In this article, we discuss the 11 best aggressive stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Aggressive Stocks To Buy Now.
The dominance of technology stocks at the market in recent years has minted many millionaires and billionaires. These growth investors, many of whom focus exclusively on aggressive bets, have taken a beating in the past few months as inflation fears disrupt the performance of a tech-heavy S&P 500. As investors flock to value stocks and gold to shield their portfolios from risk, an attractive buying opportunity has opened up in the growth domain. Some of the sectors that could be exploited in context of these developments include crypto, biotech, and gaming.
On the face of it, identifying winners in these sectors seems easy enough. However, since many people use the internet as their primary source of information, it is important to remember that there has been a muddying of waters with respect to growth stocks online, evidenced by the record rallies of “meme stocks” in the past few months.
Our Methodology
Here is our list of the 11 best aggressive stocks to buy now. These were picked based on their basic business fundamentals and the disrupting power of the products in their respective industries. These “aggressive” investments offer investors the chance to make higher returns than traditional growth stocks. However, they also come with greater risks attached. These and other factors impacting the individual stock are discussed in detail below.
Some of the top aggressive stocks to buy now include CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Tesla, Inc. (NASDAQ:TSLA), and Zoom Video Communications, Inc. (NASDAQ:ZM), among others discussed in detail below. These companies offer competitive and cutting-edge products and services that can weather the inflationary storm and emerge stronger on the other side.
The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Aggressive Stocks To Buy Now
11. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Fund Holders: 11
Nano Dimension Ltd. (NASDAQ:NNDM) makes and sells additive electronics. It operates from Israel. One of the premier products of the firm is the DragonFly, a digital manufacturing system. The company works closely with businesses that use electrical components in their products. 3D printing, one of the services offered by the firm, is still a breakthrough technology in many parts of the world. Although the future potential of 3D printing is visible to all who closely follow tech, the recent earnings results show that there might not be enough revenue in the area now.
However, Nano Dimension Ltd. (NASDAQ:NNDM) has been steadily building relationships in the 3D printing domain as it plans for the future. In the second quarter, the firm inked agreements with two German companies to develop new 3D printing systems.
Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Nano Dimension Ltd. (NASDAQ:NNDM) with 16 million shares worth more than $134 million.
Just like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Tesla, Inc. (NASDAQ:TSLA), and Zoom Video Communications, Inc. (NASDAQ:ZM), Nano Dimension Ltd. (NASDAQ:NNDM) is one of the stocks on the radar of growth investors.
10. GAN Limited (NASDAQ:GAN)
Number of Hedge Fund Holders: 15
GAN Limited (NASDAQ: GAN) provides internet gambling software to online casinos. It also markets online sports betting applications. The firm operates from California. In earnings results for the second quarter, posted in August, the firm reported a revenue of $34 million, up 316% year-on-year and beating estimates by $0.1 million. In October, at an investor day, the company said it plans to grow revenue to $500 million by 2026.
B Riley analyst David Bain recently reiterated a Buy rating on GAN Limited (NASDAQ: GAN) stock with a price target of $26, underlining that investors were overlooking an agreement the firm had made with Red Rock Resorts to build the online betting platform of the latter.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $76 million in GAN Limited (NASDAQ: GAN), up from 11 the preceding quarter worth $64 million.
In its Q4 2020 investor letter, Symmetry Invest, an asset management firm, highlighted a few stocks and GAN Limited (NASDAQ: GAN) was one of them. Here is what the fund said:
“We have been following GAN for a long time while it was a small AIM-listed stock. The company had gained a strong market position in New Jersey when the state opened up the market for online casinos in 2014, and also exhibited solid growth and a compelling market position in Italy. But at the same time, it was loss-making, had to constantly raise new capital and the growth was not “overwhelming”. We still spent time familiarizing ourselves with the company, as we could see that their market position in the US could become a strength in due time. The first crucial news came in mid-2018 when the PASPA rule was removed, and all states in the US were free to self-regulate sports betting and casino. This presented itself a clear opportunity for GAN, but as they still did not have a sports betting product, we bided our time. When Pennsylvania, in 2019, also allowed sports betting and casino, and we saw how Fanduel/Betfair started to gain a strong market position building on GAN’s platform, we initiated a purchase. At the time the stock was still only increasing slightly, and the financials were still not good (it takes time for leading KPIs to affect the numbers). We continued to buy in light of willingness from more states to open up, and GAN signing on more and more customers. In May 2020, GAN chose to substitute the small AIM exchange for Nasdaq in the US. As reported revenue began to rise +100% YoY and margins followed, the stock reacted strongly. The stock thus ended up rising 1.000% from mid-2018 to mid-2020. Even during 2019, one could still buy the stock for 3-8 USD (the stock was listed in the UK and in pence at the time). Today it is traded for approximately 20 USD.
GAN is therefore a great example of how you can follow a company for a long time, do your analysis, and be ready to buy in when the business model is facing the crucial inflection point.”
9. Codexis, Inc. (NASDAQ:CDXS)
Number of Hedge Fund Holders: 16
Codexis, Inc. (NASDAQ:CDXS) develops and sells biocatalysts. The company recently announced that Pfizer, one of the biggest drug firms in the world, had made purchase orders worth $29 million for delivery of enzyme products made by Codexis. Pfizer is presently working on the development of a COVID-19 pill. If Pfizer is successful, the pill could offer people an alternative to COVID-19 vaccine jabs, improving defenses against the virus.
HC Wainwright analyst Swayampakula Ramakanth recently raised the price target on Codexis, Inc. (NASDAQ:CDXS) stock to $33 from $28 and reiterated a Buy rating on the shares, noting that Pfizer order for COVID-19 pills may be a growth driver for the firm in the near-term.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $415 million in Codexis, Inc. (NASDAQ: CDXS), up from 13 in the previous quarter worth $415 million.
In its Q4 2020 investor letter, Roubaix Capital LLC, an asset management firm, highlighted a few stocks and Codexis, Inc. (NASDAQ:CDXS) was one of them. Here is what the fund said:
“The largest contributor to fourth quarter long performance was Codexis (CDXS), a truly unique investment story. The company engineers enzymes that enhance productivity of the manufacturing processes of major industries including pharmaceutical, food and other companies. The high-performance enzymes identified by Codexis enable higher levels of production, which in turn drives profits for customers. The story does not stop here. Codexis’ proprietary platform, Code Evolver, has also demonstrated early success in identifying proteins to develop novel protein and gene therapies. This adds another layer of upside optionality to the company and has validation from partnerships with Nestle and Takeda. In these instances, the company earns milestone driven incentives and royalty payments. We see Codexis’ API business generating increasing scale at the same time the pipeline around licenses and royalties has never been larger, and as a result we maintain our position.”
8. Diebold Nixdorf, Incorporated (NYSE:DBD)
Number of Hedge Fund Holders: 17
Diebold Nixdorf, Incorporated (NYSE:DBD) provides commerce solutions to finance institutions and retailers. In June, Wedbush analyst Matt Bryson initiated coverage of the stock with a Neutral rating and a price target of $14, noting that there was increased consumer interest in the automated payments solutions offered by the firm. However, the analyst also cautioned that cost-cutting measures of the firm were being offset by falling revenue.
A global semiconductor shortage and price increases across the board have hit the earnings of Diebold Nixdorf, Incorporated (NYSE:DBD) in the third quarter. On October 28, the firm posted a quarterly revenue of $958 million, down 3% year-on-year.
Among the hedge funds being tracked by Insider Monkey, California-based firm Beach Point Capital Management is a leading shareholder in Diebold Nixdorf, Incorporated (NYSE:DBD) with 4.9 million shares worth more than $62 million.
In its Q4 2020 investor letter, Roubaix Capital LLC, an asset management firm, highlighted a few stocks and Diebold Nixdorf, Incorporated (NYSE:DBD) was one of them. Here is what the fund said:
“The largest detractor in the short portfolio during the fourth quarter was Diebold Nixdorf (DBD). The company’s primary business is selling automated teller machines to banks. We view the cash ecosystem as a structural share loser and several companies in this ecosystem are on our short focus list. While electronic payments continue to consistently take share, and while there was some concern about using paper money during the health crisis, DBD was able to post reasonable results. The stock has carried a low valuation as many stocks do when they have secular pressure. This low valuation allowed the stock to rally alongside the market in Q4 and we exited on our risk discipline. We will continue to monitor this stock and others in this ecosystem for opportunities to re-short when the risk-reward is more favorable.”
7. GrowGeneration Corp. (NASDAQ:GRWG)
Number of Hedge Fund Holders: 17
GrowGeneration Corp. (NASDAQ:GRWG) stock has benefited from the recent uncertainty around marijuana legalization in the United States. A bill sponsored from Democratic lawmakers to decriminalize marijuana is unlikely to pass the Senate. Even if the bill is passed, it is unclear how businesses will negotiate interstate trade of cannabis products. In this environment, the products sold by the firm, which include hydroponic equipment, could rise.
On October 15, investment advisory Craig-Hallum maintained a Buy rating on GrowGeneration Corp. (NASDAQ:GRWG) stock but lowered the price target to $35 from $55, noting the disappointing earnings results of the firm.
At the end of the second quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $126 million in GrowGeneration Corp. (NASDAQ:GRWG), down from 18 in the previous quarter worth $127 million.
6. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 26
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports and gaming company. The company has recently partnered with Polygon, a crypto firm, in order to develop solutions that will support NFT drops on the company marketplace. Previously, the company had hosted NFT drops of prominent athletes like Tom Brady. In addition to the rise of crypto, the core business of the firm – online gaming – is also witnessing explosive growth.
BTIG analyst Clark Lampen has a Neutral rating on DraftKings Inc. (NASDAQ:DKNG) stock without a price target. The analyst believes the company will remain the leader in the online sports betting market for a long time to come.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $927 million in DraftKings Inc. (NASDAQ:DKNG), down from 43 the preceding quarter worth $966 million.
Along with CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Tesla, Inc. (NASDAQ:TSLA), and Zoom Video Communications, Inc. (NASDAQ:ZM), DraftKings Inc. (NASDAQ:DKNG) is one of the stocks that elite investors are buying.
In its Q2 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and DraftKings Inc. (NASDAQ:DKNG) was one of them. Here is what the fund said:
“DraftKings is an online gaming operator. Its legacy Daily Fantasy Sports (DFS) allows users to virtually draft teams of players from professional sports leagues and potentially earn a payout based on how athletes perform. DraftKings Online Sports Betting (OSB) involves the company taking wagers or bets from customers on sporting events. The company’s third offering, Online Casino (iGaming), involves customers betting real money when playing casino games like slots and blackjack online.
DFS is legal in most states, while approximately 25% of the country’s population has access to OSB and approximately 10% has access to iGaming. Within a year, we expect approximately 40% or more of the population to have access to OSB as legalization moves rapidly.
The company reported a strong quarter, with revenues exceeding expectations by more than 30%. We think the stock underperformed due to the time period between the conclusion of March Madness and the start of the NFL season being a weaker betting period and concerns about more intense competition. Concerns around tough comps have also hindered performance of DraftKings shares. We note that monthly state data continues to be robust, showing no signs of slowing from reopening. We also believe DraftKings is increasing its potential to gain market share by moving its tech-platform to SBTech, which is a sports betting platform the company acquired as part of a SPAC deal. Legalization of sports betting by states has also been robust.”
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Disclosure. None. 11 Best Aggressive Stocks To Buy Now is originally published on Insider Monkey.
