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.”
4. Snowflake Inc. (NYSE:SNOW)
5-Year Annual Sales Growth: 118.22%
Number of Hedge Fund Holders: 71
Snowflake Inc. (NYSE:SNOW) is a cloud computing-based data cloud company that provides a cloud-based data storage and analytics service commonly referred to as “data-as-a-service” (DaaS). The company was founded in July 2012 and was publicly launched in October 2014. Snowflake’s platform enables organizations to store and analyze their data in the cloud, offering features such as data warehousing, data lakes, and data sharing.
Snowflake Inc. (NYSE:SNOW) received a Buy rating from Citi analyst Tyler Radke on November 20, with a price target of $191. Radke’s analysis highlighted indications from fieldwork that suggest easing optimizations and promising early traction for new products.
As of Q3 2023, 71 out of the 910 hedge funds tracked by Insider Monkey held a stake in Snowflake Inc. (NYSE:SNOW). During the same quarter, Altimeter Capital Management, led by Brad Gerstner, emerged as the largest shareholder with a stake valued at $2.35 billion.
ClearBridge Multi Cap Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q2 2023 investor letter:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.
Snowflake Inc. (NYSE:SNOW), a cloud-based data platform company, is positioned well to help enterprises better leverage their own data to get the most out of AI models. Though it is still early days in terms of adoption, Snowflake saw workloads for data science, machine learning, and AI use cases grow more than 90% year-over-year in its most recent quarter.”
3. Mercadolibre, Inc. (NASDAQ:MELI)
5-Year Annual Sales Growth: 64.88%
Number of Hedge Fund Holders: 76
MercadoLibre, Inc. (NASDAQ:MELI) is a leading e-commerce technology company in Latin America, headquartered in Buenos Aires, Argentina. It was established in 1999 and operates through its key platforms, MercadoLibre.com and MercadoPago.com. MercadoLibre, Inc. (NASDAQ:MELI) offers a range of solutions for individuals and businesses involved in online buying, selling, advertising, and payment transactions.
As of Q3 2023, the company’s shares were held by 76 prominent hedge funds, with a total value of over $3.38 billion. Generation Investment Management was identified as the largest hedge fund shareholder, holding 480,480 shares valued at $609.19 million.
2. Tesla, Inc. (NASDAQ:TSLA)
5-Year Annual Sales Growth: 41.21%
Number of Hedge Fund Holders: 81
Tesla, Inc. (NASDAQ:TSLA), headquartered in Austin, Texas, is a leading American multinational company specializing in electric vehicles and sustainable energy solutions. Renowned for its innovative electric car designs and manufacturing, Tesla also provides stationary battery energy storage solutions for both residential and grid-scale applications. The company offers a range of products and services, including solar panels, solar shingles, and related sustainable energy solutions.
In the third quarter of 2023, Tesla, Inc. (NASDAQ:TSLA) achieved a production milestone by manufacturing 430,488 vehicles and delivering over 435,000 units. The company’s global manufacturing presence includes six facilities, including its original plant in California and gigafactories in Nevada, New York, Shanghai, Texas, and Berlin.
Insider Monkey’s data for the third quarter reflects positive sentiment from 81 hedge funds towards Tesla (NASDAQ:TSLA), marking an increase from the 79 funds in the previous quarter. Catherine Wood emerged as a significant shareholder during the quarter, holding a stake valued at $1.02 billion.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Annual Sales Growth: 40.23%
Number of Hedge Fund Holders: 110
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company headquartered in Santa Clara, California. The company specializes in the development of computer processors and associated technologies, serving both business and consumer markets.
Roth MKM initiated coverage of AMD with a Buy rating and a price target of $125 on November 13, emphasizing the company’s distinctive portfolio of high-performance compute and networking processors.
As of Q3 2023, 110 hedge funds tracked by Insider Monkey held shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), with a total value of $9.2 billion. Fisher Asset Management, led by Ken Fisher, was identified as the largest hedge fund shareholder, owning 27.8 million shares with a total value of $2.9 billion.
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