In this article, we discuss the 5 best aggressive stocks to buy now. If you want to read about some more aggressive stocks, go directly to the 11 Best Aggressive Stocks to Buy Now.
5. Neogen Corporation (NASDAQ:NEOG)
Number of Hedge Fund Holders: 32
Neogen Corporation (NASDAQ:NEOG) develops, manufactures, and markets various products for food and animal safety worldwide. On October 10, Neogen said it added a ready-to-use formulation of its Companion disinfectant, Companion RTU, to its veterinary biosecurity portfolio. Companion RTU is a combination of quaternary ammonium and glutaraldehyde dual-active disinfectant to kill Gram-negative and Gram-positive bacteria, fungi, and viruses, including the viruses which cause Canine Parvovirus and COVID-19.
On November 22, investment advisory William Blair upgraded Neogen Corporation (NASDAQ:NEOG) stock to Outperform from Market Perform without a price target. Analyst Brandon Vazquez issued the ratings update.
At the end of the third quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $422.6 million in Neogen Corporation (NASDAQ:NEOG), compared to 21 in the preceding quarter worth $225.6 million.
4. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 34
Unity Software Inc. (NYSE:U) creates and operates an interactive real-time 3D content platform. On November 8, ironSource, an Israeli ad tech company, said that it completed its merger with Unity Software in a deal that values the former at $4.4 billion, 74% below the valuation at which it had listed in June last year.
On November 28, Morgan Stanley analyst Matthew Cost resumed coverage of Unity Software Inc. (NYSE:U) stock with an Equal Weight rating and $27.50 price target, highlighting that there exists a balanced risk reward with strong continued momentum in the create graphics engine business which is likely to be offset by operate segment and advertisement weakness.
At the end of the third quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $790.9 million in Unity Software Inc. (NYSE:U), compared to 23 in the preceding quarter worth $1.9 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Unity Software Inc. (NYSE:U) was one of them. Here is what the fund said:
“We took advantage of a correction in higher-multiple stocks early in the first quarter to purchase shares of Unity Software (NYSE:U), a leading platform to create, run and monetize 3D content. With about 1.6 million monthly active creators versus roughly 15 million potential content creators in gaming alone, we believe the company’s Create Engine is still underpenetrated relative to its core addressable market. We similarly see a long runway for growth in Unity’s Operate Solutions segment given its advertising network commands a single-digit share of the $60 billion mobile app install ad market today. Furthermore, we believe Unity is well-positioned to expand its addressable market to include industries beyond gaming, on both the operate and create sides of their business (Exhibit 1). The company is not yet free cash flow positive but given strong net expansion rates and high gross margins, we see a path to improving profitability over time, with management notably targeting positive free cash flow this fiscal year.”
3. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 62
Shopify Inc. (NYSE:SHOP) is a commerce company that provides a commerce platform and services worldwide. On November 21, Shopify unveiled that it is testing a new feature in its app that allows customers to search across all merchants on the platform. Search for anything enables customers to search for items previously purchased, products sold by the merchants and merchants matching the search term.
On October 28, Wells Fargo analyst Jeff Cantwell maintained an Overweight rating on Shopify Inc. (NYSE:SHOP) stock and raised the price target to $42 from $38, highlighting that the company reported strong third-quarter results.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Shopify Inc. (NYSE:SHOP) with 14.5 million shares worth more than $391.5 million.
In its Q3 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“Shopify Inc. (NYSE:SHOP) is a leading e-commerce platform supporting over 2 million merchants with software, online storefronts and payments technology. Like Uber, Shopify returned to the mid-cap territory during Q2 as the company’s profit cycle and share price faced significant pressure. Earlier this year, the company began a phase of investments to support a range of future growth drivers, including Shopify Plus for larger brands, logistics services, international expansion, point-of-sale payments and social media-based commerce. With high inflation putting pressure on consumer spending, and with e-commerce activity normalizing after a massive pandemic spike, Shopify’s earnings have fallen sharply. While we have outstanding questions about the likelihood of success for the company’s capital-intensive logistics investments, we decided to take advantage of the stock’s >75% YTD decline and initiate a GardenSM position at a deep discount to our PMV estimate. Our thesis is predicated on our belief there is still a long runway for commerce to move online, and Shopify is well-positioned to win a share of this market. The company has created an ecosystem of products (payment processing, financing, shipping, customer engagement tools, etc.), partners (TikTok, Google, Meta), sales channels and over 6,000 apps to help its merchants sell online and establish direct relationships with customers.”
2. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 74
Datadog, Inc. (NASDAQ:DDOG) provides a monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. On November 3, Datadog announced that it acquired Cloudcraft, a visualization service to create real-time diagrams of cloud infrastructures. The company plans to continue offering Cloudcraft to existing and new customers, and enhance its capabilities by integrating with the Datadog platform.
On November 4, Baird analyst William Power maintained an Outperform rating on Datadog, Inc. (NASDAQ:DDOG) stock and lowered the price target to $100 from $120, noting that the revenue beat of the firm was slightly below recent trends due to macro impacts within consumer discretionary and larger customer usage.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Datadog, Inc. (NASDAQ:DDOG) with 5.8 million shares worth more than $512.7 million.
In its Q3 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Datadog, Inc. (NASDAQ:DDOG) was one of them. Here is what the fund said:
“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”
1. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 81
MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Latin America. On November 18, MercadoLibre reported that it recorded the best Black Friday in its history.
The eCommerce platform reached a 19% increase in gross sales. Consumer Electronics and Fashion was the best-selling of the period.
On November 3, Citi analyst Joao Pedro Soares maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) stock and lowered the price target to $1,050 from $1,150, highlighting that the company has the best vehicle to be positioned in secular e-commerce growth in Latin America.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in MercadoLibre Inc. (NASDAQ:MELI) with 710,900 shares worth more than $588.5 million.
In its Q3 2022 investor letter, SaltLight Capital Management, an asset management firm, highlighted a few stocks and MercadoLibre Inc. (NASDAQ:MELI) was one of them. Here is what the fund said:
“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).
LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile-based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”
You can also take a peek at 10 Best Stocks in Each Sector and 10 Best Regional Bank Stocks To Invest In.
