12 Best Growth Stocks Under $25

Published on July 27, 2023 at 9:47 am by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best growth stocks under $25. If you want to skip our discussion on the performance of growth stocks, head directly to 5 Best Growth Stocks Under $25.

In 1992, Fama and French explained the principles of value and growth investing styles. Value stocks have high book-to-market-value ratios, which means they have low prices relative to their intrinsic value and are perceived as undervalued due to high dividend yields. On the other hand, Fama and French described growth stocks as having low book-to-market-value ratios, indicating their potential to grow cash flows over time and generate higher returns on assets, which might not be fully reflected in their present book value. In the post-pandemic era, value investing has risen to prominence after 15 years of underperformance due to firmer inflation, higher yields, and strong economic growth. Market experts believe this signals a prolonged period of value dominance. Goldman Sachs Asset Management noted that in the past 15 years, investors have largely preferred growth investing, as it consistently outperformed until 2020. However, considering the potential for frequent style leadership shifts and long-term secular megatrends across different regions, having a balanced mix of both growth and value in strategic portfolios could be beneficial.

David Kudla, chief executive officer and chief investment strategist at Mainstay Capital Management, joined Bloomberg TV on July 7, 2023. Kudla noted that growth stocks have performed well in the first half of the year, and despite the recent spike in yields causing some concern, the outlook for the second half remains positive, especially for technology stocks like the “Magnificent Seven.” Microsoft and Apple are doing well, and while valuations for some stocks like Nvidia are high, their earnings performance is crucial. There’s a possibility of a correction for these high-flying stocks, but their long-term growth potential in the technological revolution is strong, making them different from the dot com era, added Kudla. The market leadership is also broadening, with small caps performing better in June and overall breadth in the market expanding.

After being a popular choice in the market during 2022, the value trade is now losing its charm. JPMorgan forecasted on February 27, 2023 that investors might consider going “outright underweight value versus growth” in the upcoming month or two. JPMorgan analyst Mislav Matejka wrote in a note:

“Our core view is that in the second half, market will be moving back to the recession trade, but even if the opposite scenario gains traction, value might not be the best place to be.”

Keeping this market outlook in mind, some of the best growth stocks under $25 include Coupang, Inc. (NYSE:CPNG), ZoomInfo Technologies Inc. (NYSE:ZI), and Sunrun Inc. (NASDAQ:RUN).

Our Methodology

For this list, we used a stock screener and filtered stocks with high P/E ratios (over 50) which were priced under $25 as of July 26. Then, we sorted them in descending order of market cap to access the biggest companies in that list. After that we manually selected the largest companies in growth-oriented industries such as tech, e-commerce, solar, health information services, and automobiles.

We then sorted the following growth stocks based on the hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm.

Photo by Adam Nowakowski on Unsplash

Best Growth Stocks Under $25

12. Sportradar Group AG (NASDAQ:SRAD)

Number of Hedge Fund Holders: 10

Share Price as of July 26: $15.14

P/E Ratio as of July 26: 756.75

Sportradar Group AG (NASDAQ:SRAD) offers sports data services for the sports betting and media industries worldwide. It operates under the Betradar and Sportradar Media Services brands, providing critical software, data, and content to sports leagues, betting operators, and media companies. On May 10, Sportradar Group AG (NASDAQ:SRAD) reported a Q1 GAAP EPS of €0.02 and a revenue of €207.56 million, up 23.6% on a year-over-year basis. Revenue from the U.S. segment experienced a 55% growth, and for the third consecutive quarter, it achieved positive Adjusted EBITDA. Sportradar Group AG (NASDAQ:SRAD) anticipates its fiscal 2023 revenue to range between €902.0 million and €920.0 million, indicating a growth rate of 24% to 26% compared to fiscal 2022.

According to Insider Monkey’s first quarter database, 10 hedge funds were bullish on Sportradar Group AG (NASDAQ:SRAD), compared to 9 funds in the prior quarter. Joe Milano’s Greenhouse Funds is the largest stakeholder of the company, with 3.4 million shares worth $39.8 million.

Like Coupang, Inc. (NYSE:CPNG), ZoomInfo Technologies Inc. (NYSE:ZI), and Sunrun Inc. (NASDAQ:RUN), Sportradar Group AG (NASDAQ:SRAD) is one of the best growth stocks to watch.

11. Certara, Inc. (NASDAQ:CERT)

Number of Hedge Fund Holders: 11

Share Price as of July 26: $19.18

P/E Ratio as of July 26: 213.11

Certara, Inc. (NASDAQ:CERT) offer software products and technology-enabled services for biosimulation in different stages of drug development, including drug discovery, preclinical and clinical research, regulatory submissions, and market access. The company’s biosimulation solutions aim to transform the drug development process and improve patient access to medicines. Certara, Inc. (NASDAQ:CERT) is one of the best growth stocks to watch.

On May 8, Certara, Inc. (NASDAQ:CERT) reported a Q1 non-GAAP EPS of $0.12, in-line with market estimates. The revenue increased 10.7% year-over-year to $90.3 million. However, it fell short of Wall Street estimates by $0.99 million. Revenue for full year 2023 is expected to fall between $370 million to $385 million, compared to the consensus estimate of $378.83 million. The expected adjusted diluted earnings per share for the full year are projected to lie between $0.50 to $0.55, as opposed to the consensus estimate of $0.52.

According to Insider Monkey’s first quarter database, 11 hedge funds were bullish on Certara, Inc. (NASDAQ:CERT), compared to 15 funds in the preceding quarter. Alkeon Capital Management is the largest position holder in the company.

Baron Discovery Fund made the following comment about Certara, Inc. (NASDAQ:CERT) in its Q1 2023 investor letter:

“We established a position in Certara, Inc. (NASDAQ:CERT), a leading bio-simulation company that accelerates the development of new pharmaceuticals by using its proprietary software, technology, and services to model and predict how drugs will behave in individual humans. Certara’s computer-aided mathematical modeling of biological processes and systems is used by drug developers to optimize the lengthy and expensive process of drug development, when the average time and cost to bring a new drug to market is a staggering 10 years and $2 billion, respectively. Certara helps its blue-chip customer base, spanning large biopharmaceutical to small biotechnology companies to make more timely go/no go decisions, inform appropriate clinical trial protocols, optimize dosing, and target statistically relevant patient populations, all of which are critical inputs to timely and cost-effective drug development.

The company, which generated $335 million in revenue in 2022, is a market leader, providing an integrated end-to-end platform used by over 2,300 biopharmaceutical companies and academic institutions across 70 countries. Since 2014, Certara customers have received over 90% of all of the new drug approvals by the FDA. Furthermore, 17 global regulatory authorities, including the FDA, Europe’s EMA, Health Canada, Japan’s PMDA, and China’s NMPA use Certara’s bio-simulation software to independently analyze, verify, and review regulatory submissions…” (Click here to read the full text)

10. Millicom International Cellular S.A. (NASDAQ:TIGO)

Number of Hedge Fund Holders: 12

Share Price as of July 26: $16.80

P/E Ratio as of July 26: 64.62

Millicom International Cellular S.A. (NASDAQ:TIGO) is a telecommunications company that provides cable and mobile services in Latin America and Africa. The company’s offerings include mobile data and voice services, SMS, and mobile financial services like payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. It is one of the best growth stocks to watch. On June 29, Scotiabank analyst Andres Coello maintained an Outperform rating on Millicom International Cellular S.A. (NASDAQ:TIGO) but trimmed the price target on the shares from $20.40 to $17.90.

According to Insider Monkey’s first quarter database, 12 hedge funds were bullish on Millicom International Cellular S.A. (NASDAQ:TIGO), compared to 10 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the biggest stakeholder of the company, with 1 million shares worth $19.4 million.

Longleaf Partners Global Fund made the following comment about Millicom International Cellular S.A. (NASDAQ:TIGO) in its first quarter 2023 investor letter:

“Millicom International Cellular S.A. (NASDAQ:TIGO) – Latin American wireless and cable company Millicom was also a top contributor in the quarter after being a top detractor in 2021/2022. Millicom returned almost 50% in the quarter amid news of two interested third parties. In January, rumors broke (and were later substantiated) that Apollo Global Management and former SoftBank executive Marcelo Claure were exploring a potential acquisition. Separately, French billionaire Xavier Niel, founder of French broadband Internet provider Iliad, built a 21% ownership stake over the last several months via his investment vehicle Atlas Investissement. As a long-term, large, potentially anchor holder, he took a seat on the Nomination Committee, where Southeastern also has a seat. The Nomination Committee’s primary responsibilities are to identify potential board members, propose the compensation for all directors and present proposals on the election and compensation of the statutory auditor. Niel is asking for multiple board seats as well, highlighting his active interest in the business. Millicom sells for an incredibly low multiple of discretionary cash flow before cable and fiber growth capital expenditure. We believe Millicom offers significant potential upside from today’s still overly discounted price.”

9. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS)

Number of Hedge Fund Holders: 16

Share Price as of July 26: $10.84

P/E Ratio as of July 26: 270.88

CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) offers cloud, mobile, AI, telematics, and hyperscale technologies along with applications for the property and casualty insurance industry. On May 2, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) reported a Q1 GAAP EPS of $0.00, in-line with market estimates. Revenue for the period increased 9.7% year-over-year to $204.92 million, exceeding Wall Street estimates by $1.89 million. It is one of the best growth stocks to invest in.

According to Insider Monkey’s first quarter database, 16 hedge funds were bullish on CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), compared to 13 funds in the prior quarter. David Zorub’s Parsifal Capital Management is the largest stakeholder of the company, with 3.5 million shares worth $31.3 million.

Polen Capital made the following comment about CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) in its Q4 2022 investor letter:

“CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is a provider of cloud-based software solutions to the property & casualty insurance industry with a focus on the automotive insurance ecosystem. The company created the Direct Repair Program (DRP) more than 30 years ago, a network connecting auto insurers with collision repair shops. CCC’s large platform helps drive cost savings in the expensive and time-consuming processing workflow for insurance carriers while driving revenue growth for repair shops through lead generation, scheduling, parts availability/throughput, and quality of the repair. As a result of this scale, the company has benefitted from network effects. This, in turn, has contributed to strong customer retention (70% of revenue from customers with >10-year relationship) over time. We believe CCC is an attractive holding in part due to a uniquely narrower range of outcomes with a proven track record for durable growth.”

8. ADT Inc. (NYSE:ADT)

Number of Hedge Fund Holders: 20

Share Price as of July 26: $6.46

P/E Ratio as of July 26: 215.33

ADT Inc. (NYSE:ADT) offers security, automation, and smart home solutions to both consumer and business customers. It operates in three segments – Consumer and Small Business, Commercial, and Solar. ADT Inc. (NYSE:ADT) is one of the best growth stocks to buy. On May 2, the company reported a Q1 non-GAAP EPS of $0.12, beating market estimates by $0.04. However, the revenue of $1.61 billion missed Wall Street consensus by $40 million. Morgan Stanley analyst Toni Kaplan reiterated an Equal Weight rating on ADT Inc. (NYSE:ADT) with a price target of $8 on July 12.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on ADT Inc. (NYSE:ADT), compared to 23 funds in the preceding quarter. John W. Rogers’ Ariel Investments is the leading stakeholder of the company, with 18.75 million shares worth $135.6 million.

Ariel Fund made the following comment about ADT Inc. (NYSE:ADT) in its Q1 2023 investor letter:

“Alternatively, several positions weighed on performance. Leading provider of automated security solutions ADT Inc. (NYSE:ADT) underperformed in the period. Although ADT reported solid quarterly earnings results, with revenue and EBITDA ahead of consensus as well as the solar segment returning to profitability, management provided a disappointing financial outlook for 2023. Longer-term, we believe ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, position the company to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”

7. EngageSmart, Inc. (NYSE:ESMT)

Number of Hedge Fund Holders: 23

Share Price as of July 26: $18.31

P/E Ratio as of July 26: 140.85

EngageSmart, Inc. (NYSE:ESMT) specializes in customer engagement and integrated payment solutions that are tailored to specific industries. The company operates through two segments – Enterprise Solutions and SMB Solutions. EngageSmart, Inc. (NYSE:ESMT) is one of the top growth stocks to monitor. On May 4, the company reported a Q1 GAAP EPS of $0.02, in line with market consensus. The revenue increased 31.2% year-over-year to $88.4 million, topping Wall Street estimates by $1.73 million.

According to Insider Monkey’s first quarter database, EngageSmart, Inc. (NYSE:ESMT) was part of 23 hedge fund portfolios, compared to 19 in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 2.70 million shares worth $52 million.

6. Full Truck Alliance Co. Ltd. (NYSE:YMM)

Number of Hedge Fund Holders: 25

Share Price as of July 26: $7.20

P/E Ratio as of July 26: 51.46

Full Truck Alliance Co. Ltd. (NYSE:YMM) runs a digital freight platform in China, connecting shippers with truckers for seamless transportation of goods across different distances, cargo weights, and product categories. On May 22, Full Truck Alliance Co. Ltd. (NYSE:YMM) reported a Q1 non-GAAP EPS of $0.07 and $247.9 million in revenue, which increased 27.7% compared to the prior-year quarter. Morgan Stanley analyst Eddy Wang initiated coverage of Full Truck Alliance Co. Ltd. (NYSE:YMM) on July 5 with an Overweight rating and a price target of $9.

According to Insider Monkey’s first quarter database, 25 hedge funds were bullish on Full Truck Alliance Co. Ltd. (NYSE:YMM), compared to 19 funds in the earlier quarter. Thomas Steyer’s Farallon Capital is the leading stakeholder of the company, with a position worth $333.35 million.

In addition to Coupang, Inc. (NYSE:CPNG), ZoomInfo Technologies Inc. (NYSE:ZI), and Sunrun Inc. (NASDAQ:RUN), Full Truck Alliance Co. Ltd. (NYSE:YMM) is one of the top growth stocks to monitor.

Here is what Baron Funds specifically said about Full Truck Alliance Co. Ltd. (NYSE:YMM) in its Q2 2022 investor letter:

“Full Truck Alliance Co. Ltd. (NYSE:YMM) is the largest digital freight platform in the world. Shares of the China-based company rallied after a cybersecurity review greenlighted the use of its Apps to add new user registrations. We remain investors. Digital platform penetration into China’s four trillion RMB full truck-load market is still just in the single digits. We see major upside based on the expected rollout of transaction commissions to truckers from the current 6% market penetration and less than 1% take rate, and we expect revenue to grow at 50% CAGR over the next five years.”

Click to continue reading and see 5 Best Growth Stocks Under $25.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up