This article presents an overview of the 5 Best Future Stocks For The Long Term. For a detailed overview of such stocks, read our article, 16 Best Future Stocks For The Long Term.
5. Palo Alto Networks Inc (NASDAQ:PANW)
Number of Hedge Fund Investors: 77
Palo Alto Networks Inc (NASDAQ:PANW) recently fell after weak guidance and a business strategy shift but Palo Alto Networks Inc (NASDAQ:PANW) is an important player in the cybersecurity industry. It’s also a key stock in the Goldman Sachs Future Tech Leaders ETF portfolio.
A total of 77 hedge funds tracked by Insider Monkey had stakes in Palo Alto Networks Inc (NASDAQ:PANW) as of the end of the fourth quarter of 2023.
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”
4. MercadoLibre Inc (NASDAQ:MELI)
Number of Hedge Fund Investors: 81
Argentina-based ecommerce company MercadoLibre Inc (NASDAQ:MELI) is among the top five holdings of the Goldman Sachs Future Tech Leaders ETF portfolio. An analysis of 933 hedge fund portfolios conducted by Insider Monkey shows that 81 funds had stakes in MercadoLibre Inc (NASDAQ:MELI). The biggest stakeholder of MercadoLibre Inc (NASDAQ:MELI) was David Blood and Al Gore’s Generation Investment Management which owns a $673 million stake in MercadoLibre Inc (NASDAQ:MELI).
ClearBridge International Growth EAFE Strategy stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its fourth quarter 2023 investor letter:
“Emerging growth companies Shopify and MercadoLibre, Inc. (NASDAQ:MELI) continue to show improved operational performance. MercadoLibre’s investments in new services continue to drive revenue growth and margin improvement. New loyalty programs, credit services and advertising products, for example, all contributed to good business performance.”
3. Workday Inc (NASDAQ:WDAY)
Number of Hedge Fund Investors: 81
In January, Morgan Stanley recommended high quality growth stocks which the firm believes can outperform this year. Workday Inc (NASDAQ:WDAY) was part of the list.
Insider Monkey’s analysis of 933 hedge fund portfolios at the end of 2023 showed that 81 hedge funds had stakes in Workday Inc (NASDAQ:WDAY).
Polen Global Growth Strategy stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its fourth quarter 2023 investor letter:
“Workday, Inc.’s (NASDAQ:WDAY) stock price was weak coming into the quarter. At the company’s investor day in late September, management provided medium-term annual revenue guidance of 17-19%. Many investors were likely expecting annual revenue guidance of 20%+, so the 17- 19% guidance may have been viewed as a tad disappointing. Following the investor day, Workday’s stock price rose significantly during Q4, buoyed by the company’s fiscal Q3 2024 earnings report, which was better than anticipated and included management raising revenue guidance for their fiscal 2024. We view the long-term guidance provided at the investor day as likely to be conservative, with ample room for Workday to continue taking share in the $100bn+ global HCM (human capital management) market. We remain confident in Workday’s ability to generate 20%+ annualized earnings growth over the next three to five years.”
2. Snowflake Inc (NYSE:SNOW)
Number of Hedge Fund Investors: 86
Cloud computing platform Snowflake Inc (NYSE:SNOW) shares have gained about 21% year to date through February 26.
A total of 86 hedge funds in Insider Monkey’s database had stakes in Snowflake Inc (NYSE:SNOW) as of the end of 2023.
ClearBridge Multi Cap Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q2 2023 investor letter:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.
Snowflake Inc. (NYSE:SNOW), a cloud-based data platform company, is positioned well to help enterprises better leverage their own data to get the most out of AI models. Though it is still early days in terms of adoption, Snowflake saw workloads for data science, machine learning, and AI use cases grow more than 90% year-over-year in its most recent quarter.”
1. Micron Technology Inc (NASDAQ:MU)
Number of Hedge Fund Investors: 92
While Nvidia takes the center stage in AI-led gains in the semiconductor industry, Micron Technology Inc (NASDAQ:MU) could be one of the best semiconductor stocks to buy for the future because Micron Technology Inc (NASDAQ:MU) is also working on some key chips for AI and supercomputing. In December, Micron CEO Sanjay Mehrotra told analysts that Micron Technology Inc’s (NASDAQ:MU) new memory-chip module HBM3E is “sold out at this point.”
A total of 92 funds tracked by Insider Monkey had stakes in Micron Technology Inc (NASDAQ:MU) as of the end of 2023.
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