In this article, we will take a detailed look at the Top 10 Stocks to Buy According to XN Exponent Advisors LLC.
Established in 2018 by Gaurav Kapadia, XN Exponent Advisors LLC is based in New York and manages approximately $2.53 billion in 13F securities according to its latest filing for the fourth quarter of 2024. With just 13 clients, the hedge fund maintains a concentrated portfolio, with its top ten holdings accounting for 69.02% of its total assets. XN employs a global investment strategy that spans both public and private markets, focusing on generating high risk-adjusted returns. The firm targets sectors where it has deep expertise while deliberately avoiding balance sheet-heavy industries such as financials, healthcare, energy, and materials.
The firm primarily invests in North America and Western Europe but remains open to opportunities in other regions that align with its strategic goals. XN’s investment approach is built around a long/short strategy, where it seeks to capitalize on market inefficiencies by purchasing undervalued assets and shorting overvalued ones. This method hinges on the firm’s ability to assess market opportunities accurately, though there is no guarantee of success. Market disruptions pose a significant risk, as they can result in substantial losses and may force XN to close out client positions to mitigate damage.
A key feature of XN’s approach is its flexibility. Unlike traditional investment firms bound by rigid diversification or leverage policies, XN can trade across a wide range of securities, issuers, countries, and sectors to align with its investment objectives. This adaptability enables the firm to respond quickly to shifting market conditions, reallocating client assets as necessary. While this strategy offers significant potential for high returns, it also carries inherent risks, particularly in volatile market environments. However, XN’s focus on specialized knowledge and strategic positioning aims to maximize opportunities while managing downside exposure.
Founder and Chief Executive Officer of XN, Gaurav Kapadia has nearly two decades of experience in public and private markets and has built a reputation as a visionary investor and business leader. Before launching XN, a firm whose name reflects the power of long-term compounding, Kapadia was the Co-Founder and Co-Managing Partner of Soroban Capital Partners, a globally recognized investment firm. Prior to that, he served as a Partner at TPG-Axon Capital, working in both New York and London. His extensive expertise in finance and investing is rooted in his academic background; he earned a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania in 1999.
Beyond his financial career, Kapadia is deeply committed to philanthropy and civic engagement, particularly in the arts, humanities, education, and social equity. In September 2023, the Mellon Foundation announced his election to its Board of Trustees, recognizing his dedication to supporting cultural and educational initiatives. He has been a strong proponent of the transformative power of art and the humanities, emphasizing their role in fostering positive societal change. Under the leadership of Mellon Foundation President Elizabeth Alexander, Kapadia expressed his excitement to contribute to the organization’s mission, citing its precision and ambitious vision as key reasons for his involvement.
Kapadia also serves on the Boards of Trustees for several influential institutions, including The Whitney Museum of American Art, The Trust for Governors Island, Uncommon Schools, and The Institute for Constitutional Advocacy and Protection at Georgetown University Law Center. His advocacy for education, civic engagement, and equality underscores his commitment to creating meaningful opportunities for underserved communities. Through his leadership in both finance and philanthropy, Kapadia continues to bridge the worlds of business and social impact, demonstrating how strategic investments—whether in financial markets or cultural institutions—can drive long-term positive change.
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Our Methodology
The stocks discussed below were picked from XN Exponent Advisors LLC’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 Stocks to Buy According to XN Exponent Advisors LLC
10. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders as of Q4: 174
XN Exponent Advisors LLC’s Equity Stake: $100.22 Million
Alphabet Inc. (NASDAQ:GOOG) continues to demonstrate strong financial performance, exceeding market expectations in its latest earnings report. The company reported fourth-quarter earnings of $2.15 per share on revenue of $96.47 billion, surpassing analyst projections and marking significant growth from the previous year’s $1.64 per share on $86.3 billion in revenue. Looking ahead, analysts forecast earnings of $2.04 per share for the upcoming quarter, reflecting a 7.94% year-over-year increase, with revenue expected to grow by 11.94% to $75.67 billion. For the full fiscal year, Alphabet’s earnings are projected to rise by 10.57% to $8.89 per share, while revenue is anticipated to climb 13.36% to $334.55 billion.
Alphabet Inc. (NASDAQ:GOOG)’s innovation-driven ventures remain a key part of its growth strategy. One such example is Taara, a light-based internet project that has spun off from Alphabet’s X moonshot division into an independent company. Taara’s laser technology, which offers a high-bandwidth alternative to fiber optics in hard-to-reach locations, is positioning itself as a competitor to Elon Musk’s Starlink. With operations in 12 countries and backing from Series X Capital, the company retains a minority stake in Taara as it moves toward commercialization. This spin-off follows the path of previous projects like Loon, which sought to distribute data via high-altitude balloons but was ultimately discontinued.
Despite its success in innovation and financial performance, Alphabet Inc. (NASDAQ:GOOG) faces mounting regulatory scrutiny. Some of its past acquisitions, such as DoubleClick, have become integral to its business but have also drawn antitrust concerns. The U.S. Justice Department has taken legal action against Alphabet Inc. (NASDAQ:GOOG) over allegations of monopolistic behavior in both its search engine and digital advertising practices. A potential ruling this year could lead to major structural changes, including the forced divestiture of Chrome and restrictions on default search engine agreements with companies like Apple. Meanwhile, Google’s recent acquisition of cybersecurity firm Wiz is expected to undergo rigorous regulatory review, as the Trump administration signals a tougher stance on Big Tech dominance.
9. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
XN Exponent Advisors LLC’s Equity Stake: $111.83 Million
Microsoft Corporation (NASDAQ:MSFT) continues to strengthen its position in cloud computing and artificial intelligence, reporting impressive Q4 financial results with a 12.27% year-over-year revenue increase to $69.63 billion and earnings per share (EPS) of $3.23, surpassing market expectations. However, despite its strong financial performance, the company faces growing regulatory scrutiny, particularly regarding its investment in OpenAI and cloud licensing practices. U.S. regulators are assessing whether these strategies promote innovation or hinder competition, a review that could shape Microsoft’s long-term growth trajectory and legal outlook.
As Microsoft Corporation (NASDAQ:MSFT) deepens its AI ambitions, CEO Satya Nadella announced a leadership shift, appointing Amy Coleman as the new chief people officer while longtime executive Kathleen Hogan transitions to the newly created Office of Strategy and Transformation. Hogan, who played a key role in Microsoft’s cultural evolution over the past decade, will now focus on adapting the company’s workforce strategy to an era increasingly defined by AI-driven transformation. The leadership change aligns with Microsoft’s reassessment of its performance review system, following recent job cuts affecting nearly 2,000 employees.
Coleman, a 25-year Microsoft veteran, will oversee efforts to align talent management with the company’s AI-focused future, ensuring that Microsoft’s workforce remains agile and innovative. Nadella emphasized the need for continuous adaptation in “times of great change,” as AI reshapes industries and redefines how businesses operate. With Microsoft Corporation’s (NASDAQ:MSFT) scrutiny intensifying and competition in AI and cloud computing growing fiercer, the company is positioning itself to navigate both opportunities and challenges in the rapidly evolving tech landscape.
Microsoft Corporation (NASDAQ:MSFT) is a recent addition to Gaurav Kapadia’s portfolio, with the hedge fund acquiring shares for the first time in Q4 2024. Despite being a new holding, XN Exponent Advisors LLC invested significantly, purchasing 265,320 shares valued at over $111 million, making it the ninth most valuable position in the fund’s 13F portfolio for the quarter ending in December 2024.
8. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders as of Q4: 74
XN Exponent Advisors LLC’s Equity Stake: $129.80 Million
The Sherwin-Williams Company (NYSE:SHW), a leading global paints and coatings company, continues to refine its operations and workforce structure while maintaining strong financial performance. Sherwin-Williams reported record financial results for 2024, with consolidated net sales reaching $23.10 billion, reflecting stable growth in its Paint Stores Group and key industrial segments. The company achieved a 14.1% increase in diluted net income per share to $10.55, with an adjusted figure of $11.33, marking a 9.5% rise year-over-year. Fourth-quarter earnings saw even stronger gains, with a 36.7% increase in diluted net income per share to $1.90 and a 15.5% rise in adjusted earnings to $2.09. Gross margin expanded by 180 basis points to 48.5%, supported by a high-single-digit increase in residential repaint sales and above-market growth in new residential projects. Industrial coatings also performed well, with double-digit growth in packaging coatings and positive momentum in coil coatings.
The Sherwin-Williams Company (NYSE:SHW) continues to prioritize shareholder value, generating $3.15 billion in net operating cash and returning $2.46 billion to shareholders through dividends and share repurchases. With authorization remaining to repurchase 34.4 million shares, the company remains committed to strengthening its financial position while investing in growth opportunities. Looking ahead, The Sherwin-Williams Company (NYSE:SHW) forecasts 2025 diluted net income per share in the range of $10.70 to $11.10, with an adjusted range of $11.65 to $12.05. CEO Heidi G. Petz emphasized the company’s resilience in navigating demand fluctuations and reaffirmed its strategy of driving above-market growth while maintaining financial discipline.
In a strategic move to streamline management and improve efficiency, The Sherwin-Williams Company (NYSE:SHW) recently announced a voluntary buyout program for select employees. This initiative follows broader organizational changes aimed at simplifying corporate structures and optimizing the supervisor-to-employee ratio. The company’s leadership emphasized that these changes are part of an ongoing effort to reduce complexity and enhance operational effectiveness.
With a continued focus on operational efficiency, financial strength, and strategic investments, The Sherwin-Williams Company (NYSE:SHW) is well-positioned for long-term success and is a top stock to buy according to XN Exponent Advisors LLC.
Aoris Investment Management stated the following regarding The Sherwin-Williams Company (NYSE:SHW) in its Q4 2024 investor letter:
“Lastly, we bought The Sherwin-Williams Company (NYSE:SHW), which is the world’s largest paint and coatings company. Yes, paint does sound dull, but Sherwin-Williams excels at serving demanding customers with often highly technical products. In the US market for professional painters, Sherwin-Williams has a share around 10x the size of its closest peer. It also has exclusive supply arrangements with 23 of the 25 largest home builders in the US. Remarkably, given its dominant position, its market share continues to rise.”
7. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders as of Q4: 162
XN Exponent Advisors LLC’s Equity Stake: $149.91 Million
Salesforce, Inc. (NYSE:CRM), a leading cloud-based software company, has faced challenges in 2025 despite its long history of strong performance. The company recently introduced Agentforce 2dx, an advanced AI-driven solution designed to streamline customer and employee workflows by enabling proactive AI agents to operate behind the scenes. This innovation is expected to enhance efficiency and scalability for organizations.
Investor interest in Salesforce remains high, with hedge fund participation increasing from 116 firms in Q3 2024 to 162 in Q4, signaling confidence in the company’s future. Despite missing revenue expectations in its most recent earnings report, Salesforce, Inc. (NYSE:CRM) still demonstrated financial resilience. The company reported earnings per share of $2.78, surpassing estimates of $2.61, while revenue reached $9.99 billion, just shy of the projected $10.04 billion. Year-over-year, revenue grew 7.6%, and net income rose to $1.71 billion from $1.45 billion, reflecting continued financial strength despite market skepticism.
A major highlight of the quarter was the expansion of Salesforce’s AI offerings, with Agentforce seamlessly integrating with Slack to assist employees. Since October, the AI tool has been involved in 380,000 customer service interactions, requiring human intervention in only 2% of cases. CEO Marc Benioff emphasized Salesforce’s ability to scale AI capabilities, distinguishing it from competitors and reinforcing its position as a key player in enterprise AI adoption.
Looking ahead, Salesforce, Inc. (NYSE:CRM) expects adjusted earnings per share of $11.09 to $11.17 for fiscal 2026, with revenue projected between $40.5 billion and $40.9 billion, reflecting 7.4% growth. These figures, however, remain below analyst estimates of $11.18 in earnings per share and $41.35 billion in revenue, raising concerns about the company’s ability to sustain its growth momentum. While Salesforce, Inc. (NYSE:CRM) continues to invest in AI and cloud services, having strong institutional backing and a commitment to innovation, the company remains well-positioned for long-term success in the evolving technology landscape.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) reported third-quarter results that exceeded analysts’ expectations, as the integration of AI technology across the customer relationship management software company’s product offerings has driven robust growth in new deals.”
6. Vulcan Materials Company (NYSE:VMC)
Number of Hedge Fund Holders as of Q4: 57
XN Exponent Advisors LLC’s Equity Stake: $156.50 Million
Vulcan Materials Company (NYSE:VMC), a leading supplier of construction aggregates in the U.S., has strengthened its market presence through strategic acquisitions. The recent purchases of Superior and Wake Stone provide significant opportunities for growth by expanding its geographical reach and improving pricing power. These acquisitions also enhance Vulcan’s supply chain efficiency by increasing its network of facilities, which in turn helps lower transportation costs and improve delivery times. By consolidating its market position, the company is well-positioned to drive long-term value creation.
In its fourth-quarter 2024 earnings report, Vulcan Materials Company (NYSE:VMC) delivered strong results, surpassing analyst expectations. Adjusted earnings per share (EPS) reached $2.17, significantly exceeding the projected $1.76 and marking a notable increase from the previous year’s EPS of $1.46. Revenue for the quarter came in at $1.85 billion, a 1.1% year-over-year increase and slightly above consensus estimates. However, for the full year, total revenue declined to $7.42 billion from $7.78 billion in 2023, reflecting a drop in aggregate shipments from 234.6 million tons to 219.9 million tons. Despite this, Vulcan Materials Company (NYSE:VMC) managed to expand its adjusted EBITDA margin to 27.7% from 25.8%, demonstrating improved operational efficiency.
Vulcan Materials Company (NYSE:VMC)’s profitability showed resilience, with gross profit increasing by 2.6% to $2 billion, and full-year adjusted EPS rising to $7.53 from $7.00 in 2023. However, the company’s financial position saw some shifts, with cash and cash equivalents declining from $931.1 million at the end of 2023 to $559.7 million by December 2024. Long-term debt also rose from $3.88 billion to $4.91 billion. Net cash provided by operating activities decreased to $1.41 billion from $1.54 billion in the previous year. While financial pressures exist, Vulcan’s focus on strategic acquisitions and operational efficiency positions it well for sustained growth in the construction materials industry.
Baron Real Estate Fund stated the following regarding Vulcan Materials Company (NYSE:VMC) in its first quarter 2024 investor letter:
“We added to our position in Vulcan Materials Company (NYSE:VMC) during the most recent quarter. Vulcan is a real estate-related company that is the largest construction aggregates producer in the U.S. Vulcan generates approximately 90% of its gross profit from mining, processing, and transporting crushed stone, sand, and gravel (collectively, “aggregates”) from its quarries. The balance of its gross profit is derived from strategically located ready-mix concrete and asphalt. The company’s products are sold and utilized in infrastructure projects such as highways, as well as residential and non-residential construction. Vulcan has local leadership positions across its footprint.
We believe aggregates are an attractive business for two main reasons: • High barriers to entry limit new competition: Permits to open new quarries are difficult to obtain, and the approval process typically takes 5 to 10 years • Consistent pricing power through cycles: Aggregates producers have historically enjoyed great pricing power owing to the difficulty in opening competing new quarries, the limited substitutes for quality aggregates, and a high weight-to-price ratio that makes transportation expensive relative to the cost of the material. In the last 30 years, pricing of aggregates has increased, on average, 4% per year…” (Click here to read the full text)
5. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders as of Q4: 63
XN Exponent Advisors LLC’s Equity Stake: $168.77 Million
Stephen Fredette, President of Toast, Inc. (NYSE:TOST), recently sold a significant number of company shares, according to an SEC filing. On March 17, 2025, Fredette offloaded 118,060 shares of Class A common stock at prices between $35.00 and $35.13, totaling approximately $4.1 million. This sale comes as Toast’s stock has shown strong volatility, gaining 25% over the past six months and trading above its perceived fair value. Despite the insider transaction, the company maintains a market valuation of $19.4 billion, reflecting continued investor confidence in its growth trajectory.
Toast, Inc. (NYSE:TOST), a Boston-based provider of cloud-based restaurant management solutions, has expanded rapidly since its launch in 2020. The company offers an integrated point-of-sale (POS) system built on the Android platform, with products such as the Flex terminal, Tap payment processor, and Toast Hub. In its fourth-quarter 2024 earnings report, the company demonstrated significant financial growth. Annual recurring revenue (ARR) rose 34% year-over-year to $1.6 billion, while restaurant locations using its platform increased by 26% to approximately 134,000. Gross payment volume (GPV) surged 25% to $42.2 billion. Notably, Toast, Inc. (NYSE:TOST) reported a turnaround in profitability, with GAAP income from operations reaching $32 million, compared to a $56 million loss in the previous year. Adjusted EBITDA saw a remarkable increase to $111 million, nearly four times higher than the prior year’s $29 million.
For the full year 2024, Toast, Inc. (NYSE:TOST) continued its upward momentum, with GPV climbing 26% to $159.1 billion and gross profit from subscription services and financial technology increasing by 34% to $1.4 billion. Adjusted EBITDA rose significantly to $373 million, up from $61 million in 2023, while net cash from operating activities more than doubled to $360 million. Looking ahead to the first quarter of 2025, the company anticipates non-GAAP gross profit between $385 million and $395 million, with adjusted EBITDA projected to range from $100 million to $110 million. With a growing customer base and solid financial performance, the company is a top stock to buy according to XN Exponent Advisors LLC.
4. TransUnion (NYSE:TRU)
Number of Hedge Fund Holders as of Q4: 58
XN Exponent Advisors LLC’s Equity Stake: $176.87 Million
TransUnion (NYSE:TRU), a leading consumer credit reporting agency, collects and analyzes credit data for over one billion individuals across more than 30 countries. Headquartered in Chicago, the company provides credit reports, fraud protection, and data analytics services to businesses and consumers. As part of its compliance with U.S. law, TransUnion (NYSE:TRU) offers consumers one free credit report annually. Beyond traditional credit reporting, the company has expanded into advanced data analytics with AI-driven solutions like TLOxp, which enhances fraud detection and risk management.
For the fourth quarter of 2024, TransUnion (NYSE:TRU) reported strong financial performance, with total revenue rising 9% year-over-year to $1.04 billion. Net income for the quarter reached $66 million, a significant increase from $6 million in the previous year. Adjusted net income grew to $192 million, while adjusted earnings per share (EPS) rose to $0.97 from $0.80 in the prior year. The company also saw a 16% increase in adjusted EBITDA, reaching $378 million. CEO Chris Cartwright attributed this growth to steady demand in the U.S. market, strong performance in financial services and insurance, and double-digit growth in international markets, particularly in India, Asia Pacific, and Latin America.
For the full year 2024, TransUnion (NYSE:TRU) reported a total revenue of $4.18 billion, reflecting a 9% increase. The U.S. segment generated $792 million in fourth-quarter revenue, driven by 21% growth in financial services and 4% growth in emerging verticals. International revenue rose 11% to $245 million, with notable gains in India, Asia Pacific, and Latin America. With strong cash flow and a growing global presence, TransUnion remains well-positioned for sustained growth in the coming years.
TransUnion (NYSE:TRU)’s Board of Directors has declared a cash dividend of $0.115 per share for the fourth quarter of 2024. The dividend will be payable on March 14, 2025, to shareholders of record on February 27, 2025.
3. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders as of Q4: 101
XN Exponent Advisors LLC’s Equity Stake: $186.20 Million
GE Aerospace (NYSE:GE), headquartered in Evendale, Ohio, is a leading aircraft engine supplier and the legal successor to the original General Electric Company. On January 23, 2025, GE Aerospace released its fourth-quarter and full-year 2024 financial results, highlighting significant growth in key performance metrics. The company reported a 46% increase in total orders for the quarter, reaching $15.5 billion, while total revenue grew by 14% to $10.8 billion. Profit margins also expanded, with a GAAP margin of 21.2% and an EPS increase of 62% to $1.75. Cash from operating activities rose 5% to $1.3 billion, demonstrating strong financial momentum.
For the full year 2024, GE Aerospace (NYSE:GE) recorded total orders of $50.3 billion, marking a 32% year-over-year increase. Revenue reached $38.7 billion, reflecting 9% growth, while the company maintained a profit margin of 19.7%. Despite a 27% decline in EPS to $6.09, cash from operating activities remained strong at $5.8 billion. CEO H. Lawrence Culp, Jr. emphasized the company’s solid financial performance, highlighting the role of strong market demand and operational efficiency in driving order growth and free cash flow. He also noted the company’s transition into an independent entity and its strategic focus on innovation and efficiency through FLIGHT DECK, a proprietary lean operating model designed to enhance productivity and accelerate output.
Looking ahead to 2025, GE Aerospace (NYSE:GE) anticipates continued strong performance, projecting double-digit revenue and EPS growth, along with over 100% free cash flow conversion. The company is addressing supply chain challenges through targeted improvements, which have already resulted in a 26% growth in material input across key supplier sites. Additionally, the company returned over $6 billion to shareholders in 2024 and announced a $7 billion share repurchase plan for 2025, alongside a proposed 30% dividend increase. With these strategic initiatives, GE Aerospace (NYSE:GE) remains focused on driving long-term growth and strengthening its leadership in the aviation industry, presenting an excellent stock opportunity for investors looking for long-term value and stability in the aviation sector.
Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:
“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.
We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”
2. Procore Technologies, Inc. (NYSE:PCOR)
Number of Hedge Fund Holders as of Q4: 54
XN Exponent Advisors LLC’s Equity Stake: $193.12 Million
Procore Technologies, Inc. (NYSE:PCOR), a leading provider of construction management software, reported strong financial results for the fourth quarter and full year of 2024. Founded in 2002 and headquartered in Carpinteria, California, the company has solidified its position in the construction technology sector. Its revenue for the fourth quarter reached $302 million, reflecting a 16% increase compared to the previous year. For the full year, revenue rose by 21% to $1.15 billion. The company also reported a gross revenue retention rate of 94% and a net revenue retention rate of 106%, demonstrating its ability to maintain and expand its customer base.
Procore Technologies, Inc. (NYSE:PCOR) experienced significant growth in high-value customers, with 2,333 organizations contributing over $100,000 in annual recurring revenue, marking a 16% increase year-over-year. Additionally, the number of customers generating over $1 million in annual recurring revenue grew by 39%, reaching 86 by the end of 2024. The company also expanded its workforce, ending the year with 4,203 employees, a 14% increase from the prior year. As part of its ongoing innovation efforts, Procore Technologies, Inc. (NYSE:PCOR) introduced several new products, including Procore Artificial Intelligence, AI Agents, Resource Management, Safety, and Scheduling, all unveiled at Groundbreak 2024, a premier industry event.
Looking ahead to 2025, Procore Technologies, Inc. (NYSE:PCOR) projects continued growth, with first-quarter revenue expected to range between $301 million and $303 million, reflecting a 12% increase year-over-year. The company anticipates a non-GAAP operating margin of 7% to 8% for the quarter. For the full year, Procore forecasts revenue between $1.28 billion and $1.29 billion, maintaining the same 12% growth rate. Additionally, the company expects to achieve a non-GAAP operating margin between 13% and 13.5%, further strengthening its profitability.
Procore’s consistent revenue growth, expanding customer base, and investment in new technology position it as a resilient player in the construction software industry. With strong financial performance, high customer retention, and continuous product innovation, the company is well-positioned for sustained success. These factors make Procore Technologies, Inc. (NYSE:PCOR) a top stock to buy according to XN Exponent Advisors LLC.
Conestoga Capital Advisors stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q4 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR), founded in 2002 and based in Carpinteria CA, is a market leader in cloud-based construction management software sold to general contractors, subcontractors, and building owners. PCOR competes in an underpenetrated market, has had historical double-digit growth and has recently demonstrated dramatic improvements in operating margins. PCOR has also been making improvements in its go-to-market strategy, which we believe should further accelerate growth and strengthen its customer relationships.”
1. TKO Group Holdings, Inc. (NYSE:TKO)
Number of Hedge Fund Holders as of Q4: 54
XN Exponent Advisors LLC’s Equity Stake: $373.50 Million
TKO Group Holdings, Inc. (NYSE:TKO), a prominent American media conglomerate, was formed through the merger of World Wrestling Entertainment (WWE) and Zuffa, LLC, the parent company of the Ultimate Fighting Championship (UFC). Headquartered in Stamford, Connecticut, TKO specializes in producing and licensing a wide range of content, including live events, television programming, reality series, and digital media.
Expanding its influence beyond wrestling and mixed martial arts, TKO Group Holdings, Inc. (NYSE:TKO) is venturing into the boxing industry through a new partnership with Saudi Arabia. The company has signed a multiyear agreement with Turki Alalshikh, chairman of the Saudi General Entertainment Authority, and Sela, a subsidiary of the Saudi Public Investment Fund. Under this partnership, TKO will oversee the promotion’s daily operations, with UFC President Dana White and WWE President Nick Khan leading the initiative. The inaugural event is slated for 2026, with participating boxers gaining access to UFC Performance Institutes in Las Vegas, Mexico City, and Shanghai.
Financially, TKO Group Holdings, Inc. (NYSE:TKO) delivered a strong performance in 2024, reporting fourth-quarter revenue of $642.2 million and a net income of $47.5 million. For the full year, the company generated $2.804 billion in revenue, with an adjusted EBITDA of $1.25 billion. Looking ahead to 2025, TKO projects revenue between $2.93 billion and $3 billion, with an expected adjusted EBITDA ranging from $1.35 billion to $1.39 billion. This steady financial growth underscores the company’s ability to expand its market presence while maintaining profitability.
In addition to its expansion into boxing, TKO Group Holdings, Inc. (NYSE:TKO) has announced its first quarterly cash dividend since launching its capital return program. The company plans to distribute approximately $75 million, equating to $0.38 per share, to Class A common stockholders. The dividend will be paid on March 31, 2025, to shareholders of record as of March 14, 2025. With strong financial performance, strategic partnerships, and continuous growth in the global sports entertainment market, TKO remains a compelling investment opportunity for those looking to capitalize on the evolving landscape of combat sports.
In Q4 2024, XN Exponent Advisors LLC increased its stake in the company by 13%. From its previous holding of 2.3 million shares in Q3, the hedge fund held approximately 2.6 million shares of TKO Group Holdings, Inc. (NYSE:TKO) by the end of Q4, valued at over $373 million. Hedge fund interest in the company also increased, with 54 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $2.12 billion by the end of quarter Q4, up from 42 funds in Q3.
Overall, TKO Group Holdings, Inc. (NYSE:TKO) ranks first on our list of top 10 stocks to buy according to XN Exponent Advisors LLC. While we acknowledge the potential for TKO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TKO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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