5 Best IPO Stocks to Buy Heading into 2024

1. Kenvue, Inc. (NYSE:KVUE)

Number of Hedge Fund Holders: 84

New Jersey-based Kenvue, Inc. (NYSE:KVUE) is the world’s largest pure-play consumer health company by revenue. Formerly the Consumer Healthcare division of Johnson & Johnson (NYSE:JNJ), Kenvue, Inc. (NYSE:KVUE) is home to iconic brands such as Aveeno®, BAND-AID® Brand Adhesive Bandages, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, among others.

On October 26, Kenvue, Inc. (NYSE:KVUE) released its financial results for Q3 2023 which were nearly in-line with the consensus estimates across the revenue and normalized EPS figures which amounted to $3.9 billion and $0.31, respectively.

Following the earnings release, Canaccord Genuity analyst Susan Anderson lowered the price target on Kenvue, Inc. (NYSE:KVUE) shares to $27 from $28 and maintained a ‘Buy’ rating for the shares. The target price represents a potential upside of 26.40% based on the share price on December 22.

Kenvue, Inc. (NYSE:KVUE) is the best IPO stock to buy heading into 2024 based on hedge fund sentiment according to the methodology used by us for preparing this list. Its shares were held by 84 hedge funds with total value of $3.4 billion, as of September 30.

Mayar Capital, an investment management firm, made the following comments about Kenvue, Inc. (NYSE:KVUE) in its “Mayar Responsible Global Equity Fund” Q3 investor letter:

“We also initiated a new investment in the shares of Kenvue, Inc. In August, Johnson & Johnson completed the split-off from Kenvue in which J&J shareholders could tender their shares in exchange for Kenvue shares at a 7% discount. Kenvue is formerly the J&J Consumer Health business. The transaction makes sense – the Consumer division was always small for J&J and this separation gives investors two distinct options, one pure-play FMCG company, and one pure-play healthcare company. We like Kenvue’s strong brand portfolio across its OTC medication business as well as its beauty and other healthcare brands (such as Listerine and Johnson’s), and the company has some very strong positions in its niches. While this isn’t a fast grower, the manufacturing scale, IP and distribution network of this business provide a deep enough moat to give reasonable assurances about the company’s quality. And the current valuation looks attractive.”

You may also like to read 11 Most Profitable Lithium Stocks Now and 10 Most Consumed Genetically Modified Crops in the US