In this article, we will take a look at the 5 best IPO stocks to buy heading into 2024. To read our analysis of the recent market trends and market activity, you can go to the 13 Best IPO Stocks to Buy Heading into 2024.
5. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)
Number of Hedge Fund Holders: 39
Cambridge, Massachusetts-based Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is a global company committed to the mission of discovery and development of treatments for relentless and progressing neurodegenerative diseases.
On December 12, Deutsche Bank analyst Neena Bitritto-Garg initiated coverage of Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shares with a ‘Buy’ rating and a price target of $36 which represents a potential upside of 148.28% based on the share price on December 22.
Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shares were held by 39 hedge funds with total value of $520 million, as of September 30. Andreas Halvorsen’s Viking Global held the most shares among hedge funds with ownership of 3.0 million shares valued at $54 million.
Like other stocks such as Constellation Energy Corporation (NASDAQ:CEG), Klaviyo, Inc. (NYSE:KVYO), and Mobileye NV (NYSE:MBLY), Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is among the 13 best ipo stocks to buy heading into 2024.
4. Maplebear, Inc. (NASDAQ:CART)
Number of Hedge Fund Holders: 39
Based in San Francisco, Maplebear, Inc. (NASDAQ:CART), doing business as Instacart, is a leading grocery technology company in North America partnering with more than 1,400 national, regional, and local retail banners to facilitate online shopping, delivery, and pickup services from more than 80,000 stores across North America on the Instacart Marketplace.
On November 8, Maplebear, Inc. (NASDAQ:CART) released its financial results for Q3 2023. Its revenue increased by 14% y-o-y to $764 million while it posted a net loss of nearly $2.0 billion compared to a net income of $36 million. It missed EPS consensus estimates by -$3.30 with a normalized EPS of $1.42.
Following the earnings release, JMP Securities analyst Andrew Boone raised the price target on Maplebear, Inc. (NASDAQ:CART) shares to $35 from $33 and maintained a ‘Market Outperform’ rating for the shares.
3. GE Healthcare Technologies, Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 41
With a history that dates back to 1892, Chicago, Illinois-based, GE Healthcare Technologies, Inc. (NASDAQ:GEHC) is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator providing intelligent devices, data analytics, applications, and services, supported by its Edison intelligence platform.
GE Healthcare Technologies, Inc. (NASDAQ:GEHC) went public on January 4 this year through a spinoff from General Electric Company (NYSE:GE). The spinoff was achieved by a pro rata distribution of 80.1% of the company’s shares to the parent company’s shareholders. The remaining shares were retained by the parent company.
On October 31, GE Healthcare Technologies, Inc. (NASDAQ:GEHC) released its financial results for the third quarter of 2023. Its revenues increased by 5% y-o-y to $4.8 billion, while its net income declined by 23% y-o-y to $375 million.
As of Q3 2023, 41 of the 910 hedge funds tracked by Insider Monkey were long GE Healthcare Technologies, Inc. (NASDAQ:GEHC) and held shares worth $556 million.
2. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 45
Based Baltimore, Maryland, Constellation Energy Corporation (NASDAQ:CEG) is United States’ largest producer of clean, carbon-free energy and a leading supplier of energy products and services. Its portfolio includes more than 23,000 megawatts of clean generating capacity across nuclear, solar, wind, and hydro plants.
As of Q3 2023, Constellation Energy Corporation (NASDAQ:CEG) shares were held by 50 prominent hedge funds with the total value of shares held by hedge funds valued at $1.0 billion. William B. Gray’s Orbis Investment Management was the largest hedge fund shareholder on record with ownership of 6.2 million shares valued at $671 million.
In its Q3 2023 investor letter, Sound Shore Management, an investment management firm, made the following comments about Constellation Energy Corporation (NASDAQ:CEG):
“Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
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
