5 Best Up and Coming Stocks to Invest In

1. Zendesk, Inc. (NYSE: ZEN)

Number of Hedge Fund Holders: 45    

Zendesk, Inc. (NYSE: ZEN) is ranked first on our list of 10 best up and coming stocks to invest in. The stock has offered investors returns exceeding 51% over the course of the past twelve months. The firm markets software development services and is based in California. In earnings results for the first quarter, posted on April 29, the firm reported earnings per share of $0.17, beating market predictions by $0.05. The revenue over the period was close to $300 million, up over 25% year-on-year. 

On May 27, investment advisory UBS upgraded Zendesk, Inc. (NYSE: ZEN) stock to Buy from Neutral and raised the price target to $190 from $171, noting that the firm was capable of returning to an over 30% growth profile. 

At the end of the first quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Zendesk, Inc. (NYSE: ZEN), down from 58 in the previous quarter worth $1.8 billion.

In its Q4 2020 investor letter, Wasatch Ultra Growth Fund, an asset management firm, highlighted a few stocks and Zendesk, Inc. (NYSE: ZEN) was one of them. Here is what the fund said:

“Zendesk, Inc. (ZEN) was also a top contributor. The company provides business software using the software-as-a-service (SaaS) model. Zendesk has experienced strong demand throughout the Covid19 pandemic from customers in e-commerce, as well as from other businesses with employees working from home. Additionally, demand from clients in the travel and hospitality industries has picked up as global economies have begun to reopen. Adjusted earnings per share rose 42% in the company’s most recent quarter on revenue growth of 24% compared to the same quarter a year ago. An improved sales outlook from Zendesk’s management also helped lift the stock.”

You can also take a peek at 10 Companies that Benefit From Crypto Mining and 15 Best Strong Buy Stocks to Invest In.

Follow Insider Monkey on Twitter