In this article we take a look at some top growth stocks in Ken Fisher’s portfolio. To see the top 5 stocks in this list click Ken Fisher’s Top 5 Growth Stock Picks.
Markets struggled to find a direction on August 25 following mixed comments from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium in Jackson Hole, Wyoming. While Powell acknowledged that inflation came down from its peak levels, he’s still concerned about high consumer spending and believes further signs of strong activity and economic growth could force the central bank to increase interest rates. Despite this clear stance, some analysts and investors still believe stocks will ultimately come out of the woods and the US will not face a full-fledge recession.
Billionaire Ken Fisher is one of the strongest voices of optimism in the current scenario. He’s consistently said that markets are overeacting to inflation and rate hikes and stocks will rebound and now is the time to pile into equities. He isn’t alone in this optimism. Gabriela Santos, JPMorgan Asset Management global market strategist, recently said while talking to CNBC that the markets are back to the “normal” period of volatility in equity markets. The analyst said that profit taking, CPI, seasonal effects and other factors could affect stock prices but ultimately she has a constructive view on the stock market.
Methodology
For this article we scanned Ken Fisher’s second quarter of 2023 portfolio and picked top 15 growth stocks the billionaire had stakes in. We gave preference to technology stocks with high PE ratios which also have strong growth catalysts.
15. Uber Technologies Inc (NYSE: UBER)
Ken Fisher’s Stake: $400,000,000
According to Yahoo Finance, Uber Technologies Inc (NYSE: UBER)’s forward PE ratio stands at 81 as of August 25. The ride-hailing company’s revenue in the second quarter jumped 14% on a YoY basis.
Ken Fisher’s hedge fund owns a $400 million stake in the company.
Uber Technologies Inc (NYSE: UBER)’s CEO said the following about the company’s delivery business in Uber’s Q2 earnings call:
“…When we look at the Delivery business, we’re actually quite pleased with the trends there. Last quarter, we grew at about 12% constant currency, that accelerated to 14% constant currency. This quarter, certainly New Verticals was a help. But we continue to drive higher frequency as a higher percentage of our bookings come from our members, as we improve the service, as we improve the average delivery times to our consumer as well, and generally basket sizes are positive there. So again, you break down the growth in terms of audience, frequency and price, and all of those are positive factors in terms of our Delivery business. And going forward, we expect growth consistent with what we saw this quarter or accelerating even from this quarter as well, depending on the marketplace, the competitive position and how things shake out.
But generally, we’re quite confident of Delivery top-line growth going forward. And we think the penetration in these markets is very low. So, in many of our developed markets there, significant markets there, we’ve wired up anywhere from 20% of restaurants to, call it, 40% of restaurants in a particular market. So, if you think about just all of the inventory out there, these restaurants are in the marketplace. They’ve got loyal clients. They’re servicing their local communities. And we think as we wire them up, then naturally more people want delivery, because it’s another way of staying connected, it’s another way of getting great food whenever you want on a on-demand basis. So, we think that with the very early penetration into the total restaurant in our major markets being, call it, a range of 20% to 40%, we’ve got a long, long runway ahead of us.”
14. ServiceNow, Inc. (NYSE:NOW)
Ken Fisher’s Stake: $770,458,000
Digital workflows and enterprise operations management software company ServiceNow, Inc. (NYSE:NOW) ranks 14th in our list of the top growth stock picks of Ken Fisher. As of the end of the second quarter, Fisher’s hedge fund owns a $770 million stake in the company. Stifel recently downgraded Datadog and said it prefers companies like ServiceNow (NOW), MongoDB (MDB), Snowflake (SNOW) and Dynatrace (DT) in the infrastructure space.
During a latest earnings call, ServiceNow’s management talked generative AI and its collaboration with Nvidia.
“Our good friend, NVIDIA Co-Founder and CEO, Jensen Huang, joined us at Knowledge ‘23 earlier this year. And Jensen stated the expanded NVIDIA-ServiceNow partnership is really important. Their partnership of choice for enterprise IT. He thinks it’s an exciting growth opportunity for both companies. We agree. We’re in the midst of a dramatic expansion of the software economy. In 2023 alone, IDC says Platform-as-a-Service spending will grow 30%, and Software-as-a-Service applications will grow 17%. When you correlate that to ServiceNow’s platform and our workflow leadership, it’s clear we live in a great neighborhood on a super nice street, and maybe we’re in the best house.
With regard to artificial intelligence, especially large language models, ServiceNow strategy has been laser-focused for years. We accelerated that focus with our Element AI acquisition in 2020. Today, by some estimates, Generative AI could boost global GDP by almost $7 trillion. We see unprecedented parallel adoption across consumer and the enterprise. Our platform experts, who have worked for the greatest brands and technology believe this moment is as transformative, if not even more so than the Internet or even the iPhone. But they’re careful to remind me, it’s all about delivering enterprise-grade, domain-specific large language models, which is the core of ServiceNow’s AI strategy. These models will improve the accuracy results, leveraging a customer’s enterprise data in alignment with their business rules, while maintaining the highest ethical standards for data privacy.”
13. Intuit Inc. (NASDAQ:INTU)
Ken Fisher’s Stake: $1,212,088,000
Business software company Intuit Inc. (NASDAQ:INTU)’s PE ratio stands at 63 as of August 25. Intuit Inc. (NASDAQ:INTU) has gained about 27% year to date. Ken Fisher’s hedge fund owns a $1.2 billion stake in the company. Earlier in August Intuit Inc. (NASDAQ:INTU) posted results for the fiscal fourth quarter. Adjusted EPS in the period came in at $1.65 beating estimates by $0.21. Revenue in the quarter came in at $2.7 billion, surpassing estimates by $60 million. The company’s guidance for fiscal first quarter of 2024 was lower than expected.
As of the end of the second quarter of 2023, 86 hedge funds tracked by Insider Monkey were long Intuit Inc. (NASDAQ:INTU).
12. Intuitive Surgical, Inc. (NASDAQ: ISRG)
Ken Fisher’s Stake: $1,500,000,000
Robotics products company Intuitive Surgical, Inc. (NASDAQ:ISRG) ranks 12th in our list of the top Ken Fisher’s growth stock picks. Fisher’s hedge fund owns a $1.5 billion stake in the company. In July the company posted Q2 results. Adjusted EPS in the quarter came in at $1.42 beating estimates by $0.09. Revenue in the quarter jumped 15.8% year over year to $1.76 billion, beating estimates by $20 million.
11. Meta Platforms, Inc. (NASDAQ: META)
Ken Fisher’s Stake: $1,400,000,000
Ken Fisher’s hedge fund has a $1.4 billion stake in Meta Platforms, Inc. (NASDAQ:META). Meta is upping its AI game. The company recently launched AI models for speech recognition and programming.
As of the end of the second quarter of 2023, 225 hedge funds in Insider Monkey’s database had stakes in Meta Platforms, Inc. (NASDAQ:META). The biggest stakeholder of the company is Tiger Global Management LLC which owns a $2.4 billion stake in the company.
10. Netflix Inc. ( NASDAQ:NFLX)
Ken Fisher’s Stake: $1,700,000,000
Netflix Inc. ( NASDAQ:NFLX) is on investors’ radar after Loop Capital upgraded the stock, citing valuation and improving fundamentals. Loop’s analyst Alan Gould upped Netflix Inc. ( NASDAQ:NFLX) to Buy from Hold and increased the stock’s price target to $500 from $425.
Ken Fisher’s hedge fund owns a $1.7 billion stake in the streaming giant.
9. Eli Lilly and Company (NYSE:LLY)
Ken Fisher’s Stake: $1,987,678,000
Pharmaceutical company Eli Lilly and Company (NYSE:LLY)’s PE ratio as of August 25 stands at 79. Ken Fisher’s hedge fund owns a stake worth about $2 billion in the company. Jefferies upgraded Eli Lilly (NYSE:LLY) after the company posted strong results for its diabetes therapy Mounjaro. The drug is also hailed as a potential treatment for weight loss.
A total of 87 hedge funds out of the 910 funds tracked by Insider Monkey were long Eli Lilly.
8. Oracle Corp ( NYSE:ORCL)
Ken Fisher’s Stake: $2,207,602,000
While Oracle Corp ( NYSE:ORCL) seems like a mature company, it still has huge growth opportunities in Cloud, software and AI. Oracle Corp ( NYSE:ORCL) PE ratio stands at 36 as of August 25. ORCL shares have gained about 35% year to date. Ken Fisher’s hedge fund owned a $2.21 billion stake in the company as of the end of the June quarter.
As of the end of the second quarter of 2023, 84 hedge funds out of the 910 funds tracked by Insider Monkey were long Oracle Corp (NYSE:ORCL). The biggest stakeholder of the firm during this period was Jean-Marie Eveillard’s First Eagle Investment Management.
7. Adobe Inc (NASDAQ:ADBE)
Ken Fisher’s Stake: $2,353,075,000
Adobe Inc (NASDAQ:ADBE) is in the limelight after the company announced several AI-based design tools and analysts now believe the company could benefit directly from the AI boom.
Insider Monkey’s database of 910 hedge funds shows that 109 hedge funds reported owning stakes in Adobe Inc (NASDAQ:ADBE) as of the end of the June quarter, up from 99 funds in the previous quarter. This shows Adobe’s hedge fund sentiment remains strong.
6. Salesforce Inc. ( NYSE:CRM)
Ken Fisher’s Stake: $2,934,777,000
Salesforce Inc. ( NYSE:CRM) shares have gained about 54% year to date. The stock’s PE ratio as of August stands at 547. Salesforce made waves earlier this year after the company announced AI features in its CRM software.
Ken Fisher owns a $2.9 billion stake in Salesforce as of the end of the second quarter of 2023.
Click to continue reading and see Ken Fisher’s Top 5 Growth Stock Picks.
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Disclosure: None. Ken Fisher’s Top 15 Growth Stock Picks is originally published on Insider Monkey.
