5 High Growth IT Stocks to Buy

In this article, we discuss 5 high growth IT stocks to buy. If you want to see more stocks in this selection, check out 11 High Growth IT Stocks to Buy. 

5. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)

Number of Hedge Fund Holders: 19

Quarterly Revenue Growth YoY as of September 29, 2022: 40.10%

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is a California-based provider of enterprise-level digital transformation services in the areas of search, analytics, and release automation for corporations in North America, Europe, and internationally. On December 27, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) declared the acquisition of Mutual Mobile. The purpose of this acquisition was to expand Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)’s portfolio of digital transformation services, which will enable them to cater to the ever-increasing need for developing cutting-edge digital experiences for global brands. It is one of the top high growth IT stocks to monitor. 

On December 15, JPMorgan analyst Puneet Jain maintained an Overweight rating on Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) but lowered the firm’s price target on the shares to $17 from $18. The analyst has re-evaluated the ratings and lowered estimates for IT and business process outsourcing services, given the signs of companies tightening their budgets in the first half of 2023. Although growth stocks performed poorly in 2022, the analyst anticipates a better performance in 2023. However, he cautioned that the revenue estimates provided by the Street for 2023 could potentially be overly optimistic.

According to Insider Monkey’s third quarter database, 19 hedge funds were bullish on Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), compared to 13 funds in the prior quarter. 

Here is what Baron Funds specifically said about Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in its Q3 2022 investor letter:

“We added to our Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) position as part of the company’s equity raise to fund potential future acquisitions. Management has proven to be successful acquirers in the recent past, and we would expect a transaction to be nicely accretive and help diversify the business geographically. The company is growing exceptionally (52% organic sales growth for the second quarter of 2022), and we believe EPS can compound at 20% to 30% for many years, as Grid Dynamics provides its customers technology consulting, software development, and data analytics for their digital transformation.”

4. Flywire Corporation (NASDAQ:FLYW)

Number of Hedge Fund Holders: 19

Quarterly Revenue Growth YoY as of September 29, 2022: 40.50%

Flywire Corporation (NASDAQ:FLYW) operates as a Massachusetts-based payment enablement and software company in the United States, Canada, and the United Kingdom, and internationally. In Q3 2022, Flywire Corporation (NASDAQ:FLYW)’s revenue of $95.2 million increased 40.5% on a year-over-year basis, beating Wall Street estimates by $7.34 million. It is one of the top high growth IT stocks to invest in. 

On January 20, Truist analyst Andrew Jeffrey raised Flywire Corporation (NASDAQ:FLYW)’s price target from $30 to $35 and maintained a Buy rating on the stock. According to the analyst, investors should pay attention to FinTech companies that are expected to perform well in 2022, but he also thinks that there needs to be a catalyst for those that will outperform in 2023. He believes that mergers and acquisitions are the most probable means of driving valuation. Additionally, the analyst thinks that Flywire Corporation (NASDAQ:FLYW)’s value proposition remains strong, and that it will be difficult for those who are critical of the company to continue to bet against it.

According to Insider Monkey’s third quarter database, 19 hedge funds were bullish on Flywire Corporation (NASDAQ:FLYW), compared to 22 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the biggest stakeholder of the company, with 2.25 million shares worth $51.8 million. 

3. CSP Inc. (NASDAQ:CSPI)

Number of Hedge Fund Holders: 1

Quarterly Revenue Growth YoY as of December 30, 2022: 48.30%

CSP Inc. (NASDAQ:CSPI) is a Massachusetts-based company that develops IT integration solutions, security products, managed IT services, cloud services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. CSP Inc. (NASDAQ:CSPI)’s revenue of $18.34 million climbed 48.3% year-over-year, making it one of the best high growth IT stocks to consider. For the December quarter, the company posted a GAAP EPS of $0.21. 

On February 8, CSP Inc. (NASDAQ:CSPI) declared a $0.03 per share quarterly dividend, in line with previous. The dividend is payable on March 14, to shareholders of record on February 24. 

According to Insider Monkey’s third quarter database, Jim Simons’ Renaissance Technologies held 170,177 shares of CSP Inc. (NASDAQ:CSPI), worth $1.2 million. 

2. Chindata Group Holdings Limited (NASDAQ:CD)

Number of Hedge Fund Holders: 25

Quarterly Revenue Growth YoY as of September 29, 2022: 62.40%

Chindata Group Holdings Limited (NASDAQ:CD) was founded in 2015 and is headquartered in Beijing, China. The company offers carrier-neutral hyper scale data center solutions in China, India, Malaysia, and Southeast Asia. It provides artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. In the third quarter of 2022, Chindata Group Holdings Limited (NASDAQ:CD)’s revenue of $169.1 million jumped 62.4% year-over-year, beating estimates by $12.8 million. 

On November 23, Citi analyst Andre Lin reiterated a Buy recommendation on Chindata Group Holdings Limited (NASDAQ:CD) but lowered the firm’s price target on the shares to $8.90 from $9.30 following the Q3 results. He believes that the stock is still undervalued and Chindata reported a Q3 that exceeded expectations, with increased customer demand and better utilization. 

According to Insider Monkey’s Q3 data, 25 hedge funds were long Group Holdings Limited (NASDAQ:CD), compared to 22 funds in the prior quarter. 

1. Global Blue Group Holding AG (NYSE:GB)

Number of Hedge Fund Holders: 10

Quarterly Revenue Growth YoY as of September 29, 2022: 162.40%

Global Blue Group Holding AG (NYSE:GB) was founded in 1899 and is headquartered in Reston, Virginia. It operates as an aerospace and defense company worldwide. It operates through four segments – Aerospace, Marine Systems, Combat Systems, and Technologies. The Technologies segment provides information technology solutions and mission support services, mobile communication, computers, command-and-control mission systems, intelligence, surveillance, and reconnaissance solutions. Global Blue Group Holding AG (NYSE:GB)’s FQ2 revenue of €81.9 million climbed 162.5% on a year-over-year basis. It is one of the top high growth IT stocks to invest in. 

According to Insider Monkey’s third quarter database, 10 hedge funds held stakes worth $702 million in Global Blue Group Holding AG (NYSE:GB). 

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