In this article, we discuss some growth stocks with long-term potential. If you want to read about some more stocks with explosive growth potential, go directly to 10 Growth Stocks with Upside Potential.
5. Trupanion, Inc. (NASDAQ:TRUP)
Number of Hedge Fund Holders: 20
Stock performance over the past six months through November 25: -14%
Trupanion, Inc. (NASDAQ:TRUP) provides medical insurance for cats and dogs on a monthly subscription. Rising pet ownership numbers, especially in light of the pandemic trends, have also increased the demand for pet insurance services. According to the American Pet Products Association, pet ownership in the US rose to a record high of 70% of households in 2020. This figure was only at 56% in 1988. Even as the pandemic fades, these growth trends remain in place. The firm beat market expectations on revenue for the first quarter of 2022 by $3.6 million.
On February 24, Bank of America analyst Joshua Shanke upgraded Trupanion, Inc. (NASDAQ:TRUP) stock to Buy from Neutral with a price target of $118, backing the firm to deliver on a 60-month earnings growth target.
At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $362 million in Trupanion, Inc. (NASDAQ:TRUP), up from 16 in the preceding quarter worth $259 million.
In its Q3 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Trupanion, Inc. (NASDAQ:TRUP) was one of them. Here is what the fund said:
“Trupanion, Inc. (NASDAQ:TRUP) reported mixed earnings results, mostly due to higher-than-expected costs of new pet acquisition. The increased spending is intended to drive future growth. We continue to believe Trupanion’s long-term growth prospects and competitive positioning remain compelling in an underpenetrated U.S. pet insurance market.”
4. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 24
Stock performance over the past six months through November 25: -18%
Invitae Corporation (NYSE:NVTA) is a medical genetics company. On April 4, the firm held the commercial launch of a Neurodevelopmental Disorders testing package for children with developmental disabilities. The test results can be delivered in just ten days, one of the fastest around. The firm has also announced that it will be shifting focus from external capital-fueled growth to self-funding. In the earnings for the fourth quarter of 2021, the company beat market estimates on revenue by $0.2 million.
On February 28, Raymond James analyst Andrew Cooper kept an Outperform rating on Invitae Corporation (NYSE:NVTA) stock with a price target of $15, noting that the firm had shifted focus “towards profitability over time instead of a more purely revenue-focused mentality”.
At the end of the fourth quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $958 million in Invitae Corporation (NYSE:NVTA), the same as in the preceding quarter worth $1.8 billion.
3. Progyny, Inc. (NASDAQ:PGNY)
Number of Hedge Fund Holders: 26
Stock performance over the past six months through November 25: +5.5%
Progyny, Inc. (NASDAQ:PGNY) is a benefits management company. Since it was launched around five years ago, the company has seen covered lives grow 25 times. The employer clients have climbed from just five to more than 180 during the period. The company guided more than $775 million in revenue for 2022, reflecting growth of around 55%. The net income over the period is expected to be around $7 million. Despite these numbers, the firm is yet to reach full scale, attesting to the bright growth prospects of the stock.
Progyny, Inc. (NASDAQ:PGNY) has rapidly become the biggest brand in fertility management, giving it an early mover advantage in the space and also helping it build a core base. The firm has a retention rate of nearly 100%.
At the end of the fourth quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $113 million in Progyny, Inc. (NASDAQ:PGNY), compared to 28 in the previous quarter worth $200 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Progyny, Inc. (NASDAQ:PGNY) was one of them. Here is what the fund said:
“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of Progyny, Inc. (NASDAQ:PGNY), a leading provider of fertility benefit management services to self-insured employers that offers a rare win-win-win for employers, employees, health systems and doctors, with clear savings and quality improvements.”
2. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Fund Holders: 29
Stock performance over the past six months through November 25: +45%
Lattice Semiconductor Corporation (NASDAQ:LSCC) makes and sells semiconductor products. The products of the firm allow for devices to achieve higher increased computations on lower consumption. This FD-SOI technology has helped the firm grow in markets like servers, 5G, and robotics in the past few months. It has also started offering services to the auto industry where the demand for chips is rising fast. The firm also plans to launch a new product Avant later this year that will double the addressable market.
On February 16, Susquehanna analyst Christopher Rolland maintained a Neutral rating on Lattice Semiconductor Corporation (NASDAQ:LSCC) stock and raised the price target to $68 from $67, noting the “excellent job” the firm had done to execute a plan for supply constraints.
At the end of the fourth quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $393 million in Lattice Semiconductor Corporation (NASDAQ:LSCC), up from 19 in the preceding quarter worth $366 million.
In its Q3 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Lattice Semiconductor Corporation (NASDAQ:LSCC) was one of them. Here is what the fund said:
“Lattice Semiconductor Corporation (NASDAQ:LSCC) is a vendor of field programmable gate array (FPGA) chips used in personal computers, 5G infrastructure, routers and switches, and servers, to name a few. The company is executing well, particularly given the broader supply chain constraints the semiconductor industry is facing. In addition to providing FPGA chips to data centers and new 5G infrastructure—compelling opportunities given these end markets are and will likely continue benefiting from strong secular tailwinds—we believe the company is well positioned to tap into low-power/reprogrammable chips as well as industrial and automotive end markets.”
1. ImmunoGen, Inc. (NASDAQ:IMGN)
Number of Hedge Fund Holders: 31
Stock performance over the past six months through November 25: +50%
ImmunoGen, Inc. (NASDAQ:IMGN) is a clinical-stage biotech firm. In late March, the company submitted a request for the accelerated approval of mirvetuximab soravtansine, a therapy for the treatment of patients with resistant ovarian cancer who have previously received treatments. The stock has gained after the company signed a deal with drug giant Eli Lilly for the development and commercialization of antibody-drug conjugates. The drugs will be based on the camptothecin platform of the firm.
ImmunoGen, Inc. (NASDAQ:IMGN) has a growth plan that involves licensing technologies to other companies and then investing the revenue generated from the sale to a dedicated pipeline of smart medicines. One of the premier pipeline drugs is mirvetuximab.
At the end of the fourth quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $502 million in ImmunoGen, Inc. (NASDAQ:IMGN), up from 26 in the preceding quarter worth $362 million.
You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.
