In this article, we’ll take a look at the 5 best growth stocks to buy according to Marc Majzner’s Clearline Capital. For more stocks, the risk/reward, and the methodology of this list, head on to 10 Best Growth Stocks to Buy According to Marc Majzner’s Clearline Capital.
5. Perrigo Company plc (NYSE:PRGO)
Stake Value in Clearline Capital’s 13F Portfolio: $22.61 million
Percentage of Clearline Capital portfolio: 2.92%
Number of Hedge Funds: 24
Based in Ireland, Perrigo Company plc (NYSE:PRGO) provides over-the-counter (OTC) health and wellness solutions. The company derives 70% of its net sales from the US healthcare system and is amongst the top growth stocks in Marc Majzner’s Clearline Capital portfolio.
Perrigo Company plc (NYSE:PRGO) was upgraded by Argus analyst Kristina Ruggeri from Hold to Buy with a $46 price target in September 2022.
Perrigo Company plc (NYSE:PRGO) is one of the largest holdings of Clearline Capital. The hedge fund started building its position in the company with shares worth over $22.61 million, which made up 2.92% of Marc Majzner’s portfolio.
In Q2 2022, Camber Capital Management was one of the leading shareholders of Perrigo Company plc (NYSE:PRGO), with shares worth over $111.56 million. Moreover, 24 hedge funds in Insider Monkey’s database held a $633.16 million worth of stake in the company in Q2 2022.
4. Meta Platforms, Inc. (NASDAQ:META)
Stake Value in Clearline Capital’s 13F Portfolio: $24.34 million
Percentage of Clearline Capital portfolio: 3.14%
Number of Hedge Funds: 184
Based in California, Meta Platforms, Inc. (NASDAQ:META) is a communication platform that enables connectivity through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide.
Clearline Capital increased its position in the company by 56% in the second quarter bringing the total value of the stakes to $24.34 million.
184 hedge funds in Insider Monkey’s database held $18.19 billion worth of stakes in the company in Q2 2022.
Harding Loevner, an asset management company, mentioned Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2022 investor letter. Here’s what the firm said:
Any discussion of Q2 underperformance is incomplete without addressing two FAANG stocks. We do not share the market’s concerns about growth prospects at Facebook, Meta Platforms, Inc. (NASDAQ:META)’s core social media platform. Yes, growth is moderating as the business matures. There is also work to be done on technical workarounds to repair the damage to earnings growth from privacy changes implemented by Apple that impair Facebook’s ad targeting to iPhone users. But Meta’s digital advertising model still generates an extremely attractive rate of return on investment for the merchants it serves. Once its Apple workarounds are complete, we expect growth through market share gains and addressable market expansion to resume. Despite all the hyped new initiatives and skirmishes with rivals, Facebook remains an immensely free cash flow-generative business with huge advantages in putting its cash to work developing direct consumer relationships and monetizing them through targeted advertising. CEO Mark Zuckerberg has noted on multiple occasions how the company’s returns from its significant investments in AI have been even higher than it expected, in terms of driving higher revenue and lower costs. We view Meta shares as a bargain today, trading at 15 times earnings after over US$10 billion in annual expenditures on its Metaverse investments.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Stake Value in Clearline Capital’s 13F Portfolio: $25.82 million
Percentage of Clearline Capital portfolio: 3.33%
Number of Hedge Funds: 252
Headquartered in Washington, Amazon.com, Inc. (NASDAQ:AMZN) operates globally in the retail and Cloud markets. It is amongst the top growth stocks in Marc Majzner’s Clearline Capital portfolio, with a position worth $25.82 million.
Amazon.com, Inc. (NASDAQ:AMZN) is all set to generate profits this holiday season. In October the company announced that it is employing 150,000 people nationwide in full-time, seasonal, and part-time positions to ensure smooth and quality operations during the holiday season. In October 2022, Morgan Stanley analyst Ravi Shanker kept an Underweight rating on the shares.
Diamond Hill Capital Management, an investment advisor, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2022 investor letter. Here’s what the firm said:
Amazon.com, Inc. (NASDAQ:AMZN)’s shares underperformed as valuations of fast-growing companies continued to compress in Q2. Amazon’s growth investments over the past two years have pressured earnings as consumer demand has been weaker than anticipated. However, we believe the company will be able to grow into its infrastructure investments over time. These investments have obscured the magnitude of sustainable free cash flow as well as the attractive valuation of the business relative to peers.
2. Array Technologies, Inc. (NASDAQ:ARRY)
Stake Value in Clearline Capital’s 13F Portfolio: $27.02 million
Percentage of Clearline Capital portfolio: 3.49%
Number of Hedge Funds: 26
Array Technologies, Inc. (NASDAQ:ARRY) is a leading supplier of utility-scale solar tracker technology in the world. Marc Majzner’s Clearline Capital owns 2.4 million shares of Array Technologies, Inc. (NASDAQ:ARRY) worth about $27 million as of Q2 2022.
On September 19, Piper Sandler analyst Kashy Harrison upgraded Array Technologies, Inc. (NASDAQ:ARRY) to Overweight from Neutral with a price target of $28, up from $20. The company’s “strong order book” suggests that its revenue and EBITDA outlook for 2023 could be attractive, the analyst told investors.
The stock is popular among hedge funds. At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes in Array Technologies, Inc. (NASDAQ:ARRY), up from 20 in the preceding quarter.
1. NCR Corporation (NYSE:NCR)
Stake Value in Clearline Capital’s 13F Portfolio: $39.81 million
Percentage of Clearline Capital portfolio: 5.14%
Number of Hedge Funds: 47
NCR Corporation (NYSE:NCR) is a software, consulting, and technology corporation that offers a variety of expert services and electronic products. Its products include automated teller machines, point-of-sale terminals, check processing systems, and barcode scanners.
On September 15, NCR Corporation (NYSE:NCR) announced that the plan to divide the company into two distinct publicly traded businesses, one focused on the digital commerce industry and the other on ATM operations, has received full board approval. The separation is planned for the end of 2023. Following this announcement, the stock plunged 22%.
As of the second quarter, Clearline Capital owns more than 1 million shares worth $39.8 million in NCR Corporation (NYSE:NCR). The hedge fund increased its holdings in the company by 100% in the second quarter of 2022. The stock has been a part of Marc Majzner’s fund since Q4 2014.
47 hedge funds in Insider Monkey’s database had stakes in NCR Corporation (NYSE:NCR).
You can also take a look at 10 High-Yield Dividend Stocks for Stable Income and 10 Dividend Stocks to Buy According to Billionaire Cliff Asness.
