In this article, we will take a look at the 5 best low risk high growth stocks to buy now. To see more such companies, go directly to 14 Best Low Risk High Growth Stocks to Buy Now.
5. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 52
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is in the news as the company recently posted fiscal Q1 results. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) saw a boost in recurring bookings in the period and also updated its full-year guidance. Total net bookings in the quarter jumped 20% to $1.2 billion. Net bookings from recurrent spending jumped 38%.
As of the end of the first quarter of 2023, 52 hedge funds out of the 943 funds reported owning stakes in Take-Two Interactive Software, Inc. (NASDAQ:TTWO). The biggest stakeholder of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) was Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns a $286 million stake in the company.
Diamond Hill All Cap Select Strategy made the following comment about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q4 2022 investor letter:
“Video game developer Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has faced weakness in the mobile gaming market, in addition to game-launching delays. The company reported underwhelming quarterly results in Q4 and lowered its full-year guidance. After reexamining our long-term thesis, we decided to exit our position in favor of more attractive opportunities.”
4. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 62
PDD Holdings Inc. (NASDAQ:PDD) is a notable Chinese e-commerce company. In May PDD Holdings Inc. (NASDAQ:PDD) reported solid Q1 results. Adjusted EPADS in the quarter came in at $1.01, beating estimates by $0.38. Revenue in the period jumped about 58% year over year to $5.48 billion, surpassing estimates by $920 million.
Hedge funds tracked by Insider Monkey are also bullish on PDD Holdings Inc. (NASDAQ:PDD). As of the end of the first quarter of 2023, 62 hedge funds out of the 943 funds in our database held stakes in PDD Holdings Inc. (NASDAQ:PDD). The biggest stakeholder of PDD Holdings Inc. (NASDAQ:PDD) was Lei Zhang’s Hillhouse Capital Management which owns an $808 million stake in the company.
3. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 64
Insurance company The Progressive Corporation (NYSE:PGR) ranks 3rd in our list of the best low risk high growth stocks to buy now. As of the end of the first quarter of 2023, 64 hedge funds tracked by Insider Monkey were long The Progressive Corporation (NYSE:PGR).
In July, The Progressive Corporation (NYSE:PGR) shares jumped after J.P. Morgan analyst Jimmy Bhullar upgraded the stock to Overweight from Neutral. The ratings upgrade came despite The Progressive Corporation (NYSE:PGR)’s weak numbers recently posted. The analyst said:
“Despite poor margins in the past two years, our long-term outlook for the personal auto market is upbeat, and we consider it a structurally better business than commercial lines or reinsurance.”
The London Company Large Cap Strategy made the following comment about The Progressive Corporation (NYSE:PGR) in its second quarter 2023 investor letter:
“The Progressive Corporation (NYSE:PGR) – PGR underperformed during Q2 due to concerns about additional price hikes needed to maintain its targeted profitability ratio. PGR continues to increase auto policies in force, but recent costs were higher than expected. To combat weaker than expected margins, PGR is reducing advertising spending and increasing prices on insurance. Looking ahead, we believe PGR remains well positioned reflecting its more flexible pricing platform and tech solutions that monitor and price for distracted driving. While near-term costs were higher than expected, PGR has a great track record of profitability and conservative underwriting philosophy.”
2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 72
Cybersecurity company CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the notable high growth low risk stocks to buy now according to hedge funds. A total of 72 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in the company. The most significant stakeholder of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) during this period was Ken Griffin’s Citadel Investment Group which owns a $232 million stake in the company.
Artisan Developing World Fund made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2023 investor letter:
“Top contributors to performance for the quarter included graphics semiconductor company Nvidia, Southeast Asian e-commerce platform Sea, Latin American marketplace MercadoLibre, online travel marketplace Airbnb, and endpoint security company CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike rebounded as its financial results eased demand-related concerns in its core endpoint business, while adoption in platform adjacencies continued to rise.”
1. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 87
The Charles Schwab Corporation (NYSE:SCHW) shares have gained about 11% over the past 30 days. As of the end of the first quarter of 2023, 87 hedge funds out of the 943 funds in Insider Monkey’s database had stakes in The Charles Schwab Corporation (NYSE:SCHW). The biggest stakeholder of The Charles Schwab Corporation (NYSE:SCHW) during this period was David Blood and Al Gore’s Generation Investment Management which owns a $527 million shares in the company.
The Charles Schwab Corporation (NYSE:SCHW) recently posted strong Q2 results. Adjusted EPS in the period came in at $0.75, beating estimates by $0.04.
Weitz Partners III Opportunity Fund made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its second quarter 2023 investor letter:
“Lastly, we elected to sell our shares of The Charles Schwab Corporation (NYSE:SCHW) as the regional bank crisis unfolded during the first quarter. That sale crystalized underperformance that will likely linger on our top detractor list as we move through the year, despite no longer impacting our forward-looking performance.”
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