In this article, we discuss the 5 best growth stocks to buy according to Ray Dalio. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Growth Stocks To Buy According To Ray Dalio.
5. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 54
Coupa Software Incorporated (NASDAQ:COUP) is placed fifth on our list of 11 best growth stocks to buy according to Ray Dalio. The firm owns and operates a cloud-based business management platform and is headquartered in California. According to the latest data, Bridgewater Associates owned 3,888 shares in the company at the end of the second quarter of 2021 worth more than $1 million.
On September 8, investment advisory Needham reiterated a Buy rating on Coupa Software Incorporated (NASDAQ:COUP) stock and raised the price target to $315 from $280, appreciating the “strong” second quarter earnings of the firm.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Lone Pine Capital is a leading shareholder in Coupa Software Incorporated (NASDAQ:COUP) with 4.6 million shares worth more than $1.2 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Coupa Software Incorporated (NASDAQ:COUP) was one of them. Here is what the fund said:
“We started new investment campaigns in Coupa Software. Coupa is a leading provider of cloud-based business spend-management software. The company helps 1,400 customers process over $2 trillion in annual spend across more than 5 million suppliers. While this quarter’s announcement of a major new customer win at Walmart shows it still has a long runway for growth in this business, we are particularly excited about Coupa Pay—a recently introduced set of cloud services that seeks to process B2B payments (not just invoices) across its large network. B2B payments has seen far less innovation in recent years compared to B2C (PayPal, Venmo, Square), but we see it as a major opportunity in the years ahead.”
4. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) is a California-based firm that makes and sells semiconductor processing equipment. It is ranked fourth on our list of 11 best growth stocks to buy according to Ray Dalio. According to regulatory filings, Bridgewater Associates owned 36,506 shares in the company at the end of June 2021 worth $23.7 million, representing 0.15% of the portfolio.
On September 21, investment advisory UBS maintained a Buy rating on Lam Research Corporation (NASDAQ:LRCX) stock but lowered the price target to $715 from $780, predicting moderation in spending of semiconductor firms through to 2022.
At the end of the second quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Lam Research Corporation (NASDAQ:LRCX) , up from 54 the preceding quarter worth $3.1 billion.
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Intel Corporation (NASDAQ:INTC) is a California-based firm that sells essential technologies for smart devices. It is placed third on our list of 11 best growth stocks to buy according to Ray Dalio. According to 13F filings, Bridgewater Associates owned 35,490 shares in the company at the end of the second quarter of 2021 worth $1.9 million, representing 0.01% of the portfolio.
On July 23, investment advisory BMO Capital maintained an Outperform rating on Intel Corporation (NASDAQ:INTC) stock but lowered the price target to $70 from $75, appreciating the quarterly earnings but predicting compressed margins in the second half of the year.
At the end of the second quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in Intel Corporation (NASDAQ:INTC), down from 83 in the previous quarter worth $7.6 billion.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) is ranked second on our list of 11 best growth stocks to buy according to Ray Dalio. The company operates as a visual computing firm and is headquartered in California. According to securities filings, Bridgewater Associates owned 21,098 shares in the company at the end of June 2021 worth $16.8 million, representing 0.1% of the portfolio.
On September 17, investment advisory Bank of America reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $275 from $260, underlining the critical role of semiconductor firms in the digital economy.
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation (NASDAQ:NVDA), up from 80 the preceding quarter worth $6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
1. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 87
Micron Technology (NASDAQ:MU) is placed first on our list of 11 best growth stocks to buy according to Ray Dalio. The firm makes and sells memory and storage products and is headquartered in Idaho. According to the latest filings, Bridgewater Associates owned 216,148 shares in the company at the end of the second quarter of 2021 worth $18.3 million, representing 0.11% of the portfolio.
On August 30, investment advisory Deutsche Bank maintained a Buy rating on Micron Technology (NASDAQ:MU) stock and lowered the price target to $95 from $110, noting that memory stocks were under pressure because of pricing concerns.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology (NASDAQ:MU), down from 100 in the preceding quarter worth $7.6 billion.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
You can also take a peek at 15 Dividend Stocks People Buy for Early Retirement and 10 Best Tech ETFs to Buy According to Reddit.
