In this article, we will take a look at the 15 best-performing stocks in the last 12 months. To see more such companies, go directly to 5 Best-Performing Stocks in the Last 12 Months.
The US stock market has been performing unusually well in 2023. The most recent catalyst came after the Federal Reserve’s fight against inflation started signs of bearing fruit. However, inflation is still at elevated levels and many believe we are still not out of the woods. But as markets begin to turn the corner, it’d interesting to see the possible gainers of the coming months. Small-cap stocks took a beating amid recession warnings, as they have in almost every recession during the past. But small-cap stocks also rebound faster than other companies when recession or fears of recession ends. A report by Jennison Dryden shares some data to back this point. The report said that small-cap stocks have “significantly outperformed” large-cap stocks in the first year following nine out to the last nine recessions. The report concludes that having an exposure to small-cap stocks during hard financial times could increase your chances of enjoying profits once the economy begins to rebound.
There is a variety of reasons why small-cap stocks are the first ones to suffer when things go south. Aswath Damodaran, the famous finance professor at Stern School of Business at New York University, discusses in detail some of these reasons and also crushes some myths on this topic in a research paper. The professor quotes Jeremy Siegel who said in his book on long-term returns of stocks that the small-cap stock premium effect mostly comes due to huge gains of small-cap stocks. Damodaran also said that while it’s true that returns of small-cap stocks are much volatile that large-cap stocks, it’s also a fact that “a portfolio of small cap stocks has a distribution that is similar to the distribution for a large cap portfolio.” The professor also adds that the responsibility of the investor becomes huge during small-cap investing to take caution since there isn’t much help available from market analysts when it comes to research reports and ratings for small-cap firms. Another important factor to take into account during small-cap investing is the importance of time horizons. For a small-cap investor the time period for holding stocks and staying invested should be higher if they want to realize the true gains of this investing strategy.
But why are we discussing the merits of small-cap investing in an article about best performers in 2023? The reason is simple and would become clear as you read our list of the best performing stocks over the last 12 months. Many of these companies were small companies working on innovative products and services. This effect was also explained in a report Lord Abbett entitled “Finding Resilience and Opportunity in Small Cap Stocks.” The report said that the firm’s “investing team” has found that the next generation growth leaders are often small companies with “ability to turn research and development spending into strong revenue growth.” These companies also have “tangible proof of business success” and stock price actions that signal the market’s recognition of success.
The report also adds an interesting data point about small-cap stocks during the Federal Reserve’s rate-hike sprees.
“On the value side, small cap stocks historically have remained resilient during periods when monetary tightening by the U.S. Federal Reserve (Fed) has resulted in rising interest rates. In looking at the last 15 Fed rate hike cycles initiated in the years 1947–2015 the Russell 2000® Value Index has returned on average 22.1% over the two-year period following the Fed’s initial rate hike. The start of a Fed rate-hike regime may signal a move from early-cycle dynamics to mid-cycle dynamics, which can be favorable for risk assets.”
Image by Gerd Altmann from Pixabay
Our Methodology
For this article, we used a stock screener to identify stocks with the highest year-to-date gains in 2023 through August 11. From the long list of the stocks picked 15 stocks with the highest stock price gains. The list is ranked in ascending order of share price gains.
15 Best-Performing Stocks in the Last 12 Months
15. Pulse Biosciences, Inc. (NASDAQ:PLSE)
Share Price Gains Over the Past 12 Months Through August 11: 293%
Pulse Biosciences, Inc. (NASDAQ:PLSE) has gained about 293% over the past 12 months. Recently Pulse Biosciences, Inc. (NASDAQ:PLSE) posted strong Q2 results. Adjusted EPS in the quarter came in at -$0.22 beating estimates by $0.02. Pulse Biosciences, Inc. (NASDAQ:PLSE)’s cash and cash equivalents came in at $58.7 million.
A total of 4 hedge funds tracked by Insider Monkey had stakes in PLSE at the end of the first quarter of 2023.
14. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Share Price Gains Over the Past 12 Months Through August 11: 315%
Viking Therapeutics, Inc. (NASDAQ:VKTX) makes treatments for metabolic and endocrine disorders. Viking Therapeutics, Inc. (NASDAQ:VKTX) is up about 315% over the past one year. Viking Therapeutics, Inc. (NASDAQ:VKTX) in July filed for a mixed securities shelf offering.
As of the end of the first quarter of 2023, 40 hedge funds in Insider Monkey’s database of 943 hedge funds reported having stakes in Viking Therapeutics, Inc. (NASDAQ:VKTX).
13. Immunovant, Inc. (NASDAQ:IMVT)
Share Price Gains Over the Past 12 Months Through August 11: 321%
Immunovant, Inc. (NASDAQ:IMVT) makes treatments for autoimmune diseases. Immunovant, Inc. (NASDAQ:IMVT) has gained about 321% over the past 12 months. In July Immunovant, Inc. (NASDAQ:IMVT) jumped after Argenx (ARGX) released positive data for Vyvgart Hytrulo. Immunovant, Inc. (NASDAQ:IMVT) stock got a boost from this news because the company is also working on a similar drug, called batoclimab. The drug is currently in Phase 2 testing.
As of the end of the first quarter of 2023, 25 hedge funds out of the 943 funds reported owning stakes in Immunovant, Inc. (NASDAQ:IMVT). The biggest stakeholder of Immunovant, Inc. (NASDAQ:IMVT) during this period was David Kroin’s Deep Track Capital which owns an $115 million stake in the company.
12. Super Micro Computer, Inc. (NASDAQ:SMCI)
Share Price Gains Over the Past 12 Months Through August 11: 331%
IT company Super Micro Computer, Inc. (NASDAQ:SMCI)’s shares have gained about 331% over the past 12 months.
As of the end of the first quarter of 2023, 36 hedge funds out of the 943 funds reported owning stakes in Super Micro Computer, Inc. (NASDAQ:SMCI). The most significant stakeholder of Super Micro Computer, Inc. (NASDAQ:SMCI) was Alex Sacerdote’s Whale Rock Capital Management which owns an $84.3 million stake in the company.
11. Ardelyx, Inc. (NASDAQ:ARDX)
Share Price Gains Over the Past 12 Months Through August 11: 353%
Ardelyx, Inc. (NASDAQ:ARDX) makes treatments for the gastrointestinal tract and cardiorenal diseases. Ardelyx, Inc. (NASDAQ:ARDX) has a proprietary drug discovery and design platform. Ardelyx, Inc. (NASDAQ:ARDX) has gained about 353% over the past 12 months.
As of the end of the first quarter of 2023, 20 hedge funds tracked by Insider Monkey were long Ardelyx, Inc. (NASDAQ:ARDX). The biggest stakeholder of Ardelyx, Inc. (NASDAQ:ARDX) during this period was Phill Gross and Robert Atchinson’s Adage Capital Management which reported owning a $10 million stake in the company.
10. FingerMotion, Inc. (NASDAQ:FNGR)
Share Price Gains Over the Past 12 Months Through August 11: 356%
Mobile phone and data solutions company FingerMotion, Inc. (NASDAQ:FNGR) is headquartered in Singapore. It ranks 10th in our list of the best-performing stocks over the past 12 months. In July FingerMotion, Inc. (NASDAQ:FNGR) posted Q1 results. GAAP EPS in the quarter came in at -$0.02. Revenue in the period came in at $12.17 million.
As of the end of the first quarter of 2023, 2 hedge funds had stakes in FingerMotion, Inc. (NASDAQ:FNGR).
9. AppTech Payments Corp. (NASDAQ:APCX)
Share Price Gains Over the Past 12 Months Through August 11: 414%
Payments processing technology company AppTech Payments Corp. (NASDAQ:APCX) ranks 9th in our list of the best-performing stocks in the last 12 months. AppTech Payments Corp. (NASDAQ:APCX) has gained about 414% in the period.
Insider Monkey’s database of 943 funds shows that 2 hedge funds had stakes in AppTech Payments Corp. (NASDAQ:APCX) as of the end of the first quarter.
8. Limbach Holdings, Inc. (NASDAQ:LMB)
Share Price Gains Over the Past 12 Months Through August 11: 426%
Building and HVAC solutions company Limbach Holdings, Inc. (NASDAQ:LMB) shares have gained about 426% over the past 12 months. Earlier in August Limbach Holdings, Inc. (NASDAQ:LMB) jumped after the company posted strong Q2 results. GAAP EPS in the quarter came in at $0.46. Revenue in the quarter jumped 7.6% year over year to $124.9 million. Gross profit in the quarter came in at $28.5 million, an increase of 33.7%.
As of the end of the first quarter of 2023, 7 hedge funds tracked by Insider Monkey reported owning stakes in LMB. The biggest stakeholder of Limbach Holdings, Inc. (NASDAQ:LMB) during this period was Chuck Royce’s Royce & Associates which owns a $13.2 million stake in the company.
1 Main Capital made the following comment about Limbach Holdings, Inc. (NASDAQ:LMB) in its second quarter 2023 investor letter:
“The Fund’s Q1’23 letter outlined my reasoning for reinitiating a core position in Limbach Holdings, Inc. (NASDAQ:LMB), a HVAC–focused specialty contractor. The company has historically sold most of its work through general contractors but has been transitioning towards building owners. I continue to be impressed by the new CEO’s vision for the existing business and future M&A opportunity.
LMB has a net cash balance sheet and is currently benefiting from a strong demand environment, allowing it to be even more selective with new engagements (higher quality, higher margin projects). It is using this environment to be long-term greedy by developing and strengthening its relationships with the types of customers who most highly value LMB’s expertise–operators of mission-critical infrastructure.
I expect LMB to continue expanding margins meaningfully over the next few years, while deploying its FCF into highly accretive M&A.
Reason for mispricing: Limbach is undergoing management change and transformation towards an owner-direct model, with an underappreciated opportunity to consolidate its industry at attractive valuations.”
7. Ambrx Biopharma Inc. (NASDAQ:AMAM)
Share Price Gains Over the Past 12 Months Through August 11: 521%
California-based Ambrx Biopharma Inc. (NASDAQ:AMAM) is one of the top performers over the past 12 months, having gained about 521% in value. Ambrx Biopharma Inc. (NASDAQ:AMAM) is known for its proprietary expanded genetic code technology platform.
In July, the US FDA granted Fast Track status to Ambrx Biopharma Inc. (NASDAQ:AMAM) prostate cancer candidate ARX517.
As of the end of the first quarter of 2023, 10 hedge funds out of the 943 funds had stakes in Ambrx Biopharma Inc. (NASDAQ:AMAM). The most significant stakeholder of Ambrx Biopharma Inc. (NASDAQ:AMAM) during this period was Abhishek Trehan’s Darwin Global Management which had a $101 million stake in the company.
6. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH)
Share Price Gains Over the Past 12 Months Through August 11: 585%
Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) ranks 6th in our list of the best-performing stocks over the past year. It has gained about 585% in value during the period. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is working on treatments for central nervous system (CNS), cardiovascular, metabolic, and inflammatory diseases.
Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) jumped in May after the company presented data showing promising results of its treatment for idiopathic pulmonary fibrosis (IPF).
As of the end of the first quarter of 2023, 5 out of 943 hedge funds tracked by Insider Monkey reported owning stakes in Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH).
Click to continue reading and see 5 Best-Performing Stocks in the Last 12 Months.
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Disclosure: None. 15 Best-Performing Stocks in the Last 12 Months is originally published on Insider Monkey.
