5 Best Up-and-Coming Stocks to Buy Now

In this article, we will look at the 5 best up-and-coming stocks to buy now. If you want to explore similar stocks, you can go to 12 Best Up-and-Coming Stocks to Buy Now.

5. Bill.com Holdings, Inc. (NYSE:BILL)

Revenue Growth in Q1 2022: 179.41%

Revenue Growth in Q2 2022: 155.80%

Revenue Growth in Q3 2022: 97.52%

Number of Hedge Fund Holders: 70

Bill.com Holdings, Inc. (NYSE:BILL) is a leading global provider of cloud-based financial management software for SMEs. With a strong customer base and long-term growth prospects, Bill.com Holdings, Inc. (NYSE:BILL) is an attractive investment for those looking for a disruptive technology play and is one of the best-up and-coming stocks to buy now. The company has grown its revenue by over 150% on average in the first three quarters of 2022.

On January 9, Wells Fargo analyst Jeff Cantwell revised his price target on Bill.com Holdings, Inc. (NYSE:BILL) to $180 from $195 and reiterated an Overweight rating on the shares.

At the end of Q3 2022, 70 hedge funds were long Bill.com Holdings, Inc. (NYSE:BILL) and held stakes worth $1.66 billion in the company. Of those, Abdiel Capital Advisors was the top investor in the company and held stakes worth $267.5 million.

Here is what TimesSquare Capital Management had to say about Bill.com Holdings, Inc. (NYSE:BILL) in its third-quarter 2022 investor letter:

“Bill.com Holdings, Inc. (NYSE:BILL) offers cloud-based software that simplifies, digitizes, and automates back-office functions for small and mid-sized businesses. The company has indicated that customer spending softened a bit in recent months and that has been factored into forward guidance. We decided to sell out of the position, which had declined by -20% while it was held in the quarter.”

4. Snowflake Inc. (NYSE:SNOW)

Revenue Growth in Q1 2022: 84.51%

Revenue Growth in Q2 2022: 82.68%

Revenue Growth in Q3 2022: 66.55%

Number of Hedge Fund Holders: 73

Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform provider that is revolutionizing the way organizations store, share, and analyze data. The company has experienced rapid growth since its IPO in 2020, driven by a strong customer base that includes many Fortune 500 companies. Moreover, the company’s financials are robust. Snowflake Inc. (NYSE:SNOW) has seen strong growth in revenue and profits. Snowflake Inc. (NYSE:SNOW) grew its revenue by over 80% in both Q1 and Q2 of 2022, and by over 65% in Q3 2022.

On January 9, Piper Sandler analyst Brent Bracelin updated his price target on Snowflake Inc. (NYSE:SNOW) to $194 from $200 and maintained an Overweight rating on the shares.

At the close of Q3 2022, 73 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) and disclosed positions worth $6.01 billion in the company. As of September 30, Altimeter Capital Management is the most prominent investor in the company and has a stake worth $2.88 billion.

Here is what Baron Funds had to say about Snowflake Inc. (NYSE:SNOW) in its third-quarter 2022 investor letter:

“Snowflake Inc. (NYSE:SNOW) provides a cloud platform for large-scale data analytics. Snowflake’s shares were up 22%, reacting positively to second quarter results that beat market forecasts with revenue growth of 83% year-over year and adjusted free-cash-flow margins of 12%. Record new customer additions and world-class dollar net retention of over 170% implied resiliency in demand despite increasing macro uncertainties. We remain shareholders and believe that Snowflake will be able to benefit from long-term growth with favorable unit economics, addressing one of the largest opportunities in technology. Snowflake’s culture of innovation (such as its expansion into cloud application development and data sharing), go-to-market initiatives, and an ongoing secular shift to the cloud in its end markets should help, in our view, sustain the company’s competitive moats over the long term.”

3. Datadog, Inc. (NASDAQ:DDOG)

Revenue Growth in Q1 2022: 82.84%

Revenue Growth in Q2 2022: 73.90%

Revenue Growth in Q3 2022: 61.39%

Number of Hedge Fund Holders: 74

Datadog, Inc. (NASDAQ:DDOG) operates a cloud-based monitoring and analytics platform that helps organizations better manage their infrastructure, applications, and services. The company has recently seen rapid expansion, making it a compelling investment opportunity for investors and is placed third among the best up-and-coming stocks to buy now.

Last November, Datadog, Inc. (NASDAQ:DDOG) posted earnings for the fiscal third quarter of 2022, in which it reported a revenue of $436.53 million, up 61.39% year over year. The company also posted revenue growth in Q1 and Q2, growing its revenue by 82.84% and 73.90% respectively.

This January, Oppenheimer analyst Ittai Kidron maintained his $105 price target and an Outperform rating on Datadog, Inc. (NASDAQ:DDOG).

At the close of Q3 2022, Datadog, Inc. (NASDAQ:DDOG) was a part of 74 investors’ portfolios that held collective stakes worth $2.56 billion in the company. Of those, Tiger Global Management LLC was the top investor in the company and held a position worth $512.7 million.

Here is what Baron Funds had to say about Datadog, Inc. (NASDAQ:DDOG) in its third-quarter 2022 investor letter:

“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”

2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Revenue Growth in Q1 2022: 61.08%

Revenue Growth in Q2 2022: 58.47%

Revenue Growth in Q3 2022: 52.84%

Number of Hedge Fund Holders: 85

Another up-and-coming stock to buy now is cybersecurity leader CrowdStrike Holdings, Inc. (NASDAQ:CRWD). The company is a leading provider of cloud-delivered endpoint and workload protection solutions. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is well-positioned to capitalize on the growth opportunities in the cyber security space. The company has delivered top-line revenue growth in 2022 and has reportedly grown its quarterly revenue by over 50% year over year, on average, in the first three quarters of 2022.

On November 29, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) posted market-beating earnings for the fiscal third quarter of 2023. The company reported an EPS of $0.40 and outperformed EPS estimates by $0.08. The company’s revenue for the quarter amounted to $580.88 million, up 52.84% year over year, and beat Wall Street consensus by $5.82 million.

This January, Piper Sandler analyst Rob Owens revised his price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to $170 from $175 and remained Overweight on the shares.

At the end of Q3 2022, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was spotted on 85 investors’ portfolios that disclosed positions worth $2.97 billion in the company. Of those, Matrix Capital Management was the most prominent investor and held a position worth $494.43 million.

1. Uber Technologies, Inc. (NYSE:UBER)

Revenue Growth in Q1 2022: 136.10%

Revenue Growth in Q2 2022: 105.47%

Revenue Growth in Q3 2022: 72.20%

Number of Hedge Fund Holders: 142

Ride-hailing innovator Uber Technologies, Inc. (NYSE:UBER)’s platform is based on cutting-edge technology, including artificial intelligence and machine learning, which help the company to optimize its services, improve efficiency, and reduce costs. Uber Technologies, Inc. (NYSE:UBER) is also investing heavily in autonomous vehicle technology, which could be a major driver of growth in the coming years.

Last November, Uber Technologies, Inc. (NYSE:UBER) posted strong revenue growth when it reported earnings for the fiscal third quarter of 2022. The company generated a revenue of $8.34 billion, up 72.20% year over year. Uber Technologies, Inc. (NYSE:UBER) has managed to deliver remarkable revenue growth throughout 2022, posting revenue gains of 136.10% in Q1 2022 and 105.47% in Q2 2022.

At the end of Q3 2022, 142 hedge funds were long Uber Technologies, Inc. (NYSE:UBER) and disclosed positions worth $6.29 billion in the company. As of September 30, Ken Fisher’s Fisher Asset Management is the dominant shareholder in the company and has a position worth $510.4 million.

Here is what Artisan Partners had to say about Uber Technologies, Inc. (NYSE:UBER) in its third-quarter 2022 investor letter:

“During the quarter, we began new GardenSM campaigns in Uber Technologies, Inc. (NYSE:UBER) and Shopify. In July, we initiated our position in Uber, a leader in global ride-hailing and online food delivery. We believe the company is wellpositioned to benefit from strong secular tailwinds in both of its core businesses. Earlier this year, management outlined a plan at its investor day to achieve $4 billion of free cash flow by 2024, an encouraging commitment given investors have maligned the company for years of being unprofitable. We witnessed solid progress toward achieving this goal in the company’s most recent earnings results, where it beat expectations for the quarter on both fronts and delivered positive FCF for the first time. The company also indicated it isn’t seeing any evidence of slowing demand. We recognize the execution risk associated with Uber achieving its long-term targets, and the path likely won’t be linear, which is why we are keeping our position size modest until we see signs of continued operational momentum in the coming quarters.”

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