This article presents an overview of the 5 High Growth Large-Cap Stocks To Invest In. For a detailed overview of such stocks, read our article, 17 High Growth Large-Cap Stocks To Invest In.
5. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Investors: 78
California-based DexCom, Inc. (NASDAQ:DXCM) makes glucose monitoring systems. UBS recently published a list of its top global stock picks. DexCom, Inc. (NASDAQ:DXCM) made it to the list of these stocks. UBS believes global stocks are expected to deliver mid- to high-single-digit returns by the end of 2024.
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about DexCom, Inc. (NASDAQ:DXCM) in its Q3 2023 investor letter:
“Our preference within Health Care is for novel therapies to address unmet medical needs, specialized providers, and innovators. New to the portfolio this quarter is DexCom, Inc. (NASDAQ:DXCM), a producer of glucose monitoring systems for people with diabetes. While GLP-1 drugs can help with weight loss, individuals with type 1 diabetes would remain insulin dependent. We used share price weakness as an opportunity to initiate the position.”
4. Palo Alto Networks Inc (NASDAQ:PANW)
Number of Hedge Fund Investors: 79
Cybersec company Palo Alto Networks Inc (NASDAQ:PANW) shares have gained about 95% year to date through December 19. Earlier this month, Wedbush increased its price target for Palo Alto Networks (NASDAQ:PANW) to $350 from $290.
A total of 79 hedge funds in Insider Monkey’s database had stakes in Palo Alto Networks Inc (NASDAQ:PANW).
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”
3. Booking Holdings Inc (NASDAQ:BKNG)
Number of Hedge Fund Investors: 81
Goldman Sachs recently recommended a few stocks for those who are worried about high valuations. Goldman Sachs analysts believe these stocks have “reasonable” valuations.
Booking Holdings Inc (NASDAQ:BKNG) was one of these stocks. Goldman Sachs said these stocks rank in the top 20% of their sectors based on growth, “but do not rank in either the top 40% or bottom 20% of their sectors on Value.”
L1 Capital International Fund made the following comment about Booking Holdings Inc. (NASDAQ:BKNG) in its Q3 2023 investor letter:
“Following significant under-performance, some high-quality businesses in these sectors are now becoming more attractive from a valuation perspective – in our language they are now getting warmer on our Bench of potential investments.
Our ‘all-weather’ portfolio centred around our unique definition of ‘quality’ delivered strong performance in the September quarter. Three companies positively contributed over 0.5% (in Australian dollars) to the Fund’s returns for the quarter (Booking Holdings Inc. (NASDAQ:BKNG), Intuit and Natural Resource Partners, in alphabetical order), and another three companies almost reached this level of positive contribution. No companies detracted from the Portfolio’s returns by 0.5% or more.
As part of our travels during the quarter (see page 6) we had the opportunity to meet with management of both Booking Holdings and Intuit. We continue to view both companies as exceptionally well managed.
Booking Holdings, the world’s leading online travel agency, continues to benefit from a strong global travel environment with particular strength in Europe, Booking Holdings’ core market. Fears of peak ‘revenge travel’ following COVID-19 lockdowns have been misplaced in our view. We assess current travel volumes to be only slightly elevated compared to pre-COVID-19 trends, with some regions, particularly outbound travel from China, still relatively depressed. Anyone who has travelled anywhere recently will be nodding when we say hotel rates have increased meaningfully in recent times. Accommodation providers are generally doing quite well, but the increased hotel rates have been necessary to offset inflation in costs such as employee salaries and additional cleaning services. As Booking Holdings ‘clips the ticket’ of accommodation spend, the company has benefitted from increased average daily hotel rates. Importantly, Booking Holdings continues to invest in its business, improving the reach, quality and range of services it provides, resulting in gains in market share and an extension of its industry leadership position. Booking Holdings is now more fairly valued by the market, but still provides attractive base case risk-adjusted returns and remains one of the larger investments in the Fund.”
2. Datadog Inc (NASDAQ:DDOG)
Number of Hedge Fund Investors: 83
Datadog Inc (NASDAQ:DDOG) stock earlier this month got an upgrade from Stifel. The firm increased its price target for Datadog Inc (NASDAQ:DDOG) to Buy from Hold and increased its price target to $140 from $98.
A total of 83 hedge funds in Insider Monkey’s database had stakes in Datadog Inc (NASDAQ:DDOG). The biggest stakeholder of Datadog Inc (NASDAQ:DDOG) was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $282 million stake in Datadog Inc (NASDAQ:DDOG).
1. ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Investors: 99
Investment firm UBS recently kept a Buy rating on ServiceNow Inc (NYSE:NOW) but increased its price target on the stock to $820 from $650. The new price target shows a significant upside potential from the current price of the stock ($703 as of December 19).
ClearBridge Multi Cap Growth Strategy made the following comment about ServiceNow, Inc. (NYSE:NOW) in its third 2023 investor letter:
“ServiceNow, Inc. (NYSE:NOW) is a leading provider of workflow automation software. We see the company as a key enabler of modernization and digital transformation, which is well-positioned as enterprises look to converge on a single platform solution. Despite its sizable customer base, we believe ServiceNow still has substantial room to expand spending with existing customers, as most have not fully leveraged its full product suite. We also are encouraged by the company’s strong leadership team and history of innovation which should enable it to continue to expand wallet share. Additionally, despite ongoing investments in growth, ServiceNow continues to drive healthy operating leverage.”
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