In this article, we will take a look at the 5 most promising stocks to buy according to hedge funds. To see more such companies, go directly to 12 Most Promising Stocks to Buy According to Hedge Funds.
5. Xenon Pharmaceuticals Inc. (NASDAQ:XENE)
Number of Hedge Fund Holders: 43
Average Analyst Price Target: $52.50
One-year average analyst price target set by Wall Street analysts for Xenon Pharmaceuticals Inc. (NASDAQ:XENE) is $52.50.
As of the end of the third quarter of 2023, 43 hedge funds had stakes in Xenon Pharmaceuticals Inc. (NASDAQ:XENE), as per Insider Monkey’s proprietary database of 910 funds.
4. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 44
Average Analyst Price Target: $15.56
On average, Wall Street analysts expect Roivant Sciences Ltd. (NASDAQ:ROIV) stock to reach $15.56, while the stock’s current price is $9.85, as of December 4.
As of the end of the third quarter of 2023, 44 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Roivant Sciences Ltd. (NASDAQ:ROIV). The most significant stakeholder of Roivant Sciences Ltd. (NASDAQ:ROIV) was Daniel Gold’s QVT Financial which owns a $1.3 billion stake in the company.
3. Lantheus Holdings Inc. (NASDAQ:LNTH)
Number of Hedge Fund Holders: 44
Average Analyst Price Target: $114
Diagnostics solutions company Lantheus Holdings Inc. (NASDAQ:LNTH) ranks 3rd in our list of the most promising stocks to buy according to hedge funds.
As of the end of the third quarter of 2023, 44 hedge funds tracked by Insider Monkey had stakes in Lantheus Holdings Inc. (NASDAQ:LNTH). Lantheus Holdings Inc. (NASDAQ:LNTH)’s average analyst price target is $114.
ClearBridge Small Cap Growth Strategy made the following comment about Lantheus Holdings, Inc. (NASDAQ:LNTH) in its Q3 2023 investor letter:
“We also made an investment in Lantheus Holdings, Inc. (NASDAQ:LNTH), which offers a portfolio of diagnostic health care products, primarily serving the complex nuclear imaging market. The company also has a pipeline of disruptive nuclear therapeutics (radiopharmaceuticals), creating a unique combination of strong profitability and cash flow generation with attractive growth opportunities in pipeline and existing products. The operational and logistical challenges of operating in nuclear medicine provide Lantheus a durable moat in this emerging therapeutic market.”
2. Liberty Broadband Corp. (NASDAQ:LBRDK)
Number of Hedge Fund Holders: 52
Average Analyst Price Target: $122
One-year average analyst price estimate on Liberty Broadband Corp. (NASDAQ:LBRDK) is $122 while the stock’s price as of December 4 was $84.
As of the end of the third quarter of 2023, 52 hedge funds had stakes in Liberty Broadband Corp. (NASDAQ:LBRDK).
Weitz Partners III Opportunity Fund made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDA) in its first quarter 2023 investor letter:
“Beyond our financial holdings, Liberty SiriusXM’s quarterly declines were significant enough to land it on our quarterly detractors list. The company also joins Liberty Broadband Corporation (NASDAQ:LBRDA) on the detractors list for the fiscal year. Liberty Chairman John Malone and CEO Greg Maffei have a long, successful track record of pairing businesses with predictable and growing cash flow streams with prudent use of debt to enhance equity returns via share buybacks. SiriusXM and Charter Communications, the two primary operating entities of the Liberty holding companies, are two such examples. Lately, necessary operating investments (new satellites and streaming technology for Sirius, fiber-competitive speed upgrades and network expansions at Charter) have reduced the amount of capital available for repurchases. Investment cycles are not unusual, and both businesses will be better positioned afterward. We believe the long-term equity return potential remains intact. In the short term, we believe Liberty SiriusXM will also benefit from management’s decision to separate Liberty SiriusXM into two distinct tracking stocks to individually highlight the value of its ownership stakes of SiriusXM and Live Nation — currently both attributed to Liberty SiriusXM shares. This move will facilitate greater transparency for shareholders and potentially help reduce the shares’ discount to the market value of their underlying assets.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 110
Average Analyst Price Target: $127
Alibaba Group Holding Limited (NYSE:BABA) tops our list of the most promising stocks to buy according to hedge funds. One-year average price target on Alibaba Group Holding Limited (NYSE:BABA) is $127. Alibaba Group Holding Limited (NYSE:BABA) is currently a topic of discussion following Jack Ma’s surprise post on the company’s internal forum where he urged the company to “correct course” and called the age of AI an opportunity as well as a challenge for the company. Ma also praised ecommerce rival PDD.
Alibaba Group Holding Limited (NYSE:BABA) so far hasn’t lived up to the expectations the Street once had with the largest Chinese ecommerce giant. Alibaba Group Holding Limited (NYSE:BABA) is down about 18% over the past year.
Out of the 910 hedge funds tracked by Insider Monkey, 110 funds had stakes in Alibaba Group Holding Limited (NYSE:BABA). The biggest hedge fund stakeholder of Alibaba Group Holding Limited (NYSE:BABA) was Ken Fisher’s Fisher Asset Management which owns a $334 million stake in the company.
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