5 Best High-Risk High-Reward Stocks To Buy Now

In this article, we discuss the 5 best high-risk high-reward stocks to buy now. If you want to read about some more aggressive stocks, go directly to the 10 Best High-Risk High-Reward Stocks To Buy Now.

5. IAMGOLD Corporation (NYSE:IAG)

Number of Hedge Fund Holders: 12

IAMGOLD Corporation (NYSE:IAG) is a mid-tier gold mining company that operates in three regions globally: North America, South America and West Africa, with a target production of 570,000 – 640,000 attributable ounces of gold in 2022 from Burkina Faso, Suriname and Canada.

On December 20, Stifel analyst Ingrid Rico upgraded IAMGold Corporation (NYSE:IAG) to Hold from Sell with a price target of C$3.25, up from C$2.50. According to the analyst, IAMGold has addressed its significant funding risk following three transactions, and is shifting now to execution and delivery of Cote while regaining its operational track-record. Rico now sees the company having filled its funding gap with proceeds from asset sales and financing arrangements.

On November 8, IAMGOLD Corporation (NYSE:IAG) posted earnings for the third quarter of 2022, reporting earnings per share of -$0.03, in-line with market estimates. The revenue over the period was $343.3 million, up 16.73.0% compared to the revenue over the same period last year and beating market estimates by $50.26 million.

According to Insider Monkey’s third quarter database, David Iben’s Kopernik Global Investors is the leading shareholder of the company, with more than 23.8 million shares worth $25.47 million. Overall, 12 hedge funds reported holdings stakes in the company as of Q3 2022.

4. Virgin Galactic Holdings, Inc. (NYSE:SPCE)

Number of Hedge Fund Holders: 12

Virgin Galactic Holdings, Inc. (NYSE:SPCE) is an aerospace and space travel company that is focused on the development, manufacture and operations of spaceships and related technologies for the purpose of conducting commercial human spaceflight. At the beginning of November, Virgin Galactic Holdings, Inc. (NYSE:SPCE) announced an agreement with Axiom Space, a U.S.-based commercial space company, to support a microgravity research and training mission. The Virgin Galactic spaceflight, scheduled for the upcoming year, will prepare an Axiom Space astronaut for a trip to orbit.

Earlier this November, Jefferies analyst Greg Konrad lowered his price target on Virgin Galactic Holdings, Inc. (NYSE:SPCE) to $11 from $14 but maintained a Buy rating on the shares. Following the company’s Q3 report, the analyst noted that schedules have stabilized with plans for the first commercial spaceflight “holding steady” at Q2 2023.

At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $18.4 million in Virgin Galactic Holdings, Inc. (NYSE:SPCE), compared to 15 in the preceding quarter worth $42.95 million.

3. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 18

C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence (AI) software company that provides an application platform alongside an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications. On December 13, C3.ai, Inc. (NYSE:AI) announced that it had received the first three orders in its five-year, $500 million Production Other Transaction Agreement sponsored by the U.S. Missile Defense Agency (MDA), which will be applicable across the Department of Defense . All three orders will leverage the C3 AI Platform to accelerate deployment of critical enterprise artificial intelligence capabilities across the MDA.

On December 8, JMP Securities analyst Patrick Walravens lowered the price target on C3.ai, Inc. (NYSE:AI) to $19 from $25 but kept an Outperform rating on the shares. According to Walravens, the company’s Q2 results were generally better than expected with subscription revenue growth accelerating to 26% from 24% last quarter. The analyst states that he likes the stock’s long-term opportunity due to the company’s scalable enterprise AI solution that solves problems with large economic impact in a variety of industries and offers a massive addressable market opportunity.

At the end of the third quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $71.9 million in C3.ai, Inc. (NYSE:AI), compared to 17 in the previous quarter worth $1 billion.

2. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 26

UiPath Inc. (NYSE:PATH) is a global software company that provides an end-to-end automation platform that enables monitoring of user activity to automate repetitive front and back office tasks, including those performed using other business software such as customer relationship management or enterprise resource planning (ERP) software. On December 1, UiPath Inc. (NYSE:PATH) posted earnings for the third quarter of 2022, reporting earnings per share of $0.05, beating market estimates by $0.06. The revenue over the period came in at $262.74 million, up 18.99% on a year-over-year basis and surpassing market estimates by $6.81 million.

Mizuho analyst Siti Panigrahi raised the price target on UiPath Inc. (NYSE:PATH) to $15 from $14 and maintained a Neutral rating on the shares of the company on December 2. Panigrahi states that the company delivered better than expected Q3 results and provided solid Q4 guidance despite macro concerns, currency headwinds and near-term disruption given its strategic repositioning.

Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in UiPath Inc. (NYSE:PATH) with 46.1 million shares worth more than $581 million.

In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UiPath Inc. (NYSE:PATH) was one of them. Here is what the fund said:

1. Neogen Corporation (NASDAQ:NEOG)

Number of Hedge Fund Holders: 32

Neogen Corporation (NASDAQ:NEOG) is an international food safety company that provides test kits and relevant products to detect dangerous substances in food. The company was founded in 1982 and is based in Lansing, Michigan. Earlier this October, the company’s Megazyme Rapid Integrated Total Dietary Fiber – RINTDF – method had been accepted by the Association of Official Analytical Chemists, or AOAC International.

On November 22, William Blair analyst Brandon Vazquez upgraded Neogen Corporation (NASDAQ:NEOG) to Outperform from Market Perform without a price target. After a meeting with the company’s management, the analyst stated that he was left “encouraged for upside and potentially accelerated growth” of Neogen and 3M’s combined food safety business. The analyst sees meaningful upside for Neogen shares and encourages investors to take advantage of the recent stock weakness “given the strong fundamental setup and relatively undervalued stock today.”

At the end of the third quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $422.6 million in Neogen Corporation (NASDAQ:NEOG), compared to 21 in the preceding quarter worth $225.6 million.

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