In this article, we will take a look at 5 stocks with at least 30% annual growth rates to consider for a growth stock portfolio. To go through our analysis of recent market trends, you can go directly to Growth Stock Portfolio: 15 Companies with At Least 30% Annual Growth Rates.
5. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
5-Year Annual Sales Growth: 81.02%
Number of Hedge Fund Holders: 69
Crowdstrike Holdings, Inc. (NASDAQ:CRWD) is an American cybersecurity technology company headquartered in Austin, Texas. The company specializes in providing services related to cloud workload and endpoint security, threat intelligence, and cyberattack response.
Ittai Kidron, an analyst at Oppenheimer, raised the price target on Crowdstrike Holdings, Inc. (NASDAQ:CRWD) from $215 to $240 on November 29, 2023, representing an 11.6% increase. The analyst maintained a Buy rating on the stock. Kidron’s decision to raise the price target followed the release of the company’s Q3 2024 earnings report, which demonstrated impressive performance. The report highlighted a 13% year-over-year net new annual recurring revenue (NNARR) growth and “strong profitability gains.” Additionally, Crowdstrike Holdings, Inc. (NASDAQ:CRWD)’s earnings surpassed expectations, contributing to its solid quarterly performance.
During last year’s third quarter, 69 out of the 910 hedge funds profiled by Insider Monkey were the firm’s investors. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s largest hedge fund investor is Jim Simons’ Renaissance Technologies due to its $279 million stake.
Artisan Developing World Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its fourth quarter 2023 investor letter:
“Top contributors to performance for the quarter included cybersecurity leader CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike gained amid resilient cybersecurity spend, continued revenue growth against well-managed expenses, and traction in endpoint adjacencies.
We have underscored that the purpose of our risk management framework is to enhance value creation and aid in the execution and implementation of our investment program. However, this stage of risk management best manifests itself in down markets as it did in 2022. This year has been quite different since equities have broadly recovered, and our risk management focus has shifted toward establishing a level of permanence. We characterize this phase of risk management as Value Capture. Essentially, we have harvested disproportionate equity outcomes (Nvidia)and other strong performers (Passport holdings such as CrowdStrike) to fund a ~700bps increase in our India weighting (Makemytrip, Apollo Healthcare), a 235bps investment in Coca Cola (in correlation terms the real thing), and even a 114bps position in Alibaba (6.6X consensus 2023 EPS at purchase). These investments are not risk free, but they are stores of value that have the potential to enhance diversification and staying power in any market reversal. Moreover, we have marginally reduced portfolio concentration over the course of the year. Essentially, 2022 was a moment of extremely low reinvestment risk that allowed us to deemphasize China and other holdings, while concentrating around a handful of financially and strategically sound investments such as Nvidia, MercadoLibre, Airbnb and CrowdStrike.With these investments having largely reflated, we have sought to redistribute some of this capital while retaining significant residual positions. It is our hope that these actions can enhance our ability to execute our investment program if, for example, market exuberance about monetary policy proves excessive.”
