5 Stocks to Buy Before Their Earnings Reports

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91    

Earnings Due On: April 20

Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy equipment. Cathie Wood, the chief of ARK Investment Management, has said that the shares of the EV maker will hit around $4,600 within the next five years. Tesla is one of the largest holdings in the ARK portfolio. Reports suggest that the company is also planning to resume EV production at a plant in Shanghai that had been shut as a result of virus restrictions in some parts of the Asian country over the past few weeks. 

On April 8, Wedbush analyst Daniel Ives kept an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock with a price target of $1,400, noting that the launch of the Cyber Rodeo was an important achievement for the company. 

At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 60 in the previous quarter worth $10.6 billion.

Here is what Worm Capital has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“Over the last several months, we have become increasingly bullish on Tesla, Inc. (NASDAQ:TSLA), our largest holding. As an expression of our increased confidence, through Q1 we increased our Tesla, Inc. (NASDAQ:TSLA) position. At a high level, we believe Tesla is on a path to dominate the S&P 500. Much like Amazon emerged from the Nasdaq Bubble and the Financial Crisis, we think Tesla has at least another 10 years of growth ahead, and it is just now hitting its inflection point of accelerated, rapid growth.

At the same time, consensus estimates of Tesla’s growth are, in our view, extremely low. This dynamic, in our opinion, will likely result in consistent upwards revisions to expectations, creating one of the more dramatic arbitrage investment opportunities we have ever come across. From a data, scale, and advanced manufacturing perspective, the company is entering escape velocity. To be clear, Tesla’s stock price and market value is no longer a reflection of anticipated success. It reflects its current success and proven ability to generate substantial earnings and record-setting cash-flows at scale. In sum: It’s early days. We’ll soon be publishing a comprehensive research report on Tesla, Inc. (NASDAQ:TSLA). Stay tuned.”

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