In this article, we discuss 5 small company stocks you should own now for the next decade. If you want to read about some more stocks, go directly to 15 Small Company Stocks You Should Own Now for the Next Decade.
5. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 26
Sunnova Energy International Inc. (NYSE:NOVA) is a Houston, Texas-based solar company.
The company has a favorable long-term outlook following the Inflation Reduction Act. Mark Strouse at JPMorgan echoed these sentiments. The analyst increased the price target on Sunnova Energy International Inc. (NYSE:NOVA) from $43 to $54 and maintained an Overweight rating on the stock on August 8. Strouse thinks that the IRA is the biggest policy change in the history of the US and will aid in the transition to renewable energy. The analyst added that companies with local manufacturing facilities would immediately benefit from the bill. Observers see Sunnova Energy International Inc. (NYSE:NOVA) as the best-positioned solar company in the residential segment.
Here’s what ClearBridge Investments said about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:
“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”
Of the 912 hedge funds in Insider Monkey’s database, 26 funds held a stake in Sunnova Energy International Inc. (NYSE:NOVA) as of Q1 2022.
4. Urban Outfitters, Inc. (NASDAQ:URBN)
Number of Hedge Fund Holders: 27
Urban Outfitters, Inc. (NASDAQ:URBN) is a Philadelphia, Pennsylvania-based lifestyle retail company.
The company is working on gaining market share in the fast fashion segment, which is expected to compound annually by 7% to $40 billion by 2025. Urban Outfitters, Inc. (NASDAQ:URBN) has transitioned more than half of its sales to online channels. Due to its diverse product range, analysts expect Urban Outfitters, Inc. (NASDAQ:URBN) to outperform its competitors such as American Eagle and The GAP.
In Q1 2022, Urban Outfitters, Inc. (NASDAQ:URBN) recorded revenue of $1.05 billion, reflecting a YoY increase of 13.2%. Analysts think Urban Outfitters, Inc. (NASDAQ:URBN) offers an attractive valuation and has a sound business model for long-term investors.
As of Q1 2022, Urban Outfitters, Inc. (NASDAQ:URBN) was held by 27 hedge funds.
3. Fate Therapeutics, Inc. (NASDAQ:FATE)
Number of Hedge Fund Holders: 31
Fate Therapeutics, Inc. (NASDAQ:FATE) is a La Jolla, California-based clinical-stage biotech company focused on developing first-in-class cellular immunotherapies for cancer patients.
Fate Therapeutics, Inc. (NASDAQ:FATE) is a part of Cathie Wood’s ARK Investment portfolio. The hedge fund acquired 628,000 shares of Fate Therapeutics, Inc. (NASDAQ:FATE) on August 11. As of June 30, the hedge fund was the second biggest shareholder in the company, with over 11.4 million shares.
Matthew Biegler at Oppenheimer has given Fate Therapeutics, Inc. (NASDAQ:FATE) stock an Outperform rating with a target price of $90 on August 4. The analyst is waiting for the outcome of the meeting with the FDA as it could prompt the company to take FT596 or FT 516 into a Registrational Trial next year. Analysts see Fate Therapeutics, Inc. (NASDAQ:FATE) as having important drugs in its pipeline that could help the company observe significant growth in the next few years.
2. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX)
Number of Hedge Fund Holders: 31
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is a Chicago, Illinois-based health-tech company.
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) reported better-than-expected Q2 2022 results on August 4. Revenue and adjusted EPS for the period was posted at $150.9 million and 18 cents, respectively, which surpassed the consensus estimate of $148.6 million and 15 cents. This is the third consecutive quarter in which Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) has outperformed the top-line forecasts. Analysts are looking into how the future growth trends would evolve for the company after it offloaded its hospitals and large physician practices segment and became a leaner entity. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) has undergone a restructuring in the last two years to become a mid-single-digit growth organization with margin upside.
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) was held by 31 hedge funds as of Q1 2022.
1. Tenable Holdings, Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 35
Tenable Holdings, Inc. (NASDAQ:TENB) is a Maryland-based cybersecurity company with over 40,000 customers worldwide.
On July 27, Rudy Kessinger at DA Davidson gave Tenable Holdings, Inc. (NASDAQ:TENB) stock a target price of $53 with a Buy rating. The analyst thinks that cybersecurity should remain a top priority for organizations and a mandatory part of the IT budget. Tenable Holdings, Inc. (NASDAQ:TENB) is expected to gain market share in the vulnerability management category. This would aid the company weather the storm of economic uncertainty. In July, Tenable Holdings, Inc. (NASDAQ:TENB) announced that it had achieved the Application Security distinction in the Amazon Web Services (AWS) for its cloud-based vulnerability management solution.
RGM Capital was the leading hedge fund investor in Tenable Holdings, Inc. (NASDAQ:TENB) as of Q1 2022.
You can also take a peek at 10 Undervalued Canadian Stocks to Buy Now and 10 Medical Marijuana Stocks To Buy Now.
