In this article we discuss the 5 best growth stocks to buy in 2021 and hold. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Growth Stocks to Buy and Hold for Several Years.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the best growth stocks for the long-term:
5. Sea Limited (NYSE: SE)
Number of Hedge Fund Holders: 98
Sea Limited (NYSE:SE) is a growth powerhouse operating businesses which have a huge long-term growth potential, including Shopee (ecommerce), Garena (mobile games), SeaMoney (digital payments), among others. Sea Money is also among the stocks which the best-performing hedge funds are buying.
BofA recently upgraded Sea Limited (NYSE:SE) from Neutral to Buy and upped its price target for the stock to $340 from $260. The firm said Sea Ltd’s Shopee is surpassing growth estimates in Southeast Asia and achieving “rapid success” in Latin America. BofA also likes the success of the company’s game Free Fall.
Our calculations show that Sea Limited (NYSE:SE) ranks 22nd in our list of the 30 Most Popular Stocks Among Hedge Funds.
Tiger Global Management LLC is one of the 98 hedge funds tracked by Insider Monkey having stakes in SE at the end of the first quarter. The fund owns over 9.5 million shares of the company.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Sea Ltd (NYSE:SE) is one of them. Here is what the fund said:
“Singapore-based Sea maintains leading positions in Southeast Asia in video games and e-commerce and operates an emerging digital payments and banking business. While the company is investing heavily into e-commerce and payments, this growth is being funded by its highly profitable gaming segment. We see a long runway for growth across Sea’s businesses with multiple opportunities like e-commerce expansion in Latin America not fully factored into the valuation today. The company also has a well-respected management team that has successfully executed in expanding its total addressable market. Along with existing holding Alibaba, Sea provides exposure to secular growth trends in emerging markets that are harder to replicate through U.S. stocks.”
4. Intuit Inc. ( NASDAQ: INTU)
Number of Hedge Fund Holders: 53
Intuit Inc. ( NASDAQ: INTU) is one of the best growth stocks in the SaaS space as it’s behind some of the most popular Cloud-based finance software like TurboTax, Mint and QuickBooks. Intuit stock has gained 27% year to date.
The company’s revenue in fiscal Q3 jumped 40%. For the fourth quarter, the company expects a revenue in between $2.29 billion – 2.33 billion, well above the consensus of $1.85 billion.
In addition to long-term stock price appreciation, the company also offers a 0.50% dividend yield.
Fisher Asset Management currently owns 1.3 million shares of ISRG, worth $941.96 million. ISRG occupies 0.66% of Fisher’s overall equity.
Ensemble Capital, in their Q1 2021 investor letter, mentioned Intuit Inc. ( NASDAQ: INTU). Here is what the fund said:
“Notable detractors to the Fund’s returns this quarter (included) Intuitive Surgical. Intuitive Surgical’s (6.3% weight in the Fund) growth slowed in 2020 as COVID hit the brakes on many elective surgeries. Given continued COVID-related risks in the US and Europe in 2021, it’s still unclear as to when elective surgeries recover to more normal levels. As such, hospitals may be holding off on planned surgical robot investments until demand rebounds. That said, in Asia, where COVID has been well contained, Intuitive Surgical’s procedures and systems utilizations improved, which bodes well for recovery in the US and EU. Most procedures can’t be delayed indefinitely or canceled, so we continue to expect a resumption of strong, durable growth as the pandemic recedes.”
3. G1 Therapeutics, Inc. (NASDAQ: GTHX)
Number of Hedge Fund Holders: 12
G1 Therapeutics is a small molecule therapeutics company focusing on treating cancer. The stock has gained 20% year to date.
Earlier in June, the company’s rintodestrant showed anti-tumor activity in patients with advanced breast cancer when combined with Ibrance.
In the first quarter, the company’s Q1 GAAP EPS came in at -$0.65, beating the Street’s forecast by $0.42. Revenue in the quarter totaled $14.22 million, above the consensus by $13.44 million.
With several products in the pipeline and growth catalysts on the horizon, G1 Therapeutics, Inc. ranks 3rd in the list of the best growth stocks to buy in 2021 and hold for several years.
The company is also getting the attention of the smart money, as 12 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the first quarter, down from 16 funds a quarter earlier.
2. Invesco NASDAQ Next Gen 100 ETF (NASDAQ: QQQJ)
Number of Hedge Fund Holders: N/A
QQQJ is one of the best growth ETFs to buy in 2021 and hold for several years. The ETF has gained 25% in the last 12 months. Its holdings include some of the best growth tech stocks like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Roku, Inc. (NASDAQ: ROKU), Citigroup Inc. (NYSE: C), Zebra Technologies Corporation (NASDAQ: ZBRA), Garmin Ltd. (NASDAQ: GRMN), Zscaler, Inc. (NASDAQ: ZS), and Etsy, Inc. (NASDAQ: ETSY).
1. Chewy, Inc. (NYSE: CHWY)
Number of Hedge Fund Holders: 32
Chewy Inc is an ecommerce company focusing on selling pet food and supplies. The stock has gained 60% over the last 12 months. Chewy (NYSE:CHWY) said its adjusted EBITDA in the first quarter jumped 27% YoY to $77.4 million, while total sales increased by 32% in the period.
For the second quarter, the company expects revenue of $2.15 billion to $2.17 billion, versus the consensus estimate of $2.14 billion.
As of the end of the first quarter, there were 32 hedge funds that hold a position in CHWY compared to 38 funds in the fourth quarter. The biggest stakeholder of the company is Zevenbergen Capital Investments, with 1.3 million shares, worth $109.9 million.
You can also take a peek at 10 Best Dividend Stocks to Buy According to Billionaire George Soros and 10 Best Stocks to Buy According to Bruce Berkowitz’s Fairholme Capital.
Correction: Previous version of this article mistakenly mentioned Intuitive Surgical, Inc. (NASDAQ: ISRG) instead of Intuit Inc. ( NASDAQ: INTU).
