber base translates into annual recurring revenue of $100 million.
GoPro, Inc. (NASDAQ:GPRO) was found among the 13F holdings of 25 funds in the second quarter. Their total stake value was $125.5 million.
GoPro, Inc. (NASDAQ:GPRO), like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), is a long-term growth stock many elite hedge funds are piling into this year.
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Disclosure: None. 10 Best Long Term Growth Stocks To Invest In is originally published on Insider Monkey.
