5 Stocks That Will Double In 2023

In this article, we will discuss 5 stocks that will double in 2023. If you want to explore similar stocks with promising upside potential, you can also read 15 Stocks That Will Double In 2023.

5. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 41

Cloudflare, Inc. (NYSE:NET) is a leading provider of cloud services and applications for businesses worldwide. On November 3, the company posted earnings for the fiscal third quarter of 2022. The company reported an EPS of $0.06 and outperformed expectations by $0.06. The company generated a revenue of $253.86 million, up 47.29% year over year, and beat estimates by $4.06 million. Cloudflare, Inc. (NYSE:NET) has a diversified business model with exposure to various high-growth areas including content delivery network (CDN), edge computing, and security. The company has a strong competitive position in the CDN market with its robust global network and innovative technology and is well-positioned to benefit from the growing trend of edge computing as its platform is well-suited for this new paradigm. Cloudflare, Inc. (NYSE:NET) is ranked high among the stocks that will double by 2023.

This November, Baird analyst Shrenik Kothari updated his price target on Cloudflare, Inc. (NYSE:NET) to $67 from $80 and maintained an Outperform rating on the shares.

At the end of Q2 2022, 41 hedge funds held stakes in Cloudflare, Inc. (NYSE:NET). The total value of these stakes amounted to $541 million. As of June 30, Two Sigma Advisors is the largest shareholder in Cloudflare, Inc. (NYSE:NET) and has disclosed a position worth $103.7 million in the company.

Here is what Baron Funds had to say about Cloudflare, Inc. (NYSE:NET) in its third-quarter 2022 investor letter:

“We continued to build our position in Cloudflare, Inc. (NYSE:NET) during the quarter as the shares declined with the overall software space and the long-term risk/ reward balance became more compelling. The company reported a strong second quarter, with revenue growth accelerating to 54%, as well as better gross and operating margins. Third quarter guidance was also ahead of Wall Street expectations. Given Cloudflare’s proprietary network and massive global scale, its software products have a disruptive price-performance advantage over competitors. As the company introduces new products as well as disruptive packaging/pricing, its unit level economics should continue to improve over time, with the company already well ahead of its long-term gross margin target of 74%, reporting 78.9% for the second quarter. This drives strong cross/upselling activity with customers, reflected in strong net-dollar expansion rates in excess of 125%. Indeed, in the most recent quarters, customers purchasing five or more products reached 81% of the base, six or more products reached 70% of the base, and seven or more products reached 58% of the base. Enterprise penetration continues to be a key long-term driver, with 1,749 customers now spending over $100,000 annually with the company, growing 61% and now accounting for over 60% of total revenue. With approximately 152,000 paying customers at the end of last quarter, large enterprise customers still represent just 1% of total paid customers and thus a material growth opportunity in the coming years. We continue to have high confidence in the company’s ability to innovate at a rapid pace (announced 20 new products or enhancements in September alone), package and bundle with disruptive pricing, and take material share in its large and growing addressable markets.”

4. Bill.com Holdings, Inc. (NYSE:BILL)

Number of Hedge Fund Holders: 46

Bill.com Holdings, Inc. (NYSE:BILL) is a leading provider of digital payments and accounting software for small and medium-sized businesses. The company has a strong market position and is growing rapidly. The company is well-positioned to continue its growth in the small and medium-sized business market and is ranked among the stocks that will double by 2023.

On November 3, Bill.com Holdings, Inc. (NYSE:BILL) posted earnings for the fiscal third quarter of 2022. The company reported earnings per share of $0.14 and outperformed estimates by $0.08. The company’s revenue grew by 97.5% year over year and amounted to $229.9 million, ahead of consensus by $19 million. On November 7, Morgan Stanley analyst Keith Weiss revised his price target on Bill.com Holdings, Inc. (NYSE:BILL) to $200 from $220 and maintained an Overweight rating on the shares.

At the end of Q2 2022, 46 hedge funds were bullish on Bill.com Holdings, Inc. (NYSE:BILL) and disclosed stakes of $1.02 billion in the company. Of those, Abdiel Capital Advisors was the top investor in the company and held a position worth $218.5 million.

3. Marvell Technology Inc (NASDAQ:MRVL)

Number of Hedge Fund Holders: 63

Marvell Technology Inc. (NASDAQ:MRVL) is a leading provider of semiconductors for use in a variety of end markets including enterprise, cloud, automotive, industrial, and consumer. The company has a strong product portfolio and a history of innovation. Marvell Technology Inc. (NASDAQ:MRVL) has a strong position in the enterprise and cloud markets and is also seeing increasing adoption of its products in the automotive and industrial markets. The company’s products are well-positioned to benefit from the continued growth of data centers and cloud computing, the expansion of 5G networks, and the increasing demand for connected devices. Investors in Marvell can expect to benefit from the company’s strong market position, diversified product portfolio, and history of innovation. The stock is ranked high among the stocks that will double by 2023.

This October, Citi analyst Atif Malik updated his price target on Marvell Technology Inc. (NASDAQ:MRVL) to $71 from $74 and maintained a Buy rating on the shares. On October 11, Needham analyst N. Quinn Bolton revised his price target on Marvell Technology Inc. (NASDAQ:MRVL) to $64 from $66 and reiterated a Buy rating on the shares.

At the close of Q2 2022, 63 hedge funds were long Marvell Technology Inc. (NASDAQ:MRVL) and held stakes worth $1.59 billion in the company. As of September 30, Fisher Asset Management is the largest investor in Marvell Technology Inc (NASDAQ:MRVL) and has a position worth $495.9 million in the company.

Here is what Carillon Tower Advisers had to say about Marvell Technology, Inc. (NASDAQ:MRVL) in its second-quarter 2022 investor letter:

“Marvell Technology, Inc. (NASDAQ:MRVL) provides infrastructure semiconductor solutions. Investors have recently become concerned about the semiconductor cycle and how demand for Marvell’s products will fare in a slowing economic environment. We remain confident that the company’s portfolio of products is extremely important in parts of the datacenter server market, which remains healthy and possesses long-term secular trends. The company also has secured strong contract wins in upcoming global 5G wireless infrastructure build-outs, which are generally insulated from macroeconomic pressures. With supply chain issues easing, we believe Marvell remains in a strong position to post continued robust growth.”

2. Atlassian Corporation Plc (NASDAQ:TEAM)

Number of Hedge Fund Holders: 66

Atlassian Corporation Plc (NASDAQ:TEAM) is a leading global provider of collaboration software for teams, with a suite of products that help teams work together more effectively. The company has a strong product portfolio with a number of market-leading products, including JIRA, Confluence, and Bitbucket. The market for collaboration and development tools is growing strongly, driven by the continued growth of the software development industry and the shift to Agile and DevOps methodologies and Atlassian Corporation Plc (NASDAQ:TEAM) is well-positioned to capitalize on these secular trends. The stock is ranked among the stocks that will double in 2023.

On November 3, Atlassian Corporation Plc (NASDAQ:TEAM) announced earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.36 and generated a revenue of $807.39 million, up 31.49% year over year, and ahead of estimates by $0.97 million. The company has free cash flows of $826.7 million.

At the close of Q2 2022, Atlassian Corporation Plc (NASDAQ:TEAM) was spotted on 66 investors’ portfolios that held stakes of $3.49 billion in the company. Of those, Durable Capital Partners was the most prominent shareholder in the company and disclosed a position worth $485.6 million.

Here is what Artisan Partners had to say about Atlassian Corporation Plc (NASDAQ:TEAM)  in its second-quarter 2022 investor letter:

“Atlassian Corporation Plc (NASDAQ:TEAM) is a leading provider of innovative, customizable team-collaboration software tools for over 200,000 customers. Despite positive fundamental momentum—the company recently reported 30% revenue growth and 28% trailing twelve months FCF margins—shares traded lower during Q2 as investors rotated out of high-growth stocks with elevated multiples. The company’s highly efficient sales and marketing capability, combined with substantial R&D investment, points to sustained long-term revenue and FCF growth. Meanwhile, we recognize a recession would likely have an impact on Atlassian via slowing growth metrics. However, we believe its low priced, mission critical cloud tools would prove relatively resilient in this scenario. For these reasons and shares trading at a very attractive valuation for a business with highly recurring revenues, strong revenue growth prospects and attractive margins, we added to our position.”

1. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 72

Block, Inc. (NYSE:SQ) is a global leader in providing financial technology solutions. The company’s products and services enable businesses and consumers to make and receive payments, store and spend money, and access credit. The company’s products and services are used by some of the world’s largest businesses. Block, Inc. (NYSE:SQ) has a strong competitive advantage in the payments industry. The company’s Square platform is among the most popular point-of-sale systems for small businesses in the United States. Block, Inc. (NYSE:SQ) also has a competitive advantage in the financial services industry as its Cash App is one of the most popular mobile payment apps in the United States. Block, Inc. (NYSE:SQ) is a well-capitalized company with a strong balance sheet. The company has free cash flows of $563 million to fund its growth initiatives and is ranked high among the stocks that will double in 2023.

On November 7, Macquarie analyst Paul Golding upgraded Block, Inc. (NYSE:SQ) to Outperform from Neutral and reiterated his $100 price target on the shares.

At the end of Q2 2022, Block, Inc. (NYSE:SQ) was spotted on 72 investors’ portfolios that disclosed stakes of $3.52 billion in the company. As of September 30, ARK Investment Management is the top investor in Block, Inc. (NYSE:SQ) and has a position worth $505.4 million in the company.

You can also take a look at 14 Largest Lithium Producers in the World and 10 Best Auto Stocks To Buy.

Follow Insider Monkey on Twitter