In this article, we will take a look at the 5 most promising growth stocks according to analysts. To see more such companies, go directly to 12 Most Promising Growth Stocks According to Analysts.
5. Meta Materials Inc. (NASDAQ:MMAT)
Number of Hedge Fund Holders: 9
Average Price Target by Analysts: $2.38
Meta Materials Inc. (NASDAQ:MMAT) is a Canadian company that makes materials and nanocomposites. In November, Meta Materials Inc. (NASDAQ:MMAT) posted its Q3 results, which showed that its revenue in the period increased by a remarkable 329% on a YoY basis to total $2.45 million. However, the figure missed estimates by $1 million.
Back in November, Meta Materials Inc. (NASDAQ:MMAT) gained a lot of value after disclosures showed insiders were buying the stock. A filing showed that Meta Materials Inc. (NASDAQ:MMAT)’s Chairman John Harding bought 126,000 shares of the company at $1.74 per share.
As of the end of the third quarter of 2022, 9 hedge funds had stakes in Meta Materials Inc. (NASDAQ:MMAT)
4. Ebix, Inc. (NASDAQ:EBIX)
Number of Hedge Fund Holders: 17
Average Price Target by Analysts: $96.75
Shares of California-based software company Ebix, Inc. (NASDAQ:EBIX) are trading at around $17 as of February 21 morning. Analysts’ average price target for the stock is $96.75. This shows a huge upside potential from current levels. In November, Ebix, Inc. (NASDAQ:EBIX) posted its third quarter results. Adjusted EPS in the period came in at $0.70. Revenue in the quarter jumped about 34.5% on a YoY basis to reach $257.9 million, beating estimates by $46.15 million.
Ebix, Inc. (NASDAQ:EBIX) recently announced that its annuity exchange AnnuityNet4 (AN4) saw record volumes in 2022, driven by favorable market conditions and interest rate dynamics.
Transactions on the platform surpassed 580,000, showing a YoY growth of 36%.
Hedge funds are also increasing their bets in Ebix, Inc. (NASDAQ:EBIX). At the end of the third quarter, 17 funds had stakes in Ebix, Inc. (NASDAQ:EBIX), up from 13 funds in the previous quarter.
3. Clearfield, Inc. (NASDAQ:CLFD)
Number of Hedge Fund Holders: 20
Average Price Target by Analysts: $109.80
Fiber optic manufacturing and distribution company Clearfield, Inc. (NASDAQ:CLFD) ranks 3rd in our list of the 12 most promising growth stocks according to analysts. Earlier this month Clearfield, Inc. (NASDAQ:CLFD) posted its fiscal first quarter results, which show that Clearfield’s revenue in the period increased by a whopping 68% on a YoY basis to reach $86 million. This figure also beat analyst estimates by $2.44 million. GAAP EPS in the period came in at $1, beating estimates by $0.04. Clearfield, Inc. (NASDAQ:CLFD) reiterated its 2023 fiscal net sales guidance, according to which the metric is expected to come in between $380 million to $393 million, versus the consensus estimate of $385.35 million. This would show a 40% to 45% growth from fiscal 2022.
As of the end of the third quarter of 2022, 20 hedge funds tracked by Insider Monkey had reported owning shares in Clearfield, Inc. (NASDAQ:CLFD). The total value of these stakes was about $170 million.
2. Calix, Inc. (NYSE:CALX)
Number of Hedge Fund Holders: 24
Average Price Target by Analysts: $82.56
Calix, Inc. (NYSE:CALX) provides Cloud and software services to communication service providers. Calix, Inc. (NYSE:CALX) looks promising based on its average price target set by analysts. Last month, Calix, Inc. (NYSE:CALX) posted its fourth quarter results. Revenue in the quarter increased by about 39% on a YoY basis to reach $244.51 million, beating estimates by $3.31 million. Net income came in at $11.93 million. Calix, Inc. (NYSE:CALX) said its cash and cash equivalents as of the end of the quarter stood at $79.07 million.
In January, Loop Capital analyst Fahad Najam upped his price target on the stock to $88 from $83 and kept a Buy rating. The analyst advised investors to be “aggressive buyers” of Calix, Inc. (NYSE:CALX) as he believes there are significant growth opportunities ahead for the company.
At the end of the third quarter of 2022, 24 hedge funds reported owning stakes in Calix, Inc. (NYSE:CALX), compared to 22 funds in the previous quarter. The total value of these stakes was $451 million.
Carillon Tower Advisers made the following comment about Calix, Inc. (NYSE:CALX) in its Q3 2022 investor letter:
“Another strong performer during Q3 was Calix, Inc. (NYSE:CALX). Calix stock rebounded sharply in the quarter after reporting stellar earnings. They offer next-gen fiber broadband solutions to telecommunication companies primarily for rural markets. The broadband buildout in rural markets is still in the early innings, and the company’s subscription model offers great visibility going forward.”
1. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 47
Average Price Target by Analysts: $43.98
Sunrun Inc. (NASDAQ:RUN) is one of the most promising growth stocks according to analysts. During the third quarter, Sunrun Inc. (NASDAQ:RUN)’s revenue jumped about 44% on a YoY basis. GAAP EPS in the quarter totaled $0.96, beating estimates by $1.01.
Earlier this month, Sunrun Inc. (NASDAQ:RUN) and PG&E (NYSE:PCG) announced that they formed a partnership to develop an optimal battery dispatch schedule to lower power costs when demand spikes.
As of the end of the third quarter of 2022, 47 hedge funds reported owning stakes in Sunrun Inc. (NASDAQ:RUN), up from 36 hedge funds in the previous quarter. This shows that hedge fund sentiment around Sunrun Inc. (NASDAQ:RUN) is positive.
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