In this article, we discuss 5 best new stocks to buy according to hedge funds. If you want to read about some more new stocks, go directly to 12 Best New Stocks to Buy According to Hedge Funds.
5. ProFrac Holding Corp. (NASDAQ:PFHC)
Number of Hedge Fund Holders: 17
ProFrac Holding Corp (NASDAQ:PFHC) is a vertically integrated energy services company that provides hydraulic fracturing, completion, and other products and services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. It is one of the best IPO stocks to invest in. On June 21, the company announced that it had acquired SP Silica of Monahans and SP Silica Sales, the west Texas subsidiary of Signal Peak Silica, for approximately $90 million.
On August 15, Stifel analyst Stephen Gengaro maintained a Buy rating on ProFrac Holding Corp. (NASDAQ:PFHC) stock and raised the price target to $29 from $27, noting that the company delivered a second consecutive upside since its IPO bolstered by solid execution and the positive benefits of its vertical integration.
At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $99.1 million in ProFrac Holding Corp (NASDAQ:PFHC).
4. ESAB Corporation (NYSE:ESAB)
Number of Hedge Fund Holders: 19
ESAB Corporation (NYSE:ESAB) provides business-to-business (B2B) travel services. It is one of the top IPO stocks to invest in. In the past few months, the innovation driven technology growth company has successfully completed a previously announced separation from its fabrication technology business into an independent public trade company known as ESAB.
On September 12, Baird analyst Mircea Dobre initiated coverage of ESAB Corporation (NYSE:ESAB) stock with an Outperform rating and a $53 price target, noting that the company faces near-term macro headwinds.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $195.6 million in ESAB Corporation (NYSE:ESAB).
In its Q2 2022 investor letter, Diamond Hill Capital Management, an asset management firm, highlighted a few stocks and ESAB Corporation (NYSE:ESAB) was one of them. Here is what the fund said:
“ESAB Corporation (NYSE:ESAB) and Enovis Corporation are both new names in the portfolio, but familiar to us through our prior holding in Colfax Corporation, a provider of orthopedic solutions including braces and reconstructive joint products as well as welding equipment and supplies. Early in Q2, Colfax completed a planned split — its fabrication technology business became ESAB and the medical technology business reorganized as Enovis. ESAB has removed Russia from its guidance for 2022, and we continue to hold both, believing the two new companies are in an excellent position to leverage their business systems to continuously improve operations over time and engage in value-creating acquisitions in their respective industries.”
3. Bausch + Lomb Corporation (NYSE:BLCO)
Number of Hedge Fund Holders: 19
Bausch + Lomb Corporation (NYSE:BLCO) operates as an eye health company worldwide. It is one of the major IPO stocks to invest in. On September 6, the firm revealed that the US Food and Drug Administration had accepted a New Drug Application filing for investigational treatment NOV03 or perfluorohexyloctane. NOV03 is an investigation therapy to treat the signs and symptoms for dry eye disease.
On September 12, H.C. Wainwright analyst Yi Chen initiated coverage of Bausch + Lomb Corporation (NYSE:BLCO) stock with a Buy rating and a $21 price target, noting that the company was expected to grow 4%-5% organically in sales.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $304.8 million in Bausch + Lomb Corporation (NYSE:BLCO).
2. Global Business Travel Group, Inc. (NYSE:GBTG)
Number of Hedge Fund Holders: 26
Global Business Travel Group, Inc. (NYSE:GBTG) runs a business-to-business (B2B) travel platform. It is one of the premier IPO stocks to invest in. On September 30, Credit Suisse analyst Stephen Ju initiated coverage of Global Business Travel Group, Inc. (NYSE:GBTG) stock with an Outperform rating and $9 price target, noting that the company’s acquisitions of Egencia and Ovation had positioned it as a market leader in the travel space.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Global Business Travel Group, Inc. (NYSE:GBTG), with 1.1 million shares worth more than $6.7 million.
1. R1 RCM Inc. (NASDAQ:RCM)
Number of Hedge Fund Holders: 30
R1 RCM Inc. (NASDAQ:RCM) provides technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. It is one of the elite IPO stocks to invest in. On September 29, the firm released two comprehensive reports which explore financial challenges facing the healthcare industry and ways that executives are overcoming them through revenue cycle management partnerships.
On September 15, KeyBanc analyst Scott Schoenhaus initiated coverage of R1 RCM Inc. (NASDAQ:RCM) stock with an Overweight rating and a $30 price target, noting that the company expects a beat-and-raise in the coming quarters.
At the end of the second quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $262 million in R1 RCM Inc. (NASDAQ:RCM).
You can also take a peek at 10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners and Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon.
