16 Best Growth Stocks To Buy According To Hedge Funds

Published on October 11, 2023 at 6:18 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at the 16 best growth stocks to buy according to hedge funds. To skip our detailed analysis of the US markets today, you can go directly to see the 5 Best Growth Stocks To Buy According To Hedge Funds.

Is Now The Right Time To Invest?

Equity investors in American stocks today might be wondering when the right time to invest in US stocks will come around. With market volatility and economic conditions across the world making most investors and businesses cautious about major decisions involving larger sums of money, this line of thinking is becoming more commonplace than some might have expected. At this moment, one thing investors can do to ensure they make sound investment decisions is to remain apprised of not only current events in the US markets but also of expert opinions on how to approach the market at present.

On October 10, Paul Tudor Jones, the founder and Chief Investment Officer of Tudor Investment, joined CNBC’s ‘Squawk Box‘ to give his take on current market trends and more. Here are some of his comments:

“The United States is probably in its weakest fiscal position since, certainly, World War II, with debt-to-GDP at a 122%. So, it’s a really tough time for, I think, the moral voice of the world.”

Geopolitical Tensions As A Barrier To Investment

Jones sees the current geopolitical environment of the world as “the most threatening” and “challenging” environment he has ever seen, with the recent developments in the Israel-Palestine crisis and the ongoing Russo-Ukrainian crisis. Here’s what he had to say on these issues, alongside how they and US economic conditions are impacting equity investors in the US:

“It’s a really challenging time to wanna be an equity investor in US stocks right now, it’s really hard, because again you’ve got the geopolitical uncertainty, which we, I think, have come to live with to a certain extent. Equally as much of a problem is the fiscal situation that we’re facing in the United States, which is gonna require a completely different political mentality.”

All in all, Jones highlighted the existing barriers and challenges that may hinder equity investors in the US markets from taking part in the investment cycles. However, investors can still remain active in the markets by carefully picking out reliable stocks with high growth potential, especially those stocks that have lived up to their growth potential in the past. These include several companies such as Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), and Advanced Micro Devices, Inc. (NASDAQ:AMD), among others that are considered to be stellar growth stock options today. Considering this, we have compiled a list of some of the best growth stocks for the next 10 years, alongside stocks to invest in 2023 for beginners.

Source: pexels

Our Methodology

To select the stocks for our list, we picked names from the Vanguard Growth Index Fund Admiral Shares ETF. The fund invests in large US growth stocks. We selected the stocks based on the number of hedge funds holding stakes in them according to Insider Monkey’s hedge fund data for the second quarter. The stocks are ranked based on this metric, from the lowest to the highest number of hedge funds holding stakes in them.

Best Growth Stocks To Buy According To Hedge Funds

16. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 87

Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company based in Indianapolis, Indiana. It offers human pharmaceutical products for diabetes, non-small cell lung cancer, and a variety of other medical issues.

On October 9, Louise Chen at Cantor Fitzgerald reiterated an Overweight rating on Eli Lilly and Company (NYSE:LLY) shares alongside a $630 price target.

There were 87 hedge funds long Eli Lilly and Company (NYSE:LLY) in the second quarter. Their total stake value in the company was $5.1 billion.

Like Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), and Advanced Micro Devices, Inc. (NASDAQ:AMD), Eli Lilly and Company (NYSE:LLY) is a growth stock many hedge funds are piling into today.

15. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92

Citadel Investment Group was the most prominent shareholder in The Walt Disney Company (NYSE:DIS) at the end of the second quarter, holding 9.4 million shares in the company.

The Walt Disney Company (NYSE:DIS) is a communication services company based in Burbank, California. The company operates through two segments, Disney Media and Entertainment Distribution and Disney Parks, Experiences, and Products.

David Joyce at Seaport Global initiated coverage on The Walt Disney Company (NYSE:DIS) shares on October 6 with a Buy rating and a $93 price target.

The Walt Disney Company (NYSE:DIS) was spotted in the portfolios of 92 hedge funds in the second quarter, with a total stake value of $2.2 billion.

14. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 93

We saw 93 hedge funds long ServiceNow, Inc. (NYSE:NOW) in the second quarter. Their total stake value in the company was $3.9 billion.

ServiceNow, Inc. (NYSE:NOW) is a systems software company that provides enterprise cloud computing solutions. It is based in Santa Clara, California.

A Buy rating and a $640 price target were reiterated on ServiceNow, Inc. (NYSE:NOW) shares on October 3 by Brad Reback at Stifel.

Lakehouse Capital mentioned ServiceNow, Inc. (NYSE:NOW) in its July 2023 investor letter:

“US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result that came in ahead of analysts expectations. Subscription revenues grew 25% year-on-year in constant currency terms to $2.1 billion and operating margins came in at 23.4%. Despite ongoing variability in the macro backdrop, ServiceNow continues to benefit from spend prioritisation within the IT tech stack as vendors look to consolidate back-office apps onto an integrated platform. The company’s operational metrics held firm, with remaining performance obligations growing 24% year-on-year to $14.2 billion and renewal rates ticking up to 99%. As we have mentioned before, the company’s renewal rates are noteworthy as not only are they best-in-class but they are also remarkably consistent, typically in the range of 97% to 99%. They speak to the mission critical nature of the platform and are a key driver of long term annuity value.

Investors were also excited to hear management speak to the burgeoning artificial intelligence (AI) opportunity. Things are moving fast and the company plans to release new premium offerings of their workflow products – across IT, customer service and human resources – towards the back end of 2023 that will have new Generative AI capabilities embedded into them. Management also mentioned that they anticipate these new offerings could deliver a “minimum” 60%-plus list price uplift relative to its current Pro versions as they provide meaningful productivity improvements for end users. Whilst it’s still early days, ServiceNow appears well placed to capitalise on the Generative-AI opportunity and we believe it could be a meaningful driver for the company’s next phase of growth.”

13. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 103

Patrick Donnelly at Citigroup reiterated a Buy rating and a $625 price target on shares of Thermo Fisher Scientific Inc. (NYSE:TMO) on October 2.

Based in Waltham, California, Thermo Fisher Scientific Inc. (NYSE:TMO) is a life sciences tools and services company. It offers analytical instruments, specialty diagnostics, laboratory products, and biopharma services in the US and internationally.

Thermo Fisher Scientific Inc. (NYSE:TMO) had 103 hedge funds long its stock in the second quarter, with a total stake value of $7.2 billion.

Weitz Investment Management said the following about Thermo Fisher Scientific Inc. (NYSE:TMO) in its second-quarter 2023 investor letter:

“Portfolio activity this quarter included opportunistically initiating a position in life sciences tool and equipment maker Thermo Fisher Scientific Inc. (NYSE:TMO), a long-time holding of other Weitz portfolios, at an attractive valuation.”

12. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 109

Citadel Investment Group was the largest shareholder in Adobe Inc. (NASDAQ:ADBE) at the end of the second quarter, holding 1.9 million shares in the company.

As of September 15, Deutsche Bank analyst Brad Zelnick holds a Buy rating and a 610 price target on Adobe Inc. (NASDAQ:ADBE) shares.

Adobe Inc. (NASDAQ:ADBE) is an application software company based in San Jose, California. The company operates through its Digital Media, Digital Experience, and Publishing and Advertising segments.

Our hedge fund data for the second quarter shows 109 hedge funds long Adobe Inc. (NASDAQ:ADBE). Their total stake value was $6.1 billion.

Here’s what Harding Loevner said about Adobe Inc. (NASDAQ:ADBE) in its second-quarter 2023 investor letter:

“Although the market initially feared that Adobe Inc. (NASDAQ:ADBE) would lose out to Al image-generating programs Dall-E, Midjourney, and Stable Diffusion, the design-software giant has since released its own generative Al model called Firefly. One feature of Firefly is that it can help designers generate ideas and create and manipulate images more quickly in Photoshop or Illustrator that can then be processed by other Adobe products for further development, fostering a seamless workflow. There’s more work involved when trying to manipulate images created by outside tools. Also, because Firefly is trained on Adobe’s vast inventory of stock images and other licensed content, it can generate professional-quality, commercially viable results, further setting it apart from generic models that are often trained on copyrighted content that isn’t properly licensed. These are just two examples of how Al enhances the Adobe suite, which should allow the company to raise subscription prices and upsell users.”

11. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 112

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that offers x86 microprocessors and graphics processing units (GPUs). It is based in Santa Clara, California.

Advanced Micro Devices, Inc. (NASDAQ:AMD) was seen in the 13F holdings of 112 hedge funds in the second quarter, with a total stake value of $6.9 billion.

A Buy rating and a $145 price target were maintained on Advanced Micro Devices, Inc. (NASDAQ:AMD) shares on August 3 by Cody Acree at Benchmark.

This is what Artisan Partners said about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second-quarter 2023 investor letter:

“Among our top contributors were Advanced Micro Devices, Inc. (NASDAQ:AMD), NU Holdings and Netflix. AMD’s data center CPUs are used in the cloud service provider (CSP) servers. In addition to the broader secular tailwind from cloud adoption, the company has a performance and pricing advantage over Intel, which we believe will enable it to continue capturing market share. However, the recent stock price rally was due to growing excitement around the company’s AI exposure. It will launch its new MI300 graphics processing unit (GPU) chip later this year to compete against the dominant market leader NVIDIA. Similar to its approach that won market share from Intel within the CPU market, AMD’s product will aim to provide similar performance at a more attractive price. AMD is already working with Microsoft and Meta, while Amazon publicly stated that it is evaluating AMD’s inferencing chips. Using assumptions around the total GPU market size, potential market share gains and price points, our research indicates this could be a $20 billion opportunity for AMD. That would nearly double its revenue. While the company has not historically missed many deadlines, there is execution risk as it works to manufacture and distribute these complex chips at scale, which, combined with an elevated valuation after the stock’s strong performance run, led us to trim the position.”

10. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 114

Seaport Global analyst David Joyce initiated coverage on Netflix, Inc. (NASDAQ:NFLX) shares with a Buy rating and a $482 price target on October 6.

A total of 114 hedge funds were long Netflix, Inc. (NASDAQ:NFLX) in the second quarter, with a total stake value of $8.4 billion.

Netflix, Inc. (NASDAQ:NFLX) is a movies and entertainment company based in Los Gatos, California. The company offers TV series, documentaries, feature films, and more on its online streaming platform.

Citadel Investment Group was the largest shareholder in Netflix, Inc. (NASDAQ:NFLX) at the end of the second quarter, holding 5.9 million shares in the company.

9. salesforce.com, inc. (NYSE:CRM)

Number of Hedge Fund Holders: 122

In total, 122 hedge funds were long salesforce.com, inc. (NYSE:CRM) in the second quarter. Their total stake value was $7.2 billion.

Truist Securities analyst Terry Tillman reiterated a Buy rating and a $275 price target on salesforce.com, inc. (NYSE:CRM) shares on October 4.

Based in San Francisco, California, salesforce.com, inc. (NYSE:CRM) is an application software company. It provides Customer Relationship Management (CRM) technology.

Harding Loevner said the following about salesforce.com, inc. (NYSE:CRM) in its second-quarter 2023 investor letter:

“Salesforce, Inc. (NYSE:CRM), a company we’ve owned since 2019, recently added ChatGPT-like capabilities onto its existing Al module, Einstein, to support its internal sales efforts and customer-facing software. For example, Einstein GPT can help generate marketing emails tailored to specific clients by using Salesforce’s customer database and past email correspondence to learn the most effective approach for each client. Einstein GPT is also different from off-the-shelf LLMS in three important ways: It keeps personal identifiable information private and secure, compared with external tools that retain anything a user enters. It employs the latest data in Salesforce’s system, as opposed to the sometimes-stale public data that train generic models. And generative Al capabilities can be integrated with other Salesforce offerings; the company has already introduced Slack GPT and Tableau GPT, Al-equipped versions of its workplace collaboration and analytics tools.”

8. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc. (NASDAQ:AAPL) is a technology hardware, storage, and peripherals company based in Cupertino, California. The company manufactures smartphones, personal computers, tablets, wearables, and more.

Amit Daryanani at Evercore ISI Group reiterated an Outperform rating and a $210 price target on Apple Inc. (NASDAQ:AAPL) shares on September 28.

In the second quarter, 135 hedge funds were long Apple Inc. (NASDAQ:AAPL), with a total stake value of $193.9 billion.

Berkshire Hathaway was the most prominent shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, holding 915.6 million shares in the company.

7. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 139

Our hedge fund data for the second quarter shows 139 hedge funds long Mastercard Incorporated (NYSE:MA). Their total stake value was $14.7 billion.

Mastercard Incorporated (NYSE:MA) is a transaction and payment processing services company based in Purchase, New York. The company facilitates the processing of payment transactions and also offers integrated products and value-added services.

JPMorgan’s Tien-Tsin Huang maintains an Overweight rating and a $496 price target on Mastercard Incorporated (NYSE:MA) shares as of October 9.

6. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Visa Inc. (NYSE:V) is another transaction and payment processing services company on our list. It is based in San Francisco, California, and operates VisaNet, a transaction processing network.

Visa Inc. (NYSE:V) had 171 hedge funds long its stock in the second quarter, with a total stake value of $24.9 billion.

As of October 9, JPMorgan’s Tien-Tsin Huang maintains an Overweight rating and a $293 price target on shares of Visa Inc. (NYSE:V).

Like Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), and Advanced Micro Devices, Inc. (NASDAQ:AMD), Visa Inc. (NYSE:V) is a highly popular growth stock among hedge funds today.

Click to continue reading and see the 5 Best Growth Stocks To Buy According To Hedge Funds.

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

Published on December 13, 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