In this article, we will take a look at the 5 high growth low debt stocks to buy. To read our analysis of the recent trends, and market activity, you can go to the 11 High Growth Low Debt Stocks to Buy.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
EPS Next 5-Year Ratio: 23.30%
Debt-to-Equity Ratio: 0.24
Number of Hedge Fund Holders: 116
Warren Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. (NYSE:BRK-B) engages in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services.
As of Q3 2023, Berkshire Hathaway Inc. (NYSE:BRK-B) shares were held by 109 prominent hedge funds with the total shares held by hedge funds valued at $15.5 billion. Bill & Melinda Gates Foundation Trust was the largest hedge fund shareholder on record with ownership of 22.5 million shares valued at $7.9 billion.
Like other stocks such as Meta Platforms, Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL), Berkshire Hathaway Inc. (NYSE:BRK-B) is among the 11 high growth low debt stocks to buy.
4. Salesforce, Inc. (NYSE:CRM)
EPS Next 5-Year Ratio: 26.77%
Debt-to-Equity Ratio: 0.24
Number of Hedge Fund Holders: 122
San Francisco, California-based Salesforce, Inc. (NYSE:CRM) is the world’s leading customer relationship management platform provider. Its cloud-based platform has applications for sales, service, marketing, and more.
On November 29, Salesforce, Inc. (NYSE:CRM) released its financial results for the quarter ended October 31, 2023. Its revenue went up by 11% to $8.7 billion while net income increased manifold to $1.2 billion. Its normalized EPS of $2.11 exceeded consensus estimates by $0.05.
On December 21, Morgan Stanley analyst Keith Weiss raised the price target for Salesforce, Inc. (NYSE:CRM) shares to $350 from $290 and upgraded the rating to ‘Overweight’ from ‘Equal-Weight’. The target price represents a potential upside of 33.01% based on the latest share price.
Salesforce, Inc. (NYSE:CRM) is a highly sought after technology stock among hedge funds as 122 out of the 910 hedge funds tracked by Insider Monkey held its shares with a total value of $10.5 billion, as of Q3 2023. Ken Fisher’s Fisher Asset Management was its largest hedge fund shareholder with ownership of 14.2 million shares valued at $2.9 billion.
3. Workday, Inc. (NYSE:WDAY)
EPS Next 5-Year Ratio: 28.79%
Debt-to-Equity Ratio: 0.49
Number of Hedge Fund Holders: 77
Based in Pleasanton, California, Workday, Inc. (NYSE:WDAY) is a leading provider of enterprise cloud applications for finance and human resources. Its platform is used by more than 10,000 organizations around the world and across industries – from medium-sized businesses to more than 50% of the Fortune 500.
On November 28, Workday, Inc. (NYSE:WDAY) released its results for quarter ended October 31, 2023. Its revenue increased by 17% y-o-y to $1.9 billion, while it generated a net income of $114 million, compared to a net loss of $75 million.
Following the earnings release, Wells Fargo analyst Michael Turrin raised the price target for Workday, Inc. (NYSE:WDAY) shares to $300 and maintained an ‘Overweight’ rating.
Polen Capital, an investment management firm, made the following comments about Workday, Inc. (NYSE:WDAY) in its “Polen Global Growth” third quarter 2023 investor letter:
“Workday continues to compound by replicating its go-to-market strategy with high-value and known products into its addressable market. The company’s initiatives into financials and expanding into other geographies required some patience, and the progress we have seen shows addressable market expansion that can allow for many years of outsized and compounding growth. The price, competitive advantages, and likelihood of outsized growth led us to size Workday as a larger position within the Portfolio.”
2. Meta Platforms, Inc. (NASDAQ:META)
EPS Next 5-Year Ratio: 32.47%
Debt-to-Equity Ratio: 0.26
Number of Hedge Fund Holders: 234
Menlo Park, California-based Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate formerly known as Facebook, Inc. Its businesses are reported under two segments: Family of Apps – comprising social media web and smartphone apps Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs – comprising augmented and virtual reality products including hardware, software, and content.
Meta Platforms, Inc. (NASDAQ:META) has posted massive share price recovery and growth this year. Its shares were up nearly 191% year-to-date, as of December 18, the second best year-to-date performance on our list.
Following strong earnings in Q3 2023 headlined by normalized EPS of $4.39 surpassing consensus estimates by a whopping $0.79, Truist Securities analyst Robert Zeller raised the price target for Meta Platforms, Inc. (NASDAQ:META) shares to $405 from $390 and maintained a ‘Buy’ rating.
Meta Platforms, Inc. (NASDAQ:META) ranks #2 on our list of 11 high growth low debt stocks to buy based on the number of hedge funds holding its shares as of September 30, 2023. The shares of the social media giant were owned by 234 hedge funds with a total value of $35.2 billion. Prominent hedge funds, such as Arrowstreet Capital, Tiger Global Management LLC, and GQG Partners, held the highest number of its shares among hedge funds.
1. Exxon Mobil Corporation (NYSE:XOM)
EPS Next 5-Year Ratio: 45.30%
Debt-to-Equity Ratio: 0.21
Number of Hedge Fund Holders: 79
Irving, Texas-based Exxon Mobil Corporation (NYSE:XOM) is one of the largest publicly traded international energy and petrochemical companies. It is one of the largest integrated fuels, lubricants, and chemical companies in the world.
On October 11, Exxon Mobil Corporation (NYSE:XOM) announced a definitive agreement to acquire Pioneer Natural Resources (NYSE:PXD) in an all-stock transaction valued at $59.5 billion. The acquisition is expected to transform the company’s upstream portfolio with significant additions to its Permian footprint.
Exxon Mobil Corporation (NYSE:XOM) has been a consistent component of hedge fund portfolios. As of Q3 2023, its shares were held by 79 of the 910 hedge funds tracked by Insider Monkey, valued at $4.5 billion. Jean-Marie Eveillard’s First Eagle Investment Management was the largest shareholder on record with ownership of 13.2 million shares valued at $1.6 billion.
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