This article presents an overview of the 5 High Growth NASDAQ Stocks That Are Profitable. For a detailed overview of such stocks, read our article, 14 High Growth NASDAQ Stocks That Are Profitable.
5. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Investors: 55
Neurocrine Biosciences, Inc (NASDAQ:NBIX) ranks 5th in our list of the best high-growth profitable NASDAQ stocks to buy now. In fiscal 2022, Neurocrine Biosciences, Inc’s (NASDAQ:NBIX) total revenue came in at $1.5 billion, much higher than $1.1 billion reported in fiscal 2021.
Out of the 55 hedge funds that reported having stakes in the biotech company Neurocrine Biosciences, Inc (NASDAQ:NBIX), Steve Cohen’s Point72 Asset Management had the biggest stake in Neurocrine Biosciences, Inc (NASDAQ:NBIX) with about 2.6 million shares.
Harding Loevner Global Small Companies Equity Strategy made the following comment about Neurocrine Biosciences, Inc. (NASDAQ:NBIX) in its Q3 2023 investor letter:
“By sector, our returns in Health Care were positive but this was more than offset by poor Industrials stocks. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) reported positive late-stage clinical study data for its treatment of congenital adrenal hyperplasia, a condition which causes the body to not produce enough cortisol, increasing the probability that the company can address a new estimated $1 billion market opportunity.”
4. PDD Holdings Inc – ADR (NASDAQ:PDD)
Number of Hedge Fund Investors: 66
Morgan Stanley in December called PDD Holdings Inc – ADR (NASDAQ:PDD), or Pinduoduo, its top Chinese pick for 2024 and downgraded PDD Holdings Inc – ADR’s (NASDAQ:PDD) competitor Alibaba. Morgan Stanley believes PDD Holdings Inc – ADR’s (NASDAQ:PDD) business model and consumer behavior changes in China would continue to bring more market share for PDD Holdings Inc – ADR (NASDAQ:PDD).
As of the end of the third quarter of 2023, 66 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in PDD Holdings Inc – ADR (NASDAQ:PDD). The biggest hedge fund stakeholder of PDD Holdings Inc – ADR (NASDAQ:PDD) was Lei Zhang’s Hillhouse Capital Management which owns a $721 million stake in PDD Holdings Inc – ADR (NASDAQ:PDD).
3. MercadoLibre Inc (NASDAQ:MELI)
Number of Hedge Fund Investors: 76
Argentina-based MercadoLibre Inc (NASDAQ:MELI) shares in November received an upgrade in rating from BofA Securities to Buy from Neutral. BofA also increased its price target on the stock to $2000.
A total of 76 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in MercadoLibre Inc (NASDAQ:MELI). The most significant stakeholder of MercadoLibre Inc (NASDAQ:MELI) during this period was David Blood And Al Gore’s Generation Investment Management which owns a $609 million stake in MercadoLibre Inc (NASDAQ:MELI).
Polen International Growth Strategy made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2023 investor letter:
“According to our research, MercadoLibre, Inc. (NASDAQ:MELI) continues to demonstrate all the signs of a strengthening e-commerce/fintech platform. In the most recent quarter, the company reported revenue growth of nearly 60% in local currency terms despite very difficult growth comparisons from the past two to three years. As we see it, nearly all key metrics for the company continue to trend very positively.”
2. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Investors: 78
Glucose monitoring systems company DexCom, Inc. (NASDAQ:DXCM) is one of the best high-growth NASDAQ stocks to buy according to hedge funds.
Out of the 910 hedge funds tracked by Insider Monkey, 78 hedge funds had stakes in DexCom, Inc. (NASDAQ:DXCM). The most significant stake in DexCom, Inc. (NASDAQ:DXCM) is owned by Israel Englander’s Millennium Management which owns a $259 million stake in DexCom, Inc. (NASDAQ:DXCM).
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM):
“Evolving our fundamental research and portfolio monitoring process to promote better ongoing collaboration with ClearBridge’s Sector Analyst Team has enabled us to identify opportunities and risks more efficiently and take decisive actions in a timely manner. We exited our position in DexCom, Inc. (NASDAQ:DXCM), for example, during the quarter by looking past the broadly negative noise about GLP-1 impacts on medical devices and understanding that our assumptions about DexCom’s long-term growth rate, particularly in the Type-2 diabetes market, now seem more aggressive than we had previously thought.”
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 180
NVIDIA Corp (NASDAQ:NVDA) is undoubtedly one of the most favorite high-growth NASDAQ stocks right now, thanks to the explosive demand for AI chips the company is experiencing after the generative AI boom. During the third quarter of 2023, NVIDIA Corp’s (NASDAQ:NVDA) revenue came in at $18.12 billion, much higher than the estimated $16.18 billion. This was a 206% year-over-year growth.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and NVIDIA Corporation (NASDAQ:NVDA). Those three stocks, as well as Microsoft, were among the leading contributors to Strategy performance for the quarter. Microsoft and Nvidia continued to be supported by strong execution and leadership positions in the implementation of generative artificial intelligence (AI).
These are high-quality, cash flow generative businesses that we will continue to own, actively adjusting our positioning sizes based on risk/reward and portfolio construction priorities. With Nvidia shares more than tripling in 2023, we opportunistically took profits throughout the year, an approach that continued in the fourth quarter with additional trims that brought the position down to 6% of overall assets.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
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