This article presents an overview of the 5 High Growth Non-Tech Stocks That Are Profitable. For a detailed overview of such stocks, read our article, 17 High Growth Non-Tech Stocks That Are Profitable.
5. Noble Corporation PLC (NYSE:NE)
Number of Hedge Fund Investors: 48
Susquehanna in December started covering offshore drilling company Noble Corporation PLC (NYSE:NE) shares with a Neutral rating and a $52 price target. The investment firm praised Noble Corporation PLC’s (NYSE:NE)’s concentration of ultra-deepwater assets that are highly in demand in the current market.
During the third quarter, Noble Corporation PLC (NYSE:NE) saw a revenue increase of 128% on a year over year basis.
Carillon Scout Mid Cap Fund made the following comment about Noble Corporation Plc (NYSE:NE) in its Q3 2023 investor letter:
“Noble Corporation Plc (NYSE:NE), an offshore contract driller, benefited from improved sentiment regarding the offshore drilling business as higher day rates, the all-in daily costs of renting a drilling rig, were reported across the industry. The supply and demand for offshore rigs has tightened considerably.”
4. Nu Holdings Ltd (NYSE:NU)
Number of Hedge Fund Investors: 50
Nu Holdings Ltd (NYSE:NU) in November posted Q3 results. Revenue in the quarter came in at $2.14 billion, surpassing estimates of $2.05 billion. It was up from $1.87 billion posted in the previous quarter and $1.31 billion posted in the third quarter of 2022.
White Falcon Capital Management made the following comment about Nu Holdings Ltd. (NYSE:NU) in its Q3 2023 investor letter:
“There are comparable narratives involving Nu Holdings Ltd. (NYSE:NU), Amazon, and Teck Resources, to name a few holdings from the White Falcon portfolio. NU Holdings generates an average monthly revenue per user of $9.3, whereas its competitors are achieving over $35, creating a significant opportunity for revenue and earnings growth. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
3. Quanta Services Inc (NYSE:PWR)
Number of Hedge Fund Investors: 54
Quanta Services Inc (NYSE:PWR) provides infrastructure services for electric power, pipeline, industrial and communications industries. The stock was part of Goldman Sachs’ list of high-growth stocks trading at attractive valuations in December. Quanta Services Inc (NYSE:PWR) increased its dividend by 12.5% in December.
A total of 54 hedge funds tracked by Insider Monkey had stakes in Quanta Services Inc (NYSE:PWR).
ClearBridge All Cap Value Strategy made the following comment about Quanta Services, Inc. (NYSE:PWR) in its Q3 2023 investor letter:
“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy. Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.
This is merely one example of what is happening across industries at varying degrees of magnitude and rapidity, leaving entire supply chains supporting renewable buildouts and related electrical grid infrastructure at risk. This, combined with a massive rerating in its valuation, drove our decision to exit Quanta Services, Inc. (NYSE:PWR) during the quarter despite it being one of the biggest beneficiaries of the accelerating demand for renewables and electrical grid upgrades.”
2. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Investors: 55
Baird recently published a list of its top biotech picks for 2024. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) was part of the list.
A total of 55 hedge funds in Insider Monkey’s database had stakes in Neurocrine Biosciences, Inc. (NASDAQ:NBIX). The most significant stakeholder of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) was Steve Cohen’s Point72 Asset Management which owns a $290 million stake in Neurocrine Biosciences, Inc. (NASDAQ:NBIX).
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.”
1. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Investors: 78
Healthcare company DexCom, Inc. (NASDAQ:DXCM) in October posted Q3 results. Adjusted EPS in the period came in at $0.50, beating estimates by $0.17. Revenue in the quarter jumped about 26.7% year over year to $975 million, surpassing estimates by $37.38 million.
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.”
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