In this article, we will take a look at the 5 best aggressive growth stocks to buy according to hedge funds. To see more such companies, go directly to 12 Best Aggressive Growth Stocks To Buy According to Hedge Funds.
5. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 70
Chemical company Linde plc (NYSE:LIN) shares have gained about 37% over the past one year. In July Linde plc (NYSE:LIN) upped its full-year 2023 adjusted EPS guidance to $13.80 – $14.00, which shows a 12% to 14% growth year-over-year.
As of the end of the second quarter of 2023, 70 hedge funds tracked by Insider Monkey reported owning stakes in Linde plc (NYSE:LIN).
Madison Funds made the following comment about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:
“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”
4. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 77
Online marketplaces company MercadoLibre, Inc. (NASDAQ:MELI) is one of the top aggressive growth stocks to buy according to hedge funds. MercadoLibre, Inc. (NASDAQ:MELI) is expected to see sales growth of about 31.5% this year, according to Yahoo Finance data.
As of the end of the second quarter of 2023, 77 hedge funds tracked by Insider Monkey had stakes in MercadoLibre, Inc. (NASDAQ:MELI). The most significant stakeholder of MercadoLibre, Inc. (NASDAQ:MELI) was David Blood and Al Gore’s Generation Investment Management which owns a $687 million stake in the company.
Alger Spectra Fund made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its Q2 2023 investor letter:
“MercadoLibre, Inc. (NASDAQ:MELI) is the largest e-commerce company in Latin America, with its largest markets being Brazil, Argentina, and Mexico. The company offers a comprehensive suite of services, including an online marketplace for buyers and sellers, payment solutions through Mercado Pago, merchant and buyer financing through Mercado Credito, shipping services through Mercado Envios, and asset management through Mercado Fondo, among other services. We believe the e-commerce market within Latin America remains underpenetrated, creating a favorable backdrop for MercadoLibre, as they have been growing and investing heavily to expand its first mover advantage. Moreover, the company’s growing fintech payments business. Mercado Pago. is well-positioned to potentially emerge as a leader in Latin America, as well as an emerging online advertising presence which offers attractive margin expansion potential, in our view. While the company posted strong quarterly results, shares fell on fears that their exposure to Argentina, which saw its currency devalued, would impact company revenues in the near-term.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Tesla, Inc. (NASDAQ:TSLA) continues to grow amid an increasing demand for EVs. Estimates suggest Tesla, Inc. (NASDAQ:TSLA)’s sales growth next year is expected to come in at 23%.
A total of 79 hedge funds tracked by Insider Monkey had stakes in Tesla, Inc. (NASDAQ:TSLA) as of the end of the June quarter.
Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
2. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 93
Cloud infrastructure and digital workflows company ServiceNow, Inc. (NYSE:NOW) ranks second in our list of the best aggressive growth stocks to buy according to hedge funds. ServiceNow, Inc. (NYSE:NOW) is expected to register sales growth of 24% this year, according to data from Yahoo Finance. Stifel recently downgraded Datadog and said it prefers stocks like ServiceNow, Inc. (NYSE:NOW) instead. ServiceNow, Inc. (NYSE:NOW) shares have gained about 46% year to date through October 10.
Ensemble Capital Management made the following comment about ServiceNow, Inc. (NYSE:NOW) in its second quarter 2023 investor letter:
“ServiceNow, Inc. (NYSE:NOW): AI has been all over the news lately and we’ve seen some amazing results in terms of a step up in intelligence, productivity, and creativity come out of it. Nvidia, the semiconductor leader in GPUs (Graphical Processor Units), has gotten the spotlight as the hardware enabler of the technology while Microsoft, Open AI, and Google have been highlighted as the companies that brought the technology to the market.
However, the ramp in the use and application of the technology is just starting. As we’ve seen with previous innovations, the majority of the value often accrues more broadly to companies and societies who incorporate the technology into their offerings – creating new applications and enhancing existing ones – and see higher productivity and better living standards. Of course, there are also companies that get disrupted and have to figure out new business models or become obsolete.
We can think of ServiceNow’s core offering, the NOW Platform, as a “Platform of Platforms” within the enterprise, and as we’ll explain, it allows companies to stitch together their disparate, siloed software and data systems so that they can be accessible, modernized, and integrated to create more efficient workflows to unlock better customer services and increase productivity…” (Click here to read the full text)
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) is experiencing huge growth thanks to the AI boom that is causing the demand for the company’s GPUs to grow. In August NVIDIA Corporation (NASDAQ:NVDA) said it expects a revenue of $16 billion in fiscal third quarter, much higher than $12.61 billion forecast by Refinitiv. The guidance figure by NVIDIA Corporation (NASDAQ:NVDA) shows a 170% YoY revenue growth.
A total of 175 hedge funds tracked by Insider Monkey had stakes in NVIDIA Corporation (NASDAQ:NVDA) as of the end of the second quarter of 2023.
Harding Loevner Global Equity Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:
NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.
In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.
Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)
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