5 Best Get Rich Quick Stocks To Buy

In this article, we will take a look at the 5 best get rich quick stocks to buy. If you want to see more stocks in this selection, go to the 12 Best Get Rich Quick Stocks To Buy.

5. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 45

Etsy, Inc. (NASDAQ:ETSY) is a New York-based e-commerce platform that is known for selling craft supplies and handmade vintage items.

Etsy, Inc. (NASDAQ:ETSY) is on a rising trend as it has experienced a surge of over 37% in the last month, as opposed to the S&P 500 Index’s rise of only 4.5% during the same period. The stock is a contrarian pick on our list, given the high level of uncertainty expected to impact the discretionary spending of the customers. However, there is a widespread belief that the company has been able to stabilize its active customers and trends related to gross merchandise sales (GMS) despite the tough economic challenges. Furthermore, experts believe that Etsy, Inc. (NASDAQ:ETSY) is set up for favorable Q4 2022 results with further opportunities to experience an expansion of multiples. In a research note issued on December 1, Marvin Fong at BTIG increased the price target on Etsy, Inc. (NASDAQ:ETSY) from $119 to $137 and reiterated a Buy rating based on these developments.

Here’s what ClearBridge Investments said about Etsy, Inc. (NASDAQ:ETSY) in its Q3 2022 investor letter:

“Stock selection in the consumer discretionary sector proved a tailwind to performance. Etsy (NASDAQ:ETSY), which operates a number of online marketplaces for craft and artisan goods, delivered second quarter results that demonstrated the company’s pricing power, cash flow generation, and margin upside remain intact. While Etsy is experiencing declines in gross merchandise sales, it is seeing better than expected take rates and improved margins. We believe the company is well-positioned to grow advertising spending on its marketplace, bring in new buyers and strengthen its e-commerce advantages.”

4. Builders FirstSource, Inc. (NYSE:BLDR)

Number of Hedge Fund Holders: 49

Builders FirstSource, Inc. (NYSE:BLDR) is a Dallas, Texas-based manufacturer and supplier of building materials. The company, founded in 1998, is a member of the Fortune 500 companies and is the biggest supplier of structural building products in the US.

On November 28, Builders FirstSource, Inc. (NYSE:BLDR) announced a share buyback plan of $1 billion that has increased the company’s overall share buyback plan to $1.5 billion. This is equivalent to 16% of the current market capitalization of the company. Builders FirstSource, Inc. (NYSE:BLDR) was assigned a target price of $80 along with an Outperform rating by David Manthey at Baird on November 17. The analyst highlighted that the organic growth remained strong for the company during Q3 2022. Despite the mortgage rate surpassing the 7% level, the growth prospects of Builders FirstSource, Inc. (NYSE:BLDR) remain strong.

Here’s what Praetorian Capital said about Builders FirstSource, Inc. (NYSE:BLDR) in its Q3 2022 investor letter:

“Builders FirstSource, Inc. (NYSE:BLDR) produces and distributes building materials, primarily for the home building industry. It trades at a low-single digit cash flow multiple on recent earnings and is using that cash flow to rapidly repurchase shares. One could say that the low multiple is due to peak cyclical earnings. I take a different view and believe that we’re in the early stages of a long-term housing boom caused by migration to low tax states along with a catch-up phase as home construction rates were below trendline over the past decade. I believe that the US needs in excess of 1 million new single-family homes each year, just to provide for population growth, ignoring the other factors. As a result, this business does not appear to be at peak earnings; instead, I believe we are seeing a new baseline for earnings—though the earnings will be quite volatile—particularly if interest rates remain elevated or increase further.”

3. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 55

Sea Limited (NYSE:SE) is a Singapore-based game development and publishing corporation. The company is known for coming up with the Free Fire title, which became the most downloaded mobile game in 2019 and had over 150 million daily active users (DAUs).

In a research note issued on November 17, Mark Goodridge at Morgan Stanley gave Sea Limited (NYSE:SE) a target price of $95 along with an Overweight rating. The target price provides a potential upside of more than 58% as of December 20. The analyst appreciated the company’s Q3 2022 results, which reflected a solid beat and showed a clear pathway to profitability for Sea Limited’s (NYSE:SE) subsidiary Shopee, which is the biggest e-commerce platform in the Southeast Asia region with over 343 million monthly active users (MAUs). There is a widespread belief that the subsidiary of Sea Limited (NYSE:SE) is in a strong position to dominate the e-commerce space in the region.

Here’s what Hayden Capital said about Sea Limited (NYSE:SE) in its Q3 2022 investor letter:

“Sea Limited (NYSE:SE) reported earnings last week, after which the share price rebounded +36% in a single day. The most obvious question that comes to mind, is why didn’t we sell more last year, when prices were still high? The truth is that we did sell a significant amount, but in hindsight obviously wish we were more aggressive with the sales.

For example, we owned the peak number of shares of Sea Ltd in Q1 2020, and steadily trimmed over the next two years. From Q1 2020 to Q1 2022, we trimmed ~39% of our shares over that period. However, the issue was that the investment continued to grow as a percentage of the overall portfolio, since the share price appreciated much faster than our sales (+620% from 1Q20 to 3Q21). This was a similar case for our other long-tenured positions as well.

So why didn’t we trim more aggressively and just hold cash? The answer is that at its core, I believe that holding cash is implicitly a market timing call. I certainly didn’t foresee a likely recession on the horizon so quickly after the turbulence of Covid already had on the economy. Even in late 2021, after it was clear interest rates would start rising, we were still operating under the assumption that rates would cause valuations to compress, but likely wouldn’t have an impact on the overall earnings trajectory. Given our expectations for strong earnings growth, we thought this could more than offset the valuation compression over time, and would still generate strong IRRs over a 3 – 5 year timeframe…” (Click here to see the full text)

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 62

Shopify Inc. (NYSE:SHOP) is an Ottawa, Canada-based company known for its proprietary e-commerce platform for establishing online stores. Furthermore, the company is a provider of a point-of-sales system for retailers as well.

Samad Samana at Jefferies thinks that the company’s Q4 2022 gross merchandise value (GMV) is expected to come in ahead of consensus based on the Blessed Friday and Cyber Monday GMV numbers revealed by the company. Shopify Inc. (NYSE:SHOP) reported a GMV of $7.5 billion during this period, reflecting a 19% YoY growth. Based on this, the analyst anticipates Shopify Inc. (NYSE:SHOP) to post a GMV of $64 billion during Q4 2022, which is significantly higher than the consensus forecast of $59 billion. Based on this, the analyst has given Shopify Inc. (NYSE:SHOP) stock a Buy rating and a target price of $40 on November 29.

Here’s what Artisan Partners said about Shopify Inc. (NYSE:SHOP) in its Q3 2022 investor letter:

“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 mid-cap territory during Q2 as the company’s profit cycle and share price have 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 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.”

1. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

PayPal Holdings, Inc. (NASDAQ:PYPL) is a Palo Alto, California-based financial technology company that operates as an online payment system. The company has an edge in the fintech industry due to its high brand equity and is expected to be a key beneficiary of the rising trend of the gig economy.

Moshe Katri at Wedbush surveyed the payment platforms using the Black Friday and Cyber Monday period and found out that PayPal Holdings, Inc. (NASDAQ:PYPL) dominated as the payment gateway. The survey revealed that 34.9% of online payment was done by either PayPal or Venmo. Furthermore, the Buy Now Pay Later (BNPL) mechanism is also gaining traction as its share increased from 5.6% in 2021 to 7.9% in 2022. PayPal Holdings, Inc. (NASDAQ:PYPL) has been given a target price of $109 along with an Outperform rating by James Fotheringham at BMO Capital on November 7. The analyst highlighted the Q3 2022 earnings beat due to lower costs and an increase in margin.

Wedgewood Partners shared its outlook on PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2022 investor letter. Here’s what the firm said:

“PayPal Holdings, Inc. (NASDAQ:PYPL) contributed positively to performance as the Company reported accelerating revenue growth and more concrete measures to drive long-term profitability. Revenue growth accelerated throughout the quarter as the Company is taking share in e-commerce while lapping the headwinds of the eBay rolling off. While eBay’s revenues represented higher-margin revenues, the Company should be able to drive better transaction margins as total payment volume growth reaccelerates. Part and parcel of this growth comes from PayPal’s investments to drive higher penetration into its 429 million active accounts. PayPal’s active accounts have grown by +50% since the onset of the pandemic so it makes sense for management to focus on driving higher transactions per account, thus better to monetize this historical windfall of users. The Company also authorized a $15 billion share repurchase program, which represents over 10% of shares outstanding. This is a good use of capital relative to the Company’s historically depressed multiples.”

You can also take a peek at the 11 Best Aerospace Stocks To Buy and 13 Best Undervalued Stocks To Buy.

Follow Insider Monkey on Twitter