In this article, we will discuss 5 best TaaS stocks to buy now. If you want to read our detailed analysis of the TaaS industry which highlights key trends and major players, you can go to 10 Best TaaS Stocks to Buy Now.
5. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge funds: 43
Lyft, Inc. (NASDAQ:LYFT) is a California-based ride-hailing service. The company is United States’ second largest ride-sharing service, with a 29% market share. The company fell hard during the COVID-19 pandemic. However, it made a swift return with a 36% revenue growth YoY in 2021. According to Fortune Business Insights, Lyft, Inc. (NASDAQ:LYFT) could achieve a CAGR of more than 30% from 2021 to 2028, given its pivoting business model towards autonomous vehicles.
Lyft, Inc. (NASDAQ:LYFT) performed well in the first quarter of 2022, reporting an EPS of $0.07, compared to -$0.07 estimates. The revenue generated was $875.58 million, outperforming the estimates by 3.47%. Analyst forecasts show that Lyft, Inc. (NASDAQ:LYFT) is expected to grow its revenue by 33% for the fiscal year 2022 and 24.2% for 2023. Furthermore, the company is expected to expand its EBITDA by 154.5% for the financial year 2022 and a further 150.1% by the next year.
The hedge fund sentiment was positive for Lyft, Inc. (NASDAQ:LYFT) in the fourth quarter of 2021, with 43 hedge funds having a stake in the company compared to 33 in the third quarter. Alkeon Capital Management was the most prominent shareholder of the company, with 4.9 million shares worth $211 million. The fund increased its activity by 5% in the fourth quarter as compared to the third.
Here is what ClearBridge Investments had to say about Lyft, Inc. (NASDAQ:LYFT) in their second-quarter 2021 investor letter:
“We also added to our disruptors exposure in the second quarter with the purchase of Lyft, a leading, U.S. focused ride-hailing business. Lyft operates in a rational duopoly with Uber and has been able to maintain consistent 30%–35% market share for the past several years. The company should be a key beneficiary of the U.S. reopening, with a post-COVID-19 recovery in rideshare demand driving an acceleration in volumes and revenue. We also see considerable runway for growth beyond this rebound, as rideshare remains underpenetrated. Lyft’s ability to weather a period of significant demand destruction in 2020 is encouraging and we see opportunity for margin expansion ahead. Despite volatility created by ongoing labor negotiations, we see the potential for new, state-level legislation creating collective bargaining rights for gig economy workers to provide greater certainty around industry labor costs, with increases that should be manageable.”
4. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Funds: 52
DoorDash, Inc. (NYSE:DASH) had strong Q1 2022 results as the revenue grew by 35% YoY to $1.46 billion, compared to the $1.39 billion consensus. However, the company lost 48 cents per share, which was expected to be just 42 cents. Nonetheless, this did not stop DoorDash, Inc. (NYSE:DASH) from rising 6% the day after the company released its quarterly reports.
According to the Insider Monkey database, 52 hedge funds were bullish on DoorDash, Inc. (NYSE:DASH) stock compared to 42 in the previous quarter. Tiger Global Management LLC remained the most prominent stakeholder, with 11.6 million shares worth $1.7 billion and a 6% increase in activity compared to the previous quarter.
3. FedEx Corporation (NYSE:FDX)
Number of Hedge Funds: 64
FedEx Corporation (NYSE:FDX) is an American multinational conglomerate holding company specializing in transportation and e-commerce. Between April and May, FedEx Corporation (NYSE:FDX) had gained 4.3%, despite the loss of 2.43% to the transportation sector. Nearing its next quarter report to be released in June, the company is expected to announce an EPS of $6.87.
The hedge fund sentiment towards FedEx Corporation (NYSE:FDX) was positive in the fourth quarter of 2021, compared to the previous quarter. In the fourth quarter, 64 out of the 924 hedge funds tracked by Insider Monkey held stakes in FedEx Corporation (NYSE:FDX), up from 49 in the previous quarter.
The investment management firm Artisan Partners mentioned FedEx Corporation (NYSE:FDX) in their Q3 2021 investor letter. Here is what the firm said:
“Our weakest Q3 performers included FedEx. Shares of FedEx, a global shipping and logistics firm, were held back by disappointing business results as labor cost headwinds and air network disruptions overshadowed solid top-line trends. We think the company should be able to overcome these near-term issues. Importantly, FedEx has strong pricing power as it operates in a consolidated global shipping industry. In September, the company announced it would increase its shipping rates by an average of 5.9% across most of its services, which is the first time in several years that its annual increase would exceed 5.0%. The industry’s renewed pricing discipline is a welcome change, reflecting a broader commitment to earn better returns on invested capital. FedEx is also closer to fully integrating TNT, a European-focused parcel company it acquired in 2016. The market is beginning to incorporate a higher probability FedEx will fully integrate TNT, which will provide a significant boost to profits. The stock now trades at a near-trough multiple of less than 12X 2022 earnings, so we added to our position on weakness.”
2. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Funds: 55
The American shipping and receiving company, United Parcel Service, Inc. (NYSE:UPS), has shown growth in every segment compared to the previous year. The company reported revenue growth of 8% for the U.S. Domestic business and the International by 5.8% to $15.1 billion and $4.9 billion, respectively. The revenue of United Parcel Service, Inc. (NYSE:UPS) for the fiscal year 2022 is expected to be 5% better than 2021 at $102 billion.
In the first quarter of 2022, United Parcel Service, Inc. (NYSE:UPS) had strong results, with an EPS of $3.05, which was $0.17 above the forecasts. On top of that, the company beat its revenue estimates by 2.43% at $24.38 billion, compared to $23.80 billion analyst estimates. United Parcel Service, Inc. (NYSE:UPS) had revenue growth of 27% compared to the same period last year. Similarly, the EPS YoY growth doubled compared to the first quarter of 2021.
Out of the 924 hedge funds tracked by Insider Monkey, 55 held stakes in United Parcel Service, Inc. (NYSE:UPS) in the fourth quarter of 2021, compared to 42 in the previous quarter. The most prominent stake was held by Bill & Melinda Gates Foundation Trust, with 2.28 million shares worth $489.556 million.
Here is what ClearBridge Investments had to say about United Parcel Service, Inc. (NYSE:UPS) in their fourth-quarter 2021 investor letter:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. The bulk of these contributions came from U.S. mega-cap growth stocks Apple and Microsoft which continued to uniquely act both offensively and defensively as they have through most of the pandemic. These consistent growers were complemented by solid contributions from structural holdings including United Parcel Service.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Funds: 153
Uber Technologies, Inc. (NYSE:UBER) is one of the biggest Transport as a Service stocks on the market. The company started in San Francisco, California, and currently operates in 77 countries and 10,500 cities across the world. As of the beginning of 2022, the company covered around 77% of the market share for ride-sharing.
In the first quarter of 2022, Uber Technologies, Inc. (NYSE:UBER)’s revenue jumped 136% compared to the first quarter of 2021, reaching $6.9 billion. The quarterly trips for the company reached around 1.17 billion, an 18% increase compared to the same period in the previous year. This included mobility gross bookings of $10.7 billion and delivery gross bookings of $13.9 billion, which were up by 12% on a YoY basis. Moreover, Uber Technologies, Inc. (NYSE:UBER) generated $6.85 billion in revenue compared to the estimated $6.10 billion.
Fisher Asset Management has been the most prominent stakeholder in Uber Technologies, Inc. (NYSE:UBER) in the first quarter of 2022. The fund increased its activity in the company by 58% and owned 23.796 million shares worth $849 million.
ClearBridge Investments published its “Large Cap Growth Strategy” third quarter 2021 investor letter in the fourth quarter of 2021. Here is what it said about Uber Technologies, Inc. (NYSE:UBER):
“We have also been looking for multi-year secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber Technologies, Inc. (NYSE:UBER) will also be a key player in the transition from internal combustion engines to EVs.”
You can also take a peek at 10 European Defense Stocks to Buy Now and 10 Growth ETFs to Buy Now.
