In this article, we discuss the 14 best multibagger stocks. To skip the global economic outlook and analysis of multibagger stocks, you can go directly to the 5 Best Multibagger Stocks to Buy for 2024.
Global Economic Outlook
The last three years have been grueling for the bull market and the global economy. There have been talks of a looming global recession and the US market has been suffering from never-ending interest rate hikes. On top of that, the US employment report released on July 7 also posted results that were below expectations.
We all know that the economy is expected to recover but the forecasts are not satisfactory. The International Monetary Fund (IMF) believes that the baseline forecast for economic growth is expected to fall from 3.4% in 2022 to 2.8% in 2023 and slightly rise in 2024 to 3.0%. The United Nations Department of Economic and Social Affairs has an even bleaker forecast and expects the global economy to grow at 2.3% in 2023 and 2.5% in 2024. Among the developed countries, China is expected to grow significantly as its economic growth is expected to be 5.1% due to the ease of COVID-19 restrictions.
Nonetheless, there is some good news coming from IMF as it predicts that global headline inflation in the baseline is expected to fall to 7% from 8.7%. However, the core inflation is expected to go down even slower and is unlikely to reach the desired target by 2025.
Multibagger Stocks
The term “multibagger” was coined by American Investor and Philanthropist, Peter Lynch. Multibagger companies are the ones that deliver more than 100% returns. While our list names the companies that have returned over 100% in the last year, we have also posted about 10 baggers, the companies whose stock price is expected to reach 10x in the next 5 years.
When we posted about the best multi-bagger stocks around the same time last year, our list was filled with energy stocks, especially oil and gas. The Russia-Ukraine war sent the oil and gas prices flying and they were the perfect stocks to invest in to fight off the high inflation. Since then, fossil fuel prices have been stable and their stock prices have either remained stagnant or fallen off. The market has been quite volatile in the last year and our list has completely changed for 2024. The latest trends are revolving around the tech industry especially due to the generative AI segment. AI has driven tech stocks to surge remarkably in 2023 and stocks like Meta Platforms, Inc. (NASDAQ:META) and Microsoft Corporation (NASDAQ:MSFT) are up over 135% and 38% year-to-date, respectively. NVIDIA Corporation (NASDAQ:NVDA) topped our multi-bagger list and has gained over 196% year-to-date.
We rightly expected the travel industry to make a recovery post-pandemic but one segment that surprised the investors the most was the cruise lines. Companies such as Carnival Corporation & plc (NYSE:CCL), Royal Caribbean Cruises Ltd. (NYSE:RCL), and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) made remarkable recoveries and were up 140%, 109%, and 88% year-to-date on June 7, respectively. The first two made it to our list but Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) just missed the mark as its 1-year gains were around 99%. Nevertheless, the industry has made a swift return after its strong beat down in 2020.
As of the first week of July, some of the notable multi-bagger stocks are NVIDIA Corporation (NASDAQ:NVDA), Builders FirstSource, Inc. (NYSE:BLDR), and Vertiv Holdings Co (NYSE:VRT).
Copyright: maridav / 123RF Stock Photo
Our Methodology
For this article, we chose the 14 companies that have returned over 100% in the last twelve months as of July 7, 2023. The companies in the list are selected for 2024 according to the latest market trends and growth prospects of these companies. Furthermore, we avoided small-cap stocks and mid-cap penny stocks due to their high volatility. The companies have been listed in ascending order of their hedge fund sentiment which was taken from Insider Monkey’s database of 943 elite hedge funds.
14 Best Multibagger Stocks to Buy for 2024
14. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 5
1-Year Share Price Gain as of July 7: 144.48%
Symbotic Inc. (NASDAQ:SYM) is a Massachusetts-based robotics company that provides warehouse automation solutions. Retail giants such as Target Corporation (NYSE:TGT) and Walmart Inc. (NYSE:WMT) use the company’s products.
Symbotic Inc. (NASDAQ:SYM) stock price has gained 144.48% and on July 10, Citigroup analyst Itay Michaeli reiterated a Buy rating on the company stock and raised his price target to $52 from $32. Symbotic Inc. (NASDAQ:SYM) stock closed at $41.17 on Friday, July 7.
In Q1 2023, Symbotic Inc. (NASDAQ:SYM) stock was held by 5 hedge funds.
NVIDIA Corporation (NASDAQ:NVDA), Builders FirstSource, Inc. (NYSE:BLDR), and Vertiv Holdings Co (NYSE:VRT) are some of the most noteworthy multi-bagger stocks for 2024 along with Symbotic Inc. (NASDAQ:SYM).
13. Stevanato Group S.p.A. (NYSE:STVN)
Number of Hedge Fund Holders: 9
1-Year Share Price Gain as of July 7: 110.18%
Stevanato Group S.p.A. (NYSE:STVN) is an Italian company that manufactures equipment for the healthcare industry. It is the world’s largest manufacturer of pre-sterilized vials and one of the first and leading manufacturers of cartridges for insulin pen injectors. Stevanato Group S.p.A. (NYSE:STVN) also develops diagnosis and analytics equipment.
On June 12, Stevanato Group S.p.A. (NYSE:STVN) revealed its patented On-Body Delivery System, Vertiva™. The delivery system can switch between basal (long-acting insulin) and bolus (short-acting insulin) injections.
Although Stevanato Group S.p.A. (NYSE:STVN)’s stock has already been up by 110.18% in the last twelve months, analysts are still bullish on the company stock. In the last three months, 5 out of 6 analysts have maintained a Buy or Overweight rating on Stevanato Group S.p.A. (NYSE:STVN), making it one of the best multi-bagger stocks to buy.
Ave Maria World Equity Fund made the following comment about Stevanato Group S.p.A. (NYSE:STVN) in its Q1 2023 investor letter:
“Stevanato Group S.p.A. (NYSE:STVN) is a leading provider of drug containment products and serves many of the leading pharmaceutical and biotechnology companies. The company is a long-term beneficiary from the transition from small molecule drugs to biologics.”
12. YPF Sociedad Anónima (NYSE:YPF)
Number of Hedge Fund Holders: 10
1-Year Share Price Gain as of July 7: 371.15%
YPF Sociedad Anónima (NYSE:YPF) is an Argentinian state-owned integrated oil and gas company.
As of the first quarter of 2023, 10 hedge funds had investments worth $76.107 million in YPF Sociedad Anónima (NYSE:YPF). Its most prominent hedge fund holder in Q1 was Oaktree Capital Management with over 1.378 million shares worth $15.134 million. Oaktree initiated its position in YPF Sociedad Anónima (NYSE:YPF) in the first quarter of 2023.
YPF Sociedad Anónima (NYSE:YPF) is one of the best multi-bagger stocks as the company has a TTM PE ratio of 3.49 despite gaining 371.15% in share price in the last twelve months.
11. Penumbra, Inc. (NYSE:PEN)
Number of Hedge Fund Holders: 19
1-Year Share Price Gain as of July 7: 150.95%
Penumbra, Inc. (NYSE:PEN) is a healthcare company primarily focusing on medical devices for vascular conditions such as strokes. It is headquartered in Alameda, California.
On June 7, Penumbra, Inc. (NYSE:PEN) launched its latest technology, Lightning Bolt 7, which expands its computer-aided thrombectomy portfolio. The company’s latest tech uses advanced imaging and artificial intelligence to remove blood clots.
After an increase of 150.95% in share price in the last twelve months, Penumbra, Inc. (NYSE:PEN) is still a Strong Buy stock according to analysts. The company has been covered by 9 Wall Street analysts in the last three months and all of them opted for a Buy or Outperform rating on the company stock. Penumbra, Inc. (NYSE:PEN) closed at $327.37 on July 7 while the average price target of the 9 analysts stands at $335.56. On July 10, Citigroup analyst Joanna Wuensch maintained a Buy rating on Penumbra, Inc. (NYSE:PEN)’s stock and raised its price target to $390 from $325.
ClearBridge Investments made the following comment about Penumbra, Inc. (NYSE:PEN) in its Q1 2023 investor letter:
“Health care continued to be a bright spot for performance in the first quarter, led by Penumbra, Inc. (NYSE:PEN). The company, which makes medical devices to remove clots from the brain, heart, lungs and peripheral circulation, has seen stronger than expected demand from hospitals for its peripheral clot removal products due to their ability to more quickly treat and discharge patients. Additionally, anticipation of new product introductions for stroke and vascular disease applications have met with good physician acceptance, based on limited introduction during recent months, powering the stock higher. We believe Penumbra’s enhanced technology will speed treatment times, help the company take share from competitors and potentially expand the number of interventionists that can offer clot removal.”
10. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
Number of Hedge Fund Holders: 25
1-Year Share Price Gain as of July 7: 120.56%
Allegro MicroSystems, Inc. (NASDAQ:ALGM) is an American semiconductor company that makes its products primarily for the automotive and diversified industrial sectors. In the automotive industry, the company mainly serves the electric vehicle (EV) industry which is Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s primary growth driver.
Allegro MicroSystems, Inc. (NASDAQ:ALGM) made a huge upward leap in hedge fund sentiment in Q1 2023. The company was held by 25 hedge funds in Q1 2023, up from 15 in the previous quarter. Citadel Investment Group was quite bullish on Allegro MicroSystems, Inc. (NASDAQ:ALGM) in Q1 and increased its holdings in the company by 336% to 654,940 shares worth $31.43 million.
In the last twelve months, Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock price went up by over 120.56%.
Artisan Partners made the following comment about Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its Q1 2023 investor letter:
“Among our top contributors were Lattice Semiconductor, Monolithic Power Systems, Allegro MicroSystems, Inc. (NASDAQ:ALGM), HubSpot and Wingstop. A strong area of the portfolio was our semiconductor holdings as Lattice Semiconductor, Monolithic Power Systems and Allegro Microsystems each outperformed. This is an area of the market where we have historically found many compelling opportunities, and we believe it continues to be an attractive area for long-term capital. Our high-level thesis is that industry consolidation is driving profitability improvements which, combined with top-line demand growth drivers, are breeding many interesting profit cycles. Please read our latest semiconductor industry whitepaper to dive into our thoughts on the industry. After the strong performance in the quarter, we trimmed Lattice Semiconductor in order to manage the position size and also trimmed Monolithic Power Systems due to the company outgrowing our small-cap mandate.”
9. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 25
1-Year Share Price Gain as of July 7: 124.26%
Carnival Corporation & plc (NYSE:CCL) is a travel services company that primarily provides leisure travel services through cruises and operates in almost every continent in the world. The company is headquartered in Miami, Florida.
The travel industry took one of the most devastating hits as the COVID-19 pandemic hit the world. Carnival Corporation & plc (NYSE:CCL) also suffered a significant blow. However, according to its Q2 2023 results posted on June 26, the company has recovered better than expected. The company’s revenue surged by 104% year-over-year and beat the estimates by $130 million. Carnival Corporation & plc (NYSE:CCL)’s customer deposits reached an all-time high of $7.2 billion in Q2, breaking the previous record of $6 billion in Q2 2019.
Two Sigma Advisors was the most prominent hedge fund holder of Carnival Corporation & plc (NYSE:CCL) in Q1 2023 with close to 11.2 million shares worth over $113.657 million.
8. Rambus Inc. (NASDAQ:RMBS)
Number of Hedge Fund Holders: 26
1-Year Share Price Gain as of July 7: 185.24%
Rambus Inc. (NASDAQ:RMBS) is a California-based semiconductor company. It is known for developing Rambus DRAM or RDRAM from the 1990s through the early 2000s. Rambus Inc. (NASDAQ:RMBS) gained 185.24% in the last twelve months, making it to the 14th spot on our list of best multi-bagger stocks to buy for 2024.
On May 18, Rambus Inc. (NASDAQ:RMBS) stock was upgraded from Hold to Buy by Jefferies analyst Mark Lipacis. Lipacis also increased the company’s price target to $65 from $45. The analyst believes that Rambus Inc. (NASDAQ:RMBS) could double its market share by 2024 in registering clock drivers.
In Q1 2023, 26 hedge funds held Rambus Inc. (NASDAQ:RMBS)’s stake with a combined value of $256.265 million, up from 25 hedge funds worth $169.447 million in Q4 2022. D E Shaw was the most prominent hedge fund holder of the company in Q1 with over 1 million shares worth nearly $54.9 million.
7. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 36
1-Year Share Price Gain as of July 7: 544.23%
Super Micro Computer, Inc. (NASDAQ:SMCI) is a Silicon Valley-based information technology company. The company manufactures high-performance server and storage solutions. In the first quarter of 2023, 36 hedge funds were bullish on Super Micro Computer, Inc. (NASDAQ:SMCI), and Whale Rock Capital Management held the most significant stake with 791,466 shares worth $84.33 million.
On our list of best multi-bagger stocks, Super Micro Computer, Inc. (NASDAQ:SMCI) has surpassed the rest as it experienced an increase of 544.23% in the last twelve months. The company’s stock performance can be credited to the latest surge of AI trends in the market.
On June 27, Northland Securities reiterated an Outperform rating on Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock and raised its price target to $300 from $200.
6. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 39
1-Year Share Price Gain as of July 7: 111.16%
Jabil Inc. (NYSE:JBL) is a manufacturing services company headquartered in Florida. The company primarily operates in two segments, Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). Jabil Inc. (NYSE:JBL)’s stock price has been up by 111.16% in the last twelve months.
Jabil Inc. (NYSE:JBL) posted its third-quarter 2023 results on June 15. The company generated a revenue of $8.5 billion, marking a 1.8% YoY increase and outperforming the estimates by $300 million. The revenue growth was attributed to its DMS segment which grew by 13% YoY while the EMS segment’s revenue declined by 8%. Jabil Inc. (NYSE:JBL)’s reported non-GAAP earnings per share (EPS) of $1.99, beating the analyst estimates by 12 cents.
For its fourth quarter of 2023, Jabil Inc. (NYSE:JBL) expects to generate revenue between $8.2 billion to $8.8 billion and record a non-GAAP EPS between the range of $2.14 to $2.50. For the full year 2023, the company provided guidance of $34.7 billion in revenue and $8.50 in EPS.
Jabil Inc. (NYSE:JBL) is one of the most prominent multi-bagger stocks along the likes of NVIDIA Corporation (NASDAQ:NVDA), Builders FirstSource, Inc. (NYSE:BLDR), and Vertiv Holdings Co (NYSE:VRT).
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Disclosure. None. 14 Best Multibagger Stocks to Buy for 2024 is originally published on Insider Monkey.
