In this article, we discuss the 10 stocks that tripled in 2021. If you want to skip our detailed analysis of these stocks, go directly to the 5 Stocks that Tripled in 2021.
2021 has been a topsy-turvy year for the market characterized by the highs of the post-pandemic economy and the lows of inflation that have repeatedly threatened to reverse the recovery tide. Even though the Gross Domestic Product (GDP) growth rate slowed down in the third quarter from a record high of 6.7% in the second quarter, most economic indicators are still positive. News platform CNN reports that industrial output in the United States is at a two-year high, corporate profits are also at record levels, and most businesses are passing supply chain costs to customers without affecting sales.
So far this year, the Dow is up 17%, the S&P 500 is up 25%, and even though labor shortages have hit the biggest firms in the world, it seems like the workers have the upper hand with respect to changes to pay structures, as indicated by union talks at companies like Amazon. Market experts say that starting bonuses and competition with regards to higher salaries has ignited a mini-revolution within the industry that will be hard to stop as employees readily quit lower paying jobs for higher paying ones.
Investors who want to position their portfolios with respect to these new developments should check out some of the equities that have managed to beat market expectations with regards to growth in the past eleven months. Some of the stocks that registered noteworthy gains this year include Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked based on their year-to-date (YTD) gains. The exact YTD gain is discussed alongside analyst ratings and business fundamentals of the companies to provide readers with some context for their investment choices.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Luis Louro / shutterstock.com
Stocks that Tripled in 2021
10. Signet Jewelers Limited (NYSE:SIG)
Number of Hedge Fund Holders: 33
Year-To-Date Gain: 300%
Signet Jewelers Limited (NYSE:SIG) is a specialty store that retails diamonds, watches, and other luxury products. The company recently announced that it would be acquiring Diamond Direct, a jewelry retail business, for $490 million. The deal in this regard will close by the fourth fiscal quarter of 2022.
Wells Fargo analyst Ike Boruchow recently maintained an Overweight rating on Signet Jewelers Limited (NYSE:SIG) stock and raised the price target to $120 from $100, noting that the purchase of Diamond Direct would add to the existing revenue of the company.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Signet Jewelers Limited (NYSE:SIG) with 5.2 million shares worth more than $412 million.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Signet Jewelers Limited (NYSE:SIG) is one of the stocks on the radar of elite investors.
In its Q3 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Signet Jewelers Limited (NYSE:SIG) was one of them. Here is what the fund said:
“We also saw Signet Jewelers (SIG) start to deliver improved performance during the quarter and believe their initiatives on closing unprofitable stores, expanding new Omni-channel capabilities, and launching new product offerings should begin to drive an improvement in their operations over the coming quarters. Historically, Signet’s stock price has performed very well coming out of an economic downturn. With the company valuation multiples near 2009 lows, it wouldn’t take much to see Signet’s share price double during the ongoing economic recovery. While we are highlighting the consumer space, we also wanted to mention a new investment, Chicos FAS, Inc. (CHS). The investment opportunity reminds us a lot of Bed Bath and GameStop earlier this year: a new CEO who is executing well on a new transformation plan, closing unprofitable stores, significantly streamlining and realigning their operations, and enhancing new product for their Chicos, White House Black Market, and Soma brands. Chicos has an asset-rich balance sheet, nearly $1.4B in total assets. The company’s real estate assets (land and buildings) combined with the cash on the balance sheet are significantly higher than the company’s current equity market capitalization! Over the next couple of years, the company has the potential to return to a $2B+ revenue base, which would support $100M in free cash flow. We believe a successful turnaround over the next couple of years has the potential to drive the share price 5-10x higher than current levels.”
9. Tecnoglass Inc. (NASDAQ:TGLS)
Number of Hedge Fund Holders: 12
Year-To-Date Gain: 384%
Tecnoglass Inc. (NASDAQ:TGLS) markets building products. The company recently posted earnings for the third quarter, reporting earnings per share of $0.45, beating estimates by $0.10. The revenue over the period was $130 million, up 26% year-on-year.
On November 9, investment advisory B Riley upgraded Tecnoglass Inc. (NASDAQ:TGLS) stock to Buy from Neutral and raised the price target to $37 from $25, citing market share gain and strong demand as some of the reasons behind the upgrade.
At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $58.7 million in Tecnoglass Inc. (NASDAQ:TGLS), up from 11 in the preceding quarter worth $58.5 million.
8. SM Energy Company (NYSE:SM)
Number of Hedge Fund Holders: 24
Year-To-Date Gain: 396%
SM Energy Company (NYSE:SM) is a Colorado-based independent energy company. The stock has benefited from a record surge in oil prices over the past few weeks as demand rises amid winters and the approach of the holiday season.
RBC Capital analyst Scott Hanold has a Sector Perform rating on SM Energy Company (NYSE:SM) stock with a price target of $44. In an investor note penned recently, the analyst said the firm had an “unconventional” resource development strategy that was clouding outlook.
At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $321 million in SM Energy Company (NYSE:SM), down from 25 in the preceding quarter worth $260 million.
7. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 23
Year-To-Date Gain: 404%
Upstart Holdings, Inc. (NASDAQ:UPST) owns and runs a cloud-based lending platform that uses artificial intelligence technology. The company posted earnings for the third quarter on November 9, reporting earnings per share of $0.60, beating estimates by $0.27. The revenue over the period was $228 million, smashing expectations by $13 million.
Upstart Holdings, Inc. (NASDAQ:UPST) stock has rallied this year amid increased interest in digital banking. The CEO of the firm, Dave Girouard, said earlier this year that the company expected hundreds of banks and credit unions to operate on the Upstart platform in the coming months.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Point is a leading shareholder in Upstart Holdings, Inc. (NASDAQ:UPST) with 12.4 million shares worth more than $3.9 billion.
In its Q2 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:
“During the quarter, we purchased Upstart Holdings Inc. Upstart is an artificial intelligence (AI) and cloud-based lending platform. The company uses AI models to underwrite superior loans with lower interest rates, lower default rates, higher approval rates, and increased underwriting automation. Consumers can access Upstart-powered loans through its banking partners’ websites; however, most of its loans are underwritten on Upstart.com. Upstart has a fee-based revenue model and retains only a small portion of the loans, while the majority of the loans end up on the balance sheets of its partner banks or are sold into the capital markets. We believe Upstart’s technology is superior to the FICO score, which is ubiquitous within the consumer credit markets. With an excellent product and a large total addressable market, we believe that Upstart’s prospects are bright.”
6. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Year-To-Date Gain: 410%
Lucid Group, Inc. (NASDAQ: LCID) makes and sells electric vehicles. The stock has soared in the past few days after the company presented an update on an EV production plan, revealing that reservations for a model vehicle had climbed to 17,000, up from 13,000 at the end of September, representing units worth $1.3 billion in value.
Lucid Group, Inc. (NASDAQ:LCID) plans to ramp up production at a facility in Arizona and is confident of making 22,000 units at the facility before the end of 2022. Analysts and investors have reacted to the news positively.
At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $432 million in Lucid Group, Inc. (NASDAQ:LCID).
In addition to Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Lucid Group, Inc. (NASDAQ:LCID) is one of the stocks attracting the attention of hedge funds.
Click to continue reading and see 5 Stocks that Tripled in 2021.
Suggested Articles:
- 15 Best Financial Stocks to Buy Now
- Reddit’s WallStreetBets is Buying these 10 Stocks for Post-Earnings Gains
- 10 Stocks Cathie Wood Is Selling
Disclosure. None. 10 Stocks that Tripled in 2021 is originally published on Insider Monkey.
